22 minute read
Industry News
from CCR Issue 6-2022
AroundtheIndustry
Retail
Best Buy
Best Buy’s off-price outlet banner will grow to 32 locations in the next year. It also will start offering outlet deals online to cater to bargain-hunting consumers. The retailer rolled out the outlet format about eight years ago to sell discounted appliances and TVs that have been returned, exchanged, repaired or discontinued. In addition to adding stores, Best Buy also plans to add new merchandise categories and delivery, pickup and tech services at the outlet stores.
Target
Target has completed remodels at 1,000 of its 1,900 stores as part of an effort that began in 2017 to update locations, invest in logistics upgrades and open new locations. The retailer is in the midst of plans to spend $4 billion to $5 billion annually on capital projects, including store remodels, with a focus on melding the latest innovation and creative displays with familiar warm elements like wood paneling.
Petco Neighborhood Farm & Pet Supply
Petco has created a new store format called Petco Neighborhood Farm & Pet Supply to sell products and services for farm animals and traditional pets. The banner was created to serve consumers in small and rural towns. The first one opened in Floresville, Texas. In addition to food and other products, the store will offer services like mobile vaccination units and animal washing stations.
Simon Properties
Simon and AJ Capital Partners are planning a 2023 groundbreaking on a 300,000-square foot outlet mall in Nashville, Tennessee. The move will expand Simon’s current portfolio in the city, which includes The Mall at Green Hills and Opry Mills.
Champs Sports
Champs Sports’ new 35,000-square-foot Homefield store in Pembroke Pines, Florida is the retailer’s biggest footprint to date and will be the prototype for future locations. The store aims to appeal to athletes of all ages with an array of apparel, footwear and equipment for a broad range of sports and activities, along with experiential components including a basketball court and a smoothie bar.
Tecovas
Austin, Texas-based boot brand Tecovas will open as many as 15 new stores in the next year-and-a-half as part of a push to grow nationally and strengthen its position as a leader in the category between mass-market and luxury.
Restaurant
KFC
KFC turned a former bank building in Painted Post, New York into the “Crystal Bucket,” with curved floor-to-ceiling windows and a cathedral ceiling, reflecting the chain’s increased focus on using unique store designs to build community buzz.
Great American Cookies
Fat Brands, the parent company of the Great American Cookies chain, will acquire the Nestle Toll House Cafe by Chip concept with plans to convert its 85 units to the Great American Cookies banner. It’s the latest expansion for Fat Brands’ growing portfolio, which also includes Marble Slab Creamery and Johnny Rockets.
Smokey Mo’s
Smokey Mo’s rebranding campaign is designed to support the addition of 32 units in the next three years, adding to the current tally of 16 units throughout Texas. The effort will include streamlined building prototypes, improved technology for ordering and training, and a focus on signing franchise agreements for at least three units each.
Wetzel’s Pretzels
Mall food court staple Wetzel’s Pretzels is focused on non-traditional venues for growth, including the rollout of its first standalone Twisted by Wetzel’s unit. The brand operates 350 units, including a smallformat kiosk in a California Macy’s store that could be expanded to more Macy’s locations in the future.
Black Tap Craft Burgers & Beer
New York City-based Black Tap Craft Burgers & Beer will grow into three new markets this year, with leases signed in Miami, Dallas and Nashville. The casual dining chain features a menu of burgers and craft beers, as well as over-the-top Crazy Shakes that have become famous in Instagram photos.
AroundtheIndustry
Sweet Chick
Chicken-and-waffles chain Sweet Chick has raised $5 million in new funding from Founder’s Table Restaurant Group to accelerate growth in markets including Los Angeles and its home market of New York City. The concept launched in Brooklyn’s Williamsburg neighborhood in 2013 with a focus on craft cocktails and high-end comfort food, and the new money will also fund the chain’s shift to a fast-casual format.
Hospitality
Bally’s Hotel and Casino Tower
The entire Bally’s Hotel and Casino Tower in Atlantic City has been renovated in an effort to re-brand and improve the customer experience for both gaming and non-gaming guests. These renovations come after a change of ownership that took place in 2017, and are focused on augmenting their biggest asset, the ocean.
