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City of Whiting Restaurant Review FINAL

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City of Whiting Restaurant Review FINAL ! ! ! ! ! ! ! ! CITY OF WHITING Restaurant Market Review July 2014 FINAL ! ! ! ! ! www.foodservicema/ers.com ! ! TABLE OF CONTENTS ! ! Secon Page ! 1. Execu;ve Summary 3 ! 2. Study Purpose 4 ! 3. Site / Loca;on 6 ! 4. MarKet Review 9 ! 5. Architectural Concepts 11 ! 6. Present Compe;;on 12 ! ! ! ! This report is an independent study commissioned by the the City of Whi6ng. All views contained in this report are those of Food Service Ma@ers LLC, and should not be considered the views of the City of Whi6ng. ! www.foodservicema/ers.com Q2 ! ! EXECUTIVE SUMMARY ! As the a/ached report indicates, there is limited compe;;on in the Whi;ng-Robertsdale- Hammond area for a sit down casual or higher end restaurant concept on the lakefront. There are only a few true des;na;on restaurants located in Indiana within 25 miles , including such restaurants as Cooper's HawK Winery & Restaurant, Three Floyd's Brewpub and the Lighthouse Restaurant at Cedar Lake. Crowds at all three restaurants indicate that there is a strong need for another des;na;on restaurant in the region, especially one that is conceptually different from the exis;ng inventory. The exis;ng restaurant base in Whi;ng will compliment the new lakefront restaurant and should not compete directly with it for business. There is significant poten;al for the wedding and special event marKet at the lakefront restaurant site, including the use of a City-owned pavilion next to the restaurant loca;on and/or ten;ng that could expand sea;ng capacity for larger events. The City has convenient parKing adjacent to the facility and within the Lakefront ParK. The City will nego;ate favorable terms of use with the selected operator. The restaurant operator's marKe;ng plan should be primarily focused on showing the scenic Whi;ng shore line and the incredible view of downtown Chicago from the restaurant. MarKe;ng efforts should focus on improving the general public Knowledge throughout the region about the amazing haven that is this special lakefront loca;on. With limited compe;;on, mul;ple new a/rac;ons slated to open in Whi;ng, and the recently completed extensive renova;on of the waterfront parK and beach parK, the restaurant should be successful immediately. It would be op;mal to open in the summer, or at latest fall, as poten;al customers will be in the habit of visi;ng the lakefront. The operator should also prepare a winter marKe;ng campaign for roll-out once the weather begins to cool. The lakefront restaurant should be year-round a/rac;on, whether before a baseball game, aaer visi;ng one of the planned museums, or aaer a day of worK. ! ! ! ! www.foodservicema/ers.com Q3 ! STUDY PURPOSE ! This report assesses the marKet opportuni;es for a proposed new restaurant on the lakefront of Whi;ng, Indiana. To accomplish this objec;ve, Food Service Ma/ers (FSM) analyzed and reviewed a variety of data sources and conducted addi;onal primary research to include: ! I. Review of the proposed site, and adjacent proposed projects, that will impact the viability of the restaurant II. Review of present restaurants and concepts in Whi;ng and Hammond, Indiana III. Site visits and review of present des;na;ons deemed as compe;tors or poten;al partners IV. Reviewed demographics and income levels of local marKet V. Reviewed and analyzed food and beverage social web sites including Urban Spoon, GrubHub, Open Table, Eater, Yelp and Trip Advisor VI. Reviewed recent reports from the Na;onal Restaurant Associa;on, Gruen Associates and the US Census Bureau ! ! ! ! www.foodservicema/ers.com Q4 ! Based on the results of the research tasKs above, FSM believes that there are many advantages to the proposed loca;on including but not limited to: ! I. A unique, one-of-a-Kind loca;on with lakefront views of downtown Chicago. II. Recent redevelopment of both the waterfront parK surrounding the restaurant site and the adjacent downtown area. III. The City of Whi;ng's financial commitment to rebuilding a historic facility as a modern restaurant. IV. The City's approach to developing a sustainable, long-term partnership with the selected restaurant operator. V. Con;nued BP facili;es expansion with office personnel within walKing distance of restaurant. VI. Addi;onal proposed redevelopment in the Whi;ng area, to include housing, retail and the proposal for a chain mid-marKet hotel within the lakefront parK. A hotel marKet study was recently completed, and the City is engaged in discussions with poten;al hotel operators. VII. There is ample convenient parKing at the lakefront restaurant site. VIII.New museum projects within walKing distance are expected to bring more than one hundred thousand unique visitors to Whi;ng each