The Secret Sauce: Why Retail and Mixed-Use Projects Need Local Chefs

THE SECRET SAUCE

Why Retail and Mixed-Use Projects Need Local Chefs

There is an ESSENTIAL

INGREDIENT to developing successful retail

properties of the future.

WE WARN YOU. It can be expensive, hard to get

and difficult to work with.

But none of that matters.

New-class CONSUMERS

crave it...

Top-rated TENANTS

demand it...

And PROPERTIES without it won’t have

quite the right flavor…

CHEF-DRIVEN RESTAURANTS

Remember the days when retail tenants complained about

restaurants hogging the parking lot?

There was a time when chain restaurants were all the rage.

But today, the tables are turned.

$11.8 million decrease in revenue

3Q14

3Q13

3Q14

3Q13

3.4% decline in sales

3Q14

3Q138.7%

decline in sales

WHAT CHANGED?

A new class of consumers emerged.

They want good food

They want good food, local chefs

They want good food, local chefs and unique experiences.

6 OF 10 CONSUMERS More likely to choose dining location based

on locally sourced items on the menu

54%of people consider themselves foodies

nom nom nom 54%

of people consider themselves foodies

Gone are the days when food was

meant to be eaten and forgotten.

WE WATCH IT.

1.7 MILLIONtuned into Top Chef season 11 finale

WE BLOG ABOUT IT.

WE PIN IT.

FOOD AND DRINK Most popular category on Pinterest

among both men and women

WE #HASHTAG IT.

7.6 MILLION#FOODIE POSTS

on Instagram

Not only do we care about what is being

served, we care about WHO

it is being served by.

We live in a world where words like

“celebrity” and “rockstar” are used to describe

CHEFS.

POP QUIZ!

Who brings home the most bacon?

GORDON RAMSAY JUSTIN

BIEBERTOM

BRADY LIAMNEESON

$18M

$27.1M

$32M$38M MASTER CHEF

GORDON RAMSAY

Retail developers and operators must woo the Gordon Ramsays and Mario Batalis of their communities.

But these deals aren’t easy.

Local chefs often lack the financial backing to build outtheir own restaurants, unlike

bigger chains.

They are RISKY.

30% of new restaurants fail

within the first year

30% close within thenext two years

Of those thatsurvive, another

WOO THEM ANYWAY.

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

When North American Properties began developing Avalon in Alpharetta, Georgia, managing partner Mark Toro knew he needed the hottest

chef-driven restaurants.

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

So, inquiring minds want to know… how exactly did he land those

STAR CHEFS?

By sharing the vision for

FIVE-STAR HOSPITALITY

FIVE-STAR HOSPITALITY

TOP RETAILERS

FIVE-STAR HOSPITALITY

PROGRAMMED PUBLIC SPACES

TOP RETAILERS

FIVE-STAR HOSPITALITY

PROGRAMMED PUBLIC SPACES

WALKABILITY

TOP RETAILERS

FIVE-STAR HOSPITALITY

PROGRAMMED PUBLIC SPACES

WALKABILITY

TOP RETAILERS

24/7 ENERGY

FIVE-STAR HOSPITALITY

PROGRAMMED PUBLIC SPACESCHEF-DRIVEN

RESTAURANTS

WALKABILITY

TOP RETAILERS

24/7 ENERGY

FIVE-STAR HOSPITALITY

PROGRAMMED PUBLIC SPACESCHEF-DRIVEN

RESTAURANTS

WALKABILITY

TOP RETAILERSA PLACE

PEOPLE WANT TO BE

24/7 ENERGY

AN EXPERIENCE LIKE NO OTHER

The strategy started to work. CHEFS SIGNED ON.

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

Then, more chefs joined…

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

Resulting in six of the Southeast’s top chefs choosing

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

It has not gone unnoticed...

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.

Avalon’s high social media engagement

shows one thing: PEOPLE ARE

EXCITED.

RETWEETS 624MENTIONS 3,375REACH 17,839,780

PAGE IMPRESSIONS 1,176,479POST IMPRESSIONS 678,934ENGAGEMENT 40,543

It’s not only the smart developers that want

chef-driven restaurants.

The biggest retail tenants are demanding top

restaurants in their leases.

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

The new-class consumer expects great offerings like walkability, five-star service, a sense of community and…

DELICIOUS FOOD.

CHEERS!

This SlideShare brought to you by

Feel free to share it with your friends or leave a comment, and let

us know what you think!

DID YOU ENJOY THIS PRESENTATION?

Flickr / “Banana Republic” by Prayitno Flickr / “The Grove in Los Angeles, from above,” by Eric E. Johnson Shutterstock.com / Crowded Parking Lot Flickr / “Ruby Tuesday” by Mike Mozart Flickr / “Olive Garden” by Mike Mozart Flickr / “Red Lobster” by Mike Mozart Shutterstock.com / Seared Scallops Flickr / “The Optimist” by Peter Bond Shutterstock.com / pcruciatti (Image ID: 150368063) Flickr / “Everywoman's, 1955" by alsis35 (now at ipernity) BravoTV / Top Chef S11E1 Shutterstock.com / Chef of the Future FOX / Gordon Ramsay, Kitchen NightmaresGetty Images / Justin Bieber by Ethan MilleFlickr / “Tom Brady” by Keith AllisonGetty Images / Liam Neeson by Larry Busacca Shutterstock.com / Piggy Bank Shutterstock.com / Coffee Shop Blurred Background Angie Mosier Avalon

CREDITSSlide 6 Slide 7

Slide 9 Slide 10, 11, 12

Slide 13, 14 Slide 15, 16

Slide 19, 20, 21

Slide 23, 24 Slide 25 Slide 27

Slide 37, 38 Slide 39, 40

Slide 43 Slide 74 Slide 76 Slide 77