Lincoln City. Review. A Presentation to City Council
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1 Lincoln City Culinary Center Review A Presentation to City Council O t b 5 October 5, 2015
2 Background
3 Changes to the VCB Focus, Efficiency, Effectiveness Background Everything at the VCB is under review, not just the Culinary Center New Marketing Plan Data driven decisions Research in partnership with lodging partners: Our best potential markets How to best position Lincoln City
4 Changes to the VCB Focus, Efficiency, Effectiveness Background Do only do those things we can afford to do well Campaigns delivering a minimum of 3 impressions Core marketing message that builds across media Focus on key markets
5 Changes to the VCB Focus, Efficiency, Effectiveness Work with partners: Background Lodging, restaurant and retail Attractions Oregon Coast Community College Career Tech High School Samaritan North Lincoln Hospital Travel Oregon
6 Changes to the VCB Focus, Efficiency, Effectiveness Background Be a good steward of VCB resources Treat purchased materials the same as cash Utilize staff time in the most efficient and effective manner Recognize andnurturenurture talent Push decision making to the lowest point possible Give ownership, responsibility and recognition
7 Changes to the VCB Focus, Efficiency, Effectiveness Be an incubator, not a creator Background Event permitting moved from Finance to the VCB Assist private enterprise in creating events and attractions Provide aggressively promotionofevents of andattractionsattractions
8 Changes to the VCB Focus, Efficiency, Effectiveness Background Continually adapt to an ever changing media environment: Robust video capability Content for media partners Content for VCB digital marketing, Channel 4
9 Situation Analysis Situation Analysis
10 Situation Analysis 14/15 Fiscal Expenses Staff $126,354 Food/supplies $45,854 Guest Chef/Contract Labor $15,769 Misc Expenses $3,820 TOTAL $191,797 Revenue Classes $20,212 Classes with Guest Chef $22,976 Tour Groups $12,411 Corporate $8,282 Cook Offs $12,135 Misc Revenue $1,502 TOTAL $77,520 Revenue as % of Cost 40.42%
11 Situation Analysis $250, ALL CULINARY CENTER EXPENSES (INCLUDES SALARIES AND BENEFITS) $200, Axis Title $150, $100, $50, $0.00 ALL CULINARY ALL CULINARY ALL CULINARY ALL CULINARY ALL CULINARY ALL CULINARY ALL CULINARY ALL CULINARY ESTIMATED ALL EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR EXPENSES FISCAL YEAR CULINARY EXPENSES FISCAL YEAR
12 Situation Analysis $100, $90, Lincoln City Culinary Center Revenue $80, $70, $60, $50, $40, $30, $20, $10, $0.00 CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY REVENUE FISCAL YEAR CULINARY CENTER REVENUE GOAL
13 Situation Analysis Classes Hands On 50+ miles Demo 50+ miles 7/11/2014 Summer Small Plates /31/2015 Wintersoups /19/2014 BBQ /7/2015 HO Seafood /26/2014 Italian Summer Demo /14/2015 Greek Demo /2/2014 HO Summer Supper /28/2015 S. American Demo /9/2014 Southern Demo /7/2015 New Orleans Demo /16/2014 BBQ /14/2015 HO Cioppino /23/2014 Pasta Workshop /25/2015 Kids in the Kitchen /5/2014 Hands on Pickling /21/2015 Spring in Italy Demo /13/2014 Summer Harvest Demo /28/2015 Spring Brunch Demo /25/2014 Italian Intensive Day /4/2015 HO Baking 8 7 9/26/2014 Italian Intensive Day /9/2015 Asian Intensive Day /27/2014 Italian Intensive Day /10/2015 Asian Intensive Day /4/2014 Hands on Fall Harvest /11/2015 Asian Intensive Day /18/2014 Oktoberfest demo /18/2015 Southern Demo /25/2014 Italian Fall Harvest /25/2015 HO Pasta /1/2014 Just Like Mom's Hands on 7 4 5/9/2015 Mother's Day Demo /15/2014 Hands on Baking 8 2 5/16/2015 HO Latin Street Food /22/2014 Hands on Thanksgiving /31/2015 Island Demo /6/2014 Slow winter Demo /6/2015 HO Tapas /13/2014 Italian Holiday Demo /13/2015 HO Pasta /10/2015 Healthy Seafood /20/2015 Feast for Dad /17/2015 Pacific Rim Demo /26/2015 Pickling /24/2015 Pasta Workshop % 54% Hands On 50+ miles Demo 50+ miles
14 Situation Analysis Private Groups Total 50+ miles 7/18/2014 Sports Leisure /29/2014 Oregon Farm Bureau /6/2014 Elsie Sturer Center /22/2014 Village Tours /10/2014 Corbin tours /12/2014 Day Trippers /17/2014 Quest tours /18/2014 Quest tours /22/2014 Best Western /7/2014 Travel Oregon Dinner /8/2014 Coastal Journeys /22/2014 Coastal Journeys /4/2014 Viva Consulting /9/2014 Coastal Journeys /25/2015 Albany P & R /5/2015 IIABC /15/2015 Coastal Journeys /24/2015 Rainbow Family /14/2015 Chinook Winds /20/2015 Coastal Journeys /4/2015 Day Trippers /5/2015 Day Trippers /12/2015 Village Tours %
