Massport Board Awards New Logan Airport Concessions Contract to MarketPlace
The Massachusetts Port Authority (Massport) Board of Directors voted April 13, to authorize the authority to enter into a new ten year contract with MarketPlace Logan LLC, a company of Boston-based New England Development, for the management of the majority of concessions operations at Boston Logan International Airport. Currently, the four terminals of the airport are managed under multiple concessions contracts, with development under the new contract expected to begin in mid-2018.
A Request for Proposals (RFP) was published in July of 2016 and three strong proposals were submitted by some of the leading companies in the industry. The RFP process was rigorous, to ensure not only operational needs and goals were met, but also strategic plans to encourage the creation of opportunities for Disadvantaged Business Enterprises (DBEs) and Minority-Owned and Women-Owned Enterprises. To ensure a quality review process, Massport formed an internal committee and hired Ann Ferraguto from Air Projects, Inc. as a concessions consultant and retired Supreme Court Justice Robert Cordy to oversee the process.
“The management of the many of concessionaires at Logan is a complex and, most importantly, customer-centric responsibility that deserves the intense and serious review process that has been undertaken in the past few months,” said Massport CEO Thomas P. Glynn. “Consolidating our concessions management under a singular contract with industry leader MarketPlace will ensure consistency, continuity and choice for the millions of passengers that travel through Logan every year.”
MarketPlace has more than 20 years of experience successfully developing and managing concessions programs at airports across the country. Founded in 1992 and headquartered in Boston, MarketPlace is a multi-disciplinary firm with expertise in every facet of the business. MarketPlace has concessions programs at Philadelphia International Airport, Ronald Reagan Washington National Airport, and Washington Dulles International Airport. The company also works with other airports and airlines around the country and has helped advance airport concessions programs in New York, Chicago, Detroit, San Francisco, and Seattle.
“As a Boston-based company, we are particularly excited about this opportunity to create a nationally recognized and award-winning concessions program at Logan Airport that will transform customers’ perceptions, increase passenger satisfaction, maximize sales, and increase revenue to Massport,” said New England Development Chairman Stephen R. Karp.
Paul O. McGinn, president of MarketPlace Development, commented, “We look forward to working with everyone at Massport and Logan to bring the very best in food and beverage and retail to the traveling public at our hometown airport.”
Providing diverse offerings – both in product choice and price points - in retail and restaurant choices was a priority in selecting a winning proposal. As a gateway to the region, Logan Airport has a responsibility to represent all of New England. Showcasing some of the highlights of the region’s culture and flavor was an important concept that needed to be appropriately addressed in the winning proposal. At the same time, Massport strives to balance the local, regional, national and international retail and food/beverage brands so that everyone travelling through Logan can find something they enjoy. Massport has also encouraged proprietors throughout Logan to increase and highlight the offering of healthier options in response to customer requests.
In addition to ensuring high-quality choice and service for customers on the front end, Massport sought a proposal that would address key back end challenges and opportunities to ensure that both the Authority and the greater community are best served by our newest business partner. This was done by implementing requirements and parameters in the RFP that create opportunities to encourage Disadvantaged Business Enterprises; create opportunities to encourage Minority-owned and Women-Owned Enterprises; ensure labor needs and requirements are properly addressed and handled; and implementing a Receiving and Distribution “Commissary” program to smooth out arrival and distribution of goods while reducing curbside traffic and streamlining critical security screening procedures.
