CONCESSIONS QUARTERLY MEETING 01.28...2019/01/28 · per the Denver Municipal Airport System Rules and Regulations. For further information or questions, please contact the Communications

CONCESSIONS QUARTERLY MEETING01.28.19

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SPECIAL THANKS

Denver Duty Free

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• Welcome

• DEN Concessions | Announcements & Introductions

• DEN Security

• DEN Concessions | 2018 Full Year Financial Update

• DEN Air Services

• DEN Concessions | Emergency Planning

• DEN Environmental

• Reminders / Closing

Agenda

PLEASE REMEMBER TO SIGN IN / PROVIDE CONTACT INFO

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Announcements & Introductions

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DEN Security

AIRPORT SECURITY UPDATE

ADAM STEFFL / MARK INZANAAIRPORT SECURITY JANUARY 28, 2019

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STERILE AREA PRODUCT INSPECTIONS

– Merchandise for sale to passengers

– Consumables (food/drink) for sale or use by passengers

– Product entering the Sterile Area

must be inspected by a

Security Guard

– THESE REGULATIONS ALSO

APPLY TO AIRLINE CLUBS

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STERILE AREA PRODUCT INSPECTIONS

– November 19th – Access Restrictions In Place

– November 29th - Shrink Wrap Restrictions

– February 8th – New Inspection Process

AE-11(F1)0600 - 2200

AE-09(F2)0600 - 1800

AE-10(F3)0600 - 2200

AE-14(F4)24/7A

Gates

CONTRACT SECURITY GUARDFreight Elevator Hours

All items and products brought into the sterile area by a concession tenant or vendor must be inspected per the Denver Municipal Airport System Rules and Regulations.

For further information or questions, please contact the Communications Center at (303) 342-4200.

20.05-1 No individual may enter the sterile area without submitting to the screening of his or her person and property in accordance with the procedures being applied to control access to that area under applicable federal regulations.

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BE-15(F5) BE-13(F6) BE-11(F7)0600 - 2200 0600 - 2200 0600 - 2200

BE-12(F8)0600 - 2200

BE-14(F9)0600 - 2200

BE-24(F10)24/7B

Gates


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CE-07(F11)0600 - 1800

CE-05(F12)24/7

CE-06(F13)0600 - 2200

CE-10(F14)0600 - 2200C

Gates

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AUTHORIZED SIGNATORY TRAINING– Beginning January 1st, 2019

– RECURRENT CLASSROOM training no longer mandatory

– Recurrent computer training module available (17mins)

– Aligned with annual badge revalidation training (same visit)

– Recurrent Classroom still available

– Initial Training in classroom still required (1-1.5hrs)

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BADGING OFFICE CLOSURES

– Monday, February 18th (City Holiday-President’s Day)

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2018 Full Year Financial Update

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CONCESSIONS | 2018

Concourse SalesSales Y/Y % Change Sales/Sft

Y/Y % Change Sales/EP

SPE Y/Y % Change Sft/EP

Y/Y % Change

A $91,637,195 1.3% $2,346 -1.2% $11.22 1.1% 4.78 2.3%B $167,113,782 13.6% $2,187 23.7% $12.10 6.7% 5.53 -13.7%C $117,179,536 12.0% $2,712 16.2% $11.40 4.4% 4.20 -10.1%

Terminal $22,111,384 -15.5% $992 -1.5% $0.69 -19.6% 0.69 -18.4%Total $398,041,897 8.0% $2,200 14.7% $12.34 2.9% 5.61 -10.3%

Incl Airportwide $411,621,290 8.3% $2,274 14.9% $12.76 3.1%

-10%

-5%

0%

5%

10%

15%

20%

$M

$20M

$40M

$60M

$80M

$100M

$120M

$140M

$160M

$180M

A B C Terminal

All Concession 2018 Sales

Sales Sales Y/Y % Change SPE Y/Y % Change

-20%-15%-10%

-5%0%5%

10%15%20%25%

A B C Terminal Total

All Concessions 2018 Year-over-Year Percentage Change

Enplanements Sales Sales/Sft Sales/EP

Presenter

Presentation Notes

With total EP +5.0%, hope to see at least that much % increase in sales. Even with most of the Terminal concessions closing, +8.0%. In fact, each con’s sales increased more than their respective EP increase. (b/c of Term closing??) Great performance numbers here: Sft/EP decreased significantly in B and C. Sales/sft increased (expected), yet Sales/EP also increased.

