5 ms·

>Despite the "port authority" rules on 'street pricing', the real reason is lack of competition. I guess that the lack of competition isn't the only answer, in

by lp4vn 3y ago

>Despite the "port authority" rules on 'street pricing', the real reason is lack of competition. I guess that the lack of competition isn't the only answer, in many cases there are many restaurants/stores in an airport and all of them are very expensive. The price of the rent in the airport also has to be taken in account. In many airports the restaurants pay outrageous rent values that won't allow them to sell cheap food.

Kalium 3y ago
It's my understanding that in most cases, the many restaurants/stores aren't actually separate and in meaningful competition with one another. I have often seen airports with the same packaged food for sale at every store. I'm pretty sure they're in effect many faces of the same business.
- ganoushoreilly 3y ago
  This is usually the case, most of the restaurants are Franchised to the same company, so ultimately one company is dictating all of it.
Scoundreller 3y ago
> in many cases there are many restaurants/stores in an airport If you lift the peel off, many times they're still operated by the one contractor that has a contract for the whole airport. Even restaurants that typically don't franchise will still run operations under a franchise arrangement in airports. E.g. The Starbucks employees at an airport will be employed by HMS Host (a common airport food concession contractor). Another captive element is alcohol. Many places only allow licensed establishments to sell it (ie: bars/restaurants), so no competition from the convenience store type concessions. And may be forbidden to consume alcohol outside licensed establishments so can't just buy a beer if convenience stores were legally allowed to sell it so they don't. (Can recall good times at Amsterdam Schiphol where you could buy a beer for a not-too-insane markup from the convenience store and consume wherever, while in Philadelphia, you were paying like $10+ for one to consume wherever, ugh).
wolpoli 3y ago
Is the Port Authority also the landlord as well? If so, that means that the Port Authority has the incentive to find the highest 'street pricing' so that the store has the margin to pay higher rent.

by lp4vn 3y ago

Kalium 3y ago

It's my understanding that in most cases, the many restaurants/stores aren't actually separate and in meaningful competition with one another. I have often seen airports with the same packaged food for sale at every store. I'm pretty sure they're in effect many faces of the same business.

ganoushoreilly 3y ago
This is usually the case, most of the restaurants are Franchised to the same company, so ultimately one company is dictating all of it.

Scoundreller 3y ago

> in many cases there are many restaurants/stores in an airport If you lift the peel off, many times they're still operated by the one contractor that has a contract for the whole airport. Even restaurants that typically don't franchise will still run operations under a franchise arrangement in airports. E.g. The Starbucks employees at an airport will be employed by HMS Host (a common airport food concession contractor). Another captive element is alcohol. Many places only allow licensed establishments to sell it (ie: bars/restaurants), so no competition from the convenience store type concessions. And may be forbidden to consume alcohol outside licensed establishments so can't just buy a beer if convenience stores were legally allowed to sell it so they don't. (Can recall good times at Amsterdam Schiphol where you could buy a beer for a not-too-insane markup from the convenience store and consume wherever, while in Philadelphia, you were paying like $10+ for one to consume wherever, ugh).

wolpoli 3y ago

Is the Port Authority also the landlord as well? If so, that means that the Port Authority has the incentive to find the highest 'street pricing' so that the store has the margin to pay higher rent.