Airport food sales growing again

By Becky Pallack
Published on Friday, August 22, 2003

Inside Tucson Business

Concession sales revenue at Tucson International Airport grew 8.1 percent in 2002 from a year earlier, but the average spent per boarding passenger still isn't at the levels seen in 2000.

Sales are starting to look more "encouraging" now, said Mary Dyer, general manager of CA1, a subsidiary of Delaware North that operates the El Charro restaurant and coffee stands at the airport. The past few months have looked better than expected, with rough numbers for July showing a 9 percent increase from July 2002 in the amount of money the average boarding passenger spends at the airport.

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A new look for the El Charro restaurant and bar, with new menu options like fajitas and soft tacos, sent total revenue for the restaurant soaring 28 percent last month compared with a year earlier.

The usually steady growth in concession revenue changed course in 2001, dropping almost 1 percent from 2000 due to the depressed economy.

The average passenger boarding a plane at TIA spent $6.23 on food, drinks, news items and gifts in 2002. Average per passenger sales are almost back to their 2000 levels, when the average person boarding a plane at TIA spent $6.27. Last year, 3.5 million people went through the airport.

It's hard to say why concessions are growing now. It could be because long flights offer fewer snacks or charge for them, so people buy snacks to take on board. Or because security concerns have people waiting in the concourse longer. Or because people simply have more pocket money today than this time last year.

Airport officials say the number of lunches, snacks, drinks, souvenirs and other items sold at the airport is related to the public perception of the economy.

"When your employment rates are down, your concessions are down. People are concerned about their money and they think twice before paying for parking, buying a newspaper, buying a cup of coffee or renting a car," said Paula Winn, spokesperson for the Tucson Airport Authority.

Last year's county unemployment rates, which ranged from 4.1 percent to 4.6 percent in 2002, were expected to improve about 1 percent this year, according to the City of Tucson Comprehensive Planning Task Force.

Dyer said sales also are tied to whether people are comfortable flying.

"As long as people are still flying, our revenue will stay in a good place," Dyer said. "Right after 9/11, we had some of our highest numbers because security required people to come early and they had nothing to do other than go to a restaurant or go to the gift shop."

People who go to the airport to "meet and greet" incoming passengers are no longer allowed to go to the gate and often end up browsing or snacking in the concourse, Dyer added.

Becky Pallack may be reached (520) 294-1200, ext. 123, or by e-mail at bpallack@azbiz.com.
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