RETAIL MARKET ANALYSIS & FEASIBILITY ANALYSIS

STOREY PARK

HORNSBY SHIRE COUNCIL FINAL PRESENTATION

24 FEBRUARY 2016 AMENDED AUGUST 2016 (COMMERCIAL IN-CONFIDENCE INFORMATION REMOVED)

CONTENTS

Evaluating the Opportunity 3

Scope - Evaluating the market potential 4

Scope – Design brief 5

Market Assessment 6

Demographic Profile – Asquith 7

Housing Density 8

Demographic Characteristics - Cafes 9

Ratio Cafes To Population 10

Population Distribution & Cafe Location 11

Comparable Playground Cafe Operations 12

Playground Cafes 13

Site Evaluation Summary 14

Operating Model 15

Cafe Styles 16

Cafe Moodboard 17

Cafe Moodboard 18

Floor Plans 19

Cafe Spatial Considerations 20

Summary Of Space Allocation 21

| 2

Design Requirements 22

Additional Considerations 23

Design Requirements For Cafe 24

Design Requirements For Cafe 25

Cafe Estimates

Commercial in-confidence material

Function Space 26

Functions Moodboard 27

Functions – Casual Moodboard 28

Design Requirements For Functions 29

Design Requirements For Functions Con’t 30

Combined Design Requirements 31

Shared Design Considerations 32

Service Requirements 33

Recommendations 34

Recommendations 35

EVALUATING THE OPPORTUNITY

SCOPE - EVALUATING THE MARKET POTENTIAL

1. What is the best fit F&B model for the various user groups.

2. What delivery model would work best

for Council?

1. Should Council operate any F&B or

should it all be delivered by third parties?

2. Should the outlets be offered jointly or

separately?

3. Creating an innovative, quality F&B offer that increases visitations and experiential upside at both sites.

4. Ensuring the food offer reflects both the demands and aspirations of the various user groups within the trade area.

SCOPE – DESIGN BRIEF

• Site Immersion

Time on site and surrounding area to understand demand, topography, competition and opportunities.

• Concept

What is the appropriate food and beverage response for this site.

• Moodboard

A visual montage to reflect the concept; and it’s look, feel and menu.

• Space Plan

A space plan calculations to show how much area for the front and back of house.

• Operating Model

Considering the location and concept, how should this outlet be operated.

• Commerce Estimates

What is the likely market rate income for the site.

• Key Commercial Terms

What key items need to be considered by Council to attract the best operators. 5

MARKET ASSESSMENT

6

1. Empty Nester

+ 50 (36%)

28%

30%

Australian

Medium Income

Fewer Financial

Commitments

Dinks

Grocery

Meals in restaurants

OS Holidays

Cultural Entertainment

2. Young Family

35-49 (22%)

24%

22%

Australian

High Employment

High Income,

Mortgage and Family

Commitments

Family

Grocery

Eating in at night Takeaway & Cafe

Home wares

Weekend Activation

3. Student

0-18 (24%)

21%

23%

Australian

Low Income

Dependants

Playing Sport

Eating Out Comms/tech

Movies

Time with Friends

4. Young Adults

18-34 (19%)

23%

25%

Australian

Medium Income

Live out of home/Share

Home

Eating Out

Comms/tech Beer, Wine and Cocktails

Going out

OS holidays

Age

Hornsby Comparison

Sydney Comparison

Culture

Income

Household

Spend disposable income

on

7

DEMOGRAPHIC PROFILE – ASQUITH

Source: Summary of Community and Cultural Facilities Strategic Plan August 2015; Profile ID

Area High

Density Medium Density

Low Density

Asquith Current

0% 11% 88%

Asquith 2024

40% 7% 53%

Hornsby 49% 13% 37%

Hornsby Heights 0% 4% 96%

Sydney 21% 20% 59%

HOUSING DENSITY

Insight

• Hornsby has a very high density housing market being on the train line and higher incidence of young professionals.

• Asquith has a very high incidence of low density housing.

• Asquith has a significantly older resident.

• Asquith has a much higher household population.

• Asquith has no high density as of the last census.

