Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
VENDOR
INFORMATION & MARKETING
PACKAGE
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
WHO WE ARE & OUR VISION
The Old North State Food Hall, located directly off of I-95, will be the nation’s first roadside
food hall, professionally curated and designed by two of the restaurant industry’s best - Phil
Colicchio of Colicchio Consulting Group (recently acquired by Cushman & Wakefield) and Ed
Eimer Designs. Coupled with the research, data analysis and worldwide view of this dynamic
industry from Cushman & Wakefield, one of the nation’s largest commercial property
management companies, support and guidance for this project is unparalleled!
The Roadside Food Hall
One trend in its infancy—but which we believe will increasingly take off—is the roadside food hall. While there have been some very successful small-market food halls (Oxbow Public Market in Napa, CA, for example), most of them have thrived in destinations already known for their local food tourism. The idea behind the roadside food hall is that it offers a welcome alternative to uninspiring interstate fast food options that appeal to families and travelers, whether on cross-country trips or simple day drives. Naturally, with the food hall trend closely tied to the farm-to-fork movement, many of these will feature regional cuisines, but also look for higher-end, family friendly concepts to thrive in this segment as well.
AdVenture Development is developing the country’s first interstate-adjacent food hall, in Selma, NC at Exit 97 of Interstate 95, over which more than 100,000 vehicles traverse on a daily basis. 12,000 square feet of the former JR Cigar Outlet building is being transformed into a food hall slated for late Fall 2019 delivery. This project will feature a mix of vendors (including Carolina-style barbecue, of course), in addition to offering a selection of North Carolina’s most beloved local beers—giving those on the way to the beach a place to fill up their growlers for a day in the sun.
- Cushman & Wakefield, Food Halls 3.0, pages 19-20
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
Designed and operated in close coordination with the Old North State Food Hall, the North
Carolina Craft House and a planned 10,000 square foot Event Space will complement each
other and bring additional customer volume by bringing two other reasons for folks to visit as
well as catering opportunities for the Event Space. This location, Exit 97 off I-95, will generate
significant customer traffic from local, regional and national audiences and is a very
recognizable exit as this was the old J.R.’s Cigar building which, in its heyday, garnered over
2,000,000 customers per year!
We will implement the triple bottom line approach to everything we do, ensuring that we all
are profitable while being good stewards of the environment and outstanding members of our
community. We will strive to utilize the freshest ingredients in all menus, sourced locally every
chance we can, further reducing our carbon footprint and supporting local businesses.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
OUR APPROACH
The Old North State Food Hall is being designed, built, licensed and operated differently than food halls you may be familiar with. Our approach to design and build will provide for an
almost fully built stall with both front and back of the house areas, all typical kitchen equipment as well as additional, separate dry storage and prep areas. Although common
design elements will be utilized throughout the space, each vendor will be able to bring their concept to life with signage and customer facing areas that they can customize. This approach
ensures that the entire space works together from an architectural perspective and delivers authentic, high-experience our customers expect. In addition, this approach greatly simplifies the construction and licensing process, getting each vendor selling food as quickly as possible.
Upon acceptance, each vendor will become a licensee and will be assessed a one-time, pre-paid license fee and equipment security deposit. An ongoing license fee will be based on a percentage of gross sales which will be collected daily for each week. Minimum gross sales
threshold requirements will be established for all vendors. This approach provides each vendor with a low initial cost to get operating and a regular deduction of gross sales to cover
the ongoing license fees versus a monthly lease payment.
There has been a significant shift in the way people live, gather and eat. The Old North State Food Hall will combine artisan dining concepts, a lively bar area and a welcoming, all-inclusive
gathering place for our customers. Vendor selection will be curated to ensure that we have the optimal mix of food and beverage offerings in the hall and every menu item from each vendor will be reviewed and approved by the Operator to ensure no conflicts exist between different
vendors.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
WHAT WE PROVIDE
We will provide each vendor with a fully-built stall, professionally designed both functionally and architecturally, along with all “typical” kitchen equipment each individual vendor will
need, and a substantial offering of amenities and services.
