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VENDING 
FOOD & BEVERAGE 
and SPECIALTY RETAIL 
Presented by Denise D. Whitfield - Retail Development & Concessions Planni...
 Ninth largest transit system 
in the country that provides 
bus, rail and paratransit 
services 
 Approximately 500,000...
3 
Retail Concessions Program Objectives 
• Generate new non-fare box revenue 
• Minimize financial risk 
• Implement reta...
Business / Revenue 
Model Considerations 
• Contributions to 
infrastructure improvements 
• Understanding potential 
vend...
5 
• Phase I - Challenges We Faced 
– No sales history, no guarantees, no proven concepts 
– Lack of retail concessions ex...
Phase I 
Best Selling Snacks 
6 
Phase I 
 Dasani 
 Coke 
 Sprite 
 Pepsi 
 Mountain Dew 
 Average price $2.00 
 Av...
Potential Retail Concepts 
• Beverages and Snacks 
• Grab N Go Salads 
• Fresh Fruit and Vegetables 
• Coffee, Cupcakes, D...
A Recap of Our Journey - Where We Started 
• 2009 - GA state law changed 
• 2010 – Phase I – Vending implemented 
• 2011 –...
9 
Where We Are Today 
• 2014 – Retained Greystone Management 
Solutions as our partners 
• 2014 – Station Traffic Review ...
$ 2,300,000 in Sales 
$1,000,000 Revenue 
The Best is Yet to Come 
10
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RV 2014: Riders, Revenue and Rubbish- Managing Concessions and Making Money

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Riders + Revenue = Rubbish: Managing Concessions and Making Money

Riders are coming to our stations, anyway. Can we make some money off them? Capturing the value of a transit investment can take many forms. Is providing concessions and services a good way to generate a meaningful income? Or just another way to provide amenities for transit riders? Vending machines or specialty retail? Hear from our panel about what it takes to develop a successful program -- from impediments, to thresholds needed to support certain uses, to who picks up the fast food garbage on the train. Advice, lessons and time for discussion.

Moderator: Theresa O'Donnell, AICP, Acting Assistant City Manager, City of Dallas, Texas
Jason Ward, Manager, Joint Development, Metropolitan Atlanta Rapid Transportation Authority, Atlanta, Georgia
Zahoor Kareem, President, Blinq, a Transmart Company, San Francisco, California
Lorna Moritz, President, TR Advisors LLC, Boston, Massachusetts

Published in: Business
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RV 2014: Riders, Revenue and Rubbish- Managing Concessions and Making Money

  1. 1. VENDING FOOD & BEVERAGE and SPECIALTY RETAIL Presented by Denise D. Whitfield - Retail Development & Concessions Planning Metropolitan Atlanta Rapid Transit Authority (MARTA) dwhitfield@ itsmarta.com (404)848.5326 1 MARTA RETAIL CONCESSIONS
  2. 2.  Ninth largest transit system in the country that provides bus, rail and paratransit services  Approximately 500,000 passenger boardings each weekday  Operates in 38 stations covering 48 miles of rail  Funded by a one cent sales tax collected in the City of Atlanta, Fulton and Dekalb counties  Receives no financial assistance from the State of Georgia 2 Five Points Station
  3. 3. 3 Retail Concessions Program Objectives • Generate new non-fare box revenue • Minimize financial risk • Implement retail program in phases (I and II) • Ensure long-term growth (10-20 years) • Provide amenities for our customers • Partner with local, regional and national brands • Retain experienced partners
  4. 4. Business / Revenue Model Considerations • Contributions to infrastructure improvements • Understanding potential vendors’ barriers to entry • Contract Term – How long • Implementation - When • Operations and Management • Desired long term results 4
  5. 5. 5 • Phase I - Challenges We Faced – No sales history, no guarantees, no proven concepts – Lack of retail concessions experience – Stations designed for their purpose (but not for retail) – Manage unrealistic expectations • Phase I - Outcomes We Experienced – Guaranteed revenues of $1.3MM – Customers support retail concessions – Expanded opportunities for small and local vendors – Retained experienced partners
  6. 6. Phase I Best Selling Snacks 6 Phase I  Dasani  Coke  Sprite  Pepsi  Mountain Dew  Average price $2.00  Average size 20 ounces  Sales YTD - $1.8MM Best Selling Beverages Crunchies Pastry Chips Candy Breakfast Treat  Average price $1.50  28% of beverage sales  Sales YTD - $500K
  7. 7. Potential Retail Concepts • Beverages and Snacks • Grab N Go Salads • Fresh Fruit and Vegetables • Coffee, Cupcakes, Donuts • Frozen Desserts • Sandwiches, Popcorn, Pizza • MARTA Store • Automated Teller Machines • Lottery Ticket Sales 7
  8. 8. A Recap of Our Journey - Where We Started • 2009 - GA state law changed • 2010 – Phase I – Vending implemented • 2011 – Psychographic study conducted • 2012 – Industry Day held to engage the public • 2013 – Initiated Phase II solicitation process 8
  9. 9. 9 Where We Are Today • 2014 – Retained Greystone Management Solutions as our partners • 2014 – Station Traffic Review to ensure appropriate retail site locations • 2014 – Concessionaires’ Input • 2014 – Issue solicitation/Identify operators • 2015 – Implement Phase II
  10. 10. $ 2,300,000 in Sales $1,000,000 Revenue The Best is Yet to Come 10

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