Avolta's Steve Johnson talks reshaping North American airport retail with hybrid concepts

Steve Johnson, Avolta’s North American President & CEO, driving transformation in airport retail and dining through sustainable innovation

The landscape of airport retail and dining in North America is undergoing a significant transformation, with Avolta leading the charge through its multiformat approach spanning duty free, convenience retail and food & beverage operations.

The company’s recent string of contract wins throughout the US in 2024 demonstrates its innovative vision, with programs that integrate all three business lines – duty paid, duty free and food & beverage – to create comprehensive passenger experiences.

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“The concessions programs we’ve recently created are unlike anything we have ever done, and this is what has driven this success,” says Steve Johnson, President & CEO, North America, Avolta. “Some of the contracts are especially notable as they include all three lines of our business, because airports are embracing our vision and ability to deliver duty paid, duty free, and food & beverage together to enhance the travel experience while empowering travelers to choose their own journey.”

Passenger-centric approach

At the core of Avolta’s strategy is a focus on anticipating and exceeding traveler needs. “One of our core values is to design concessions programs that place travelers at the heart of every decision, not only addressing their current needs but proactively anticipating and shaping the future of their journey. We are driving the evolution of our industry,” Johnson explains.

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The company’s commitment to innovation kicks into high gear in 2025 as it continues executing its Destination 2027 strategy. New developments will include groundbreaking hybrid concepts alongside partnerships with local brands, artisans and indigenous peoples to create authentic sense of place. These will be complemented by enhanced digital engagement and experiential moments.

Sustainable foundations

“Sustainability is a cornerstone of our Destination 2027 strategy, reflecting our unwavering commitment to creating sustainable travel experiences across our business,” says Johnson. “It’s not just a priority, it’s embedded in our culture, driving operational decisions, reducing environmental impact, and fostering long-term responsibility.”

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This commitment starts with the supply chain, where over 75% of North American suppliers are certified under Avolta’s code of conduct. Through strategic consolidation of transportation routes and resource management, the company has reduced its carbon footprint across multiple business lines.

In retail operations, the introduction of reusable, recyclable shopping bags has eliminated 20 million plastic bags annually. The company’s HMSHost restaurant division has achieved notable milestones, including 98% certified coffee sourcing, over 90% cage-free eggs, and 65% sustainable pork sourcing. The food service operation’s donation program provided more than 350,000 meals to local charities last year while diverting waste from landfills.

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Avolta’s sustainability vision extends to infrastructure development, where LEED-certified design and construction teams incorporate eco-conscious solutions from the ground up. New projects feature innovative materials like recycled glass tiles, ultra-low flow fixtures, and Energy Star commercial appliances, emphasizing water conservation and energy efficiency throughout.

Operational excellence meets innovation

The company’s success stems from decades of operational expertise that enables the design of concepts perfectly suited to the unique airport environment. “Our concessions programs are meticulously tailored to each venue,” Johnson emphasizes. “We take into account passenger demographics, airport goals, and operational logistics to ensure every concept is both groundbreaking and highly functional.”

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This approach is seen in how Avolta treats each space as a blank canvas, considering multiple factors including the specific airport environment, concourse layout, airline mix, passenger dwell time and evolving traveler needs. “By combining our deep understanding of airport operations with a culture of continuous improvement, we create ideal commercial offerings in partnership with our landlords,” Johnson explains.

Digital engagement and artificial intelligence are playing an increasingly important role in Avolta’s operations, though Johnson emphasizes that technology serves to enhance rather than replace human interaction. “For us, digital engagement like AI, is a tool that works alongside human engagement,” he says. “The human experience remains critical to the guest experience, and digital engagement simply enhances that relationship, allowing our team members to focus on meaningful personal interactions with travelers.”

Pushing boundaries

Projects like the new JFK Terminal 6 showcase Avolta’s innovative approach, balancing creative concepts with operational demands.

“Our Prohibition-style speakeasy is a prime example of pushing the boundaries of travel retail and redefining the food and beverage experience. This innovative concept not only captures travelers’ imaginations but also enhances their journey, creating memorable moments in transit,” Johnson notes.

Looking ahead, Avolta sees significant potential in hybrid store concepts that blend retail and dining experiences. The company is preparing to launch several innovative hybrid locations, including an Eataly at JFK combining full-service dining with retail elements, and a Starbucks market concept at Sacramento International Airport.

“Hybrid stores will continue to evolve for years to come, shaped by the unique needs of travelers,” Johnson says. “Looking ahead, hybrid concepts will evolve to include multiple categories, like the Eataly location we will open in JFK, which includes a full-service restaurant, convenient and fast grab-and-go options, and a retail component.”

These hybrid destinations aim to attract diverse traveler segments while increasing footfall and creating more dynamic passenger experiences. The model represents Avolta’s broader vision for airport retail and dining – one that seamlessly integrates different commercial offerings to enhance the overall travel journey.