challenging the F&B concessions status quo

(A collaboration between The Moodie Davitt Report and ARRA) 
Dawn Hunter, Seattle-Tacoma International Airport 
Bill Wyatt, Salt Lake City International Airport 
Nick Crews, Crews Hospitality 
Pat Murray, SSP America 
 
What a conversation! Dermot Davitt and Andy Weddig co-hosted four of our industry’s most brilliant minds for a special session during The Moodie Davitt Report’s 2022 Food and Beverage Conference and Awards. And our guests did not disappoint! Our wide-ranging, profound conversation about the depths of the pandemic, the current recovery, and a vision of the future “new normal” lays out a road map for the evolution of the airport-concessionaire business framework. 
 
Motivating this conversation are many changes in the aviation industry – and the broader economy – that followed the pandemic and continue in the recovery. Many of these changes are likely permanent. Higher wages are not rolling back. Lower inflation does not mean lower costs. The changes frame the overriding challenge – perhaps crisis – the concessions industry faces: the ability to make money in a new economic environment. In other words, how does our industry continue to provide food, beverages, goods, and services to the traveling public, yet earn sufficient profits to attract capital? The solutions to this question define our new normal. 
 
What Dawn, Bill, Nick, and Pat said during our panel merits reflection and action. We did not find all the solutions, but new ideas for progressing to a sustainable future for all participants in this industry emerged – new ideas to refresh an industry that is so vital to achieving a memorable passenger travel experience. 
 
Here are three key takeaways:  
 

• Labor shortages, supply chain disruptions, airline chaos, and inflation have dramatically increased operational and financial pressures on concessions operators. Severely reduced hours because we just cannot get people to keep the units open full time. Crews Hospitality operates about 70% of its pre-pandemic hours with about 65% of the total staff. SSP, 55% of its pre-pandemic staffing. As a consequence, sales are lagging: although airports approached 90% of pre-pandemic enplanements over the summer, sales are only 60% to 75% of 2019 levels. 

 

• Airports should let concessionaires recover their increased costs: “if we’re okay with airlines and rental cars doing cost recovery for Covid, why are we not okay with the concessions also doing some cost recovery?” Covid taught us the 20- to 30-year-old standard concession model is not working. The industry needs to reimagine its business framework so we have a win-win. 

 

• When a crisis happens, the MAG is kind of worthless – “the boat is sinking, and we all have a job to figure out how to get the water out.” The pandemic has changed how airports need to think about their business partners; the pandemic has taught us this is a partnership. We must share. “When times are good, we’re all happy. When times are tough, we’ve got to find a way to be sure nobody is penalized.” 

 
These are just three important takeaways. Our panel offered many more profound insights and bold ideas. We encourage you to watch the replay here. 

This session at FAB 2022 was a collaboration between The Moodie Davitt Report and the Airport Restaurant & Retail Association. You can read The Moodie Davitt Report’s session by session coverage of FAB 2022, “People, Planet, Partnership and Progress,” at this link. ​

​About Our Guest​s

​Dawn Hunter 
Acting, Aviation Chief Operating Officer 
Seattle-Tacoma International Airport 
 
Dawn Hunter is the Acting, Chief Operating Officer (COO) at Seattle-Tacoma International Airport (SEA). Prior to this position she served as the Director of Aviation Commercial Management. 
 
Joining the SEA team in 2017, Dawn was originally recruited to serve as the Sr. Manager over the Airport Dining and Retail program. In this role she successfully managed the program through a concessions master plan and construction challenges. 
 
Prior to joining the SEA team, Dawn has more than 17 years of Aviation experience at Los Angeles World Airports. She holds dual master’s degrees in Public Administration and Policy. Dawn currently is the Chair of the Airport Minority Advisory Council (AMAC) Foundation Board and is the President of the Port of Seattle Chapter of Blacks in Government (BIG). 
 
