Non-transit revenue and transit systems

Hong Kong Transit makes 1/2 its revenue from leasing property. In the U.S., for the most part, the value produced in other property via transit connectivity is captured by developers, and to some extent local jurisdictions in additional property tax revenue. This is an issue with the land around WMATA subway stations too. Meanwhile, the transit system needs more money. See "Metro Weighs Fare Increase of 45 Cents," subtitled "Higher Rates Could Take Effect in January in Effort to Close Budget Gap," from the Washington Post.

The Orlando Business Journal has a story about the local bus system, Lynx--widely celebrated for its excellence in transit marketing programs--opening a restaurant in its downtown bus terminal in order to increase revenues. See" Lynx to serve up a new restaurant at bus station."

From the article:

Under the five-year agreement with Champs French Bakery, Lynx will receive 4 percent of the restaurant's monthly profit, on top of the rent, which will be $7,800 the first year, rising by $600 a year thereafter. The contract is renewable after five years, with the profit distribution increasing to 6 percent at that time.

Lynx officials have no estimates on how much revenue the arrangement will generate, but note the four vending machines inside the station bring in $1,000 per month. They also say even if only 10 percent of the riders use the restaurant each day spending at least $2, the project will be worth it financially.

After all, that would ring up at least $10,000 in daily sales, or $260,000 a month if the restaurant is closed on Sundays, making the bus station's 4 percent share about $10,400 a month. At that rate, it would take close to four years for the project to pay for itself.