The San Diego County Regional Airport Authority Board has approved the final group of New Terminal 1 concession leases for restaurants and retail shops that will offer a mix of local, regional, and some national brands.

A total of six concessions operators will open 19 restaurants and seven retail stores in the New T1. The first phase (19 gates) is slated to open in 2025 and the remaining 11 gates in early 2028.

Following is a Q&A between the Peninsula Beacon and the Airport Authority giving details of their plans for New Terminal 1’s new restaurant/retail space:

Faro: Describe where the new retail will be in the terminal. Will it be set up like a food court?

Airport: No, the location of convenience and specialty retail is different from the location of food service. Convenience and specialty retail need to be sprinkled everywhere throughout the terminal for passenger convenience. Food can be more clustered for those who are looking for food variety.

Faro: What types of businesses were you looking for to fill out the space? 

Airport: Retail operations in airports are very specialized due to the logistical and operational challenges involved. As a result, airport retail tends to be dominated by a handful of national/international companies who partner in joint ventures with locals who really understand the market. They accomplish a partnering of the large and the small scale when it comes to the concepts and merchandise. We didn’t mandate this type of proposer, but it was the type we expected that would be interested. This also turned out to be the case.

Faro: Sounds like you have a mix of different types of retail. Tell us about that. Will the retail have a San Diego look and feel? If so, how will that be accomplished?

Airport: We sought to achieve the look and feel of San Diego in two ways: with architecture and merchandise. With architecture, we created three distinct “districts” in the terminal.

– The Heritage district provided proposers with design cues from old mission San Diego, suggesting earthy natural colors and materials.

– The Urban district can be best described as the light-industrial ‘grit’ of downtown Gaslamp, for example, rust and faux brick.

– The Seaside district suggested tones of blue, green, and sand with lighter materials. The retail shops have a greater ability to reflect these districts as they are not governed by the kind of brand guidelines of quick service restaurants.

With merchandise, it’s all about curating local products. It could be as subtle as jewelry made in a studio at Liberty Station or more overt as souvenir merchandise from the San Diego Zoo and the USS Midway Museum

Faro: What purpose will the retail serve in the overall scheme of the new Terminal 1?

Airport: The purpose is always two-fold: needs and wants. However, in the overall scheme, “needs” are more important. Needs are “I need a quick sandwich to take on the plane because I don’t have time to eat in a restaurant,” or, “I forgot my phone charger at home,” or, “I have a horrible headache and need aspirin.” Airport retail must cover all those needs and more.

For some travelers, it’s enjoyable to explore airport retail offerings as the last thing they do before departing San Diego. Those kinds of “wants” could be San Diego souvenirs or it could be just something unique not found elsewhere. It can also be higher-end cosmetics and perfumes for some.

Faro: Tell us about the selection process, and what went into choosing among the various applicants who wanted to get into the New T1 terminal.

Airport: There were many factors, of course. Some of the criteria for food service were understandably different than for retail. Generally, for all, we looked at the financial strength of the company and evidence of an ability to invest, as well as relevant experience.

Key factors for retail, were the proposed store concepts, the design aesthetic and how it fits with the terminal, how well they used limited space, and what merchandise would be offered. For restaurants, we are looking more specifically at the appeal of the food type to a broad audience and proposed menus.

For all types, we also looked at their proposed inclusion of small businesses and their environmental practices. And, of course, they indicated what percentage of sales they would be willing to pay the airport. The percentage rent offers are typically quite similar because they are derived based on estimated sales and the costs of doing business.

Faro: Will alcohol be served in New T1’s new retail section?

Airport: Specifically in retail shops, passengers will be able to buy alcohol as gift merchandise, i.e. bottled wine and canned beverages that may only be consumed in an area designated for consumption. Generally, for all concessions, the exact areas where alcohol may be consumed is a future licensing matter between the Alcohol Control Board and the various concessionaires.

In November 2021, the Airport Authority began construction on the New T1, which includes the replacement of Terminal 1, improvements to the airfield, improved transportation connectivity to the airport, and a new administration building. The New T1 program’s total project budget is $3.4 billion and is estimated to create between 15,000 to 20,000 construction-related jobs. For more information about the New T1, visit newt1.com. For more information about SAN, visit san.org.

TERMINAL 1 BUSINESSES

The concessions operators selected to fill the 32,000-square-foot, food-and-beverage space, and 14,000 square feet for convenience retail space in New Terminal 1, will be offering many brands and concepts well-known to San Diegans.

• Food and Beverage: Kettner Exchange, Puesto, Mostra Coffee, Parakeet Café, Better Buzz, Cutwater Restaurant & Bar, Lofty Coffee, Understory Bar & Restaurant, NOVO Brewing, El Pez, Taco Stand, Ambrogio 15, Herb & Air, SIP Wine & Beer, 900A Tony Hawk Public House, Luna Grill, Mr. Moto Pizza, Carnitas Snack Shack, Grab & Go Subs, Café Moto, Chick-fil-A, and McDonald’s.
• Retail, Convenience, and Gifts: Gaslamp Marketplace, Hip & Humble, SAN Supply Co. and Goods Express @ SAN, Goods Univision Travel Store, No Boundaries, The Commissary, InMotion, WHS Smith, Liberty Station, and The Arts District Market.