15 Situation Analysis 2014/15 Earned Media AAA Via Magazine: 1 article $3,000 AM Northwest (TV): 1 show feature $2,000 BeachConnection.Net: 2 articles $ 200 Coast Explorer Magazine: 1 article $1,000 Lincoln County Dispatch: 8 articles $ 800 Newport News Times: 5 articles $ 500 Northwest Travel Magazine: 2 articles $3,000 Oregon Coast Today: 5 articles $ 500 Oregon Coast Visitor Association: 6 articles $1,200 Salem Statesman Journal: 6 articles $1,500 The News Guard: 8 articles $ 800 The Oregonian (OregonLive.com): 5 articles $2,500 The Skanner (Portland): 3 articles $ 300 The World (Coos Bay Newspaper): 1 article $ 100 Other: 10 articles $1,000 TOTAL MEDIA PLACEMENT 64 media hits $18,400
16 Original Vision Original Vision
17 Original Vision Pacific Coast Center for the Culinary Arts Provide county wide training in the hospitality (food and beverage) industry Increase tourism
18 Original Vision
19 Original Vision Hospitality Provide professional training and advancement Educate Lincoln City residents on nutrition and health Educate the general public on sustainable food production Training and certification for Oregon Liquor Control Commission, Food Handlers, Food Safety Provide apprenticeship training Provide leasable space for food and beverage service product lines Provide certified kitchen space for small start ups Be an off site training facility for area food & beverage businesses
20 Original Vision Tourism Offer training and demos by nationally and regionally recognized chefs Enhance the culinary reputation of Lincoln City Differentiate i Lincoln City from other beach hdestinations i by providing learning experiences Enhance Lincoln City reputation for art and creativity Attract FAM tours and Meeting and Convention planners by providing meal service at promotional functions Conductteam team building exercises and provide spousal activities to corporate groups Provide meal functions for city, civic and professional group meetings
21 Recommendations Fi Financial i l
22 Financial Move the Culinary Center toward break even: Revenue enhancement Cost control
23 Financial Revenue Enhancement: Variable pricing and price hikes where: Demand exceeds capacity Paid guest chefs are used Expenses put class above breakeven
24 Financial Competitive Pricing
25 Financial Competitive Pii Pricing
26 Financial Competitive Pricing
27 Financial Product Mix: Change the mix of classes and demos offered with emphasis on popularity and revenue opportunity Culinary Center Private Groups PRIVATE GROUPS 2012 PRIVATE GROUPS 2013 PRIVATE GROUPS 2014 ESTIMATE PRIVATE GROUPS 2015
28 Financial Hotel Packaging: Exclusive Inventory: Only available through hotels High value experience for high end guests Test programs with Chinook Winds, Cohoand Wecoma Inn
29 Financial
30 Financial Cut Costs while Maintaining Quality: Reallocate 50% of Culinary Center manager time to Group Tour Sales, working with hotel partners Greater utilization of hourly assistant position as instructor Reduce ingredient costs through menu adjustments, standardized offerings, partnerships and promotions Eliminate paid guest chefs not covered by pricing or PR
31 Financial 14/15 Fiscal Expenses 2 Year Goal Staff $126,354 Staff (50% of CC manager time reassigned to group tour) $85,000 Food/supplies $45,854 Food/Supplies (Promotional programs and sponsorships) $35,000 Guest Chef/Contract Labor $15,769 Guest Chef/Contract Labor (No paid guest chefs) $10,000 Misc Expenses $3,820 Misc Expenses (Opportunistic) $3,000 TOTAL $191,798 TOTAL $133,000 Direct Revenue Direct Revenue Classes $20, Hands On Classes (12 12 classes) $12, Classes with Guest Chef $22,976 Demo Classes (24 each, 30 classes) $57,600 Tour Groups $12,411 Tour Groups (Increase from $29 to $40) $31,200 Private Evening/Corporate $8,283 Private Evening/Corporate (Custom pricing) $10,000 Cook offs $12,136 Cook offs $12,000 Misc Revenue $1,502 Misc Revenue $1,500 TOTAL $77,521 TOTAL $124,540 Indirect Revenue Indirect Revenue of 50+ miles $19,955 of 50+ miles $19,955 PR, 64 hits $19,000 PR, 64 hits $19,000 TOTAL INDIRECT $38,955 TOTAL INDIRECT $38,955 TOTAL REVENUE $104,340 TOTAL REVENUE $163,495 Revenue vs. Expense $87,458 Revenue vs. Expense $30,495 Revenue as % of Cost 54% Revenue as % of Cost 123%
32 Recommendations Hospitality H Hospitality it lit
33 Hospitality Training: Work with Oregon Coast Community College to develop culinary and hospitality programs OCCC issued culinary certification Work toward State certified program Culinary Center as OCCC lab space Hospitality Training Program Seed money from Lincoln City
34 Hospitality Dietary Education: Content for Public Access Channel 4 Partner with Samaritan North Lincoln Hospital Educational video cooking demos with hospital s nutritionist, local l audience Video production in concert with overall VCB video capabilities enhancement OCCC to provide talent behind the camera and in the editing suite
