Presentation: Concessions Forum, 8.24.17
Total Page:16
File Type:pdf, Size:1020Kb
Concessions August 2017 Forum 08.24.2017 1 Welcome Zenola Campbell Vice President, Concessions 2 Agenda Welcome & New Staff Introductions Air Service Development Millennial Dining Trends Grab Updates Concessionaire Food Donation Program Coca-Cola Updates BDD Compliance Technology Security Airport Safety and Security Docks and Storage & Terminal C Updates Hiring Recruitment and Janitorial Survey Award Criteria / Clean Working Friendly Questions and Closing 3 United Way Golf Tournament Date: Wednesday, October 11, 2017 Platinum Sponsor - $15,000 Gold Sponsor - $10,000 Breakfast Sponsor - $8,000 Lunch Sponsor - $8,000 Apparel Sponsor - $8,000 Merchandise Sponsor - $8,000 Beverage Cart Sponsor - $8,000 Photo Sponsor - $8,000 Team Sponsor - $2,500 4 Air Service Matt Whitehead Airline Relations and Analytics Manager 5 DFW Air Service Highlights Global Strategy & Development 6 DFW enplanements projected to hit record high in FY 2017 DFW Enplanements (in Millions) 35 +1.2% YOY 33 33.3 32.5 32.9 31 31.4 30.6 29 29.9 30.1 29.1 28.9 29.1 27 27.9 28.2 25 23 FY 00 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 CAGR represents Compound Annual Growth Rate Source: DFW Monthly Flight Activity Reports, GSD Forecast 7 International enplanements has grown tremendously in the last 5 years DFW International Enplanements (in Millions) 5 +6.4% Y/Y 4 4.4 4.1 3.9 3.5 3 3.3 2.8 3.0 2 1 0 FY 11 FY 12 FY 13 FY 14 FY 15 FY16 FY 17 CAGR represents Compound Annual Growth Rate Source: DFW Monthly Flight Activity Reports, GSD Forecast 8 FY 2017 International Passengers International passenger traffic was up across most regions. Canada 8.6% 1.5% Europe 15.4% 12.9% Asia/Pacific 6.0% 17.1% Mexico 35.1% 8.5 % 7.2% Middle East 3.1% Central & South 14.8% America (3.7)% Source: DFW Monthly Flight Activity Reports Note: Percentages within text boxes denote FY YOY change; Color circles with percentages represents relative passenger market share Note: Caribbean (3.0%), not included in picture 9 International Service Growth 10 AA announced seasonal service to Rio de Janeiro, Brazil starting December 2017 Starting Dec 15, 2017 Source: Public announcements 11 New Domestic Service 12 AA launches seasonal service to Lihue, Hawaii starting December 15, 2017 Starting Dec 15, 2017 Source: Diio Mi schedules 12 months December. 2017 13 DFW – A Global Super Hub 14 DFW Airport is a Global Super Hub with non-stop service to 56 international destinations Destinations Region/Country Mexico 18 Central America 7 South America 7 Asia 5 Canada 4 Caribbean 6 Europe 6 Middle East 3 Australia 1 15 Source: DFW Monthly Flight Activity Reports Holiday and summer traffic projections 16 Labor Day 2017 holiday traffic projections Labor Day 1.31 1.292 1.29 1.28 1.262 1.26 Passengers(millions) 1.25 FY2016 FY2017 Source: DFW Monthly Flight Activity Reports, GSD Forecast 17 Millennials Dining Trends Nikki Jones Insights and Strategy Director, The Integer Group Dallas 18 MILLENNIALS: DINING OUT August 2017 © 2017 The Integer Group WHO ARE WHO MILLENNIALS? 