Interview: Areas takes multi-channel approach in drive to double Italian business
ITALY. “Our goal in Italy is to double the business revenue in the next two years and we have a lot of opportunities to achieve that.” So says Areas CEO Italy & Germany Sergio Castelli of the outlook for the travel food specialist in a key market.
Italy represented a €189 million business in 2019, a figure that Areas exceeded by close to +30% in its most recent financial year. The group has a market-leading position at Italian airports, with over 100 points of sale at 14 locations.
Besides consolidating its status at airports and in the fledgling rail channel, motorways are a key growth channel that will drive the company’s expansion ambitions. In Germany, which Castelli also oversees, airports and rail are channels of focus in future – it operates from a limited base currently – alongside its leisure operations at vacation villages in this market.
Setting the Italian market opportunity in context, Castelli says: “The combined market for airports, rail and motorway F&B is around €1.5 billion a year. We are the largest operator in airports, and here we extended many contracts in the past one to two years. We are the third largest in motorways and in rail, we had no presence until 2019, but that is now a €20 million business.”
In rail, Areas now has outlets at the seven main stations: Rome, Milan, Florence, Bologna, Venice, Naples and Turin. Brand partnerships include Rinaldini pastry and Vyta, and this Summer Areas opened the first Paul bakery in the country, at Rome Termini, with a second to follow in Milan, slated for early December.
Freshly made partnership: Vyta at Bologna Airport, recently inaugurated (pictured above and below)
With a view to expansion ahead, motorways represents the most important channel due to the density of the road services network. Castelli says: “In Italy we have a service station every 20km, which is much higher than say France, where it is one service area every 55km.
“There is opportunity to grow through tenders in this market in 2024, where contracts will expire to the value of around €250 million, so we will follow these closely and hope to win new business. That is the biggest opportunity in Italy.”
Motorway services represent a vast upcoming opportunity in Italy, says Areas
Addressing consumer change since COVID-19, Castelli says: “The profile of the consumer is different today. Whether it’s at airports, rail or on motorways, there are more demanding.
“Some people have greater spending capacity, they are curious and interested in higher quality, healthier food. The new consumer is also more aware and informed.
“On the other hand, we have consumers with less spending capacity looking for value-for-money options, and good quality products. We see that quality is always a statement for all pockets, especially in the Italian market.”
Partnerships at Milan Malpensa Airport included Antonino (above) and Pizza Flor (below)
Some of Areas’ latest collaborations underline its drive for newness and innovation across different location. One example is a partnership with Naples-born triple Michelin-star chef Antonino Cannavacciuolo, with whom Areas opened a high-level street food concept in late November at Milan Malpensa Terminal 1.
Another is a recent motorway opening with Fratelli Desideri in Bologna, in which Areas introduced menus from famous Michelin-star chefs that showcase its innovation, in a first example of high-quality product development in the motorway channel.
A third example is Pizza Flor, a new pizza concept where the product is the protagonist, and says Areas, where the quality and variety are “revolutionary, with very powerful design”. Further innovation comes with the Spring 2024 unveiling of the first Comptoir Libanais at Milan Malpensa T1 (non-Schengen).
On the current broad trends to which Areas is adapting, Castelli says: “We are investing in research on wellness and healthy foods, new food trends, and future foods to satisfy the desires and meet the lifestyle needs of our clients around quality and value.”
Introducing the Paul bakery brand at Milan Central Station
The company’s investment in infrastructure and technology during COVID-19 will help it react to trends and grasp the opportunities, he adds.
“We kept investing in facilities, machinery as well as new food formats and technology. Italy is a smaller market [than others in the Areas network] but we can also change faster and use our creativity and culture to anticipate the needs of travellers.
“We are pushing a lot on health, quality, customisation, and last but not least sustainability, but in a deeper sense. It means sustainability in packaging and recycling issues, but also in terms of proximity and quality of raw materials, ingredients and the whole supply chain.
“The difficulty in finding a workforce in our industry has also prompted us to implement a reduction in complexity within the stores. This means less complexity, less error, more quality for the customer, less waste for the company and for the environment.”
Castelli also calls out the five ‘ingredients’ that he says are key for success in F&B in the Italian travel market: differentiation, innovation, product, human resource and passion.
“If we all buy into these five ingredients, as management and staff, that is the recipe for success.
Looking at the drive to double the business, he adds: “We are on the right track with traffic and sales recovery, margin improvement and profitability compared to 2019. I am sure we’ll achieve our ambition.” 
*Click here[1] for an interview with Areas CEO Óscar Vela, who talks about recent contract gains, regional ambitions, the convergence of food and retail and corporate spirit.
**Click here[2] for an interview with CEO France Yves Lacheret about protecting and extending a strong position in a key territory.
***Click here[3] for an interview with CEO Latin America Eduardo Torres, who talks about consolidation and expansion in Mexico and Chile.
****Click here[4] for our interview with CEO Areas USA CEO Carlos Bernal, who discusses recent US airport and motorway contract wins.
*****Click here[5] for our interview with Areas Iberia CEO Sergio Rodriguez, who discusses a hugely ambitious 16-month programme to construct 67 restaurants in Madrid, among other themes.
The world’s only event dedicated solely to the airport food & beverage and hospitality sectors will make a welcome return to the US next June. Please contact The Moodie Davitt Report Head of Events Jeannie Wong at [email protected][6] for details.
References
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