Atwell Suites
Those staying near the Denver International Airport will have a new hotel option: the city’s first Atwell Suites. IHG Hotels & Resorts is opening the 96-room property, the brand’s second property.
Lucky Club Hotel & Casino
The Lucky Club Hotel & Casino in North Las Vegas will be re-developed as the first hotel-casino dedicated to the Latino community. The hotel will feature the largest Ojos Locos Sports Cantina in the country. After renovation, the property will have a 10,000-square-foot casino and 10,000 square feet in entertainment space.
ELLE Hospitality
ELLE Magazine will add a hospitality arm and two boutique hotel concepts to its array of offshoots. ELLE Hospitality and the Maison ELLE and ELLE Hotel will join the French-owned media company’s line of ELLE Boutique and ELLE-branded cafes.
Southland Casino Complex and Hotel
The Southland Casino Complex and Hotel in West Memphis, Arkansas introduced a new look featuring 60 or more table games, 2,400 slot machines and multiple dining areas. The addition also includes a covered parking garage and a 300-room hotel, with the first seven floors set to open in June.
AC Hotel
The AC Hotel Vancouver Waterfront, operated by Vesta Hospitality, is the first in the city’s waterfront scene, adding to the amenities offered to visitors. The Vancouver Wellness Studio will occupy the hotel’s single retail spot once the renovations are complete.
Grocery
Kroger
Kroger officially opened a 340,000-square-foot customer fulfillment center in Pleasant Prairie, Wisconsin that will service customers in Wisconsin, northwest Indiana and northern Illinois. The warehouse is the fifth operational facility of 17 Ocado-powered fulfillment centers that Kroger plans to open.
Amazon Fresh
Amazon Fresh plans to open three stores in Virginia this summer. The new stores will feature grand opening deals in several categories, and all will be equipped with Amazon’s Just Walk Out technology that allows shoppers to skip the checkout line.
Publix Super Markets
Publix Super Markets has broken ground on its first store in Kentucky—a 55,701-square-foot supermarket in Louisville that will include a drive-thru pharmacy as well as a 3,200-square-foot Publix Liquors. The grocer also is planning two additional Kentucky locations—a second store in Louisville and third one in Lexington.
Stop & Shop
Stop & Shop Supermarket is spending more than $140 million on remodels and food security programs in New York City. The company has signed on as a sponsor for the Food Bank for New York City’s mobile pantry and has partnered with Montefiore Medical Center and Quincy Asian Resources to expand the Stop & Shop School Food Pantry Program.
Eye on diversity
“Marriott’s Bridging The Gap” is Marriott International’s $50 million development program designed to address barriers that underrepresented groups typically face in owning and developing hotels in North America. The program will offer financial incentives as well as a range of other benefits to qualified, historically underrepresented owners and franchisees. Over the next three years, development projects built or converted with the program are anticipated to reach $1 billion in total asset value.
Google me this
The City of San Jose has cleared Google's plan to build a mixeduse village downtown on an 80-acre campus. The Downtown West project is expected to include as many as 5,900 housing units, 7.3 million square feet for offices, 500,000 square feet for shops and restaurants, and 15 acres of parks.
The numbers game 83.81
The dollar amount in gross operating profit per available room for US hotels—the highest point since November 2019 in March, according to STR. Other metrics improved as well, with leisure travel leading the recovery but business trade rising as well.
2.6
The amount, in billions, that travel and tourism are projected to swell over the coming 10 years, according the World Travel & Tourism Council’s Economic Impact Report. The number forecasts a 9.2% share of the overall economy for the industry and estimates the addition of 6 million jobs.