20 © 2017 The Integer Group U.S. GENERATIONS IN 2017 EMERGING GEN Z MILLENNIALS GEN X BOOMERS SILENT Born: Born: Born: Born: Born: Born: 2011-2017 1995-2010 1979-1994 1965-1978 1946-1964 1925-1945 Ages: Ages: Ages: Ages: 0 to 6 Ages: Ages: 39 to 52 years 53 to 71 years 72 to 92 years years 7 to 22 years 23 to 38 years 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80+ Group AGE The Integer 2017 © 21 WHY THEY MATTER MILLENNIALS Born: LIFESTAGE 1979-1994 Ages: 23 to 38 years FRAGMENTATION SPENDING POWER Group The Integer 2017 © 22 MILLENNIAL VALUES TOP 10 VALUES KEY DIFFERENTIATING KEY RISING VALUES FROM 2010- VALUES 2016 #1 loyalty #2 success #3 equality +40 +27 +14 #4 happiness #5 family safety expertise duty authenticity #6 I actively seek I believe it is my #7 ways to keep honesty I always strive duty to fulfill my myself, my to obtain expert obligations to #8 family, and my responsibility skills or family, friends, friends safe Group knowledge community and curiosity #9 from harm or country danger learning #10 The Integer 2017 © Source: Iconoculture 23 VALUES AND FOOD TOP 10 VALUES KEY DIFFERENTIATING KEY RISING VALUES FROM 2010- VALUES 2016 #1 loyalty #2 success #3 equality +40 +27 +14 #4 happiness #5 family safety expertise duty authenticity #6 I actively seek I believe it is my #7 ways to keep honesty I always strive duty to fulfill my myself, my to obtain expert obligations to #8 family, and my responsibility skills or family, friends, friends safe Group knowledge community and curiosity #9 from harm or country danger learning #10 The Integer 2017 © Source: Iconoculture 24 ARE MILLENNIALS STILL DINING DINING OUT? MILLENNIALS ARE STILL 25 © 2017 The Integer Group YES! 26 © 2017 The Integer Group MORE MILLENNIALS DINE OUT % DINED IN CATEGORY DURING PAST 3 MONTHS 96% 95% 93% 90% 80% 74% 71% 69% 64% 62% 56% Total Millennials 43% Gen X Boomers Group The Integer Quick-Serve/Fast Food Fast Casual Casual Dining 2017 © Source: Morgan Stanley 27 OLDER MILLENNIALS MORE FREQUENT CASUAL DINERS % FREQUENTED CASUAL DINING RESTAURANT IN PAST 30 DAYS 65.7% 60.4% 57.0% Group All Millennials Older Millennials Younger Millennials The Integer (1979-1985) (1986-1994) 2017 © Source: Iconoculture 28 WHY FAST CASUAL IS WINNING WITH MILLENNIALS TIME + COST + QUALITY Group The Integer 2017 © 29 TOP 5 MILLENNIAL DINING TRENDS Group The Integer 2017 © 30 1: EXPERIENCE IS EVERYTHING EXPERIENCEIS 1: 31 © 2017 The Integer Group TREND: EXPERIENCE IS EVERYTHING “I CONSIDER GOING OUT TO EAT TO BE A CULTURAL EXPERIENCE.” 81% 68% 53% Group The Integer Millennials Gen Xers Boomers 2017 © Source: Iconoculture 32 TREND: EXPERIENCE IS EVERYTHING THOSE WHO SAY THEY SHARE PHOTOS ON SOCIAL MEDIA OF FOOD ORDERED AT A RESTAURANT Other (Gen Z and Seniors) 10% Millennials 48% Boomers 11% Group Gen Xers 31% The Integer 2017 © 33 2:GROWTH OF GLOBAL 34 © 2017 The Integer Group TREND: GROWTH OF GLOBAL CONSUME FOUR 41% DIFFERENT ETHNIC OF MILLENNIALS ARE CUISINES AT MULTICULTURAL RESTAURANTS PER MONTH Group The Integer 2017 © Sources: U.S. Census, National Restaurant Association 35 TREND: GROWTH OF GLOBAL “Our research found that ethnic cuisines have become part of regular diets for a majority of Americans, indicating that the global flavors trend is only getting stronger.” – Annika Stensson, Director of Research Communications National Restaurant Association Group The Integer 2017 © Sources: U.S. Census, National Restaurant Association 36 3: DEFINITION OF HEALTHY IS SHIFTING IS HEALTHY OF