! ! ! ! ! ! ! ! CITY OF WHITING Restaurant Market Review July 2014 FINAL
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! TABLE OF CONTENTS ! ! Sec on 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 Whi ng. 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 Whi ng. !
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! 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, a er visi ng one of the planned museums, or a er a day of work. ! ! ! !
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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 ! ! ! !
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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 ! ! !
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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 o en 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. !
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! 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.
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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
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MARKET REVIEW There are presently thirty-four restaurants within a mile range of Whi ng. Five are considered sit down, six are categorized as diners, nineteen are quick-serve fast food and three are brewpubs. We reviewed all the major food social sites to gauge the quality of the top scored and reviewed.loca ons within the greater Whi ng area. These sites include Yelp (o en the most complete site), Eater, Open Table, Urban Spoon and Trip Advisor. There are several restaurants that scored highly across the board. This list includes Keith's, Bombers BBQ, Three Floyd's and Cooper’s Hawk. Of these restaurants, Bombers is a quick-serve niche provider, and only Keith's is located in Whi ng. We visited and reviewed the three restaurants that are considered des na on loca ons, and we added the Cedar Lake Lighthouse, as it came up on searches as one of the most popular waterfront restaurants in northwest Indiana. ! Keith's - Keith's is located in downtown Whi ng and has been the long established fine dining loca on of choice, with limited compe on. Keith's rates highly on social media sites in terms of both food and quality. There is limited parking adjacent to Keith's, which was a challenge. In addi on, Keith's is only open for dinner on Fridays and Saturdays. The menu was focused on seafood and steak, with daily specials. Entrees range from the mid-twenty's to thirty dollars. The restaurant does a very respectable job in serving quality items out of ny kitchen. It is clearly a favorite spot for Whi ng locals..
Cooper's Hawk - Cooper's Hawk is a regional chain winery and restaurant with 14 present loca ons (two in Indiana and five in IL). They bo le their own wine comprising of six sparkling, ten whites, two blush, fi een reds and two sweet reds - ranging from $6.25 to $12 per glass. Menu is extensive with appe zers ranging from $9 to $21 (for a sampler). In addi on, there are soups, salads, sandwiches, flatbreads seafood, burgers, pasta and steaks ranging from $10 to $34. They categorize their menu as modern casual. The Merrillville loca on is adjacent to a mall. The restaurant is warm with a wine store/tas ng room up front and a bar and separate dining room in back. The tas ng room and bar were busy for a Monday and the restaurant was always fi y percent full. This is a well managed structured chain that serves high quality food and beverages consistently. The wines were very good quality, much be er than the average wine pours, and their marke ng programs including wine club memberships are sharp and well received. The bartender discussed the program
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without overselling. There are obvious reasons why this is a fast growing chain with high marks. Cooper's Hawk offers friendly service and quality food with many op ons. ! Three Floyd's brewpub was a pleasant surprise. They have a solid following, and I was surprised to see a dozen cars wai ng for a Monday lunch opening. The place quickly filled up, and we understand evenings o en have waits over an hour. The look and feel is industrial and the foodservice is considered pub food. They brew and serve over 20 dra op ons with some really interes ng cra flavors. The staff is well trained in the menu and all beverages. The menu comprises of small pates, sandwiches, burgers pizza and entrees ranging from $7 to $16. The chef serves very upscale interes ng op ons including: ramp sausages, cornmeal crusted walleye with blueberry compote and roasted goat ravioli - not your typical brewery food. Por ons are large and food was all served with house made sauces. This is truly a des na on restaurant that people across the region will drive out of the way to get to. The Lighthouse Restaurant is a 45 minute drive from Whi ng in scenic Cedar Lake. The loca on is difficult to reach as one has to take single lane roads most of the way. The restaurant sits picturesquely on the shore of the lake and is in the process of expanding outdoor sea ng. The menu is seafood, steaks, soups and salads. The steaks and seafood are high quality with large por on size. Appe zers are $7 to $14 and entrees range from $11 to $29, with lobster at market prices. Service is efficient and quick. This is clearly a special occasion des na on, and if one can grab an outside table you can sit all evening enjoying the view and serenity of the lake. The se ng is worth the drive. The Lighthouse has a great website that is easy to follow - complete with menus, pictures, direc ons and how to make reserva ons. The restaurant is o en packed, clearly a hit with customers. We also visited the food op ons at the Horseshoe Casino. Jack Binion’s gets good reviews on food and caters to the casino crowd. The Village Square Buffet is typical fare for an all-you-can- eat casino buffet, with lots of variety and op ons. The casino is in very close proximity to the proposed site, so there could be natural crossover with customers. The other casino restaurant, It's Vegas Baby at the Blue Chip Casino, also rated well on food, although its quite further away. Casino patrons that might want to enjoy dinner prior to a ending a show will be an important demographic to pursue. ! ! www.foodservicema ers.com 10 !
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Present Competition
YELP OPEN TABLE URBAN TRIP SPOON ADVISOR
Min. Reviews 15 25 15
Whi ng Restaurant Type
Keith's American 4.5 92% 4.5
Grillers Burgers 4.0 92%
Schoops FF. Burgers 3.5 88% 4.5
Bulldog Brewery Brewpub 3.5 3.5
Purple Steer American 3.0
San Luis Mexican Mexican 3.5 97% 3.0
Rest at lost March American 3.4 45% 4.5
Hammond Indys Cafe FF 5 84% 5.0
Memos Mexican 4.5 94%
El Taco Real Mexican 3.5 84% 4.5
Jack Binons Steakhouse 3.5 4.0 4 Steakhouse
Munster Bombers BBQ BBQ 4.5 97% 4
Three Floyds American / 4 90% 4 Brewery
Cafe Borgia Italian 4 4 79% 4
Merrillville Ginos Steakhouse Steakhouse 3.5 86% 4
Cooper's Hawk American / 4.0 4.5 96% 4.5 Winery
Asparagus Asian 4.0 4.5 84%
Michigan City William Bs Steakhouse 3.0 4.5 60% 4.5
Duneland Beach Inn American 3 4.5 66%
Blue Chip Casino American 3.5 3.75 72% 3.5
Cedar Lake Lighthouse Seafood 4 4 80% 4
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