45
The percent of consumers surveyed who say they now are ordering fast-casual meals from their cars, according to Technomic. The move is seeing more chains like Chipotle Mexican Grill, Shake Shack, Fuzzy’s Taco Shop and Sweetgreen rolling out redesigned units featuring drive-thru lanes
Proceed...with caution
Why data is a valuable step forward, it does come with some risks. Here are six reasons why. The construction industry’s continuing evolution away from written records to digital ones has provided owners, designers and construction managers with an abundance of easyto-access information. The databases storing this information have become useful for risk management by enabling analysis of past data to predict future time, personnel and budget expectations. Today, innovative software and digital programming is available to facilitate database collection of construction data and its analysis. And while databases may be valuable for analyzing history, they are limited because they rarely reflect why problems or delays happened nor do they anticipate the future. James Gallagher, Partner at Resolution Management Consultants, outlines six important issues that database analysis won’t reveal: No. 1 — The impact of the selection of the product delivery system—design-build, design-bid-build or other—on the data and the final outcome of the project.
No. 2 — How much flexibility was there in the delivery date? Projects may be managed differently if there was a tighter deadline versus having more leeway.
No. 3 — How did the commitment of resources affect the actual results? In other words, how did supply chain issues, transportation issues and other resource availability factors influence data in a database.
No. 4 — How did the environment during the period when data was collected influence the data? For example, was data collected during the COVID lockdowns a valid indicator? Is the past always prologue?
No. 5 — How have local laws, rules, taxes and other local influences and changes affected the data? As well, how will expected future local changes affect future projects?
No. 6 — We must also take into account the degree of completeness of documents prior to starting the data gathering and analysis. What is the foundation of information prior to the data collection?
What they’re saying...
— IHOP President Jay Johns on the brand’s expansion plans for its off-premises segment “You have to create an opportunity for people to take risks and really applaud those risks.”
— Walgreens CEO Roz Brewer the company’s ability to strategize and innovate successfully
— Nordstrom President of Stores Jamie Nordstrom on the recent rival of cities like New York City and how it is delivering new experiences and brands that shoppers want
Lights. Camera. Action.
As one of the country’s largest leading contractors, the Big-D Construction team was excited to step into the spotlight. The company, part of the Big-D Family of Companies, was featured on Lifetime TV’s “Military Makeover: Operation Career.” A spin off from “Military Makeover with Montel Williams,” the show is traveling the country seeking out companies with a commitment to veterans who transitioned out of the military and back into civilian life through a trades career path.
The episode showcasing Big-D Construction highlights three hardworking veterans based in Salt Lake City, including a former officer in the Army, a former Sr. Airman for the US Air Force and a former Navy SEAL. Big-D Companies CEO Cory Moore says the company is honored to embrace the veteran community. “Big-D started with a BIG idea and that has turned into big opportunities for veterans and all our associates. In the construction industry we’ve found that veterans have the personality and skills to work in a team environment and that has been a very successful crossover for both our vets and us as a company.” The episode of Military Makeover: Operation Career on Lifetime TV featuring Big-D Construction aired in June.
Sharing the wealth
CCR story on Willis Tower in Chicago places second in national press competition
Astory published in Commercial Construction & Renovation's November issue received a second place award in a competition sponsored by the National Federation of Press Women. The article, "A New Day — 5-year, $500 Million Project Transforms Chicago’s Historic Willis Tower," was written by Thomas Renner.
The piece details the transformation of one of Chicago's most storied landmarks. The building, formerly known as the Sears Tower, held the title of “world’s tallest building” from 1974-1999. Renner's piece took second place in the national competition in the "Specialty Articles" category for Hobbies, which includes articles related to crafts, building, designing and construction. The story also placed first in a contest sponsored by The Connecticut Press Club. Renner works for a marketing and public relations agency in that state. He authored the article on behalf of Bendheim, an architectural glass manufacturer whose products were included in the renovation. He is a regular contributor to CCR.
Article:
https://vo-general.s3.amazonaws. com/a5606ae5-4a35-469a-802ede8c8701c582/81…
NFPW:
https://www.nfpw.org/2022-sweepstakes--contest-winners
Heading off the chaos
Why construction insurance is a contractor's best friend
By Kurt George
Construction projects run on a strict timetable. When there are disruptions, from factors such as staffing issues, resource allocation, supply chain delays or downtime from damaged equipment; economic havoc can erupt.
