Fresh Approach Lands New Business at Airport Eateries
Not everyone hates airport delays.
Michael Owings has made a name by providing travelers with an attractive place to spend their time--and their money.
Since his Santa Ana-based firm--Owings & Associates Designers--began adding Fresh Express Cafes to airport restaurants across the country, sales at the six outlets where they are situated have climbed an average of about 15%.
Host International, the operator, has yet to see fatter profits from the food-court-type cafes. But what has grown, Host executives say, is diner satisfaction.
“From a customer’s point-of-view,” the Fresh Express Cafe “has been a tremendous success,” said Jim Boragno, vice president of administration and standards with Santa Monica-based Host.
In other words, what the Fresh Express Cafes have lost in higher costs has been made up in good will. Once Host trims those operating costs, the concept should translate into bigger bottom-line profits.
The transformation to Fresh Express resulted largely because of changes in the airport restaurant industry. The days are long gone when travelers could be fed a steady diet of saran-wrapped sandwiches on dry rye. Today’s savvy food shopper just won’t bite.
Much of the reason is competition from such fast-food giants as McDonald’s, Haagen-Dazs and Mrs Fields all of which have opened outlets in airport terminals over the last few years.
Until a few years ago, airport suppliers “had taken the traveling public for granted,” admitted Ken Smith, Host’s vice president of planning and business development. But today, “people want freshness, speed and the kind of things they can get at food courts in a mall--cheeseburgers and fries, pizza and stuffed baked potatoes.”
Those changing tastes have left the three major airline caterers--Host International, Concession Air and Grayline’s Dobbs Houses--trying new formats as they compete for the “in-terminal, on-ground” food trade that totals at least $750 million annually.
Host--the industry leader with food and drink concessions in 45 of the nation’s 100 largest airports--tackled the problem by deciding to update some of its restaurants as prototypes.
That’s where Owings & Associates came in.
When Host approached Michael Owings in late 1986, the design firm’s claim to fame was a series of projects for W.R. Grace’s restaurant group.
Owings & Associates, then a fledgling firm, had converted most of Grace’s Hungry Tiger restaurants into Reuben’s Restaurants or Charley Brown’s dinner houses. “He did a reasonably good job. . . . Mike’s got a real good feel for remodeling restaurants,” recalled Ralph Roberts, a former Grace executive and now president of American Restaurant Group.
That talent for remodeling came in handy with Host.
In late 1986, Owings--who began his business 3 1/2 years ago as a one-man show--began designing and remodeling four Host restaurants--one each in Seattle-Tacoma, Honolulu, San Francisco and Las Vegas. Since then, his 40-member staff has completed two more--in Los Angeles and Newark, N.J. And it is designing several others for Host.
Dramatic Results
The results have been dramatic. Stainless steel and institutional-style steam tables have been replaced by brightly lit showcases with “stations” featuring a single type of food such as pasta, baked goods or broiler/burger items. Dismal-looking trays of roast beef or meat loaf have been nudged out to make room for yuppie favorites such as yogurt, croissant sandwiches, stir-fry vegetables and pizza.
Two restaurants--at Los Angeles International and in Honolulu--even cater to regional tastes with Japanese entrees like udon, a noodle soup, and sushi (albeit in plastic containers).
The key is to convey freshness, convenience and speed.
Host’s surveys showed that customers “are interested in something that’s quick and more of a snack than a meal--and things that are fresh and light and easy,” Smith said.
To convey that freshness, much of the food is prepared in front of customers. At LAX, for instance, an oven for cinnamon rolls is in full view, and the hamburger broiler is right behind a server.
“We let the food do the talking,” Owings said. “Light illumination draws the eye to food, so we use very, very bright lights in cases. Then it looks more fun and active--and choosing is like going to a candy store.”
‘Very Much Today’
Sometimes, too, it’s the illusion of freshness that is used to hook hungry diners. “There’s a big difference between a piece of pie or salad sitting on a bed of lettuce and that same item in a large display case with lots of light that’s refrigerated,” Boragno said. “The ice gives the impression of a dated cafeteria. The showcase is very much today.”
A beverage station--where customers serve themselves--has slashed minutes off serving time. And a peach, mauve and green color scheme with oak trim and lots of brass and glass dividers gives the appearance of a cheery coffee shop.
To be sure, the Fresh Express Cafes are not flawless. Host has discovered that separate food stations or not, most customers still insist on parading past every counter of food.
And while preparing food in front of people does look fresh, it also causes labor costs to skyrocket because food is no longer prepared in bulk. The result, Smith said, is that Host’s “sales increases have been offset by additional labor. We haven’t made more money on a current bottom-line basis.”
Still, the overall concept seems to be working. On a recent day at LAX, customers gave rave reviews to the restaurant design and generally graded the food better than they expected--although definitely not cheap.
“They’ve got a nice selection and the restaurant is laid out nicely,” said Ron Saunders, 44, a business traveler who munched on a $5.95 Chinese chicken salad.
“It’s much better than most airport restaurants--the food seems more freshly cooked,” added Suzanne Ohls of La Canada, who chose the $5.25 cheeseburger and fries combo.
Peter Radcliff from Salt Lake City had another view: “The food wasn’t too bad. But I just about . . . when they told me the total.” The 22-year-old carpet layer had shelled out $36.80 for dinner for four, “and I thought that was my change.”
Still, Host executives believe there are enough satisfied customers to make the concept eventually pay off.
“The customer has a right to choose,” Boragno said. “And the Owings projects have helped us dramatically improve people’s willingness to come back.”
