Nate Rau and Lizzy Alfs | The Tennessean

Nashville Tennessean

Nashville's airport will soon feature dozens of popular local restaurants and retail shops as part of a multi-million-dollar overhaul set to bring in Biscuit Love, Prince's Hot Chicken Shack, Acme Feed & Seed and scores of other new businesses.

The high-profile makeover, which was approved by the Airport Authority last year, will include popular lower Broadway honky-tonks, local craft breweries and four hot chicken joints.

Restaurants and retail shops have signed letters of intent with Fraport, the contractor handling the concessions overhaul, and they are currently in lease negotiations; some could end up not opening if talks don’t progress.

The expectation among airport officials is the majority will eventually sign leases and set up shop. The businesses are expected to open over the next four years as the airport is renovated.

When the plan was rolled out last year, critics said small independent businesses couldn't handle the logistics of operating at the airport. But the initial list of anticipated operators seems to contradict that.

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Nashville airport: New restaurants, stores coming to BNA

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The airport chose to change its concessions program from a concessionaire model to a so-called developer model in which Fraport acts as a landlord and leases space for businesses to run their own operations.

Under the old model, which is more typical for airports in the U.S., local restaurants had a presence in the airport in name only. They signed licensing deals for concessions corporations to use their logos and copy their menus, but they didn't hire employees, cook the food or run the day-to-day operations.

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Airport CEO Doug Kreulen said the goal is for a new-look BNA to reflect Nashville's vibrancy, entrepreneurship and thriving culinary scene. The concessions changes are part of a broader $1.2 billion expansion and renovation of the airport — dubbed BNA Vision — that includes adding a new international gate, more parking and more security lines.

"This is exactly what we wanted to accomplish," Kreulen said. "When you get off the airplane, we want you to feel like you're in Nashville. We want you to go downtown and have a great time and when you go back to the airport, if you want to reminisce, you hopefully will have the ability to eat at one or two of the restaurants that you went to when you were visiting."

Nashville restaurants, retail and bars among new additions

The impressive list of businesses planning to open at the airport includes some of the most well-known restaurant and retail names in Nashville.

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Planned retail businesses include Nashville favorites such as White's Mercantile, Two Old Hippies and Project 615. That's in addition to chains such as Sunglass Hut and MAC Cosmetics.

Some of the airport's existing restaurants and shops will still have a presence at the airport, including Tootsies, Yazoo Brewing Company and Parnassus Books.

Max and Benjamin Goldberg of Nashville restaurant group Strategic Hospitality plan to open a bar/restaurant with an entertainment component at the airport. The brothers are behind popular venues such as Pinewood Social, The Catbird Seat and The Patterson House.

“We’ve always thought if we can offer really great, dynamic dining and beverage experiences, as well as a place to just enjoy or hang out — whether you’re on a business trip, bachelor party, or just traveling with kids — then we want to be a part of it,” Max Goldberg said.

From his viewpoint, the airport doesn’t have to be synonymous with sub-par food and drink. Similarly, the brothers elevated the concessions at First Tennessee Park with their wildly popular bar and restaurant The Band Box, where people flock for frozen cocktails, ping pong and mini golf.

As part of the deal with the airport, Fraport's tenants are limited to charging street pricing, meaning stores will charge comparable prices to their locations outside the airport.

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Record number of travelers attracts strong interest for airport space

Fraport USA President and CEO Ben Zandi said there were 432 applications for roughly 90 spots. He attributed the popularity to the massive growth of the airport, which saw a record 15.9 million passengers come through Nashville in 2018. Fraport operates concessions for airports in Baltimore, Cleveland, Boston and Pittsburgh.

"We have a vision to bring the heart and soul of the region to the concessions program at Nashville International Airport," he said.

Under the developer model, tenants pay rent to Fraport, which then promises to meet an escalating minimum annual guarantee to the Airport Authority. The fee in the first year is $11 million. Concessions generated $84.2 million at the airport in 2017.

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The contract caps the maximum percentage of the total revenue a tenant can receive at 15 percent. That limited the ability of large concession companies like Delaware North to bid on the contract ultimately won by Fraport.

Large concession companies will enter into joint ventures with some of the local companies on some of the deals. In many others, such as 8th and Roast coffee shop, the local owners will run the restaurant themselves.

"It's taken real visionary leadership to deliver on making the Nashville airport feel more like the front door of Music City,” said Ed Reed, co-owner and CFO of 8th & Roast. “8th & Roast has been serving freshly roasted, ethically sourced coffee since 2009 at our local shops, and we’re honored to be an option for the millions of travelers who come through the airport each year.”

Deal includes diversity requirements

The deal also contains substantial capital investment. Fraport and the Airport Authority will team to invest $17.4 million toward renovations. Tenants will spend another $30 million to $40 million on their build-outs.

Under the terms of the deal, Fraport must contract with at least 40 percent minority- or women-owned businesses and 40 percent local businesses.

Metropolitan Nashville Airport Authority

According to the Airport Authority, the program is on track to exceed 50 percent in both categories once it is built out.

Because of the ongoing renovation, all of the restaurants and retail shops will not open at once. The plan is for the first batch to open toward the end of the year and then continue opening as BNA Vision progresses.

"It's a diverse group of restaurants and retailers that reflect the quality and innovation that make our city successful and inclusive," Airport Authority board chairman Dexter Samuels said.

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