Retired Board Member
Speaks Out
on
Sun City Anthem
Restaurant Matter
by
Carl
Weinstein
Former
Member
Sun City Anthem Board
of Directors
Since I moved here in 2002, the restaurant has been a source of
discussion and complaints by the residents, as well as “promises” to fix the
problem from the Board sitting at that time.
Here we are today in 2017 with a shuttered restaurant and
huge crowds attending workshops to decide what to do about an empty space that
costs the Association $50,000 every year , even though it
sits empty.
The previous failures can be attributed to many factors, and I
will try to provide insight to those factors.
1. Early Boards believed the restaurant should be a profit center that made money for SCA. As a result of that belief, leases were designed to accomplish that effect; however, no lessee ever made enough to provide Sun City Anthem with a “profit”.
2. Despite surveys, previous Boards chose vendors who menus were “far above” the price range that residents wanted.
3. Boards were not smart about reducing the number of applicants down to a reasonable number.
In fact, one Board decided to “taste test” the food of 3 vendors, telling them ahead of time they were on their way to taste it.
CAN YOU BELIEVE THAT?
DID THEY ACTULLY BELIEVE THE VENDORS
WOULDN'T PROVIDE THEIR FINEST CUISINE TO WIN A CONTRACT ???
So... they received a gourmet specially prepared meal instead
of the level of meal desired by SCA.
4. One year there was a public meeting attended by hundreds to hear the presentations of three vendors.
At the end of each presentation residents asked: “will there be an early-bird/blueplate special?; will there be an extra charge for two people sharing one
plate?; will you have a salt-free diet menu?
All that went to the Board’s deaf ears as they selected another
“high end” restaurant.
5. Other restaurant failures included Boards not properly vetting the financial strength of the proposed vendor....
...and accepting lessees who were Chefs
that had not previously operated a restaurant.
6. There were those vendors who could not properly run a catering operation.
Catering is a PRIME way for a vendor to make a profit.
7. And last but not least, those Boards that failed to take action when a vendor failed to meet the lease rental agreements.
Result....
Sun City Anthem unit owners got stuck for thousands of
dollars.
Let’s not forget however, the small cadre of residents who publicly banned going to our restaurant.
After all of the above, do I think we should have a restaurant?
Yes I do, if it is done the right
way.
It should be a coffee shop type restaurant and it should have
gambling (slot machines-the silent ones in the bar counter).
There are slot machine vendors who will pay to remodel and set
it up and manage it so there would be no expense to SCA to install gambling.
The lessee MUST be someone who already has multiple location restaurants and who has considerable experience in catering operations.
And last but not least, the lessee must have PROVEN financial stability.
I SEE THIS AS THE LAST OPPORTUNITY FOR SCA
TO HAVE A RESTAURANT.
If this fails, we should open a hot dog stand in the gallery
(like the one at Southpoint!)
- - - - - - - - - - - - - - -
- - - -
Now it's your
turn.
Got a comment on Mr. Weinstein's
thoughts?
Send them
to:
Carl, let me start by saying thank you for taking the time to write this editorial.
Most CURRENT OR FORMER BOARD MEMBERS will avoid community blogs because many of us believe...they either are not qualified to answer questions properly, or they are "above answering questions" from publications that far surpass the poor BIASED communication provided by the General Manager or the propaganda, their unqualified "mouth piece" produces.
So...let's get on with some "meat & potato" issues and questions.
First, you mentioned that sitting empty, the restaurant space would cost Sun City Anthem residents $50,000 per year.
Could you please elaborate as to how that number was determined? We have had a number of inquiries as to that figure.
Second, you didn't mention the "subsidization" aspect.
I have been told that close to 30% of unit owners are those who are either "snowbirds" or rent their homes. Is that true, and if so, do you think this is fair to ask those not living here to pay for something they would not utilize?
Third, may of us would like to know why you or other board members believe unit owners should increase our dues in order to allow an outside profit-making company to earn a profit?
