FOOD AND BEVERAGE FACILITY DEVELOPMENT ADVISORY & JV
MEMORANDUM OF UNDERSTANDING ISSUE B, 06 JULY 2021 DRAFT MISSION To create world class, high yielding, unique and interesting food and beverage facilities within the Sydney Inner North Shore target area. The Facilities will represent a high standard of fitout and a very high standard of service, in terms of food and drink quality, and strong focus on customer service and satisfaction. The Facilities will represent a new standard for the Sydney Market, in terms of attention to detail and service standards, where staff have a focus on the customer’s experience as the purpose of the facility operation, where: — Polite manners, good conduct by staff and problem-solving attitudes provide the customer a truly VIP experience, and — The customer feels valued, acknowledged and recognised as part of the facility brand and operations. TARGET MARKET The Inner North Shore Market is diverse. It contains a range of high net worth individuals and families all at different stages of their life and career. The one thing this market has in common as an intent and a desire to socialise and interact in exclusive, high quality settings, for purpose of experience of expanding friendships, growing social and personal networks, or undertaking important informal meetings and interactions for business and political purposes. This represents a unique market pitch for the Facility; it is a place that is not focussed on the highest gross yield from sale of product (food or beverage), which then requires an open door policy, unlimited guest numbers, expansive opening times and mid to low level quality fitout designs. This mindset of commercialising the social space works against the feeling of exclusivity that would do well on the north shore, and also it is this lack of facilities that espouse exclusivity that represents both a gap in the market and the business opportunity for this Joint Venture. JOINT VENTURE PURPOSE The Joint Venture is potentially funded with a $2m allocation for purposes set out below. Through discussion amongst parties to the joint venture operation, it was decided that rather than focus on one or a very limited number of facilities, it would be better to spread the risk of the operation across multiple venues, and invite further joint venture partners and operators at later phases of development of each facility. This allows for existing operators to also participate in the funding model and utilise investment funds to improve operations of their existing venues. The Joint Venture will undertake all design, consultation and consent related activities, to provide to investors, complete certainty on the facility investment product and operation. This model therefore also removes the contingent risk for larger scale operators, where they can become involved in a project once it has reached a level of certainty over its implementation and operation in line with business case objectives. KEY TASKS FOR JOINT VENTURE OPERATIONS The Joint Venture will be incorporated as a Pty. Ltd. Company and be able to earn business income and report for taxation purposes. Relevant Articles of Association and Shareholding will be set up and included to the Company Registration. Legal Advice will be obtained as to the best Company Arrangement. Accounting and Book-keeping services will be allocated to the Project. The Joint Venture may also choose to operate a Human Resource component, where it identifies and manages labour resource into the various facilities as operations commence and continue. The Joint Venture will also undertake research into the social demographic outlined above to substantiate the target market demographic and particulars. A consultant team will be identified to suit likely Joint Venture Operations in the project initiation and start-up phase outlined below. The Joint Venture will also identify and appoint a Brand Manager to manage all Brand Definition operations across these same phases, who will take responsibility for Brand Quality targets. The Joint Venture will also identify and engage a Business Development Manager, who will take responsibility for identifying, inviting and entreating suitable investors to individual facility investment opportunities, as well as identifying existing businesses in the target market area that are suitable for expansion of operations and investment, and creating and maintaining a CRM database that is inclusive for investors and key staff as part of each facility offer. The Joint Venture may determine to appoint a Human Resource Manager, who will take responsibility for identifying suitable staff for each Facility, provide outline tools for staff training and operational culture, as well as briefing teams on customer experience and Facility Brand aspirations.