Captive consumers are paying way too much

“Trapped in a world they didn’t create …” That’s a good description of us when we are in airports.

Glass of wine? $19. Hot dog with fries? $15. In a lot of airports, you pay 100% more for a product than you would in the outside world.

Even though their leases require airport businesses to charge prices that are competitive with downtown Chicago, it sure doesn’t seem that way. I took the time to look at many items for sale at an airport, and the typical markup is 100% to 300% over industry standards.

I’m sure you have experienced ridiculous prices at the airports in this country. I’m sure you have felt ripped off, but you make your purchase because you and your family are hungry.

The airport landlord makes it very expensive to operate in an airport.

The rent per square foot can be more than double from what a business would pay a half-mile down the road. They have to pay a percentage of sales or a minimum annual guarantee to the airport authority. Many times the build out of the spaces can be more than double the per square foot than restaurants just down the street and many times they likely are paying for their employees’ parking as well. Their delivery fees may be higher because distributors have to go into the airport and through security. Wholesalers, figuring an airport restaurant must be making huge profits, might jack up their prices, too.

But higher prices don’t seem to be the norm in other parts of the world. In most European countries, there are price controls built into the contracts: Pricing must not exceed certain profit margins. These businesses do fine charging just slightly more at airports, but in the U.S., it seems the sky’s the limit. They should all be ashamed.

We are captives

There is a segment of customers in the restaurant/hospitality/retail industry called the captive customer, and this applies to stadiums, casinos, cruise ships, resorts, convention centers and amusement parks, in addition to airports.

What all of these have in common is that you, the guest, have no other options for food and beverages when you are there. A glass of beer that would cost you $6 at your local bar costs $10 to $15 at an arena, and if it’s a major game, it could be more.

A hot dog that costs you $3 to $5 in Chicago might cost you $8 to $10 at the ballpark. This means if you take your family of four to a professional baseball game, the price for your meal (hot dog, soda, fries) will run about $20 x 4 = $80! If you bought this meal at a local vendor in Chicago, the total at the top end would be $10 per person for a total of $40.

The straw that broke the camel’s back

I had been at four airports in the previous 10 days, but an experience at Midway broke the camel’s back for me. A tuna sandwich and a Vitamin Water cost me over $18! At a local grocery store this would at most be $8.

I received a sandwich on very dry bread with no more than three ounces of tuna and a 12-ounce drink. The total cost to the operator was probably around $3.

What can we do?

We can pack our own food for the airport — solid snacks like sandwiches, granola bars, fruit and veggies. While you can’t take liquids through security, you can easily refill a water bottle afterward. I also think that there should be a national one-day food boycott by everyone flying. That will help send the message to the vendors that we see what they’re doing and we’re mad about it.

My other recommendation is that we contact the Chicago Department of Aviation and our local and county officials and let them know that we are tired of them trying to balance the Illinois budget on one sandwich.

After that, we can all work on the outrageous prices at professional sports stadiums and amusement parks. If we don’t do something the prices will continue to rise until they make it unaffordable to take our families out for fun and memorable times.

• Izzy Kharasch is the founder of Hospitality Works, a consulting firm that has worked with 700+ restaurants and small businesses nationwide. He is offering Daily Herald restaurant owners a free consultation by contacting him at Izzy@HospitalityWorks.com.