How to Do Business as a Concessionaire. June 2, 2017
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1 How to Do Business as a Concessionaire June 2,
2 Agenda Doing Business at DFW Carolyn Phillips, Food and Beverage Manager Tenant Design and Construction Michael Morford, Advertising and Sponsorship Manager 2
3 3 Doing Business at DFW
4 4 Carolyn Phillips Manager, Food & Beverage
5 Doing Business with DFW Opportunities Become a supplier to concessionaires Offer design and construction services to concessionaires Become a concessionaire own a location
6 Doing Business with DFW Become a Concessionaire Own a Location 5 Basic Steps Step 1 Be informed of opportunities Register on DFW Airport Concessions Attend Community, Industry and DFW Airport Events Step 2 Understand DFW s ACDBE/D/W/MBE participation requirements Step 3 Understand differences - operational, construction, and costs Step 4 Understand DFW Proposal requirements Step 5 Submit a proposal!
7 Doing Business with DFW Step 1 Be Informed of Opportunities Register on DFW Airport Concessions website Automatic updates to public events and RFPs Attend Community, Industry and DFW Airport Events Events and meetings hosted by DFW Airport Airport Revenue News (ARN) Conference Airport Council International (ACI) Concessions Conference
8 Doing Business with DFW Step 2 Understand DFW s ACDBE/DMWBE Participation Requirements
9 Doing Business with DFW Step 3 Understand the Differences Operational, Construction, and Cost Governing Documents: Lease Concessions Handbook Tenant Design Manuals Terminal D A-B-C-E TRIP Related Projects Schedule of Charges
10 Doing Business with DFW Step 3 Understand the Differences Operational, Construction, and Cost Tenant Design Manuals Familiarize tenants with Airport construction Provides guidelines for the design and construction of spaces Provides a step-by-step system for preparing and submitting design compliant plans for approval
11 Doing Business with DFW Step 3 - Costs and Risks of Operating in an Airport Traditional Operating Costs Build-out costs Rent Employee costs Insurance Items Unique to an Airport Build-out costs 20% - 40% higher TSA security requirements Product distribution O&M costs Off-hours operations Banking Airline gate utilization Annual surety bonds/deposits
12 Doing Business with DFW Safety and Security Badge Application Process Badge Authorization/Sponsorship AOA Training Prohibited Items Procedure Risk Management 12
13 Doing Business with DFW Operational Challenges Operations Hours of Operation Irregular Operations (IROPS) Procedures Flight Banking Refurbishment/Improvement of Lease Space Maintenance 13
14 Doing Business with DFW Costs of Doing Business Rent Structure Greater of Minimum Annual Guarantee (MAG) or Percent Rent MAG is set by airport and based on projected sales for that location Percent rent is based on the proposal ranges 12% - 20%+ based on type of product or concept Fees and Charges (refer to lease and Schedule of Charges (SOC) for complete list) Surety Bonds or Cash Deposits both operational and construction Insurance both operational and construction Schedule of Charges posted each Fiscal Year but may change
15 Doing Business with DFW Current In-terminal Operating Costs Outlined in the Schedule of Charges Item Rate for FY 2017 Vehicular Access Charges (24-hr Free Parking) New Badge/Fingerprinting Badge Renewal (within 30 days) Employee Transportation Operating & Maintenance Charge Administration Fee (only assessed at award/renewals of agreements) Marketing Assessment $ 2,000 per person per year $ 120 per person $ 89 per person $ 50 per person per month $ per SF per year $ 100 per occurrence Up to 0.5% of Gross Receipts *Subject to change
16 Benefits of Doing Business at DFW Over 64 million passengers annually Captive audience Concept placement and mix to meet customer needs Concept mix designed to maximize revenue Brand awareness Domestic and International exposure
17 Doing Business with DFW Step 4 - Understand DFW Proposal requirements Minimum Qualifications include: Proposer Experience Proposal Deposit Proposal Acknowledgement Form Concessions Business Disclosure Form Concept Fit Percentage Rent ACDBE/DBE
18 Doing Business with DFW Step 5 Submit Proposal All information for the upcoming RFP will be posted on our Website:
19 19 Michael Morford Manager - Advertising, Sponsorship & Amenities
20 20 How Do I Make My Proposal Stand Out?
21 How Do I Make My Proposal Stand Out? Design High quality renderings that accurately depict the intent of the design Clear and accurate floor plans, ceiling plans, equipment plans, interior and exterior elevations Clear descriptions of the project materials and where/how those materials will be applied A demonstrated understanding of the requirements set forth in the TDM Thoughtful layouts of the allocated space with efficient queuing and space planning Over-communicate the intent of the design. Give as much information as possible 21
22 How Do I Make My Proposal Stand Out? Content Clearly defines how bid meets all the scope requirements for the location Uses a strong combination of succinct narrative and good imagery Is customized to the DFW Airport References how concept fits with specific surrounding passengers/flights Discusses seasonalities and different operational ebbs and peaks References how concepts align with different airport demographics/segmentations Clearly defines irregular operations and speed of service with banked flights If F&B Has descriptions, checklists, forms, etc. that clearly define operations Demonstrates a menu that is in-line with the amount of space allocated to the kitchen 22
23 Tenant Design and Construction
24 Tenant Design and Construction Design and Build Process Coordinate with DFW Concessions TPM Team DFW s Concessions Tenant Project Managers (TPM), manage the design and construction of every concessions project Compliance with Tenant Design Manual Compliance with DFW Design Criteria Design review meetings Manage the Code Submission process Monitor Construction/Build-out process Ensure Lease Compliance prior to Code Submission
25 Tenant Design and Construction Design and Build Process Development Process Timeline There are two phases to the Concessions Build-Out Process: Phase 1 Design Period: Approximately 91 days Phase 2 Construction Period: Approximately days depending on concept 100% Code Submittal Construction Phase 1 Phase 2 30% Design
26 Tenant Design and Construction Design and Build Process Development Process Timeline (228 to 318 Days)
27 Tenant Design and Construction Typical Design Professionals and Trades Required Texas Registered Architects, MEP and Kitchen Design Teams, and Accessibility Reviewers General Contractors Trades/Sub Contractors Framing/drywall contractors MEP contractors Millwork/Trim contractors Fire suppression contractors Tile contractors Signage contractors Kitchen equipment contractors Railing contractors Security door contractors
28 Tenant Design and Construction Tenant Design Manual Located at
29 Summary All information for current and future opportunities will be posted on the DFW Concessions website. This presentation also will be also be made available online. dfwairport.com/concessions
30 How to Do Business as a Concessionaire June 2,
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