Denver to Help Shops Take Off

March 2, 2007
Small concession spaces will serve as incubators for local businesses.

Three new concession stands opening this year in Denver International Airport's main terminal will give consumers another option to grab a drink or a bite to eat.

But the stands will provide more than just a wider array of choices: They'll give several entrepreneurs and small-business owners a lucky break.

DIA will use the area as a type of incubator for fledgling businesses looking for a little help getting off the ground - a program some observers say is among the first of its kind at an airport.

"It's really an opportunity to help small businesses get on their feet and experience what it's like to operate in the airport," said Lisa Torres, DIA's manager of concessions. "It's also a way to help them start up and then open at another location."

The airport, which is finalizing details of the program, essentially will fund the initial build-out of the space and provide items such as tables and chairs.

That support could be a godsend for a small business. Initial capital expenses can run $300 to $350 per square foot, which amounts to as much as $105,000 for one of the new concession stalls, DIA officials said.

The businesses might be required to repay some or all of that as they grow, but the initial help could be what makes or breaks a company.

"The idea is to give the companies an opportunity to get started, grow and then move on," said Pete Gingras, DIA's airport property officer.

DIA officials hope the program will lead to more local businesses in the airport, a key piece of its overall concessions plan. The airport will look for entrepreneurs and small, local companies that have at least some experience in their industries, although that doesn't necessarily mean they must have an existing shop.

DIA expects to issue a request for proposals from interested companies in the next few months and have tenants operating by late summer or early fall.

Chris Chavez, a spokesman for the local branch of the Small Business Administration, said the incubator "sounds like a great idea."

"The upfront costs are normally so high that, unless you're a chain or part of a franchise that provides financing, it's very difficult to get started," Chavez said. "If DIA or the city is helping with that, it will be a huge benefit that will help make the businesses that much more successful."

From a consumer side, the new concessions will give people waiting to greet passengers near the fountains in the main terminal a convenient place to get a drink or a snack - without venturing too far away. Currently, the nearest concessions are located near the security screening areas or up on the sixth floor. DIA has found that most people in the waiting area don't use those concessions for fear of missing an arriving passenger.

INFOBOX

Airport's upcoming arrivals

What: Three new concessions - each totaling 300 square feet - are being built near the large fountains in DIA's main terminal. Plans call for coffee, flower and snack shops run by local businesses.

What's different: DIA is funding much of the initial build-out and capital investments and will provide some extras such as tables and chairs. Tenants might be required to pay back some of those costs as their businesses grow.

Benefits for DIA: More homegrown businesses in airport and boost in concessions revenue.

Benefit for businesses: Alleviates heavy burden of upfront costs to open a shop and allows startups to learn what it's like to operate in the airport.

Benefit for consumers: Provides more choices and is located near the area where people typically wait to greet arriving passengers.

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