Port to Ink Sea-Tac Concession Contracts with 11 New Vendors

25% of revenue expected to be from disadvantaged business enterprises

More well-known shops and eateries are coming to Seattle-Tacoma International Airport as the Port of Seattle revamps the way it handles airport concessions.

Under contracts approved yesterday by the Port Commission, 11 new vendors will open their doors at Sea-Tac on Jan. 1, 2005. Among the shops and restaurants will be well-known names like Ivars, Eddie Bauer, Wendy's, Borders Books and Dilettante Chocolates.

This commission action ratifies the third component of the airport's new three-tiered concessions program. The first two tiers involved prime concessionaires who will develop shops and restaurants in space that they lease from the airport. This tier involves direct leases between the airport and each shop or restaurant operator.

"These are 11 terrific vendors to have in our facility," said Gina Marie Lindsey, managing director of aviation for the Port. "We have the opportunity to create a great dining and shopping experience for travelers, and to find some new revenue as well."

The shops are expected to generate $8 to $10 million additional dollars for the airport during their first five years of operation.

"Every dollar we make on concessions goes directly to offset the cost of running the airport," Lindsey said. "And if we can reduce what we charge the airlines, we can potentially reduce ticket prices for all travelers."

Sales prices in the shops and restaurants will be the same as those operators would charge in an off-airport facility. No airport markup will be permitted.

"We want this to be a place that people will want to come and shop," said Kottayam Natarajan, the airport's general manager of business development. "We expect to earn that reputation by having truly great vendors offering truly great products at fair prices."

Of the revenue generated, 25% is expected to come from Disadvantaged Business Enterprises (DBEs). Three of the 11 operators are DBEs, and they're expected to generate at least 30% of the revenue earned by Tier III operators.

DBEs are small businesses operated by women or minorities.

"Our goal is to have 25% of concession dollars be earned by DBEs," Natarajan said. "We think the business model presented by our three DBE vendors will allow them to exceed that benchmark."

The prime concessionaires in Tiers I and II also are required to generate at least 25% of their revenue through the use of DBE-qualified subcontractors.

A 12th tenant under Tier III will be an Anthony's Restaurant as the anchor eatery in the airport's Pacific Marketplace; the facility will be operated by Anton Airfoods of Washington, D.C. That contract was approved in May of this year.

The 11 contracts approved yesterday:

Ivars, a well-known local seafood chain;
Wendy's International, a national-brand fast-food restaurant. The local franchisee for Wendy's is a disadvantaged business enterprise;
Maki of Japan, also a DBE, is new to the area and offers quick-serve Pan-Asian food;
Pallino Pastaria Company, with several locations around Puget Sound, offering quick-serve Italian pizza and pasta;
Qdoba, also with several local restaurants, offering quick-serve Mexican;
Dilettante Chocolates, a well-known local confectioner;
The Body Shop, an international chain selling personal products and cosmetics;
Borders Group, Inc., offering a wide variety of books and related products;
Eddie Bauer, a northwest clothing and outdoor goods retailer;
Fireworks, a DBE offering upscale gifts and one-of-a-kind art objects;
and
In-Motion Pictures, currently operating at Sea-Tac renting DVDs and players to travelers.