Select Service Partner
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- HKS0820
Select Service Partner
Restaurants have a tough enough time attracting customers and tempting them back to try other dishes at the best of times. But try doing it at the airport, where repeat business appears to be nil and customers literally run past your operations and quite possibly may never come back.
In spite of these challenges, Select Service Partner (SSP) has managed to build up an enviable repeat customer base, as well as brand loyalty among the 860 million passengers that it serves through its 800 outlets in 140 airports. SSP is a subsidiary of the world's largest foodservice company, Compass Group, which employs over 415,000 employees in more than 90 countries providing foodservices to offices, factories, railway stations, airports, universities, schools, healthcare institutions, and shopping malls, among others.
Creating an "Enjoyable dining experience," whether that translates as good value, good food, good service or all three, is the secret ingredient to the company's success, says Daren Lau, General Manager for Asia Pacific Operations, SSP.
Airport food has come a long way since the days when a lukewarm, tasteless bowl of wonton noodles would cost you HK$80 at the old Kai Tak airport. SSP, the largest food and beverage operator at Chek Lap Kok International Airport, tempts hungry travellers with no less than 16 restaurants, ranging from Burger King to Grappa's to elegant fusion cuisine prepared in open kitchens at Cafe Deco.
Mr Lau says that about 40 percent of his business customers are repeat diners, over 96 percent of whom are loyal customers. "We even get some Hong Kong people who come all the way out to the airport just to eat at our Hereford Beefstouw Steak House," he says while demonstrating how the restaurant's unique wine aerator works. "This is the only Scandinavian steak house in Asia, and as the owner is very hands on and particular about providing quality food in a stylish setting, we provide a very enjoyable dining experience."
Business looks to be rosy now, but Mr Lau admits it hasn't been any easy journey since SSP started at Chek Lap Kok in 1998. First came the economic slowdown, then the 9-11 terrorist attacks in the U.S., and then SARS. He's optimistic that the worst is now behind us and that business will really take off next year. In the past year alone, the company has opened 11 outlets as part of the Hong Kong Airport Authority's efforts to dramatically upgrade travellers' experiences at the airport.
"We now have so many different outlets that we can suit travellers' preferences, whatever their nationality, tastes or budgets," he says.
About 10 years ago, airports in Europe discovered that they could actually make more money by charging people less, as this encouraged travellers to spend more. Mr Lau says both he and the Airport Authority feel that charging travellers downtown prices is the key to encourage more consumption in the airport.
Cultural tastes
Running food and beverage outlets in an airport requires a deep understanding of human nature and cultural differences. Although very international, airports around the region have very local characteristics and customers. At Singapore's Changi Airport, where Mr Lau also manages SSP's operations, locals are so proud of their airport that many families spend their weekends wandering around the halls.
"The same thing happened in Hong Kong for the first six months after it opened, but people soon lost interest," he said.
Travellers also behave differently. Western travellers, for example, prefer to go through immigration early, find the location of their gate, and then settle down to a bit of shopping, grab a bite to eat or have a drink. Asian travellers tend to do the opposite, preferring to spend as much time with friends or relatives before going through immigration, Mr Lau explains.
"For business people, a lot of them hold meetings in our outlets before flying off, especially around the time of the big Canton Fair when we see a lot of local business people holding meetings with their clients before they take off," he says.
Burger King and Ajisen Ramen are his two busiest outlets at CLK, which appeal to travellers concerned about their schedules.
"The average waiting time, even for a ramen noodle, is less than 5 minutes," he says pointing to a huge tank of boiling water capable of cooking 16 bowls of noodles simultaneously.
Numerous factors are analysed before deciding which restaurants to bring into the airport. The current mix consists of local, Asian and international franchises complimented by SSP's proprietary operations. While it may appear that 16 outlets compete against each other for customers, Mr Lau says each outlet serves a different market segment.
"We have Burger King and Popeye's Chicken & Biscuit next to each other, but if you are Asian, or Muslim, you would probably prefer to eat Popeye's Chicken, which is the second largest chicken chain after KFC," he says.
Similarly, travellers wanting to have a drink with their meal and even a smoke afterwards, would choose Champions Bar, or for even more upscale food and entertainment travellers could try fusion cuisine at Cafe Deco or sushi at the Toro Bar & Seafood House. These upscale outlets are more popular with business travellers who can use private rooms for meetings, Mr Lau adds.
Although SSP's operations at CLK have exploded from three to 16 outlets in just seven years, Mr Lau says he is always on the look out for other brands that he can apply to other airports in the region. As a European firm, SSP is very strong in Western brands, but is looking to expand its line of successful Asian brands, he says. Thai food and noodles are now very popular in Europe, so Mr Lau says he is recommending a number of local brands to headquarters.
For the time being, space prevents SSP from opening more outlets at CLK. But if travellers' tastes start to change, Mr Lau says he will be ready to bring in whatever food tickles their palate.
Company: Select Service Partner Hong Kong Ltd
Business: Restaurants, Caterers
Year joined HKGCC: 2004
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