the secret sauce: why retail and mixed-use projects need local chefs
TRANSCRIPT
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THE SECRET SAUCE
Why Retail and Mixed-Use Projects Need Local Chefs
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There is an ESSENTIAL
INGREDIENT to developing successful retail
properties of the future.
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WE WARN YOU. It can be expensive, hard to get
and difficult to work with.
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But none of that matters.
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New-class CONSUMERS
crave it...
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Top-rated TENANTS
demand it...
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And PROPERTIES without it won’t have
quite the right flavor…
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CHEF-DRIVEN RESTAURANTS
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Remember the days when retail tenants complained about
restaurants hogging the parking lot?
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There was a time when chain restaurants were all the rage.
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But today, the tables are turned.
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$11.8 million decrease in revenue
3Q14
3Q13
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3Q14
3Q13
3.4% decline in sales
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3Q14
3Q138.7%
decline in sales
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WHAT CHANGED?
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A new class of consumers emerged.
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They want good food
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They want good food, local chefs
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They want good food, local chefs and unique experiences.
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6 OF 10 CONSUMERS More likely to choose dining location based
on locally sourced items on the menu
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54%of people consider themselves foodies
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nom nom nom 54%
of people consider themselves foodies
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Gone are the days when food was
meant to be eaten and forgotten.
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WE WATCH IT.
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1.7 MILLIONtuned into Top Chef season 11 finale
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WE BLOG ABOUT IT.
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WE PIN IT.
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FOOD AND DRINK Most popular category on Pinterest
among both men and women
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WE #HASHTAG IT.
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7.6 MILLION#FOODIE POSTS
on Instagram
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Not only do we care about what is being
served, we care about WHO
it is being served by.
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We live in a world where words like
“celebrity” and “rockstar” are used to describe
CHEFS.
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POP QUIZ!
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Who brings home the most bacon?
GORDON RAMSAY JUSTIN
BIEBERTOM
BRADY LIAMNEESON
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$18M
$27.1M
$32M$38M MASTER CHEF
GORDON RAMSAY
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Retail developers and operators must woo the Gordon Ramsays and Mario Batalis of their communities.
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But these deals aren’t easy.
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Local chefs often lack the financial backing to build outtheir own restaurants, unlike
bigger chains.
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They are RISKY.
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30% of new restaurants fail
within the first year
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30% close within thenext two years
Of those thatsurvive, another
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WOO THEM ANYWAY.
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Chef-driven restaurants provide immediate personality and credibility as a destination for shopping and dining in lieu of other, historical venues in the market. They are a critical element in establishing an identity in the marketplace for consumers.
Dick O’Connell NewGate Retail Advisors
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When North American Properties began developing Avalon in Alpharetta, Georgia, managing partner Mark Toro knew he needed the hottest
chef-driven restaurants.
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It’s time for a paradigm shift in how we think about retail development. Call it Retail 3.0 or experiential retail. Strip centers and malls are out. Mixed-use, vertically integrated communities are in. Gen Y wants an environment that is urban, walkable and connected. Gen Y wants a great experience, and landing local chef-driven restaurants is an important component to creating that experience.
Mark Toro North American Properties Managing Partner
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So, inquiring minds want to know… how exactly did he land those
STAR CHEFS?
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By sharing the vision for
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FIVE-STAR HOSPITALITY
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FIVE-STAR HOSPITALITY
TOP RETAILERS
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FIVE-STAR HOSPITALITY
PROGRAMMED PUBLIC SPACES
TOP RETAILERS
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FIVE-STAR HOSPITALITY
PROGRAMMED PUBLIC SPACES
WALKABILITY
TOP RETAILERS
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FIVE-STAR HOSPITALITY
PROGRAMMED PUBLIC SPACES
WALKABILITY
TOP RETAILERS
24/7 ENERGY
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FIVE-STAR HOSPITALITY
PROGRAMMED PUBLIC SPACESCHEF-DRIVEN
RESTAURANTS
WALKABILITY
TOP RETAILERS
24/7 ENERGY
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FIVE-STAR HOSPITALITY
PROGRAMMED PUBLIC SPACESCHEF-DRIVEN
RESTAURANTS
WALKABILITY
TOP RETAILERSA PLACE
PEOPLE WANT TO BE
24/7 ENERGY
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AN EXPERIENCE LIKE NO OTHER
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The strategy started to work. CHEFS SIGNED ON.
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I have an audience of people in this community who have followed me. Moving to a development like this, where you have a movie theater and a Whole Foods, is exciting to me. It’s like a one-stop in-town experience.
Shaun Doty Bantam + Biddy Co-Owner and Executive Chef
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Then, more chefs joined…
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I’m a big believer in local talent, local business operators, local chefs who run their own restaurants. I told Mark [Toro] that I would do it but that they had to get the right people out here… and the people they got are just amazing.
Ford Fry The El Felix Chef and Owner
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Resulting in six of the Southeast’s top chefs choosing
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FORD FRY JAMES BEARD AWARD SEMIFINALIST
RESTAURANT OF THE YEAR - ESQUIRE MAGAZINE
BEST PIZZA I’VE EVER HAD. TRUE
NEAPOLITAN.
HUGH ACHESON, TOP CHEF JUDGE
#4 ATLANTA’S MOST
ICONIC DISHES
FEEDING REAL PEOPLE REAL FOOD
Ford Fry
Giovanni Di Palma!
Steve Palmer
Shaun Doty
Brian Lewis
Ciaran Duffy
The El Felix
Antico Pizza Napolitano & Caffè Gio
The Oak Steakhouse
Bantam + Biddy
Bocado Burger Bar
Bantu
BEST PIZZA IN 23 U.S. CITIES - ZAGAT
STEVE PALMER JAMES BEARD AWARD SEMIFINALIST
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It has not gone unnoticed...
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WHEN AVALON OPENS IT WILL BE THE SOUTHEAST’S PREEMINENT EXPERIENTIAL DEVELOPMENT. – NORTHFULTON.COM
SEVERAL IN-TOWN RESTAURANTS ARE MOVING OUTSIDE THE PERIMETER FOR THE FIRST TIME WITH AVALON. – 11ALIVE
Avalon lands more retailers – Atlanta Business Chronicle
Bantu to open in Alpharetta in October – Atlanta Magazine
EMPIRE BUILDER OF THE YEAR, FORD FRY, REVEALS DETAILS ON HIS FIRST SUBURBAN RESTAURANT COMING THIS FALL TO ALPHARETTA SWANKY MIX-USE DEVELOPMENT AVALON.
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Avalon’s high social media engagement
shows one thing: PEOPLE ARE
EXCITED.
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RETWEETS 624MENTIONS 3,375REACH 17,839,780
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PAGE IMPRESSIONS 1,176,479POST IMPRESSIONS 678,934ENGAGEMENT 40,543
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It’s not only the smart developers that want
chef-driven restaurants.
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The biggest retail tenants are demanding top
restaurants in their leases.
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I had never seen the term “chef-driven restaurants” in a lease until about two years ago. Now I am seeing co-tenancy clauses in upscale mixed-use communities in Ohio, California and Georgia. In some cases, retailers are going as far as naming the top local restaurateurs in the lease.
Peter Hartman Partner, Hartman Simons Leading Commercial Real Estate Law Firm
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The new-class consumer expects great offerings like walkability, five-star service, a sense of community and…
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DELICIOUS FOOD.
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CHEERS!
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