• Council had forecasted a 52.7% increase in

population (2021) in Asquith with the vast majority coming through medium/high density development.

• Approx 2300 new residents by 2024.

• Additional catchment area of Hornsby Heights with similar demographic. 8 Source: Profile ID http://profile.id.com.au/sydney/home

Lone Households x

Families with Children x

Shared households - no children o x

High density living o x

Renters (high) o x

Work force participation (high) x

Household Income (high) x

+ Ave -

Singles, Couples no Children (high) o x

Desired o Projected High Density development

DEMOGRAPHIC CHARACTERISTICS - CAFES

Source: Hill PDA Sept 2013; Pitney Bowes 2011

Vital Stats

Ho

rnsb

y

Asq

uith

Asq

uith

2

02

4

Ho

rnsb

y

He

igh

ts

Wa

hro

on

ga

Population 20,446 3294 5590 6069 4034

Housing 8187 1156 2356 2111 1504

Population Density Per hectare

24.39 9.32 15.75 5.97 24.99

Cafes

27 2 3 2 6

Ratio per population 757 1647 1863 3034 672

Ratio per household 303 578 785 1055 251

RATIO CAFES TO POPULATION

10 Source: Profile ID, Zomato/Urban Spoon

Insight

• Low number of cafes to per head population in Asquith indicating potential under supply.

• Asquith density is lowest in the municipality

indicating large family home configuration.

• These figures would suggest that Asquith residents are predominantly travelling to Westfield Shopping centre for their cafe fix.

• Significant forecast residential growth exacerbates ratio of cafe to population.

• Even with an additional cafe forecasted into high density development there is still

opportunity for another cafe operation to meet industry benchmarks.

• Hornsby Heights residents underrepresented by cafes and have to pass through Asquith

POPULATION DISTRIBUTION & CAFE LOCATION

1. No cafes on Asquith side of Pacific Highway.

2. No cafe servicing Hornsby North Public School.

3. Minimal cafes located within a 5 minute drive

particularly to the North.

4. Physical boundaries such as main roads and train lines influence access.

• Asquith Community Centre/Cafe and Playground will be destinational.

• Cafe will service all visitors to Playground, Community Centre and sporting fields/events at Storey Park.

• Cafe operations are under represented in the

Asquith suburb compared to greater Sydney Area.

• Hornsby Heights is a direct feeder into Asquith and is also under represented by cafes.

11

Source: http://profile.id.com.au/sydney/home:

COMPARABLE PLAYGROUND CAFE OPERATIONS

• Most cafes operating in Community centres are an amenity to the local residents, often charitable and

subsidised.

• There are over 50 commercial cafes operating adjacent to or within a play ground in Sydney Metropolitan area.

• There are only 2 ‘child friendly’ recommended cafes in Hornsby and neither have an external play ground

• Successful Play ground cafes that B&P have worked with

– Flying Fox cafe – Pittwater

– Queens Park Shed – Waverley

12 Tooma, Vic Community centre cafe

Queens Park Shed, Waverley NSW

Flying Fox cafe, Pittwater NSW

PLAY GROUND CAFES

13

SITE EVALUATION SUMMARY

• The redevelopment of Storey Park with the introduction of:

– Basketball court

– Children’s Playground

– Modern community hall

– Cafe Operation

Will revitalise the current precinct and bring life to an already developing suburb that has huge growth in housing coming over the next 5 years.

• If done correctly the addition of a well planned Cafe will further strengthen the amenity for the residents of the Hornsby Shire.

• Councils often add a food and beverage concession as a bolt on to the anchor without consideration of the science behind F&B Master planning.

14

Brain and Poulter Food Consultants specialise in Master Planning for precincts using a proprietary formula and Industry benchmarks to determine the success factors for Food and Beverage operations.

Café

• Do not consider cafe operation as an addendum, it

needs to be purpose built.

• Café to operate as a separate commercial operation by an independent operator.

• Café to operate with its own dedicated kitchen but with

services to enable catering for functions and events.

Community Hall/Function Venue

• Function Venue operates as separate unit.

• Function Venue is for community use and for private functions.

• Function Venue can be serviced by the cafe operator, private caterers or self catering.