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FOOD & BEVERAGE | 2018




Y/Y % Change

A $55,397,864 0.9% $2,168 -3.7% $6.78 0.7% 3.13 4.5%B $110,899,902 13.0% $2,228 19.2% $8.03 6.2% 3.60 -10.9%C $85,742,903 10.7% $2,915 12.8% $8.34 3.2% 2.86 -8.6%

Terminal $15,563,456 -20.6% $1,112 -5.8% $0.48 -24.4% 0.43 -19.8%Total $267,604,125 7.0% $2,254 11.3% $8.30 1.9% 3.68 -8.4%

0%

2%

4%

6%

8%

10%

12%

14%

$M

$20M

$40M

$60M

$80M

$100M

$120M

A B C Terminal

F&B 2018 Sales


Presenter

Presentation Notes

B- Big increases across concourse. B-Mezz, all F&B +19.5% from $27M to 32M. Lounge 5280 +40%, Cantina Grill +35% Etai’s +33%, Steve’s +32% Con A- Vino Volo +37%, MCD +14% Con C- Coors and Tapas each +>45%,

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RETAIL | 2018




Y/Y % Change

A $29,761,204 0.8% $3,250 2.8% $3.64 0.6% 1.12 -2.2%B $49,426,919 15.0% $2,165 36.0% $3.58 8.0% 1.65 -20.5%C $29,607,646 17.2% $2,569 27.6% $2.88 9.2% 1.12 -14.4%

Terminal $4,402,252 -6.2% $582 6.9% $0.14 -10.7% 0.23 -16.5%Total $113,198,021 10.4% $2,216 24.4% $3.51 5.2% 1.58 -15.5%

-10%

-5%

0%

5%

10%

15%

20%

$M

$10M

$20M

$30M

$40M

$50M

$60M

A B C Terminal

Retail 2018 Sales


Presenter

Presentation Notes

A Peak News, Center +10% B Express Market B-Center nice addition $3.9M, Larimer St. Market 8-mos $2.3M, InMotion Center +46%, Misura, Tumi (Crislu closed) +44%, C iStore (Esavvy) +67%. Arts District $1.2M 5-mos, Express Market $4.2M, Say Si Bon +48%, Hudson News C-Inner +38%,

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DUTY FREE | 2018


Y/Y % Change

Sales/Intl EP


Y/Y % Change

A $2,199,418 7.5% $950 7.5% $3.10 -9.6% 3.26 -16.0%B $1,481,612 14.1% $616 10.5% $2.46 4.0% 4.00 -5.8%

Total $3,681,030 10.1% $780 8.3% $2.81 -3.9% 3.60 -11.2%

-10%

-5%

0%

5%

10%

15%

20%

$0.0M

$0.5M

$1.0M

$1.5M

$2.0M

$2.5M

A B

Duty Free 2018 Sales


Presenter

Presentation Notes

B-inner-west, wall unit, $200K, opened Mar. +10% sales, but decreased sales/intl ep 4.2%

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PASSENGER SERVICES | 2018




Y/Y % Change

A $4,278,709 8.2% $2,095 8.2% $0.52 7.9% 0.25 -0.2%B $5,305,349 11.9% $3,798 11.9% $0.38 5.2% 0.10 -6.0%C $1,828,987 -1.2% $809 -1.2% $0.18 -7.9% 0.22 -6.8%

Terminal $2,145,676 14.0% $2,889 20.0% $0.07 8.5% 0.02 -9.6%Total $13,558,721 9.1% $2,104 9.8% $0.42 3.9% 0.20 -5.4%

-10%

-5%

0%

5%

10%

15%

20%

$0.0M

$1.0M

$2.0M

$3.0M

$4.0M

$5.0M

$6.0M

A B C Terminal

Passenger Services 2018 Sales


Presenter

Presentation Notes

Money Exchange, all locations +14%

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DEN Air Services

DEN AIR SERVICE UPDATE

BEN MARWITZ, AIR SERVICE DEVELOPMENTJANUARY 2019

Starting on Valentine’s Day, United will re-time their DEN schedule resulting in more arriving

flights earlier into DEN from 8-9 a.m., and more departing flights from DEN at 9-10 a.m.

Additionally, there is a large increase in arriving and departing flights from noon to 2 p.m.

Source: Innovata Schedules via Diio Mi25

United Arriving Seats by Hour at DENAverage Day in 2019 versus 2018

United Departing Seats by Hour at DENAverage Day in 2019 versus 2018

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Emergency Planning

DEN CONCESSIONAIRE EMERGENCY PLAN CHECKLIST OVERVIEW

JANUARY 28, 2019

NICHOLAS WEBER – AIRPORT OPERATIONS

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DEVELOPMENT

• Developed as guidance, not as a policy

• In collaboration between:• Concessions• Terminal Operations• Training and Exercise Design• Airport Legal

• Developed using:• Airport plans• Best practices/lessons learned• Airport Emergency Preparedness Class

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WHAT’S INCLUDED

• Disasters and their specific considerations

• Continuity of operations

• Accountability

• Reporting emergencies/emergency notification

• Training opportunities

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EMERGENCY PREPAREDNESS CLASS

