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February 22, 2005
Women and Minority-Owned Businesses Succeed at Sea-Tac
Concourse A vendors exceed sales projections in 2004
Sales figures from the first six months of operation show that Disadvantaged Business Enterprises (DBEs) operating in the recently-opened Concourse A at Seattle-Tacoma International Airport are easily exceeding their sales targets.
Seven DBE vendors operate food and beverage concessions in the concourse, which opened on June 15. Six of the seven beat sales projections, one by as much as 30 percent. In the aggregate, the vendors beat projections by eight percent.
"We couldn't be more pleased," said Mark Reis, managing director of aviation for the Port of Seattle. "Airports bring economic benefits to a community. Our goal is to make sure Sea-Tac brings those benefits to small local businesses as well as the large national companies that traditionally operate in airports."
Women and minority-owned companies undergo a rigorous federal qualification process to become certified as Disadvantaged Business Enterprises. The Port additionally required their DBE vendors to be owner-operated. Six of the seven are locally owned.
Most successful of the group was the Great American Bagel Bakery, which exceeded sales projections by 30 percent. Owned by the mother and daughter team LeeAnn and Alaina Subelbia, the Great American Bagel Bakery is truly an American success story.
LeeAnn Subelbia worked for Host International at Sea-Tac for nearly 25 years. When the opportunity came to open her own shop, mother and daughter mortgaged their houses and set out on their own.
"It's been both frightening and rewarding to have our own business," said LeeAnn Subelbia. "But all of the foot traffic at the airport is a great opportunity for any retail operation."
The Great American Bagel Bakery offers both gourmet bagels and hearty sandwiches.
The Port has a self-imposed goal that 25 percent of concession revenue at Sea-Tac will come from DBEs. The 2004 results put the Port well ahead of that benchmark.
The Grove, an ice cream, candy and natural snack shop near gate A4, was the single concession not to meet its projections. This is a franchise that is successful in other airports and Port officials believe it will be successful at Sea-Tac.
2004 was a record year for passengers at Sea-Tac, with 28.8 million potential customers passing through the airport's doors. Growth is expected to average 3 percent per year for the foreseeable future.
"With that kind of traffic, we anticipate continued success for our DBE's," said Reis.
In June 2005, the Port will open Pacific Marketplace in the airport's central terminal. That project will include additional DBE vendors in both the food & beverage and retail store categories.
| | Annual Projected Sales | Projected 6/15 to 12/3 | Actual 6/15 to 12/31 | Variance |
| Great American Bagel | $ 1,400,000 | $ 700,000 | $ 907,612 |
30% |
| Manchu Wok | $ 1,200,000 | $ 600,000 | $ 704,613 | 17% |
| Africa Bar | $ 1,800,000 | $ 900,000 | $ 1,054,808 | 17% |
| Tully's | $ 650,000 | $ 325,000 | $ 352,410 | 8% |
| La Pisa | $ 900,000 | $ 450,000 | $ 485,530 | 8% |
| Mountain Room | $ 1,000,000 | $ 500,000 | $ 504,805 | 1% |
| The Grove | $ 850,000 | $ 425,000 | $ 217,165
| -49% |
| Total | | $ 3,900,000 | $ 4,226,942 | 8% |