Being prepared for any type of interruption can ensure contractors, laborers and owners can recover quickly with minimal impact to the financial wellbeing of the business. Being nimble to identify the loss, correct the issue and return to full capacity are key to mitigating damages. Insurance policies are custom designed to fit the individual needs of each operation. Working with your agent to secure a mutual agreement on coverage that works best for your group is an evolving partnership and should be reviewed at minimum annually. Equipment and buildings depreciate, fuel fluctuations and potential shifts in the timing and transportation of goods to market are all variables impacting the type and amount of insurance coverage you may wish to secure to protect yourself. Look up your agent’s contact information. Pull up your insurance policy and review your coverage. Talk to others in the industry and compare notes. Put yourself in a position to be proactive rather than reactive. It is not if a loss occurs, but when it does, being well informed on the coverage you have on your operation will help navigate to the road of recovery. Some are fully insured. Some are self-insured. Some have a blended coverage where they cover the “small stuff” to avoid a high premium, or the loss is less than the deductible. It is not a “one-stop shop” of information, but rest assured we all need to follow the same steps no matter if it is handled in house or with our insurance company. When electing to report damages to an insurance carrier, they will determine if the damage is “covered property” and if the loss was caused by a “covered cause of loss.” As a part of their determination, they may have you speak with an adjuster, they may assign your case to the SIU (Special Investigation Unit), and they may send out an independent appraiser such as Property Damage Appraisers. Either way, a determination to the “who/what/when/why/where” of the loss is going to be made. As the insured, you may also be contractually required to see that certain steps are taken in the event of loss or damage to “covered property” are taken.
Be prepared to: > Notify the police if a law has been broken. If theft, vandalism, trespassing or any possibility of an intentional act which violates the law occurs, contact local law enforcement and make a report. > Give the insurance carrier prompt notice of the loss or damage, description of how, when and where the loss occurred so they can provide immediate guidance throughout the claim process. > Take all reasonable steps to mitigate your loss by protecting your property from further loss. When possible, secure images to document damage or secure the damage property for future examination. > When expenses are incurred for emergency or temporary repairs, retain all records for consideration in the settlement of your loss.
Determining the cause and origin of the loss validates if the damage is a covered cause of loss as described in the policy while also determining if there is a right to recover damages from a responsible third party, or subrogation of damages. It is vital the damage property is retained, preserved and the chain of custody is maintained to explore potential liability and recovery of damages, including applicable deductibles. If a third party is found to be liable for damages, the insurance company will seek recovery of the damages paid out, including any deductible incurred by the policyholder. The question of “who is at fault” is not always the first thing to figure out. Whether the damage is to your equipment or your organization caused damage to somebody’s property and/or equipment—what is most important is being able to accurately determine the value of what was lost and the amount of time it is going to take to recover that loss. Being well informed on the value of property, goods, services and equipment utilized in your operation can offer alternatives when determining your insurance needs and the premium associated with those coverages. Insurance policies may include specific limits of insurance for covered property, offer a variety of covered causes of loss, allow specified dollar amounts for named property and a menu of coverage options tailored to secure desired coverage and a premium within a specific budget. Consideration to self-insure property through higher deductibles, coinsurance with the carrier or exclude certain property from your policy are all viable options to help manage insurance costs. Reviewing those options with your insurance agent to gain an understanding of the financial impact to your bottom-line premium investment and the understanding of your out-of-pocket expenses when a loss occurs, will result in an optimal financial decision for your daily operation. Contractors will continue to face challenges with the variable cost of fuel, availability of approved and qualified labor, shifts in local and national buyers, tariffs and pandemics, weather and catastrophic events, all these factors are impacting the overall profitability of the business. Being proactive in identifying ways to mitigate losses may save thousands of dollars in loss avoidance. Reviewing your insurance coverage annually with your agent to determine a plan specific to your operation will keep you informed on how to proceed should your operation experience a loss. A blend of well-planned insurance coverage, self-insurance through higher deductibles and coinsurance may offer lower rates while still providing peace of mind when faced with providing coverage for your needs. CCR
Kurt George is VP of Strategy + Marketing for Property Damage Appraisers Inc., a national leading independent damage appraisal firm in Fort Worth, Texas. For more information, visit www.pdacorporation.com.
