Starbucks loses exclusive contract with US airport concessions company
Local coffee shops will begin to open in some terminals
Local coffee shops will soon take flight at airports across the country.
Airport food-service company HMSHost, which operates more than 1,700 airport restaurants across the country and more than 120 globally, will partner with local coffee shops after ending its decades-long exclusive agreement with Starbucks, the company announced Monday. Travelers can expect to see more local coffee shops pop up in the next few years.
“We have had great success in bringing regional chefs and popular city dining favorites to airports and we’re ready to do the same with the coffee category,” HMSHost president and chief executive officer Steve Johnson said in a statement. “While we have, and will continue, a long partnership with Starbucks, we’re continuing to innovate in this space and focus on serving consumer and airport partner needs.”
Starbucks is exploring other licensing partners at airports to help incorporate digital ordering, the company said in a statement to FOX Business.
"[HMS]Host has been our exclusive partner in the airport industry and we are actively negotiating our future together," a spokesperson for Starbucks said. "We are also in active conversations with other operators who have a track record of elevating the customer experience and innovating in the channel."
HMSHost and Starbucks have ended their exclusive coffee partnership allowing more local coffee shops to sprout up at airports across the country. (Starbucks)
The company will run a pilot program at Jacksonville International Airport in the fall. Jacksonville Aviation Authority awarded HMSHost a 10-year, $60 million contract awarded to bring in Florida-based coffeehouse Southern Grounds to the airport’s Concourse A.
The coffee shop industry reached $47.5 billion in 2019, showing 3.3 percent from the previous year, and HMSHost partnership will allow local shops to brew up more business as demand for specialty food and beverages continues to surge.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 102.50 | +2.44 | +2.44% |
Airport food service companies across the country have been investing in local food and beverage programs outside of national chains as travelers prioritize eating and drinking pbefore their flights.
Americans spent more than $2 billion on terminal concessions including food, beverage and retail services, according to 2018 data from the Airport Council International. And concessions nationwide have gone from boring grab-and-go salads and sandwiches to more upscale offerings like sushi flown in directly from Japan at Newark Liberty International Airport in New Jersey. And Boston's Logan International Airport will reportedly welcome six vendors form Boston Public Market like lobster rolls straight from Red’s Best, a city restaurant.
AIRPORT FOOD GETS AN UPGRADE IN TIME FOR HOLIDAY TRAVEL
HMSHosts has a track record of bringing local food into airports with the likes of Emeril’s Table in Louis Armstrong New Orleans International Airport. HMSHosts partnered with celebrity chef Emeril Lagasse, and Public Tavern in Chicago O’Hare International Airport among others.
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Affordable staples from fast-food chains still make up a bulk of food sales at U.S. airports with national brands representing about 70 percent of food sales, according to data from HSMHost as reported by The Wall Street Journal.
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This story has been updated to include a comment from Starbucks.