(FORTUNE Magazine) – Go Global, Eat Local: When George Chen began looking for new space to open his third Bay Area restaurant, he wanted a location that could really help his business take off. But when developers at San Francisco's airport approached him to consider setting up in the new international terminal, Chen took a pass. "I didn't know what they were thinking," says Chen, who's known locally for serving upscale "gourmAsian" fare. "Everyone knows that airport food is all about $8 hot dogs and $6 beer at a cheesy snack stand." But then the developers showed him their impressive $1 billion design, featuring sculpted steel, terrazzo tiles, and cherry paneling. When San Francisco's new terminal opens in December, Chen's Restaurant Qi and the Water Bar will be joined by 17 other upscale eateries, all independently and locally owned. Soon travelers will bid farewell to the overpriced wiener and be welcomed by gourmet meals at airports around the country. The change in menu is partly due to the creation of new airport terminals and the fact that HMS Host, the food-service giant that operates 70% of the airport concessions in the U.S., will see many of its contracts expire over the next five years. If developments at Portland's, Philadelphia's, and San Francisco's airports are any indication, there will be some bad news for Host and plenty of good news for independently owned restaurants. Small-biz-friendly Portland has kept Starbucks out of its airport in favor of the Coffee People, a local chain. Philadelphia went local, bringing in 40 homegrown businesses, including city institutions like Docks Square Brewery and Hymie's Deli. In San Francisco "we're bringing in all local restaurateurs," says Bob Weinberg, chairman of MarketPlace Development, which is responsible for enticing businesses like Chen's. "When you're in an airport, you can't tell which city you're in. When you dine in one of these restaurants, you'll get local flavor." While the new eateries cater primarily to travelers, many planners are hoping their airport-based restaurants will be a destination for residents too. Chen is banking that his new restaurant--with its $80 tasting menu--will be a midpoint meeting place between San Francisco to the north and Silicon Valley to the south. "I'm hoping that when people see how beautiful this terminal is, the locals will also come to eat and shop," says Chen. "Plus, there's plenty of parking."

...Ciao, Euromania: The euro, which at first looked like a golden opportunity for the U.S. small-business owners who are trying to make it in Europe, is turning into a goose egg. Many entrepreneurs, such as Fran Barsky of Cree Industries, an 85-employee semiconductor company in Virginia, now say that their products are too expensive for those who have only euros to spend. Cutting her prices to stay competitive slashes into her bottom line, especially now that a euro is worth only 84 cents. But Barsky and other American small-business people venturing overseas may want to take a few cues from those who've dealt with currency crashes before. Among them is 3Di, an Internet-services company in Brea, Wash., that bills overseas customers monthly to keep a careful hedge on the cost. If exchange rates drop or rise more than 10%, the customer takes the loss or gain...

'Tis the Season of Giving: When Charlie Butcher said he felt indebted to his employees, he wasn't kidding. After selling his floor-cleaning supplies company to S.C. Johnson in September, Butcher handed out bonus checks totaling $18 million to his 325 employees. "Most of them couldn't talk. They just cried," says the 84-year-old former owner and chairman of Butcher Co., based in Marlborough, Mass. Butcher decided to sell his 120-year-old business to 114-year-old Johnson because it was also family-owned. To reward veteran employees, Butcher wrote checks averaging $55,000. "The workers made [our company] worth what we got, so they deserve a big chunk of the return," says Butcher.

WITH Kathleen Dijamco, Sara Shepard, and Tara Weingarten