Concessions Leasing

at

San Francisco

International Airport

SFO’s Concession Program

SFO's concessions provide the Airport's patrons with quality food, beverage and

retail offering, as well as passenger services such as banking, luggage carts and

rental cars.

Revenue Development and Management (RDM) is responsible for overseeing the

operations of the Airport’s Concession Program. RDM develops the concession

business opportunities, from construction and facility maintenance to retail

concessions and advertising. These opportunities are awarded to companies

through a Request for Proposals (RFP) process or competitive bid process.

Who We Are:

Cheryl Nashir, Director

Nanette Hendrickson, Assistant Manager

Retail Team:

John Reeb, Frishtah Afifi, Scott Blood, Trevor Brumm, Clarissa Mamaril

Food & Beverage Team:

Matthew McCormick, Evelyn Reyes-Dizadji, Sharon Perez, Tomasi Toki

Services Team:

Gigi Ricasa, Sam El Gord

Analyst: Karin Yuen

Admin Support:

Cheryl Chan, Judy Lim, Rosa Perez, Trina Pasion

Concessions Program Calendar Year 2015

Actual Gross Sales Totals:

Food and Beverage $218,221,530

Retail $120,616,068

Duty Free $110,932,626

Rental Car $527,654,686

$977,424,910

Additionally, SFO measures performance of concession revenue per

enplaned passenger. For FY 2015, SFO’s sales per enplaned passenger was

$13.68 (F&B and Retail only) – ranking #3 among domestic large hub airports

Services for PassengersEverything you need for travel is here, including currency exchange, banking services, luggage

carts, showers, cell phone rentals, a full-service travel agency, baggage wrapping, expedited

access to airport security lines, self service mailers, shoeshine and rental car services.

Terminal 1

Concessions

Terminal 1 includes:

11 Retailers

12 Restaurants

Approximately

25,881 sq. ft. of

concessions space.

Retail

Food &

Beverage

Terminal 2

Concessions

Terminal 2

Concessions

Terminal 2 includes:

11 Retailers

11 Restaurants

Approximately

29,268 sq. ft. of

concessions space.

Retail

Food &

Beverage

Terminal 3 Boarding Area E Concessions

Terminal 3 Boarding Area E

includes:

7 Retailers

(including 2 Pop Ups Retail)

4 Restaurants

Approximately 8,921 sq. ft. of

concessions space.

Retail

Food &

Beverage

Terminal 3 Boarding Area F Concessions

Terminal 3 Boarding Area F

includes:

24 Retailers

20 Restaurants

Approximately 38,806 sq. ft.

of concessions space.

Retail

Food &

Beverage

International Terminal Concessions

International Terminal includes:

35 Retailers

20 Restaurants

Approximately 86,485 sq. ft.

of concessions space.

Retail

Food &

Beverage

SFO Food & Beverage program

• 69 Dining locations, totaling 85,338

Square Feet.

• Approximately 85% are local

businesses.

Locations being leased, 2016:

• Perry’s, Terminal 1

• Buena Vista Café, Terminal 3

• 6 Quick Serve locations,

Terminal 3

• Vending, Airport-wide

SFO Retail Program

• 92 retail locations, totaling 104,714 Square Feet.

• 35,955 Square Feet of duty free

Locations to be leased, 2016: Terminal 3 Marketplace Lease, Duty Free,

Intl Terminal News and Specialty Retail

Redefining Exceptional

The Terminal 2 Standard

• Terminal 2 Renovation

• Design-build project

• Opened in April 2011

• Completed on-time and on budget

• 12 Retail locations, 11 Food & Beverage locations

• 29,286 sq. ft. of concessions space

• Terminal 2 is the highest passenger spend rate terminal in SFO

Terminal 3 Boarding Area E Renovation• Opened January 28, 2014

• Improves passenger experience

• 7 Retail (including 2 Pop Ups Retail) locations

• 4 Food & Beverage locations

• Increased concession space by 8,921 sq. ft.

• 100% of Food & Beverage Local. 57% of Retail Local.

• Skyline Concessions

Mission Statement

We Provide an Exceptional Airport

In Service to Our Communities.

Services Available

• Tour of Terminals

• Historical sales data shared

• Overview of Operating at an Airport

• Review of winning proposals

• Site visit to off-airport locations

RFP Process

• RFP & Draft Lease published

• Informational Conference

• Proposal Scored by Evaluation Panels

• Recommendations for Award to Airport Commission

International Terminal Food & Beverage Leasing Effort

RFP issued May 2015, 94 proposals received in November, Leases awarded January 2016

Basic Business Terms: 7 and 10 year terms with options; greater of 6/8/10% and 8/10/12% or MAG; $450 psf minimum investment requirement; local and small business strongly encouraged

Existing Program Future Program

Locations 20 22

Sales (2015 vs. 2018) $42,471,000 $60,267,000

Rent (2015 vs. 2018) $3,822,000 $6,328,000

Spend Rate $7.11 $8.65

Square Feet 21,678 28,231

Ethnicity of new ownership, based on first year sales:

African American 15%; Asian 11%; Caucasian 53%; Hispanic 17%; Middle Eastern 1%. Includes 69% local ownership.

After

Questions & Answers