Sunday, October 21, 2007
Will Roanoke Regional Airport follow national trend by having area retailers sell signature products at its terminal?
The latest from The Ticker blog
Kyle Green | The Roanoke Times
Anne Boardley, general manager of the Hudson News store in the Roanoke Regional Airport, sells Virginia-related gifts
From the Samuel Adams Pub at Boston's Logan International Airport to the Stock Car Racing Cafe at the Charlotte Douglas International Airport, travelers can glance around an airport's terminals and quickly figure out where they've landed.
Many airports are trying to entice customers with sights and flavors that define a certain city or region, and they're doing it by pulling in more locally owned restaurants and retailers to sell the area's signature products.
However, when landing at the Roanoke Regional Airport, passengers probably would not know that this area has its own coffee producer, several wineries and restaurants that serve up Southern-style favorites -- let alone a handbag maker whose wares have been props on television's "Desperate Housewives."
That's because the food and retail lineup at the Roanoke airport is generic. It is made up of two national airport retail companies, but neither offers local coffee, baked products or a large variety of merchandise sold by Roanoke Valley businesses.
Local retailers from Claire V to AmRhein Wine Cellars said they would welcome the opportunity to sell their products at the airport, but no one has asked.
At the same time, no Roanoke-area restaurants in the past have been interested in opening a hub at the airport, airport officials say.
That could change. In the next year, a new food retail opportunity may become available. Creative Host Services' 10-year lease is up. The Lansdowne, Va- based food company operates the Roanoke airport's cafe, lounge and snack bar.
The airport is drafting a proposal for retailers interested in locating there, and Creative Host has shown interest in staying, said Jacqueline Shuck, the airport's executive director. Still, the news leaves the airport's restaurant flavor up for grabs.
Lack of defining flavor
The Roanoke airport's retail and food options lack a strong local tie.
Take the gift shop, Hudson News, housed on the airport's second level. It is operated by Hudson Group Retail Specialists, which has stores in 59 airports in the United States and Canada. The retailer has been in Roanoke for the last six years.
Most of the books, cards and knickknacks, including shawls and sunglasses, sold there can be found at other Hudson News stores nationally. They are not specific to a certain airport or locality, said Laura Samuels, a spokeswoman for Hudson Group, based in New Jersey.
The shop does sell some Roanoke souvenirs, though most are generic and manufactured elsewhere.
In a section at the shop's right side, labeled Discover Roanoke, there are Roanoke-branded T-shirts, mugs and magnets. In addition, Virginia Tech mugs and stuffed bears dressed as cheerleaders are sold among the cans of Virginia peanuts and Virginia Is For Lovers T-shirts, the best-selling tourist items there, according to general manager Anne Boardley.
Directly across from the store is a cafe and restaurant. Creative Host Services operates food retail locations in 42 airports in the United States, Canada and the Caribbean and combined with its parent company, SSP, it has locations in more than 120 airports. It also houses a separate lounge that serves alcohol inside the Roanoke airport.
None of Creative Host's menu offerings of deli sandwiches, salads, nachos, bagels and coffee are provided by Roanoke Valley restaurateurs or bakeries, according to Scott Shotter, who is executive director of operations with Creative Host's southeast region.
But serving food that defines Roanoke isn't out of the question, he said.
He said his company would welcome brewing coffee from Mill Mountain Coffee & Tea, a Roanoke coffee company, or selling food from local bakeries and retailers, with the airport's approval.
"We would love the opportunity to work with the airport to bring in some local flavors," he said.
Shuck said it's up to Creative Host to bring in these kinds of products.
"That would be something we would welcome, but that isn't something we require," she said.
Shuck has been on the receiving end when soliciting airport business from local restaurateurs.
About 10 years ago, the airport issued a request for a proposal for any businesses interested in opening a food retail location there. No Roanoke Valley restaurant responded, Shuck said.
The reason? The consistency of airport traffic perhaps breeds some uncertainty, she said.
Though the airport reported having 60,071 passengers in August, up 5 percent from last year, retailers aren't guaranteed consistent traffic.
"With the ebb and flow of passengers, things are great in August, but in January and February, there aren't a lot of passengers going through," Shuck said. "The operators have a hard time with that."
The owner of Mill Mountain Coffee & Tea agreed. Dave Johnson said he has considered opening a kiosk to brew and serve coffee at the airport. But the idea never panned out.
Before signing a lease, Johnson said he'd have to evaluate passenger count at the airport.
"It's no fun being stuck with a long-term obligation," he said.
Airport retailers also pay rent, which covers maintenance and operating costs. Rent averages about $4,000 for Creative Host, Shuck said.
In addition, retailers pay a percent of their gross revenue to the airport, Shuck said.
Investing a significant amount of money for an airport venture also deters some retailers, said Pauline Armbrust, who is chief executive officer of the Armbrust Aviation Group, which publishes Airport Revenue News, an industry magazine.
"It's difficult to get local operators to believe in the airport," she said. "Being unfamiliar and unsure about what would be the result of spending the money and investing the capital to open a store there ... it's a whole difficult business model for businesses."
Seeking a signature flavor
To be sure, Boardley of Roanoke's Hudson News store said she has taken great effort to put Roanoke and Virginia specific products on shelves.
At a local arts festival held recently, Boardley purchased handmade Virginia Tech and University of Virginia ball-shaped ornaments to sell at the shop. She also picked up some framed pictures of Virginia Tech's and UVA's campus for the store.
And until early this year, she sold oils, dressings and sauces from Chateau Morrisette, a winery in Floyd. But new restrictions banning liquid substances in travelers' carry-on bags forced Boardley to get rid of these kinds of liquid products. That includes Virginia-made honey that the shop used to carry.
The Hudson store is located in an area that customers reach after checking in luggage and before they go through the airport security checkpoint.
Boardley said these restrictions on liquid substances have hurt sales at Roanoke's Hudson News.
Still, some other area retailers said they are interested in adding their products to the airport's retail mix.
Claire V handbags sell well in some duty-free stores in Europe and at New Jersey's Newark Liberty International Airport, said Laura Bradford Godfrey, owner of Claire V, a Roanoke-based handbag design company.
And selling them at the Roanoke airport, she said, would provide "a great captive audience."
"As someone who flies a lot, I'm disappointed with how generic the airport store is," she said. "Besides the typical 'Virginia is for lovers' stuff, I've never seen anything with any local flavor."
The owner of Roanoke Valley Printworks, John Reburn, said he would consider creating designs exclusively to be sold at the airport. Reburn has a store on Salem Avenue in downtown Roanoke, where he sells his silk-screened art.
Russ Amrhein, who owns AmRhein Wine Cellars on Bent Mountain, said he would like to sell his wine at the airport's shop, though travelers could not take the bottles beyond the security checkpoint. He also would consider selling his wine by the glass at the airport's restaurant, but the price likely would be higher because he said he would need to sell the wine for more than what larger distributors charge.
Meanwhile, Samuels said Hudson Group continues to look for more local products to sell at its shops. Samuels encouraged Roanoke area retailers to contact her at info@hudsongroup.com if they're interested in selling wares at the airport.
She issued a telling reminder.
"The buying doesn't happen on the local level."
