The Group, the enterprise and the business under concession

The first Pavesi refreshment café was opened back in 1947, the starting point for a surprising venture that is still evolving today thanks to innovative ideas, a remarkable privatization process and various international acquisitions.

Since its formation in 1977, the Group has grown through several significant steps, which represented remarkable pillars upon which the Group further developed its plans for growth.

Superior know-how, high quality standards and product differentiation are the key elements with which the Group meets the needs of travelers every day, by operating in full compliance with legality and promoting cultural and geographical diversity in all of its 5,300 points of sale.

The Group’s core business, focused on catering services for travelers until the 90s, was expanded in 2005 to include airport retail. After a brief period in which the Company operated the onboard aircraft catering service (“Flight”), started in 2007 and completely transferred at the end of 2010, the Company proceeded to consolidate its activities into two business segment s: catering (“Food & Beverage”) and airport retail (“Travel Retail & Duty–Free”).

Today, Autogrill is a dynamic Group which presents itself both to landlords and customers as a global supplier of services for travelers. Autogrill manages a portfolio of over 350 quality brands either directly or under licensing agreements: a strategically balanced mix of global and local brands to guarantee multiple responses to the changing needs of markets and customers.

Around the concept of business licensing, the Group has developed a large global network for both business segment s; an international, multi-channel network. Through contracts stipulated following the awarding of competitive tenders with the owners or the operators of infrastructures (highways, airports, ports, railway stations, museums and malls), Autogrill is entirely entrusted with the provision of services regarding catering and retail activities to customers. In this context, it is of the essence to be in a position to successfully participate in tenders launched globally and based on different types of requisites: high know-how, high quality standards of the offer proposed and of the quality-price ratio and local differentiation of the product offering in order to meet different customer needs.

Despite being very competitive, a concession presents an important advantage for the concession holder compared to other types of contracts, because it allows the planning of activities over a medium-long time span: the duration of the contract is usually measured according to the level of capital expenditures required and varies based on the type of offering. Generally, catering activities require substantial investments, so much so that highway concessions have an average duration of 10 to 25 years, with peaks of over 30 years, while retail activities concentrating on airports have a lower duration, 5-10 years on average.

During the tender process, the valuation criteria of the offer, vary in relation to the business channels, the offer type and the country of reference. The main selection criteria include:

  • economic-financial quality and sustainability of the commercial project;
  • brand portfolio;
  • design and layout of the spaces;
  • operator’s know-how and track record;
  • financial commitments undertaken in terms of capex and rents.