KITCHEN EQUIPMENT
Kitchen equipment provided for each vendor, as required, includes the following:
* POS System with Kitchen Display Screen *
* Full hood with fire suppression and makeup air *
* Walk-in Cooler or Reach-in Refrigerator(s) and Reach-in Freezer(s) *
* 3 Compartment Sink * Prep Sink * Hand Wash Sink *
* Under Counter Holding Stations and/or Refrigeration *
* Deep Fryer * Flat Top * Oven * Range Top *
* Countertops and Shelving *
* Dedicated Hot Water Heater *
* Personnel Lockers *
* Fire Extinguisher *
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
AMENITIES AND SERVICES
As part of your percentage of gross sales, the following amenities and services are provided to each vendor:
All utilities including electric, natural gas, hot and cold water, and sewer
High-speed WiFi and Internet
Dedicated phone number and digital voicemail
Sales and marketing for the Old North State Food Hall and individual licensees including a professionally managed web site, billboards on I-95, billboards on 70 (future I-42), Facebook,
Twitter, Instagram, etc. In addition, special events will be scheduled on a regular basis to increase customer traffic
POS including stall terminal with customer facing display, cash drawer, receipt printer, card/chip readers, kitchen display screen and a full host of real-time and historical/trended
data analytics and reporting
Full-time porters servicing all common areas including regular cleaning, sanitizing, customer assistance, tray removal, cleaning and restocking, etc.
Common serving trays
Regular maintenance and emergency service for all supplied kitchen equipment
Regular cleaning and recertification of hoods
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
Service and maintenance for all common areas including first-class restrooms, two family rooms, dedicated staff restroom, common back of house area, common dish wash/prep/cold
storage areas
Regular servicing of two 1,500 gal grease interceptors
Common back of house area including additional dry storage for each stall, dishwashing, prep and cold/frozen storage if required
Coordinated customer loyalty/rewards program and ONSFH gift cards
Trash removal, composting and used grease removal and recycling
Central fire alarm and sprinkler system
Central security system and cameras throughout
Catering and Takeout Coordination
In-House Delivery Service
Custom app being developed!
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
WHAT YOU PROVIDE Amazing, chef inspired food, using the freshest ingredients available, which your customers will
rave about and tell all their friends!
Any specialty kitchen equipment including items such as smokers, espresso machines, etc.
All ancillary kitchen items such as pots, pans, utensils, handheld appliances, serving pans, baking pans and trays, etc.
All raw food, ingredients, spices, cooking supplies, etc.
A positive attitude and strong desire to be part of a new concept in food halls which will be unique and special.
High level of owner/operator engagement with your staff, customers, our community and Operator.
A competitive drive, a commitment to running a successful, compliant business and a personality that can attract and retain talent and positively interface with a broad range of
customers, staff and management.
Trained, friendly, engaging and professional staff including at least one person on duty at all times who has Manager ServSafe certification.
Open, honest and respectful communications with your staff, other vendors, customers and management, providing and accepting feedback on operations with an eye on continuous
improvement.
Available funds sufficient to cover payroll, food, supplies, overhead, etc. through startup and until stable operations are established. A summary of expected startup and pre-operating
costs is provided later in this document. Requirements for providing a Financial Statement are covered in the Licensing Agreement.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
VENDOR CURATION
The Old North State Food Hall has been professionally curated and has established the initial
vendor concepts. All menus will be pre-approved based on these concepts.
EAST vs WEST NC BBQ HOT CHICKEN/FRIED CHICKEN
PIZZA/ITALIAN SUSHI/DUMPLING/ASIAN
COFFEE/PASTRIES/DESSERTS MEDITERRANEAN/VEGETARIAN/SANDWICH SHOP
SEAFOOD BREAKFAST ALL DAY
TACOS/LATIN BURGERS/DOGS/FRIES
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
DESIGN ELEMENTS & RENDERINGS
OVERALL DESIGN VISION
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
FINISHES & FURNISHINGS
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
FIXTURES & FURNISHINGS
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
RENDERING
Operated by Lane Property Management, LLC
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SCHEMATIC LAYOUT
Operated by Lane Property Management, LLC
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THE NUMBERS
Our team at Cushman & Wakefield has estimated that the Old North State Food Hall will draw 1,650 customers per day, on average, with an average ticket price of $11 per person and consider these to be minimum expectations for both customer volume and ticket price.