• 45 minute, in person/classroom course

• Highlights:• How to identify, react to and report emergencies • Assisting passengers• Emergency notification

• Provide the course in our classroom or at your location

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CONTACT

Nicholas Weber

Emergency Management Coordinator

[email protected]

303-342-4168

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DEN Environmental

SUSTAINABILITYPROGRAM UPDATES

JOHN HAMBRIGHT, JERRY WILLIAMS, AMANDA SUTTONSustainability and Environmental ServicesJANUARY 28, 2019

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Recycling and Composting Updates

Composting available airport-wide as of last yearNew materials to recycle

• Hot/cold cups (non-Styrofoam)• Hard block Styrofoam

New Glass recycling program• Partnership with Clear Intentions

• Glass valet service to collect glass directly from your bar/restaurant

• Now available to ALL concessions and Airline clubs• 284,531 pounds (142 tons) collected in 2018

• avg. = 53,000 pounds per month

2018: Glass Recycling by Month

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Trash (tons)

Recycle (tons) without

compost & wood

Wood (tons)

Composting* (tons) Glass Food Donation

Plastic Film/Wrap

(tons)Diversion Rate

Jan1010.63 170.6 3 13.06 0 1.26

015.68%

Feb889.6 147.32 7.5 11.74 0 6.7

016.30%

March1031.07 155.05 7.5 14.79 0 1.01

2.7314.94%

April1001.32 144.61 10.5 17.46 0 0.9

014.77%

May1085.97 149.45 18 17.01 0 1

014.59%

June1113.81 163.04 4.5 10.3 0 14.62

014.73%

July1159.98 201.47 13.5 10.37 9.8 9.1

017.39%

August1136.5 170.5 0 8.01 24.2 11.41

3.316.06%

September

997.44 137.22 4.5 7.35 23.15 7.31

0

15.25%

October1088.31 150.78 5.5 11.79 42.1 5.65

016.55%

November

989.03 132.36 5.5 11.19 31.8 9.8

0

16.16%

December

1014.83 143.65 3 11.8 25.77 10.81 16.12%

TOTAL 12,518.49 1866.05 83 144.87 156.82 79.57 6.03 15.71%

2018: Collection Totals and Diversion Rate

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Pounds of Food Donated to Metro Caring in 2018Concourse Concession Concessionaire Yearly Total

A Flight Stop (Marshall Retail Group) 8844A Caribou Coffee (Skyport) 45A Snarf's (Paradies) 3111A Denver Central Market (Delaware North) 882B Skyport 67B United Club (Sodexo) 243B Starbucks (HMSHost) 133B Etai's (Mission Yogurt) 1372B Multiple Concessions (Avila Retail) 413C C-West Concessions (Paradies) 7163C Delaware North 2934C Provenzano 62C Root Down (Mission Yogurt) 3207C The Arts District Market (Marshall Retail Group) 152

Other DEN Environmental Services 1285Other Menzies Aviation 121Other Final Approach & Wendy's (Fresquez Concessions) 43Other Conoco (United Pacific) 2778Other Stellar Partners 46

Flight Kitchens LSG Sky Chefs 17384United Catering 104151Southwest Airlines - Provisioning 9442

Total (flight kitchens) 130,997Total (concessionaires) 32,855Grand Total 163,878

Food Donation Program Status

40% increase over 2017!!!

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Lockbox system installed on each

cooler with key inside

More Cooler Locations!!

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Certifiably Green Denver

City and County of Denver Sustainability Summit Commitment:

Denver International Airport will work with airport concessions to increase participation in the Certifiably Green Denver program, with an aspirational goal to double the number of certified businesses by the end of 2019.

Supported by DEN Executive Team and the Mayor

Certifiably Green Denver offers FREE sustainability resources and recognition for your business!

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Certified Businesses!A MassageCaribou Coffee (Concourse B)Caribou Coffee (Concourse C)Coors Silver Bullet Bar Clear Channel AirportsElway’sEtai’sHappy Cakes Café Jamba Juice (Concourse B)Lounge 5280Root DownSteve’s Snappin’ DogsTamales by La CasitaTapas Sky Bar Timberline Steaks & GrilleUnited Airlines Club (East and West)Woody Creek

17 and counting!

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Updates / Reminders

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REMINDER | VOUCHER PROGRAM

• Distributed to TSA, Customs, Border Patrol Agents, and FAA Workers.

• Valid through January 31, 2019.

• Accept printed copies only.

• Reimbursement submissions due by February 10, 2019.

DEN Airport AccountingATTN: Federal Voucher ReceiptsAOB, 8th Floor - Accounting8500 Peña Blvd.Denver, CO 80249

4646

THANK YOU

Documents

CONCESSIONS QUARTERLY MEETING 01.28...2019/01/28 · per the Denver Municipal Airport System Rules and Regulations. For further information or questions, please contact the Communications