35 Hospitality Entrepreneurship: Better awareness of the Culinary Center as a resource for Lincoln City culinary related related businesses
36 Hospitality
37 Hospitality
38 Hospitality Thank you for letting us use your wonderful facility. The cook off was an amazing team building activity for our crew. Thanks again and if we could ever help you out with community support in any way, don t hesitate to call. Jolee Bancroft, President, Mo s Restaurants
39 Hospitality Entrepreneurship: Communicate business opportunities: OCCC Small Business Development Center helps applicants with business plans, insurance, etc. Develop materials explaining opportunities, policies and rates
40 Recommendations Tourism T Tourism i
41 Tourism Public Relations Pitch television show food segments in Portland & Eugene Travel Oregon s go to for coastal culinary PR Culinaryfeatures withnorthwesttravel & Leisure, 1859andKOIN TV Showcase local chefs
42 Tourism
43 Tourism
44 Tourism Group Sales Continue to grow group tour and corporate group business Expand group tour efforts beyond the Culinary Center - Hotel partnerships - New product/offerings
45 Tourism Your Culinary Center is a wonderful attraction. Chef Sharon and her staff are jewels in the Lincoln City crown. Barbara S., Redlands, CA, Coastal Journeys It was a perfect introduction to the delicious seafood and wine of the Oregon Coast. We will recommend visiting Lincoln City to our friends. Harriet & Bob M., Walnut Creek, CA, Coastal Journeys
46 Tourism Promotions Work with Oregon Wine, Seafood Oregon and other industry associations Establish city wide food events Promotions with McMenamins, Mo s, Dutch Bros., etc
47 Tourism
48 Tourism
49 Options Options Options
50 Options Options I. Shut Down the Culinary Center
51 Options I. Shut down the Culinary Center $90,000+ loss in offsetting revenue $35,000 in net savings to reinvest, staff reassigned to VCB $106,000in net savings, staff terminated, grouptour sales eliminated
52 Options I. Shut down the Culinary Center Programs Cancelled: Culinary and Hospitality Training programs with OCCC Culinary Small Business Development program with OCCC Nutritionist video program, local chef showcase, culinary shows on Channel 4, YouTube and website Travel Oregon culinary partnerships Hotel packaging program All classes, corporate team building & spousal programs Promotions with Oregon Wine, Oregon Seafood, Rusty Truck Brewing, Mo s, etc. City wide culinary event development Culinary PR with Northwest Travel, 1859, KOIN TV
53 Options I. Shut down the Culinary Center $106, is equal to: 5 room nights per month (with multiplier*), plus 10 bus tour groups ($100 room, no multiplier, one night), plus 20 media hits at the current mix * Oregon Coast Overnight Travel Study: 2013, Longwoods International: per person spending of $143 per person per day with average party size of 3.3
54 Options II. Greater Utilization of the Culinary Center
55 Options II. Greater Utilization of Culinary Center Revenue Replaces TRT Funding Variable pricing reflecting the value of the experience Optimal mix ofdemosandclasses $100K+ in TRT funding moves back to VCB Revenue enhancement Cost cuts Two year time frame
56 Options II. Greater Utilization of Culinary Center Oregon Coast Community College Culinary Program Opportunity for the youth of Lincoln County Quality employees for the restaurant community OCCC Small Business Development Incubator Commercial grade kitchen space and expertise for culinary startups Backup kitchen space for small food related businesses
57 Options II. Greater Utilization of Culinary Center Lodging Sales Tools Culinary Center classes packaged and pre sold by hotels Group Tour inventory leveraged by hotels Corporate meeting teambuilding and spousal programs Public Relations Television cooking demos in Portland & Eugene Regular coverage in 1859 and Northwest Travel & Leisure Regular print & online stories in source markets Television food shows Food travel writer features
58 Options II. Greater Utilization of Culinary Center Promotions and Partnerships - Partnerships with Seafood Oregon, Oregon Wine and other trade groups - City wide culinary promotions - Promotions with companies such as McMenamins, Mo s, and Dutch Bros - Partnerships with Travel Oregon
59 Options II. Greater Utilization of Culinary Center Video Content Generation for YouTube, Channel 4 and Website - Local chefs - Localandregional and cuisine - Promotional partner feature - Nutrition and health
60 Lincoln City Culinary Center Review A Presentation to City Council O t b 5 October 5, 2015
Darien Schaefer President & CEO
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