year. IX. New ballparK, recently built within walKing distance of restaurant site, hosts a full calendar of baseball games for high schools and colleges. X. Revitalized, safe and historic downtown that is pedestrian-oriented, with a main street that ends in close proximity to the waterfront parK. XI. Extensive calendar of annual events held in Whi;ng, including the annual Pierogi Fes;val which a/racts over 200,000 visitors each year. XII. Accessibility of Whi;ng to 90/94 SKyway and State Highway 20 and US-41 ! ! ! www.foodservicema/ers.com Q5 ! SITE / LOCATION ! The City of Whi;ng, Indiana, (the "City") is located in Lake County and was founded in 1889. The City is located on the southern shore of Lake Michigan. It is roughly 16 miles from the Chicago Loop and two miles from Chicago's South Side. Whi;ng is home to Whi;ng Refinery, the largest oil refinery in the Midwest. The popula;on of Whi;ng was 4,997 at the 2010 census. The Whi;ng post office (46394) serves not only the City of Whi;ng, but also the adjacent Hammond neighborhood of Robertsdale, immediately to the west. The local chamber is the Whi;ng- Robertsdale Chamber of Commerce. Addresses in this Hammond neighborhood show “Whi;ng, Indiana.” While not legally a part of the City of Whi;ng, the Robertsdale area has long been considered by local residents to be a culturally integrated part of Whi;ng. References to Whi;ng businesses or residents oaen include those technically from Hammond’s Robertsdale neighborhood. Neighboring Hammond, Indiana, has a popula;on of 80,830 as of the 2010 !census, replacing Gary as the most populous city in Lake County. Nearly six million people live within a 30-mile radius of Whi;ng, with a median age of 36 years and a median annual household income of nearly $50,000. Within a 30-minute drive ;me of Whi;ng, there are nearly 2.5 million residents with a median age of 34 years and a median annual household income of $42,000. (Source: Nielsen)! The City of Whi;ng has proposed spending $3.5 million of their budget to fund rebuilding the exis;ng historic police ar;llery range in order to create a restaurant to anchor the revitaliza;on of the waterfront parK. Whi;ng Lakefront ParK has seen extensive renova;ons recently to include new parKing, biKe and walKing trails, a new pier and a complete re- landscaping of the parK. Whi;ng is in the midst of a building and renova;on phase that is unprecedented among the laKefront communi;es. Historic downtown is undergoing a revitaliza;on, the new ballparK is completed, new tennis facili;es are open, a rejuvenated beach is open, and the new Lakefront ParK is nearing comple;on. In addi;on, the City has plans for a full-service hotel to be located within the ParK, however the exact hotel site and partner for the hotel has not finalized. ! www.foodservicema/ers.com Q6 ! ! VavreK Architects have been chosen to oversee the re-design of the historic structure, in Keeping with the rich historic character of past architecture. The loca;on overlooKs Lake Michigan with clear views to the north of the Chicago sKyline. The industrial views to the south will be reserved for bacK-of-house opera;ons. As such, the new structure is strategically placed on the site to maximize the best of the parK-view and lake-view opportuni;es. VavreK is building a seasonal exterior pa;o to take full advantage of the lake views. The upper bar and sea;ng area will have amazing lake views all year round. The 7,400 foot structure will have two levels of dining and bars and over 265 proposed seats on both levels, with elevator accessibility for all events. There will be a huge fireplace on the lower level. There is a seasonal exterior pa;o with direct views of the Chicago sKyline and one-of-a- Kind views from the second level. Currently there is an 1,800 sq. foot Kitchen that the selected operator will need to furnish with equipment. All base building components will be built by the City, including but not limited to: HVAC, hoods, walK-in refrigerator, walK-in freezer, electrical, plumbing stubbed to the Kitchen, office, storage rooms and loading area. The City is looKing for an opera;ng partner to worK within the confines of the historic structure, and will deliver a blanK canvas for the operator to create their vision. Building allowances will be provided for bars and floors, and the operator will have the ability to picK all finishes and treatments. www.foodservicema/ers.com Q7 ! ! ! 2012 Census 2012 Whiting Hammond Indiana US Population 4997* 80,830 6,537,000 Square Miles 2.1 24.8 36,418 Median $43,293.00 $39,966.00 $46,964.00 $51,371.00 Hosehold Income Cost of living 97 90** 92 100 ( us avg) index * down 3.9% since ** 10% lower 2000 then us avg www.foodservicema/ers.com Q8 ! MARKET REVIEW There are presently thirty-four restaurants within a mile range of Whi;ng.
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