Erik Herrmann, a partner and head of investment at CapitalSpring, was recently featured in a Restaurant Dive article discussing the growing trend of restaurant chains entering airports and transit hubs to boost brand awareness and profitability. Herrmann emphasized that these high-traffic locations provide unique opportunities for brands — particularly local ones — to introduce themselves to a wider audience. 

“If you have a local brand, getting placement in an airport is a great way to introduce it to people from out of town and just build that brand equity,” Herrmann said.

CapitalSpring’s insights highlighted the financial advantages of airport locations, where captive audiences allow operators to charge higher prices, leading to better margins. However, Herrmann cautioned that these sites come with challenges, including complex request-for-proposal processes, stringent security checks for employees and the necessity of prime visibility to maximize impulse purchases. 

“It’s really about flow and visibility,” Herrmann said. “With the right concept, with the right placement, with the right traffic flow in the airport, it can be really attractive.”

Herrmann also addressed the importance of flexibility in operations and menu offerings for restaurants in transit hubs. He explained that adapting menus to include grab-and-go options and optimizing layouts to fit smaller spaces are critical for success in these environments. Additionally, for seasonal or tourist-heavy locations like airports and flagship outlets, Herrmann advised operators to analyze year-round residential populations to better predict baseline demand, ensuring sustainable performance even during off-peak seasons.

Read the original article here.

For more information about CapitalSpring, please visit www.capitalspring.com.