Financial comparisons with 10 other food halls across the country support this and a detailed analysis is provided later in this document.
Each successful vendor will sign a Licensing Agreement with Lane Property Management, LLC. The License Agreement contains all legal and financial information in detail, a copy of which
will be provided once a vendor is selected for secondary interviews.
Fees for operating a stall at the Old North State Food Hall will include a one time, Pre-Paid License Fee, an Equipment Security Deposit and a Percentage of Gross Sales Fee as follows:
One Time Pre-Paid License Fee: $25,000
Equipment Security Deposit: $4,000
Percentage of Gross Sales Fee: 25%
Expected minimum gross sales and ranges of expected costs for both food and labor are:
Expected Minimum Gross Sales per Year: >$660,000
Expected Average Food Costs: 20% to 30%
Expected Average Labor Costs: 20% to 30%
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
ADDITIONAL STARTUP COSTS In addition to the fee structure outlined above, each vendor should expect and budget accordingly for the following additional startup costs:
Purchase or lease of any specialty kitchen equipment including any required security deposits.
Initial ancillary kitchen items such as hand tools, cutlery, mixing bowls, pans, trays, utensils, etc.
Initial food order which should include enough food to properly train your staff and support a soft opening period of up to a week in duration prior to the Grand Opening.
Stall up fit in addition to the already provided $3,000 allowance including signage, menu boards and exterior of stall to personalize/brand.
Payroll for all employees enough to cover onboarding, training, a soft opening period of up to a week in duration, and the first two weeks of operation including all payroll taxes. We suggest that each vendor maintain available funds to cover full payroll for 6 weeks.
Premiums for worker’s compensation insurance, liability insurance, property insurance, etc.
Establishing accounting and payroll services.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
COMPARISON STARTUP DATA There are many reasons why a vendor would want to choose to start or expand their operations in the ONSFH and one of them is low anticipated startup and operational costs as compared to establishing a food truck or brick and mortar operation. Successful applicants for the ONSFH should expect low operational challenges - we take care of all maintenance, hood cleaning, etc., limited fit up required – mostly cosmetic, signage and menu boards, and a quick start up to get you selling product as fast as possible. A few comparison points for national and regional franchises are below.
Cousin’s Maine Lobster Total Investment Costs: $145,900 to $768,200 Franchise Fee: $38,500 Royalty Fee: 6%- 8% Advertising Fee: 2% Cash On Hand Required: $50,000 Poki Bowl Total Investment Costs: $169,750 to $326,500 Franchise Fee: $35,000 Royalty Fee: 5.5% Advertising Fee: 1% Cash On Hand Required: $40,000
Port City Java Total Investment Costs: $171,000 to $458,000 Franchise Fee: $35,000 Royalty Fee: 5% Advertising Fee: 2% Cash On Hand Required: $200,000 Philly’s Best Cheesesteaks Total Investment Costs: $221,500 to $436,000 Franchise Fee: $38,000 Royalty Fee: 6% Advertising Fee: 2% Cash On Hand Required: $100,000
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
ADDITIONAL REVENUE STREAMS
In addition to the expected daily customer traffic outlined above, we expect the following will generate additional revenue for vendors. All estimates provided in this document do NOT
include the impact that these items may make to overall revenue for each vendor.
Soda and Specialty Drinks Every stall the opportunity to sell soda which will be provided by the ONSFH in two locations in the hall. Standard pricing of $2.00.- $2.50 per soda will be established and the vendor will retain half or $1.00 - $1.25 for each cup sold, which is the only cost to the vendor. The OHSFH will provide all soda syrup, carbonation, soda dispensing equipment and ice machines. Based on the expected minimum customer traffic and assuming only half purchase soda, this will conservatively generate in excess of $25,000 in profit per vendor. In addition, approved specialty drinks such a lemonade, sweet tea, etc. can be offered. Catering Catering will be centrally managed for all vendors, utilizing a simple, online ordering tool accessed directly through our website. Vendors will be consulted regarding which dishes they can provide and which would be best suited for a coordinated catering menu. Pre-set catering packages will be offered as well, making selection easier and quicker for our catering customers. A minimum of 48 hours’ notice will be required for all catering orders to ensure vendors have time to fulfill.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
Takeout/Direct Ordering Takeout and direct ordering at the hall will also be centrally managed, utilizing a custom developed application to facilitate ordering and tracking. We anticipate this application becoming a favorite for our regular customers to help facilitate their ordering and pickup.