15

OPERATING MODEL

CAFE STYLE

16

CA

FÉ

CA

FÉ

PLEASE REFER TO ARCHITECTURAL DRAWING FOR CAFÉ SPACE

PROPOSAL.

FLOOR PLANS

19

CAFE SPATIAL CONSIDERATIONS – RECOMMENDATION

Recommendations m² % % Seats

FOH seating all external 33 21% 25 (30%)

FOH seating internal 60 37% 55 (70%)

Total Seats 93 80

Store 35 22%

Kitchen 21 13%

Store room 12 7%

Total 161

Floor space allocated

FOH Total 128 79%

BOH Total 33 21%

Seating space allocated

Internal seating (1.1m2) 60 64%

External seating (1.3m2) 33 36%

100%

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SUMMARY OF SPACE ALLOCATION

• Minimum Kitchen space allocation should be 20m2.

• Minimum Internal seating area of 60m2

(50 seats).

• Allowance for external seating but not to exceed 30% of total seating.

• Minimum of 10-12 m2 for storage for

cafe operation

• Minimum queuing space in front of counter area

21

DESIGN REQUIREMENTS

22

ADDITIONAL CONSIDERATIONS

• Extend roof lines to better weatherproof external areas around the proposed cafe.

• Weather Protection and allowance for heating due to

Southerly aspect.

• All rooms have been retained in the recommended Option.

• Separate Kitchens requires additional mechanical requirements.

• Provision in Community kitchen for 3 phase power and extraction to allow for external caterers.

• Provision of power to store room areas required.

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DESIGN REQUIREMENTS FOR CAFE

• 1.1m² -1.3m² per seat

• Minimum 50 seats internal

• BOH to not exceed 40% of floor plate including toilets

• Seating no more than 4m from tenancy frontage

• No more than 30% external seating and with weather protection options.

(Extending the external seating beyond 30% requires

more back of house support services which creates a

riskier investment when it rains on average 145 days per

annum in Sydney. Conversely without sufficient back of

house services businesses can struggle when extended

beyond their capacity by too much external seating)

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DESIGN REQUIREMENTS FOR CAFE

• Storage room of 10-12m².

• No internal height changes or ramping.

• Space allocated for external cafe

signage upon entry to Foyer and visibility from playground area.

• Maintained foyer entrance to allow for lounge and meeting space

• Minimum tenancy depth - minimum of 5m.

• Minimum 3-5 metres for queuing.

• Aisle width to allow for prams (minimum 1200mm).

• Ceiling height to allow for menu boards to be placed at between 2200mm-

2900mm. 25

FUNCTION SPACE

26

FU

NC

TIO

NS

FU

NC

TIO

NS -

CA

SU

AL

DESIGN REQUIREMENTS FOR FUNCTIONS

• The largest internal floor space possible allowing for maximum seated function use.

• Larger seating spatial required, up to 1.7m² per seat to allow for dance floor, floral arrangements, etc.

• Sufficient space for BOH food dispense with access to plumbing.

• Out of sight storage for bump in and

bump out furniture and hire equipment.

• Above average ceiling height.

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DESIGN REQUIREMENTS FOR FUNCTIONS CON’T

• Sufficient kitchen space and storage for food and beverage.

• Sufficient storage space to house Community Centre equipment (function tables and chairs) so that the function venue has versatility of use.

• Separate entry for the cafe and function areas.

• Concertina doors to partition the space

into smaller areas.

• Concertina glass doors to open up to external deck

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COMBINED

DESIGN REQUIREMENTS

31

SHARED DESIGN CONSIDERATIONS

• Garbage zone that allow for café operator garbage to be separate to Community hall/ Caterers (Shared area

but allows for separate bins).

• Grease trap required for both kitchens.

• Rear access for deliveries and in close proximity to store room area.

• Signage at all traffic points to the Community Centre to advertise the café.

• Signage to include a mix of blade signage and bulkhead signage.

• Sufficient storage areas for cleaning/ packaging and equipment.

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SERVICE REQUIREMENTS

•

33

Tenancy Type

Cooling for Air

Conditioning and

Refrigeration

Kitchen Exhaust Gas Electrical Comms Waste Trade Waste Water

Eat in and Take-

away Food

Provision of chilled

water for connection

to fan coil unit by

tenant.

