Concessions Refresh Program

Being an award-winning airport means keeping the experience at IND fresh and meaningful for both leisure and business travelers alike. The Concession Refresh Program is intended to attract authentic retailers and food & beverage providers to the airport, as a means of showcasing local foods, beverages and brands that directly represent the Hoosier experience as permitted by law. A primary goal of the Concessions Refresh Program is to meet and exceed a traveler’s expectations, and to specifically ensure the IND Concessions Program recognizes expectations of the “traveler of the future,” including products, services and offerings reflective of Indy’s top food, beverage and retail brands.

A concessionaire is a business partner (entity) that has entered into a Concession Agreement with the Indianapolis Airport Authority (IAA) to provide concessions offerings, such as food & beverage, retail and services, to travelers, visitors and employees of the Indianapolis International Airport. 

The current Concessions Program consists of 56 individual retail spaces of which 53 are currently leased. More than 30 food & beverage, specialty retail and news & gift concessions locations are expiring at the end of 2018, with six more locations set to expire at the end of 2020. 

As of August 2017, the Indianapolis Airport Authority (IAA) is in the process of space planning for the future of the Concessions Program. A key mission is to develop the Concessions Program to meet the needs of today’s passengers and to be relevant. This will be achieved through a public solicitation process in advance of the current locations expiring. When the space planning process is completed, the IAA will conduct a solicitation process (The method of solicitation has not yet been determined). One component to keep in mind with the future program is that concession spaces may be altered in category type, such as from a news & gift category to a food & beverage concept.   

Make sure you have experience in operating the type of concept you wish to propose. Then work on developing your business plan with specific emphasis on financing and operational expertise. Determine first whether your organization is interested in: a direct Concession Agreement with the IAA, or if a business partnership, with a “prime operator” or joint venture model, is an avenue you are interested in pursuing.  If you are interested in the business partnership or joint venture route, begin to pursue and actively seek out established airport concession operators (sometimes referred to as a prime operator) or other qualified individuals/firms.  

A prime operator is typically a national or international company that manages several concession or retail locations in an airport, mall, strip mall or other similar shopping environment. An example of this is currently if you purchase something from one of the well-known brands in the Indianapolis International Airport and pay with a credit card. The top of the receipt may state the name of the prime operator, not the national brand. The best explanation of the function of a prime operator is that the prime operator is the franchisee of third party brand. In other words, the prime operator is responsible for running the store, purchasing the materials and supplies, making and serving/selling the products and/or services offered under the third-party brand, staffing the location, hiring and training their employees, health department requirements, financial reporting to the airport and the other daily functions.The third party brand owner dictates and mandates the kind/quality of ingredients, signage, store appearance and overall brand guidelines, to name a few examples. The airport is not involved with the negotiations of contractual terms between the prime operator and the third party brand. 

If you would like contact information for the primes currently operating in the airport please contact David Shaw at dshaw@ind.com. 

If your proposal is not selected, you are not excluded from future opportunities. You can still submit in the future.

The IAA will issue a solicitation on January 5, 2018. Sign up for the IAA's online solicitation management system to be notified when the solicitation is posted. It's free to register and view open solicitations. 

IAA staff anticipates that respondents will have approximately 90 days to submit their response.  

The IAA typically requires a minimum of three to five years of experience in of continuous ownership and management of food and beverage or retail concessions that are comparable in scope and complexity to a shopping center, airport, transportation center, mall, brick-and-mortar location or other prominent setting. 

The review process will include a review of responses and selection of concessionaires and concepts for specific site(s), followed by concession agreement negotiations. This process generally takes about 5-6 months from the issuance of the solicitation. Selected proposers will be notified that their proposal have been selected for negotiation of a concession agreement. The selection committee will not notify proposers which are NOT selected until concession terms are finalized and agreed to with the selected proposers. (If all parties reach a preliminary agreement on the terms of the concession agreement, no selection is final until the IAA Board approves the concession agreement.)  

No; however, if awarded a contract the IAA could require a performance bond or security deposit upfront. At this time no decision has been made whether to require such a deposit. You will receive more details in the solicitation document.

All communication will go through the IAA Procurement Department. Sign up for the IAA's online solicitation management system to be notified when the solicitation is posted. It's free to register and view open solicitations. 

The IAA will create a selection committee, which will be composed of IAA staff from various internal departments and background expertise. The selection committee will make a recommendation to the IAA Board, which will either accept or reject the committee's recommendation.

Yes, there will be a pre-proposal meeting which typically takes place approximately 2-4 weeks after the solicitation is issued.   he pre-proposal meeting affords respondents an opportunity to ask questions. 

Multiple hard copies will need to be submitted to the IAA on or before the due date. More information on this topic will be available in the solicitation document.

Airport Revenue News (ARN) is an industry leader on airport concessions information. Visit their website at http://www.airportrevenuenews.com.

The 2016 average spend per departing passenger was $11.20. This is inclusive of food & beverage and retail stores. DISCLAIMER – this number could rise and fall on a monthly basis due to a variety of contributing factors. 

The IAA is working with various internal experts, industry consultants and stakeholders to develop a future concessions layout plan and terminal space utilization plan. The IAA uses multiple resources (market research, consultants, passenger interviews and surveys, industry best practice data, etc.) to identify the optimum use for each space and to anticipate future desired passenger trends and preferences.

IND served over 8.5 million total business and leisure travelers in 2016 and averages 143 daily flights, seasonally and year-round, to 47 nonstop destinations. The annual passenger count is projected to remain consistent with conservative increases of passenger traffic in future years. 

Business terms will vary; however, the standard industry norm is that concessionaires pay a minimum annual rent, divided by twelve, payable every month. If applicable, concessionaires shall pay a percentage fee to the IAA should this percentage fee be greater than the minimum annual rent. 

Yes, examples of those expenses are insurance, utilities, common use fees, loading dock fees, parking, badging/credentials, preventative maintenance, etc. Additional information regarding expenses will be explained in the solicitation.

All opportunities in a concession solicitation process are offered either as a single location or multiple locations known as a “package.”

In most cases, the tenant is responsible for all capital investment, buildout or improvements. The IAA will deliver a standard “white-box” to the tenant, which shall include a clean space which is free of temporary/non-permanently attached fixtures, cabinets, shelves, lighting, etc. 

The term could vary, but in many cases the length of the agreement is 7-10 years, with a requirement for a mid-term refurbishment, especially for longer concession agreements.

This can range based on flight schedules, time of year, passenger counts, however the typical range is 5:00 am – 9:00 pm, 7 days a week, including all holidays. This is subject to change however and these times should only be considered as examples. 

An Airport Concession Disadvantaged Business Enterprise (ACDBE) is a for-profit small business that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation where at least 51 percent of the stock is owned by one or more such individuals; and whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

To learn more about ACDBE, visit the IND Supplier Diversity Program. 

No, ACDBE certification is not required to operate a concession at IND. If a proposer is seeking ACDBE credit to meet an ACDBE goal, the ACDBE firm must be certified through the Indiana Department of Transportation (INDOT)  at the time of proposal submission. A certification letter must be included with the proposal submission.

Generally, IND concessionaires are contractually bound to charge at or very close to street pricing.

IND does not currently have a specific program for trial concepts, such as a “pop-up store” or temporary location; however, IAA is exploring various concepts as it designs the upcoming concessions refresh process and/or future opportunities.

If interested in selling a specific product at IND, please e-mail the Director of Concessions at dshaw@ind.com to request contact information for store managers of each retail and food & beverage concept at IND.