Transport Hubs: The New Frontier for Emerging Food and Beverage Brands
In recent years, transport hubs have become hotbeds for emerging food and beverage brands looking to expand their reach and boost brand awareness. From airports to train stations, these high-traffic locations are proving to be lucrative opportunities for innovative concepts to thrive. Let's explore how some of the most exciting brands are making their mark in these bustling spaces.
The Strategic Advantage of Transport Hub Locations
For emerging brands, securing a spot in a transport hub can be a game-changer. These locations offer:
High footfall: Network Rail reported over 700 million visits per year across its 19 managed stations in the UK.
Increased brand awareness: Prime positioning in transport hubs puts brands front and center for potential customers.
Revenue growth: Network Rail's retail portfolio surpassed £800 million in annual brand sales in the past 12 months.
Success Stories: Brands Making Waves in Travel Retail
Several brands have found success by tapping into the transport hub market:
Tortilla: The Mexican food chain has partnered with SSP to expand its presence in UK airports and train stations. Their chief executive, Andy Naylor, noted that SSP's ability to secure prime locations has played a key role in driving brand awareness and fueling growth.
Chopstix: The fast-growing quick service restaurant brand has strategically expanded into transport hubs, including motorway service areas, rail and tube sites, and London Luton airport. Jon Lake, managing director of Chopstix, emphasized that operating in high footfall transport hubs not only drives revenue but also grows brand awareness.
Popeyes UK: The US fried chicken brand plans to open 30 new sites across the UK in 2024, including its first transport hub restaurant in London's Waterloo station. This expansion will take their total number of restaurants to more than 60 by December.
Grind: The coffee brand made its transport hub debut with an opening at St Pancras International station in 2023, replacing Nespresso Boutique. This move is part of Grind's broader expansion strategy, which includes 14 sites in the UK and international growth.
Network Rail: A Retail Success Story
Network Rail's retail portfolio has demonstrated the immense potential of transport hub locations:
Over 600,000 square feet of prime retail space managed across 19 stations
£800 million in annual brand sales in the past 12 months
53 new units opened in the last year, attracting 15 new brands and 18 pop-ups
London Liverpool Street station alone accounted for over £92 million in total annual sales
At London Waterloo, The Victory pub by Urban Pubs & Bars boosted sales per square foot to £2,507 (annual average)
The Power of Partnerships
Emerging brands are increasingly partnering with transport authorities to secure prime locations. For example, Warrens Bakery's expansion into Cardiff Central station marks the beginning of a partnership with Transport for Wales, highlighting the mutual benefits for both brands and transport hub operators.
The Future of Transport Hub Retail
As the lines between travel and retail continue to blur, we can expect to see more emerging brands vying for space in transport hubs. Hamish Kiernan, commercial director of Property at Network Rail, noted: "As we pivot towards a more curated offering, Network Rail stations are developing into retail and leisure destinations in their own right."
For food and beverage brands looking to expand, transport hubs represent a golden opportunity to reach new audiences and drive growth. By capitalizing on the high footfall and captive audience these locations provide, emerging brands can quickly establish themselves as household names in the competitive world of travel retail.