6a Supp
Item Number: _6a_Supp__ Date of Meeting: June 5, 2012 New Quick Serve Restaurant Concourse B Seattle-Tacoma International Airport Central Terminal: Stretching food service capacity 2 McDonald's Concourse B Local Franchisee , Bob & Kay Comiskey Employment for 60 Seating for 40 patrons 3 Proposed Terms Projected Sales: $3.5 million Tiered rent: 9-13% Guaranteed MAG: $280,000 Projected Port Revenues: $323,000 12-year lease, franchised to local operator Investment: $2 million by McDonald's USA/local operator 4 Summary of Opportunity McDonald's is the most requested concept by travelers Wendy's beating sales forecasts by nearly 110% since 2005 Airline realignment will bring new enplanements to the main terminal Relief for overcrowding in Central Terminal, loss of sales to "walk offs" Lower price point appeals to the 25% of travelers* who make no purchase Another workday option for airport employees Unmatched level of investment for a quick-serve restaurant location Proximity to Children's Play Area Qualified local, small business franchisee with McDonald's corporate support * Sea-Tac 2006 Enplanement Survey 5 Additional Efforts to Validate McDonald's Proposal Analysis of new passenger survey data Quantified potential for new sales capture Completed 'Request for Interest' process Solicited interest from both national and local hamburger operators Completed New Financial Analysis Estimated Sales Potential for McDonald's Estimated Effect of Additional Competition 6 Request for Interest: National Hamburger Concepts Market Strength National Local Airport Top 10 National Concepts McDonald's 14,000 144 31 Burger King 7,750 62 47 Wendy's 6,576 42 35 Dairy Queen 5,050 54 1 Sonic (drive-in) 3,500 3 1 Jack-n-the Box 2,200 85 0 Hardee's 1,687 0 0 Carl's Jr 1,104 6 1 Checkers 800 1 1 Five Guys 735 8 4 7 Potential Impacts & Benefits Central Terminal: Central Terminal quick-serve restaurants remain competitive Reduce lines for service, lack of seating capacity Accommodate current and future demand Concourse B: Restaurants serving alcohol experience no impact Quick-serve competition will be significant , must become more competitive to control loss of sales Quiznos Subs will be more competitive than Sbarro Overall Benefits: Provide a desired choice for travelers Capture new sales from previous non-customers New local small business operator Net gain in employees Net increase in sales and rent to the Port 8 Competition for Concourse B Quick-Serve 9 Airport Efforts for All Concessionaires 10
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