Mercy finalizes plans for $271M campus. Page 7
The Business Newspaper of Metro Grand Rapids, Holland , Muskegon & West Michigan
Brenneman gives order to the court. Page 3 MAY 2, 2016 VOL. 34, NO. 18
THIS WEEK
ENTREPRENEUR’S IDEAS BLOOM
Ryan Mast digs into the flower planter industry with acquisitions, new products and retail locations. Page 14
Restaurant industry orders help City’s growing culinary scene makes it difficult to find quality workers. Pat Evans
How does area rate among best, brightest?
Grand Rapids Business Journal
Corridor confab City is hosting public hearing on Michigan Street’s $1.65M renovation projects. PAGE 3
Tied together Data collection and tracking app unites economic developers.
In the first week after the opening of Vander Mill’s Grand Rapids restaurant, Justin Large fired two cooks and saw two more quit. Losing four people is hard enough for an already small kitchen staff, which Large, the executive chef, is still trying to fill out. The issue, however, is not unique to Vander Mill or Grand Rapids. Large relocated last fall from Chicago, where he was culinary director with One Off Hospitality and had encountered the same problem of finding quality restaurant employees. “It’s a confluence of a lot of things,” Large said. “There’s a huge demand with a lot of restaurants in an already strained labor market.” As many industries across the country are feeling the effects of low unemployment rates, restaurants have named staff attraction and retention the No. 1 issue in the industry, according to National Restaurant Association surveys. The $783 billion industry employs 14.4 million people in this country and has added more than 300,000 jobs each year for five straight years.
West Michigan scores well in community initiatives category; lacks in leadership. Mike Nichols
Grand Rapids Business Journal
“(Loeks) needed confidence to pull the trigger on this major investment; it’s their brand,” said Kris Larson, DGRI president and CEO. “There was so much that went into all parties making sure it made sense. It has to work. If it doesn’t work, we all fail.” If the project hadn’t been approved last month by the DDA, Larson said the community and board members might have moved on, following the April 30 expiration of the most recent property option. “Never underestimate the power of a deadline,” Larson said. “I didn’t have a lot of confidence I could go back and ask for another option. If, after four years, we weren’t ready to go, perhaps we needed to go back to the drawing board to see if there was another investment team interested in the project.” Loeks first proposed the idea of a downtown movie theater before Larson was in his current position
The scores are in, and West Michigan is hitting some national benchmarks — but certainly not all of them. In conjunction with the Michigan Business & Professional Association’s upcoming West Michigan’s 2016 Best and Brightest Companies to Work For banquet May 5, the organization also has revealed how West Michigan businesses stack up against their counterparts in the other nine Best and Brightest Companies to Work For regions in the country. Companies are scored in 15 categories, most of which are related to human resources, as part of the Best and Brightest competition. Best and Brightest is a “program that honors companies that provide excellent human resources and benefits to their employees, as well as make efforts to enrich their employees’ lives as a whole,” said Alicia Wilson, director. This is the 14th year of recognizing outstanding companies for their work, she said. The information taken in these business surveys was scored by an outside independent agency, the Illinois Institute of Technology and Center for Research and Development, she said. “We have the employer fill out a very thick questionnaire, about 30 pages long, and then we survey their employees. And we make sure that information aligns,” Wilson said. West Michigan’s businesses were then rated against the other nine regions in the program: Detroit, Chicago, Atlanta, Houston, Milwaukee, Dallas, San Francisco, San Diego and Boston. “We scored ranks and provided data in West Michigan. Then what we do is, we also have a national competition in addition to the regional competition,” said Jennifer Kluge, MBPA president. “We have 1,500 winners across the country. This data is based on the 100 that have won in West Michigan.” West Michigan scored “significantly above” the national bench-
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STAFF ATTRACTION and retention is the No. 1 issue in the restaurant industry, and 25 to 33 percent of Michigan restaurants currently have open positions, according to the Michigan Restaurant Association. Photo by Michael Buck
The need for more restaurant workers is driven by an improving economy, which means more people are earning disposable income and eating out more often. Evolving consumer behavior is also at the heart of the issue; restaurants sales have grown from $42.8 billion in 1970 to $800 billion currently. In 1955, restaurants
made up 25 percent of food industry spending; today, the share is nearly 50 percent, meaning more people are choosing to eat out. Justin Winslow, president and CEO of the Michigan Restaurant Association, said between 25 percent and 33 percent of restaurants Continued on page 11 8
PAGE 3
Pitch perfect Hispanic Chamber of Commerce offers first competition for small businesses. PAGE 5
THE LIST
The area’s top commercial real estate brokers. Page 20
Loeks: movie theater good for downtown Celebration! Cinema CEO says making money is not the project’s only objective. Pat Evans
Grand Rapids Business Journal
Urban right Hudsonville prepares for $5M worth of downtown renovations. Page 22
After nearly four years, J.D. Loeks is happy with where his Studio C! downtown movie theater stands. When the prospect of Loeks Theatres building a movie theater behind Van Andel Arena first arose in the spring of 2012, the project was just that — a movie theater. Now the project is in its “27th iteration of conceptual design” and has cleared its first major hurdle with approval from the Downtown Development Authority. “The overall trajectory has taken this to something that’s way more exciting for the community and everyone involved,” Loeks
said. “Yeah, maybe we could have a theater today if we stuck with the original plan and did something way less interesting, but that wasn’t the project we were trying to do in the first place.” Led by Loeks Theatres and 616 Development, Studio C! is a twophase, $140 million development anchored by a nine-screen movie theater. The first phase of the project is $100 million and, besides the movie theater, also features a 900-space parking garage, 38,000 square feet of retail space, 187 residential units and a public piazza. If all goes according to plan, construction would begin in early 2017. The second phase would be a $40 million residential tower with an additional 150 units. The main hurdles that remain include state participation, state and federal permits and favorable construction bidding. The project has been vetted both by Downtown Grand Rapids Inc. and Loeks to make sure it’s feasible and sustainable in all respects.
CONTENTS Vol. 34, No. 18
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© Entire contents copyright 2016 by Gemini Publications. All rights reserved.
Inside Track ..........14
Change-ups .........29
Comment...............16 Making comparisons
Calendar ...............29
Sales Moves .........17 Bad sales advice
Street Talk .............31
Matters .................17 Family meetings
Area Economy.....30 Price increases
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