Riders + Revenue = Rubbish: Managing Concessions and Making Money Riders are coming to our stations, anyway. Can we make some money off them? Capturing the value of a transit investment can take many forms. Is providing concessions and services a good way to generate a meaningful income? Or just another way to provide amenities for transit riders? Vending machines or specialty retail? Hear from our panel about what it takes to develop a successful program -- from impediments, to thresholds needed to support certain uses, to who picks up the fast food garbage on the train. Advice, lessons and time for discussion. Moderator: Theresa O'Donnell, AICP, Acting Assistant City Manager, City of Dallas, Texas Jason Ward, Manager, Joint Development, Metropolitan Atlanta Rapid Transportation Authority, Atlanta, Georgia Zahoor Kareem, President, Blinq, a Transmart Company, San Francisco, California Lorna Moritz, President, TR Advisors LLC, Boston, Massachusetts

1. VENDING
FOOD & BEVERAGE
and SPECIALTY RETAIL
Presented by Denise D. Whitfield - Retail Development & Concessions Planning
Metropolitan Atlanta Rapid Transit Authority (MARTA)
dwhitfield@ itsmarta.com (404)848.5326
1
MARTA RETAIL CONCESSIONS

2.  Ninth largest transit system
in the country that provides
bus, rail and paratransit
services
 Approximately 500,000
passenger boardings each
weekday
 Operates in 38 stations
covering 48 miles of rail
 Funded by a one cent sales
tax collected in the City of
Atlanta, Fulton and Dekalb
counties
 Receives no financial
assistance from the State of
Georgia
2
Five Points Station

3. 3
Retail Concessions Program Objectives
• Generate new non-fare box revenue
• Minimize financial risk
• Implement retail program in phases (I and II)
• Ensure long-term growth (10-20 years)
• Provide amenities for our customers
• Partner with local, regional and national brands
• Retain experienced partners

4. Business / Revenue
Model Considerations
• Contributions to
infrastructure improvements
• Understanding potential
vendors’ barriers to entry
• Contract Term – How long
• Implementation - When
• Operations and Management
• Desired long term results
4

5. 5
• Phase I - Challenges We Faced
– No sales history, no guarantees, no proven concepts
– Lack of retail concessions experience
– Stations designed for their purpose (but not for retail)
– Manage unrealistic expectations
• Phase I - Outcomes We Experienced
– Guaranteed revenues of $1.3MM
– Customers support retail concessions
– Expanded opportunities for small and local vendors
– Retained experienced partners

6. Phase I
Best Selling Snacks
6
Phase I
 Dasani
 Coke
 Sprite
 Pepsi
 Mountain Dew
 Average price $2.00
 Average size 20 ounces
 Sales YTD - $1.8MM
Best Selling Beverages
Crunchies
Pastry
Chips
Candy
Breakfast Treat
 Average price $1.50
 28% of beverage sales
 Sales YTD - $500K

7. Potential Retail Concepts
• Beverages and Snacks
• Grab N Go Salads
• Fresh Fruit and Vegetables
• Coffee, Cupcakes, Donuts
• Frozen Desserts
• Sandwiches, Popcorn, Pizza
• MARTA Store
• Automated Teller Machines
• Lottery Ticket Sales
7

8. A Recap of Our Journey - Where We Started
• 2009 - GA state law changed
• 2010 – Phase I – Vending implemented
• 2011 – Psychographic study conducted
• 2012 – Industry Day held to engage the public
• 2013 – Initiated Phase II solicitation process
8

9. 9
Where We Are Today
• 2014 – Retained Greystone Management
Solutions as our partners
• 2014 – Station Traffic Review to ensure
appropriate retail site locations
• 2014 – Concessionaires’ Input
• 2014 – Issue solicitation/Identify operators
• 2015 – Implement Phase II

10. $ 2,300,000 in Sales
$1,000,000 Revenue
The Best is Yet to Come
10