DEFINITION 3: 37 © 2017 The Integer Group TREND: DEFINITION OF HEALTHY IS SHIFTING WHAT HEALTHY FOOD AT A RESTAURANT MEANS TO MILLENNIALS 53% 42% 40% 34% 29% 22% 16% 14% 11% 10% 6% Group Fresh Less Processed Natural Fewer Artificial Low Calorie Organic Locally Grown Fat Free Smaller Portion Good for Planet Sugar Free The Integer Ingredients 2017 © 38 4: IMPORTANCE CUSTOMIZATION OF IMPORTANCE 4: 39 © 2017 The Integer Group TREND: IMPORTANCE OF CUSTOMIZATION CUSTOMIZATION ALLOWS DINERS: IMAGE To reflect the image they want to portray EXPERIENCE A new, unique experience every visit PRICE To not waste money on items they don’t want Group HEALTH To meet personal definitions of health The Integer 2017 © 40 5: MOBILE MOBILE 5: ENGAGED 41 © 2017 The Integer Group TREND: MOBILE ENGAGED HAVE USED RESTAURANT MOBILE APP TO ORDER TAKE-OUT 28% 62% BOOMERS MILLENNIALS Group The Integer 2017 © 42 TREND: MOBILE ENGAGED REASONS FOR USING RESTAURANT MOBILE APP 37% 35% 32% 26% 26% 23% 18% 17% Group Look for Discount Look at Menu Location/Hours Pay for Order Loyalty Points/Rewards Order for Delivery/Take- Track Order Reorder a Saved Order The Integer out 2017 © 43 KEY TAKEAWAYS KEY 44 © 2017 The Integer Group NEEDS AND WANTS IN DINING DECISIONS FOOD CHARACTERISTICS CONSIDERED AS IMPORTANT AT RESTAURANTS FOOD CHARACTERISTIC MILLENNIALS GEN XERS BOOMERS SENIORS Delicious 89 89 93 93 A good value 86 94 90 88 High quality 85 85 90 95 Fresh 81 87 89 100 Low cost 75 74 68 55 Customizable 65 57 69 73 Healthy 63 53 63 63 Group Something I can’t get any other place 46 32 42 48 The Integer Indulgent 39 36 35 30 2017 © 45 CRAVEABILITY INCREASES IMPULSE OCCASIONS PLANNED OCCASIONS IMPULSE OCCASIONS Location Craveability vs. Price Menu Options Group The Integer 2017 © 46 Than k You! Group The Integer 2017 © 47 Grab Updates Cristen Mosley Concessions Project Manager 48 Program Overview Background Grab is an open platform that connects airport restaurants, retailers, and services to travelers • DFW was introduced to Grab by American Airlines • DFW is the first Grab airport • Grab now has 181 locations in 20 airports 4 9 Program Goal Performance • Current Transactions • Passengers - 60% • Employees - 40% • DFW currently has around 30 locations • We plan to add 30 more locations by the end of CY2017 (60 locations total) 50 Program Observations Focus Groups • Expressed that they loved the idea of an app for the airport and mobile ordering • See what restaurants are close to their gate • Loved the idea of “Grab and Go” • Would definitely use it if available to them 51 Mobile Ordering Marketing Efforts • Gate Pylons in Terminals • Dioramas in Terminals B and D • Banners in Terminal C and D • Walled Garden Ad on mobile • Website promotion • E-Newsletters to over 1M • Breakroom posters – AA and DFW • Emailed flyers to all AA contacts • Pop up messages on mobile app • Social Media push • Built filers for digital assets that highlight the 20% offer for passengers through October 52 Next Steps Marketing • American Way Magazine – October issue • Ambassadors to hand out 20% off coupons • Video/Posters for badging office 53 Concessionaire Food Donation Program Carolyn Phillips Concessions Manager, Food and Beverage 54 Food Donation Program • We would like to engage our Concessionaires do donate surplus food.