Battening down the hatches
How a rise in flooding can elevate your business insurance By Andy Simmons & Kenneth Travers
Editor’s Note: This is the second in a three-part series on what commercial construction professionals should know—and do—when it comes to insuring their projects amid today’s ever-changing climate.
The trends in the last few years regarding the severity and frequency of natural disasters and storms is changing how businesses think of flooding. Unfortunately, due to some poor drainage situations, it has become evident that some weather events can cause more harm in areas that are typically not prone to flooding.
This has shown that there is a clear benefit for business owners to take further measures to protect their facilities and property, going beyond the flood coverage as part of a larger business insurance plan.
Flooding vs. Inundation
When there is an overflow of water from a body of water like a lake or riverbed due to rainfall, this is considered a flooding event. By contrast, inundation happens when there is a large amount of water in an area that becomes submerged. This can happen if there is a large amount of rainfall in a short period of time, and there is a lack of proper drainage. Inundation is also known as pluvial flooding.
Infrastructure’s Role in Inundation
When a large amount of rain falls in a short period of time, it is important to have adequate drainage. If this does not happen, areas and places that do not typically flood can become submerged. Typically, stormwater from rain or snowmelt travels over impervious surfaces like roadways or parking lots and then collects and moves into different bodies of water such as rivers, lakes, bays, and oceans. But over the decades, urban development has increased the amounts of impervious surfaces, and as a result also caused the risk of flooding due to increased runoff
EST 2010
from large rainfall events to grow because the storm water systems were not developed to move large amounts of water in a short period of time. Urban sprawl has surpassed the original intention and capacity of the local infrastructure to contain heavy rains or a line of storms moving over the same area continually. Another problem is that as building and housing development has increased over time, the contour of land has become altered, which has caused changes in how a property reacts to water. The continued expansion of impervious surfaces due to property development means water is less able to be absorbed into the ground, so it travels and collects and can cause flooding. As a result, inundation events are occurring more frequently.
Protecting Your Property from Flooding and Inundation
While most business owners buy flood coverage as part of a large business insurance plan, they should also take additional measures to protect their property. A flood emergency response plan is one way in which business owners can prepare for, respond to and recover from a flood. This plan should include details about an evacuation plan with employee responsibilities, sheltering-in-place procedures, medical emergency information, emergency response teams, and public emergency services and contractor contact information. It also is a good idea to have a Water Damage Prevention Plan (WDPP), which includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and able to divert to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology as an invaluable component and includes backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures. In addition, a trained team of water damage responders should be recruited to map and label all zonal shut off control valves, as well as maintain an updated list of contractor’s contact numbers for emergency purposes.
A Partner with Experience
While it is not easy to predict how water from a storm or natural disaster will impact businesses, it is essential for business owners to take proactive measures to help protect their company and property. Partnering with an experienced insurance company can be beneficial and symbiotic to the structural mitigation efforts undertaken by a business owner. Risk engineering specialists know the unique risks and challenges that many businesses face. When it comes to flooding and inundation events, the insurer can work with agents and brokers to help business owners better understand how water will behave on their property and help prevent issues from happening through innovative technology and specialized insurance solutions. CCR
Andy Simmons is head of Large Property at The Hartford. He has over 25 years of experience in the insurance industry and specializes in offering customized programs for risks in the Large Property market.
Kenneth Travers is Technical Manager – Property and Product Specialist for The Hartford. He has more than 43 years of experience in the risk engineering field developing and delivering loss control engineering services and assessment tools for complex businesses with a focus in natural catastrophe, business impact, supply chain and fire protection engineering applications.
Into the woods
RCA members meet for exclusive networking event in Cleveland
The look. The feel. The scent. The timber. RCA members were able to get a firsthand look at Intro, Cleveland's (and the country's) first and largest mass timber project in June. The mixed-use residential/ commercial project, featuring more than 300 apartment units, is located in Ohio City, one of the city's burgeoning neighborhoods.
Along with its first class networking event, which featured happy hour and a reception, RCA members and invited guests also were able to tour the soon to be iconic location. With its blend of innovation, beauty and sustainability, Intro is destined to set the bar for timber-inspired building. The event was hosted by RCA member host Fortney & Weygandt Inc.