1500 L/s (max) -

Subject to exhaust

route being

coordinated with

architect.

200MJ. 25mm

diameter natural

gas connection

point terminated in

ceiling space.

300 VA/m². 80A 3

Phase Distribution

Board. Reticulation

or Meter not

provided.

10 pair cable

terminated at

final distribution

point.

2-off 100mm diameter

waste connection

point terminated

above FFL and vent in

ceiling space.

100mm diameter

waste connection

point terminated

above FFL and vent

in ceiling space.

20mm diameter

stop cock

terminated in

ceiling space.

Food Take-Away -

Full Cooking

Provision of chilled

water for connection

to fan coil unit by

tenant.

1800 L/s (max)

200MJ. 25mm

diameter natural

gas connection

point terminated in

ceiling space.

300 VA/m². 80A 3

Phase Distribution

Board. Reticulation

or Meter not

provided.

10 pair cable

terminated at

final distribution

point.

3-off 100mm diameter

waste connection

point terminated

above FFL and vent in

ceiling space.

100mm diameter

waste connection

point terminated

above FFL and vent

in ceiling space.

20mm diameter

stop cock

terminated in

ceiling space.

Café / Restaurant

Small Format Full

Cooking

Provision of a stand-

alone air cooled split

air conditioning

system.

1750 L/s (max)

200MJ. 25mm

diameter natural

gas connection

point terminated in

ceiling space.

300 VA/m². 80A 3

Phase Distribution

Board. Reticulation

or Meter not

provided.

10 pair cable

terminated at

final distribution

point.

100mm diameter

waste connection

point terminated

above FFL and vent in

ceiling space.

100mm diameter

waste connection

point terminated

above FFL and vent

in ceiling space.

25mm diameter

stop cock

terminated in

ceiling space.

Café / Restaurant

Dine-In - Full

Cooking

Provision of chilled

water for connection

to fan coil unit by

tenant.

3500 L/s (max)

500MJ. 32mm

diameter natural

gas connection

point terminated in

ceiling space.

250 VA/m². 100A 3

Phase Distribution

Board. Reticulation

or Meter not

provided.

10 pair cable

terminated at

final distribution

point.

2-off 100mm diameter

waste connection

point terminated

above FFL and vent in

ceiling space.

100mm diameter

waste connection

point terminated

above FFL and vent

in ceiling space.

25mm diameter

stop cock

terminated in

ceiling space.

Storage areas to be

constructed within

the individual lease

requirements.

Spatial provision for

air cooled

condensers at high

level.

Nil Nil

Lighting from house

supply. Power

requirements to be

tenant fitout.

Nil

Floor contructed to

general falls with floor

wastes.

Nil

General taps

for wash down

facility. Cold

water provision

only.

RECOMMENDATIONS

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RECOMMENDATIONS

• The Café to have a specialised café operator.

• The Cafe operator be given the opportunity to

provide catering options for community halls.

• The Café’s core trading hours should be day time (8am – 6pm) with the option to extend trading hours to allow for events scheduled at the community centre or should there be a demand for dinner on

busier evenings.

• The Café to service both Take Away and Eat In offers.

• The Cafe should be licensed

• The Function venue remains separate to the Café operation with it’s own facilities and some shared facilities.

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DISCLAIMER

This disclaimer has been provided on the following basis:

1. Accepting the recommendation of Brain & Poulter includes the acceptance of the following disclaimer to any loss,

damage or association to Brain & Poulter to the business.

2. Brain & Poulter disclaims any belief in the truth or falsity of

and accepts no liability of responsibility for the information

contained in this document.

3. The information contained in this document includes a

number of assumptions, including assumptions as to the

prevailing market demand from time to time. The accuracy

of those assumptions cannot be and is not guaranteed.

Minor variations in the assumptions can result in substantial

variations in the indicated trading performance.

4. A person who relies upon the information contained in this

document does so at their own risk.

5. No officer, employee or agent of Brain & Poulter has the

authority to waive or modify this disclaimer in any respect in

any way what so ever.

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