For those who know Dawn, her dynamic personality and passion for aviation drives her spirit of excellence. She was recognized as the Manager of the Year by the Seattle Chapter of the National Management Association (2017), Charles Blood Champion of Diversity Award for her dedication to creating and maintaining a diverse and equitable environment for both internal and external stakeholders (2019), AMAC Emerging Leader (2019), Property Manager of the Year by Airport Experience News (2021). ​

Bill Wyatt 
Executive Director 
Salt Lake City Department of Airports 
 
Bill Wyatt began serving as the Executive Director of the Salt Lake City Department of Airports (SLCDA) in November 2017. The SLCDA operates Salt Lake City International Airport and two reliever airports, South Valley Regional Airport and Tooele Valley Airport. 
 
Wyatt was named Director of the Year in the Large Airports Category by Airport Experience News in 2020. 
 
Prior to joining SLCDA, Wyatt spent 16 years as the Executive Director of the Port of Portland where he oversaw four marine terminals, two general aviation airports and Portland International Airport (PDX). Previously, he served as Chief of Staff to former Oregon Governor John A. Kitzhaber for seven years, preceded by six years as President of the Oregon Business Council, and five years as Executive Director of the Association for Portland Progress, then, Portland’s downtown development association.  Wyatt served as a state representative from the Astoria, Oregon area from 1974 through 1977. ​

​Nicholas B. Crews 
Managing Partner & President/CEO 
Crews Enterprises 
 
President/CEO 
Nicholas & Associates  
 
Nicholas B. Crews has over 14 years of experience in the retail, food and beverage/hospitality airport concessions industry. As President/CEO of Crews Enterprises & Nicholas & Associates (ACDBE firm), Nick provides overall leadership to the organization by ensuring the Crews mission and vision are implemented and strategic goals are achieved. 
 
Growing up in the airport concessions business, Mr. Crews has worked in various facets of the industry including, but not limited to, management of day-to-day operations, human resources, purchasing, business development and loss prevention. In December 2019 Nick raised capital to purchase majority interest in Crews companies from his family. Crews currently operates F&B and Retail in 4 airports (32 location 18 local/regional/national brands) – six retail locations at Washington Dulles International Airport (IAD), four food & beverage/retail locations at Ronald Reagan Washington National Airport, eight sit-down restaurant and fast casual locations at Los Angeles International Airport (LAX) and fourteen retail and food & beverage locations in Hartsfield Jackson Atlanta International Airport with seven new locations opening at LAX and IAD in 2022 and 2023. ​

​Pat Murray 
Deputy Chief Executive Officer 
SSP America 
 
Pat Murray is SSP America’s Deputy Chief Executive Officer and is charged with developing and growing the company’s portfolio across North America. Pat oversees a division responsible for business development, design & construction, brands & concepts, strategic partnerships, and industry relations. 
 
Pat has been an instrumental force in realizing SSP America’s vision of delivering a “taste of place”to North American airports, driven by SSP’s strong alliance of award-winning local brands, impassioned culinary professionals and leading restauranteurs. Pat is also recognized for spearheading unique strategic partnership models that have helped to drive innovation and transform business development within the travel food and beverage industry. His leadership and extraordinary commitment to the industry have been integral to SSP America’s dramatic and continued growth. 
 
Pat’s background in restaurant management and concept development prepared him well for the multi-discipline environment of the food and beverage travel arena. Pat began his hospitality career with Al Copeland Investments at Copeland’s of New Orleans, where he rose through the ranks from entry-level manager to senior vice president of operations. During his 14-year tenure with the organization, Copeland’s grew from 8 restaurants in 3 states to 55 restaurants in 13 states. Pat then served as Director of Concept Development at HMSHost before joining SSP America. 
​

Pat is a leading voice for the airport concessions industry having most recently served as the inaugural Chairman of the Board of Directors for the Airport Restaurant and Retail Association. During his tenure as Chair, he moderated more than 75 industry wide, weekly calls which brought together airport directors, airline executive, aviation finance experts and concession company executives to discuss the most pressing issues facing airports and concessions companies. Pat also worked closely with ACI-NA leadership during the COVID-19 pandemic on each of the pieces of legislation passed by the U.S. Congress in support of the aviation industry. Pat is a frequent speaker and panel participant at industry conferences as he is called upon to offer his expertise and insights on the fast-moving airport concessions industry.