Revisiting the Ideal RFP, Part 2

With Guests
John Cugasi, Paradies Lagardère
Stu Holcombe, Travel Retail Partners
Mookie Patel, Austin-Bergstrom International Airport
 
​The RFP topic is so big, so important, it took two Forums to do the topic justice! For our December Forum, “Revisiting the Ideal RFP,” we posed a difficult question: do current RFPs reflect the financial and operational realities of the post-Covid business environment? Our guests’ answer: not so much! Mookie, Stu, and John covered many facets of the Ideal RFP: balancing the needs of airports and concessionaires, industry lifecycles, moving the needle on MAG, and the role of procurement rules. We encourage you to read the recap or watch the replay here.
 
But there was still much left to discuss. And it remains a crucial discussion our industry must have. Especially now with a backlog of RFPs from the pandemic and an unprecedented amount of business out on the street.
 
For our February Forum, ARRA brought our December panel back together to continue the conversation. Mookie, Stu, and John did not disappoint! Their insights and bold ideas for concessions programs and the RFP process are well-placed from nearly 100 years of collective experience. We discussed alignment of goals among concessionaires, airports, and governing bodies; proper program size; evaluation committees and criteria; the impact of the changing passenger base and travel purpose; pop-ups to keep a program fresh and engaging; and the critical, central importance of customer service. It was an inspired conversation.
 
Here are three key takeaways:
 

• This industry is a very capital-intensive business with substantial risk. And like any investment, concessionaires need to exceed a hurdle rate of return – that is, “pencil” – to attract capital and make the investment worthwhile. But penciling is not just about economic return. Companies must also consider exposure, engagement with the consumer, and brand development. Businesses do not want to pass on opportunities. But if an opportunity offers insufficient financial return or inadequate brand development, then it doesn’t “pencil” and the company will take a pass.

 

• Midterm refurbishment requirements just don’t make sense. The objective should be to keep stores and restaurants “opening day fresh,” which is more about ongoing maintenance than “a chunk of money at a random point in time.” Moreover, airports and concessionaires should work together to make changes as needed. If things aren’t working out, then change them out. As Stu said, “You’re better off to get rid of a concept that’s not performing and put something else in.”

 

• Outreach communication is critical; it must be early and often. Proper outreach presents an opportunity to be better, to solve for a lot of problems. One-on-one outreach early in the RFP process with small-, medium-, and large-size concessionaires allows dialogue: “here’s what we see, what do you see?” With this feedback, an airport can adjust and tweak its plans improving the odds of a robust RFP leading to a program that achieves its goals with great brands, great design, and a great sense of place.

 
These are just three important takeaways. Mookie, Stu, and John offered many more profound observations. We encourage you to watch the replay. 

MEET OUR GUESTS

Mookie Patel
Chief Business & Finance Officer
Austin-Bergstrom International Airport
 
Mookie is an experienced aviation professional with 27 years of combined airport, airline, and consulting experience. Through his early career, Mookie worked in various positions as an airport properties manager, capital program budget consultant, airport planning and technology consultant, and airline corporate real estate and airport affairs manager.

More recently, Mookie was the Senior Vice President for Airline and Commercial Affairs at Denver International Airport and then Chief Aviation Administration Officer for San Antonio International Airport. In these roles, his responsibilities variously included stakeholder relations for expansion projects, administering the opening of on-airport hotels, fiscal administration, technology, properties, concessions, procurement, and the small and minority-owned business office.

Mookie joined Austin-Bergstrom International Airport as the Airport Chief Revenue and Finance Officer in summer 2020. Since joining, he has taken on similar responsibilities, including oversight of the City’s finance and properties functions. He is a passionate leader and always looking for ways to connect with his LinkedIn followers.
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​Stu Holcombe
Founder/Managing Partner
Travel Retail Partners
 
Travel Retail Partners is committed to finding solutions that create opportunities for our client partners by empowering them with information, knowledge, and the tools necessary to succeed in travel retail.

With over 35 years of experience in food & beverage, retail management, and consumer product marketing, Stu has been instrumental in negotiating licensing agreements with national, regional, and local restaurants and retail stores throughout North America. He is an active participant and contributor to numerous industry associations including ACI, AAAE, and AMAC.

Stu brings a passion for retail and a great ability to develop win-win relationships with airport landlords, subtenants, and minority partners.
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​John Cugasi
Vice President, Business Development
Paradies Lagardère
 
John is Vice President, Business Development for Paradies Lagardère. In this role, he is responsible for all aspects of the development function for select clients including strategic planning, marketing, finance, client relations, brand relationships, and proposal development. This is John’s third assignment with the company, having previously held the position of Senior Vice President, Planning and Development from 2011 to 2016, and providing consulting services since 2016. Prior to that, he held various leadership positions in the industry including Director of Concessions at Hartsfield-Jackson Atlanta International Airport where he managed the concessions program for the world’s largest airport.