Monday, January 26, 2004

Restaurants lick chops over outlets at airport

FROM The Commercial Appeal, Memphis, Tenn.

By Jane Roberts

MEMPHIS, Tenn. (Jan. 26) - With unanimous approval of the new concession lineup at the Memphis International Airport, Jim Neely is getting ready to build his busiest store yet.

At the airport.

"Five years ago I was given a little, token space at the airport," he said. "In about 180 square feet, we have done in excess of $1 million in business every year.

"We didn't have enough space to give people the full taste of Memphis."

No more. Interstate Barbecue will have more than 1,100 square feet on the B concourse and a smaller shop at the terminal's Y intersection.

He expects to be doing $5,000 in sales a day, although transition and construction schedules have not been determined.

"We'll have pork shoulders and ribs, all done under the watchful eye of me," Neely said.

Other Memphis legends — Bol A Pasta, Back Yard Burgers and Corky's — will also have storefronts. Staples and delicacies from Alcenia's Desserts and Preserves, Folk's Folly, Half Shell and Huey's will show up on menus at sit-down cafes like Sun Studios and Rhythms Cafe & Bar.

After asking if anyone in the room at the airport authority meeting Thursday differed with the process for selecting the new vendors, Arnold Perl, chairman, requested that the record show no dissent.

"I do not want this to be subject to any post-vote claims," he said.

HMS Host, the airport's sole concessionaire for 14 years, did not win a spot in the new lineup. Last year, its airport sales exceeded $24 million.

Anton Airfood and CA One will provide all the food and beverage services at the airport.

Merchandise and retail operations will be run by The Hudson Group and The Paradies Shops.

In the authority's contract with the prime concessionaires, small businesses and firms owned by women and minorities must make 25 percent of the revenue generated by airport food and beverage sales.

No proposal that fell short was considered, said Scott Brockman, airport finance director.

"We can't tell the prime contractors who to select, but they did have to meet our DBE [disadvantaged business enterprise] criteria," he said.

Neely and RBH Enterprises, co-owned by Rodney Herenton — Mayor Willie Herenton's son — are among several hometown tenants that will have two shops at the airport.

The others are Back Yard Burgers and Corky's.

"Rodney sold himself on the basis of his professionalism," Brockman said. "It had to do with quality of their operation and nothing to do with the mayor.

"And Jim Neely sold himself, too," Brockman said. "I'm telling you, you don't have to go far to see that Jim Neely is a top- quality manager."

Since 1998, RBH Enterprises, which Herenton co-owns with his wife, Andrea, has run two Baskin Robbins counters at the airport.

In the new lineup, RBH will operate Edy's Ice Cream and a Ben & Jerry's kiosk.

RBH like other subcontractors expect to pay $150 to $300 a square foot to tailor their shops to the authority's approval.

Bill Anton, CEO of Anton Airfood, said his company studied every potential subcontractor before making picks.

"We looked at their locations, made unannounced visits and did shopping analysis of their facilities to make sure we were comfortable," he said.

For eight years, Airport Revenue News has named Anton the nation's No. 1 airport food and beverage provider.

"The primary thing is the quality of the operators," Anton said. "We have reputation we have to maintain."

CA One, the second-largest airport food and beverage concessionaire, has business in 25 airports, including Nashville.

"We're very, very proud and excited to get a chance to develop with the airport and Northwest Airlines a world-class concessions area, finally in Memphis," said Peter Beaudro, CEO of CA One.

CA One has a contract with Thomas Boggs, who owns Huey's, Half Shell and Tsunami, for menu design and restaurant layout.

"He'll continue to work with us after the opening in developing the very best of the Memphis flavor," Beaudro said.

Boggs will be paid a percentage of sales.

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