Coming soon: More options for shopping, eating

Marv Balousek

But the payoff can be substantial because airport stores and restaurants cater to a captive market of airline ticket holders who've gone past the security checkpoint and are waiting for sometimes-delayed flights.

"Passenger dwell time at the gate is much longer," said Dane County Regional Airport director Brad Livingston. "The casual effect is that the passengers have more discretionary time while waiting at the gate. In turn, the business model has changed, and it is now necessary to provide all passenger comforts in abundance at or beyond the security checkpoint or near gate locations." The Dane County airport hopes to capitalize on the trend by opening 12 new stores and restaurants over the next year.

The contracts with The Paradies Shops for retail and with Creative Host Services, a subsidiary of Compass Group USA, for food and beverages could mean $6 million in revenue for the county over the next decade.

News and specialty retail sales at the best dozen performing airports ranged from $7.08 per passenger in Miami to $8.63 per passenger in Pittsburgh, according to 2003 data from Airport Revenue News. If the Dane County airport's dozen stores and restaurants can generate about $7 in sales per passenger, that would mean the annual sales potential at the Dane County airport is roughly $10.5 million, based on annual passenger traffic of about 1.5 million.

The only bidders for the Madison airport's retail and restaurant expansion were already familiar faces. Creative Host Services operates the current airport restaurant, and The Paradies Shops now runs the store.

Creative Host Services manages 140 food courts at 30 airports nationwide. The company cobrands with companies such as Schlotzsky's Deli, Quizno's or TCBY Enterprises. The company was acquired nearly a year ago by Compass Group USA, which started in England and is the largest food service company worldwide.

In Madison, the company is partnering with Great Dane Brewery and Ancora Coffee Roasters as well as larger firms such as Quizno's and Pizzeria Uno.

"We encouraged partnering with local companies," Livingston said. "We're still looking at providing more local. This is a good start." The Paradies Shops, a national company that opened its first store 45 years ago at the Atlanta airport, now operates more than 400 stores at 61 airports and reported 2004 sales of $310 million. The Paradies Shops, which has about 2,000 employees nationwide, also operates stores at Milwaukee's Mitchell Field and Minneapolis-St. Paul International Airport.

The success of The Paradies Shops comes partly from pairing stores with well-known brands like Harley-Davidson and Brooks Brothers. Other airport retailers have partnered with companies like Borders, Eddie Bauer, Brookstone, Gap and Sharper Image.

In Madison, the company plans two CNBC News stores, which offer books, videos and consumer goods; a Lake Country Travel Mart with an assortment of newspapers, magazines and traveler convenience items; and Wisconsin Marketplace, which will focus on items unique to the state.

The Paradies Shops also has contracted with Paradies Madtown, a company formed by Ray Allen, former Madison School Board member, and Steve Braunginn, former director of the Madison Urban League. Allen said Paradies Madtown will help manage the airport retail operation and help provide local products.

The new company also will work on staff and recruitment issues and set goals for minority hiring.

The Paradies focus on hiring minority employees isn't unique to Dane County. The company won an award from the Airport Minority Advisory Council for its progressive disadvantaged business enterprise partnerships in other markets like Phoenix and Kansas City.

"This is a positive step forward for our community," Allen said of the contract with The Paradies Shops.

"It's combining a business opportunity with good civic commitment.

We want to use it as a model to take throughout Dane County."

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