US. In a laudable initiative for hard-pressed retailers and F&B operators, Dallas Fort Worth International Airport management are proposing to the Board a plan to move all airport commercial partners from Minimum Annual Guarantee-based (MAG) fee models to a rent structure based on percentage of sales.
An airport spokesperson told The Moodie Davitt Report yesterday that the proposals reflect rapidly changing circumstances amid the COVID-19 outbreak which is raging across the world and escalating alarmingly in the US. As at 13.13 GMT, 19,624 cases had been confirmed in the US, up from 14,250 just 30 hours earlier.
In March the DFW Airport Board approved a limited package that granted some shop operators rent relief via a new percentage of sales fee formula. “Since then, with ongoing impacts to flights and passenger movement and DFW Airport retail locations and food & beverages experiencing a significant decrease in sales, we will propose to the Board a plan to move from Minimal Annual Guarantee to a rent structure based on percentage of sales throughout the airport,” a spokesperson told The Moodie Davitt Report.
“This would be in place through the end of the fiscal year, which is September 30, 2020. We are continuing to assess what services and which of the concession options can and should continue to serve the customers at the airport during this time, and are communicating regularly with our partners to support them and help them ensure the safety of both their customers and employees.”
Terminal D, the international terminal, features a wide array of F&B operators, 3Sixty Duty Free and specialist stores including, Coach, Jo Malone, MAC, Estée Lauder, Longchamp, Montblanc, Tumi, Hugo Boss, Michael Kors/Kate Spade, WHSmith-owned InMotion Entertainment, L’Occitane, The Range.
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The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. FAB 2020 will be held in Istanbul on 2 and 3 September. Istanbul Airport will host the event, which will be a celebration not only of the best in international airport dining but also of Turkish cuisine and culture. FAB 2020 will be supported strongly by Tum & Ictur, the concessionaire managing 34,000sq m of food & beverage space at Istanbul Airport.