F&B Operator Procurement Strategies – Delivering on the Vision

F&B Operator Procurement Strategies

Delivering on the Vision

In the current business environment, securing the best F&B operators within your project, development or institution, can be challenging. This may be compounded, by shifting operator demands, (complicated lease conditions, staged incentives, abatement clauses, etc.) and a new expectation of rental revenue models, what is the rental return that can realistically be achieved?

One of our most in demand services currently, is the development of “Expression of Interest” strategies & campaigns. This may also be called “procurement strategy,” or “tendering process”; regardless of terminology the outcome is the same. Our approach is designed to secure the optimal, and most appropriate operators, for the designated foodservice environment, aligned with the stakeholder aspirations and project confines. 

In a challenging leasing environment, an expression of interest campaign can provide a depth of operator options and best-possible outcomes for food and beverage within the project. 

Our methodology starts with a review of the project’s objectives, commercial aspirations, competitive landscape and market analysis to inform the most appropriate procurement method to apply. From there we can ascertain best-fit food and beverage operators that are aligned to the already developed leasing-concept mix.

For non-retail related procurement projects, focussing on catering partnerships, Future Food are expertly placed to review catering models, contracts, KPI’s and financial structures to ascertain best case outcomes for the future. This pre-tender analysis and contract benchmarking process provides our clients with real-time insight into market conditions and industry benchmarks whilst setting clear expectations from the outset.

The Malt Kitchen & Pantry - A new partnership opened in July 2020 between The Malthouse Theatre and Peter Rowland Group.

Food and hospitality premises must be designed ‘fit for purpose’ to adequately meet market expectations and to successfully deliver on stakeholder objectives for the project. Future Food have the expertise to analyse the proposed, redeveloped or existing spaces to ascertain their suitability for the projected usage and also provide clear strategies and recommendations to ensure feasible outcomes. This holistic approach ensures a less transactional service is provided, with both the client/landlord and future operators best interest in mind. 

The next step is to communicate the opportunity; More than a glossy document the marketing collateral sets out the project vision, key performance indicators, financial opportunity & tendering process criteria.

In order to attract the best fit operator, the finer details of the F&B services required for the project need to be clarified and confirmed in order for potential operators to quantify sales revenue through the various avenues, including core sales, catering, functions or takeaway channels, for example. Once the opportunity is well-defined, creating a selection-criteria that will assist in evaluating submissions is essential to meet the requirements of the project stakeholders, who are typically seeking modern, quality, convenient food, beverage and hospitality options.

The EOI advertising campaign is substantially bolstered by the addition of a direct operator approach, typically generating good competition and demand throughout the procurement process. This can be particularly advantageous with short project timelines or unique project requirements that may not be aligned to mainstream operators. Our experience within the industry, solution-oriented internal research and our exposure to benchmark food and beverage operators provides a solid platform to offer this service. 

The submission review process can be a challenging and time-consuming process. It requires experience in order to identify suitably qualified and experienced operators who will bring vibrancy, a quality food and beverage offer, and the consistency of excellent customer service to the project. These operators must demonstrate, both through the existing operations and their proposal, a willingness to meet the identified standards and alignment to the project vision.

The review process may include site visits, interviews and operational analysis in order to produce the final recommendations of shortlisted operators, allowing the projects leasing team to negotiate with confidence.

If you require assistance to secure the very best operators within your food and beverage project, speak with our experienced Consultants. Our interest is in food and beverage rather than leasing or commission-based strategies; therefore, our services are independent and designed to maximise the asset and its business case. It ensures that the outcomes and operational overlay are aligned to the project vision, the architectural envelope, the stakeholder aspirations and a target user/customer groups’ need states.

We work with a range of clients across many industries and civic organisations, including mixed-use developments, shopping centres and entertainment precincts, universities, council & government, airports and natural resources industries.

We welcome the opportunity to discuss your projects challenges and opportunities, call Francis Loughran today on +61 418 586 149 for a free one-hour consultancy, (including Q&A) to determine the best approach for your project.

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Cover Images of Yawa Aquatic Centre, Mornington - a Future Food Project