Two new agreements could generate a minimum of $48 million over the course of the contract while highlighting offerings from more than 50 local businesses
Two new agreements could generate a minimum of $48 million over the course of the contract while highlighting offerings from more than 50 local businesses
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City officials are negotiating new concession agreements at the San Jose Mineta International Airport that promise to expand local business offerings while substantially increasing investment and revenue.
The city has selected Hudson Group and Paradies Lagardere to outfit 12 locations across Terminals A and B with a diverse mix of specialty retail stores, cafes, travel essentials and products — including making it the first airport to sell Google merchandise and bringing a new Nirvana Soul location to the baggage claim area.
“We wanted to introduce competition into the marketplace, and we believe the tide rises all boats, so the opportunity to excel at capital investment and the opportunity to lure that customer and that footfall in the story is really key,” Aviation Director Mookie Patel said.
Between the two agreements that could run 12 years, Patel said that would lead to a minimum capital investment of nearly $17 million.
Over the course of the proposed contract, airport officials estimated it would generate a minimum of $48.3 million, placing the minimum annual guaranteed revenue close to 20% higher than what is currently being generated.
Some of the new concession stands will have designs tailored around San Jose locations, creating a sense of place. The proposal includes concepts built around themes found in places like Willow Glen, Santana Row and the SoFA District, drawing praise from the City Council.
“I’ve always said we need to reveal San Jose for what it is and to be able to walk into our gateway airport and reveal San Jose from the very get-go is tremendous,” said District 3 Councilmember Carl Salas.
The concession proposals highlight a desire to increase local business products at the airports, including a nearly 50% increase in participation from businesses from disadvantaged groups.
“We’ve always wanted to be in the airport since we opened our first location,” said Jeronica Macey, CEO and co-founder of Nirvana Soul. “Just being able to possibly be a destination location and see the other local business owners that work so hard to have that opportunity, I think, would just be such a good look for San Jose.”
Airport officials said that over 50 local businesses will have the opportunity to have their products within these stores. Hudson Group and Paradies Lagardere have also agreed to use locally sourced grab-and-go foods from Santa Clara County.
Hudson Group’s grab-and-go food offerings will include those from Eataly, while Paradies Lagardere will sell similar products from Greenlee’s Bakery.
“I’m so glad to see that these two packages include so many local businesses and that the look and feel of them pulls from the identity within San Jose and all the various San Jose communities,” Vice Mayor Pam Foley said.