Giving travelers a taste of place

According to the Federal Aviation Administration, more Americans are traveling by air than ever before, and commercial airlines and airport vendors are calibrating for the boost in passengers. Among the busiest is SSP America, a leading operator of food and beverage brands in 52 airports in the U.S., Canada, Bermuda, and Brazil. SSP America brands prepare roughly 150,000 traveler meals each day.

“People still want to travel, and we expect to continue to see strong growth,” says SSP America CEO Michael Svagdis.

A division of U.K.-based SSP Group, SSP America operates restaurants in airports. You’ve likely seen SSP America brands while traveling—maybe you’ve ordered a fig and goat cheese pizza at Humble Pie in the Phoenix Sky Harbor International Airport, a Brooklyn-style pork chop at La Guardia’s Hunt & Fish Grill, or even a mocha latte at Big Shoulders Coffee in Chicago’s Midway International Airport. Whether it’s a regional restaurant beloved by locals, a national brand well-known to many (Dunkin’ Donuts, anyone?) or a unique brand created specifically for an airport, SSP America works to provide hungry travelers with a variety of distinctive meals from local, national, and boutique brands.

The new kid on the block

Founded in 2006, SSP America is relatively young by airport food and beverage industry standards. Even so, Svagdis says decades-old competitors have taken notice of SSP America’s “food travel experts” business model.

“We started bringing in local brands to really connect to each city and bring that ‘taste of place,’ which really sets us apart. We were doing it first,” says Svagdis, who has been with SSP America for just over a decade. “We’re passionate about bringing cool, authentic restaurants to airports that reflect the local market.”

SSP America customizes the dining experience for each location using metrics that include passenger capacity, regional culture, and what’s trending at the moment on the restaurant scene. By identifying the brands and flavors unique to each locale, SSP America gives travelers a memorable culinary experience at each destination.

SSP America operates 416 restaurants under 353 brands. For an operator, that level of brand diversity adds a layer of complexity to a business already susceptible to changes in the economy and marketplace, says Svagdis. To stay fresh, SSP America works with a range of experts to track trends in dining, aviation, consumer habits, and the U.S. economy. “That’s how we really stay on the forefront,” he says.

Technology is also an integral part of SSP America’s business dynamic. Contactless services like QR code menus and order kiosks mean airport customers can receive their food quickly and accurately when in a hurry for their next flight. Digital kiosks are also great for increasing sales since the systems automatically offer customers an add-on item or a larger size—average ticket sales increase by 8-10% when customers use a self-order kiosk.

Solving time and space problems

Creating unique restaurants scaled for airports is a challenge, says Svagdis. Kitchen space is at a premium, often at half or one-third the size of a street-side restaurant. Restaurant equipment, fresh ingredients, and employees all vie for square footage.

To maximize kitchen space, SSP America has taken a cue from Michelin-star restaurants that keep a slim, preset menu that can be prepared well in a time crunch.

“Think about it: I could make 50 items that are all just okay, or I can make 10 and really knock them out of the park,” Svagdis says. “Our theory was, let’s shrink our menus and work with our brand partners so we can execute things very quickly, but still at a high quality.”

SSP America’s efficiency goal extends to restaurant equipment, with new hot-holding systems that use convection and steam to maintain food temperatures, moisture, and crispiness. Batch cooking helps restaurants prep for the influxes and lulls in customer traffic predicated by flight schedules.

Culture is key

Svagdis says innovation and technology are all well and good, but SSP America’s true edge in the marketplace may be less quantifiable: its employees and corporate culture. “That’s the key difference in how we stay ahead,” he says.

Employees appreciate the company’s efforts to promote from within—45% of SSP America's management positions last year were filled internally by people who previously held hourly positions.

“That, to me, is what it’s all about, creating career opportunities for everybody in the company so they can make a better life for themselves,” Svagdis says. “I want SSP America to be the best place to work from a culture perspective. In my heart, that’s the goal.”

SSP America’s efforts to improve employees’ lives include competitive pay, health insurance plans that also offer reimbursement, retirement plans, and life insurance plans.

Marsh McLennan Agency (MMA) has been a valued partner in SSP America’s insurance efforts for 17 years, while global operations recently signed on as a Marsh client.

MMA account executive Craig Tabor credits SSP America’s leadership for putting a heavy emphasis on relationships with all of its key consultants and vendors.

“SSP America’s leadership is always looking forward, asking MMA how to best navigate challenges in economic and insurance cycles,” he says. “SSP and MMA share so many similarities. They put their colleagues, customers, and community first.”

SSP America also relies on MMA for employee benefits, negotiating savings in excess of $2 million and minimal rate increases on the medical plan. Svagdis says MMA has been instrumental in keeping employee medical benefits affordable by seeking competitive bids from major health insurance providers. During his 10-year tenure, the cost of benefits to employees has only gone up once.

“I’ve been ultra-focused on that because you can give someone a raise, but if the medical benefits [costs] go up, that raise goes out the door,” Svagdis says.

Diana Fabian, an MMA senior account executive, appreciates how the company’s values and employee culture are reflected in its business decisions.

“SSP America’s commitment to employees has always amazed me,” she says. “As we work through benefit program options, their first consideration is ‘How will this affect our team members? What can we provide that is in our employees’ best interest?’”

Svagdis grew up in the food and beverage industry, starting at his father’s bakery and through jobs at restaurants and in corporate dining. He hopes to continue to grow SSP America to one of the top U.S. companies while providing his employees with compensation, benefits, and a culture that will help them develop their own careers.

“Those are big, lofty goals that take a lot of work and effort—if you look at the food and beverage industry, it’s massive,” he says. “We get a lot of great comments from people who come to this organization about the culture, how we’re all aligned, and how we communicate clearly what our goals and expectations are. I just think that’s who we are as an organization.”