Delivery We are currently evaluating delivery options for the ONSFH and will implement delivery service that can ensure food quality is maintained to our customers. One option being evaluated is to implement an in-house delivery service, with minimum delivery orders. As we expect that catering will require delivery, we may have synergies available for delivery services.
Planned 10,000 sf Event Space Currently in planning, a 10,000 sf multi-purpose event space will be contiguous to the ONSFH. All catering for this space will be provided by vendors of the ONSFH and there will be additional traffic generated with any events not requiring catering.
Planned Old North State Farmers Market Currently in planning, the Old North State Farmers Market will be modeled after the State Farmers Market and will celebrate the amazing diversity of local produce, eggs, meats, cheese, etc.
Eastfield Crossings A 480+ acre, multi-use development that will be located between Exits 97 and 98 off of I-95N. The first construction on the site will be a new Marriott Springhill Suites which will break ground in the fall of 2019. There are two additional hotels planned along with single family homes, townhouses, multi-family residences, retail, restaurants, daycare, industrial park, etc.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
We estimate that the combined impact of catering and take out will minimally contribute an additional 5 - 10% in overall revenue for the ONSFH, when both services are implemented once fully operational. Delivery service would also drive additional revenue but no estimate has been made and details of delivery service have not yet been worked through. In addition, we estimate that the Event Space, once built out and managed, will minimally contribute an additional 5% in overall revenue for the ONSFH. The impact of the farmers market and Eastfield Crossing will certainly be positive but cannot be quantified at this time based on timing.
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
COMPARISON SALES DATA (Source: Cushman & Wakefield – 08/10/19)
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
COMPARISON SALES DATA (Source: Cushman & Wakefield – 08/10/19)
Operated by Lane Property Management, LLC
www.lanepropertymanagement.com 919-348-8595
FOOD HALL COMPARISON SALES DATA ANALYSIS
Gotham West Market New York City 10,000 10 $1,000,000 $1,000
Canal Street Market New York City 12,000 11 $637,000 $584
Krog Street Market Atlanta 30,500 23 $1,000,000 $1,100
Central Food Hall at Ponce City Market Atlanta 30,000 27 $1,200,000 $1,100
Legacy Food Hall Dallas 55,000 30 $800,000 $437
Revival Food Hall Chicago 24,000 15 $1,100,000 $667
Santa Barbara Public Market Santa Barbara 15,200 10 $1,200,000 $800
Flaghsip Commons Omaha 22,000 9 $555,000 $228
Avanti Food Hall Denver 12,000 10 $750,000 $625
The Old North State Food Hall Selma 12,000 10 $660,660 $551
23,411 16 $915,778 $727
23,588 17 $960,875 $789
11,333 10 $795,667 $736
22,671 16 $926,714 $745
NO FLAGSHIP COMMONS AVERAGES:
SIMILAR SIZE AVERAGES:
HIGH AND LOW REMOVED AVERAGES:
FOOD HALL LOCATIONSIZE
(square feet)
VENDORS(quantity)
SALES(per vendor)
SALES(per sf)
ALL AVERAGES:
Operated by Lane Property Management, LLC
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CUSTOMER TRAFFIC ANALYSIS
START FINISH DURATIONCUSTOMERS
PER DAY
CUSTOMERS
PER STALL
CUSTOMERS
PER STALL/HR% NOTES
Early Open 7:00 AM 9:00 AM 2 82.5 27.5 13.8 5% Assumes 3 stalls open early
Mid Morning 9:00 AM 11:30 AM 2.5 82.5 8.25 3.3 5% All stalls open
Lunch 11:30 AM 1:30 PM 2 577.5 57.75 28.9 35% All stalls open
Mid Afternoon 1:30 PM 5:30 PM 4 165 16.5 4.1 10% All stalls open
Dinner 5:30 PM 7:30 PM 2 495 49.5 24.8 30% All stalls open
After Dinner 7:30 PM 10:00 PM 2.5 247.5 30.9375 12.4 15% Assumes 8 stalls open late
15 1650 190.4375 100%