Is it the duty and/or responsibility of dues payers to support outside businesses? If so, why do you feel that way, and if you do, should other outside businesses be subsidized as well?
Fourth, do you believe this matter should be placed to a vote of the membership after the General Manager and Board come up with recommendations, with that ballot including both "pros" and "cons" to any of them?
These seem to be the questions most owners are most concerned with as we "again" enter what I will call "the abyss".
Then again, somehow I believe a good Chicago hot dog would be a welcome site and chasing that with a cold beer, would get my vote.
Perhaps you OR other Board members and Mrs. Seddon might consider answering these questions.
I have said for years that we should install slot machines and have a low
cost menu.
The Willows at MacDonald Ranch is doing all of that .
If the proposal to go ahead with a restaurant is approved under the terms proposed by the General Manager, it can only be for Sun City Anthem residents or their guests.
The Willows is open to the public, thus reducing the market for any SCA alternative.
The Willows at MacDonald Ranch has traffic flow that can be reached on Horizon Ridge.
Sun City Anthem's traffic flow is all but nonexistent.
Having no more than 6-8 video poker machines and their operating only during the restaurant business hours, doesn't seen like a great deal of revenue would be had.
Now add Buckmans into the mix which is open to the public.
But...the biggest question, do you believe we as a community, should increase our annual dues to support such a venture?
Even the decision makers are fully aware that competing with the above is all but impossible...unless WE, AS UNIT OWNERS, PAY FOR IT.
Add these elements together, and I don't believe any Sun City Anthem restaurant could succeed.
Regarding opening the restaurant to the public:
Over the years the restaurant has been described as an SCA AMENITY.
According to the SCA Public Offering Statement, amenities are for SCA RESIDENTS and their GUESTS.
Accordingly, would there not be a requirement to amend the applicable SCA documentation to allow 'outsiders' to use one of our "amenities"?
As I see it, opening the restaurant to "outsiders" would be similar to opening our Pools, Tennis Courts, etc. to the public.
Yes, I know previous restaurants were opened to the public without amending the applicable SCA documents - but since when did the SCA Boards ever worry about following the rules (unless it was in support of their positions)?
You write such fantastic articles that really cover what we need to know. The info that was sent out about the restaurant, after the meeting (the powerpoint presentation) was terrible and nothing we have not seen before.
I went to the original meetings before Vic's opened and we all talked about a reasonably priced restaurant and no one listened to us. So many have decided it was a waste of our time to go to another meeting where no one listens, AGAIN.
We need an inexpensive restaurant where people can get a reasonably priced meal, maybe pick up a sandwich or get some take out to go home with.
Our coffee shop works really well and makes lots of money for the clubs that work it.
Can you imagine what a restaurant would make if it was properly handled?
Many people eat at Village Pub and the deli at Southpoint is great.
There are lots of options but will the board listen? Probably not. So sad that so much of our money is going down the drain.
We had a new roof put on not long ago and if you look at the ceiling in the gallery (after we had a major leak), the tiles are still stained and have not been replaced.
These stained tiles are near the fitness center where the leak was and they had a bucket underneath to catch the drips.
The lighting in the gallery is terrible and they don't even replace bulbs that burn out in a timely fashion.
The lights tend to be bright and then dim which is great on your eyes and give you a headache.
We argue over the arm chairs, that are adjustable since the tables are too big and too high.
More adjustable chairs are not in the budget or even being considered as I have asked.
The air conditioning is either freezing out the card players or they are all using fans to keep cool.
It is never a comfortable level.
Supposedly we can't have fans to try to circulate the air. What a mess.
As I have said in the past.......the card and maj players are second class citizens and just don't count.
From John Bogdan...to...Anthem Opinions
I agree with Mr. Weinstein. All his points are valid.
We do not want a high end restaurant here.
We can go to the strip for that.
While I agree with most of the comments in your article, the following should be added.
I , and most residents, would like to see a coffee and gelato bar.
People would buy specialty coffees and ice cream all day long.
This would be more profitable than a bar.
The coffee shop idea is great and the coffee shop could sell beer and wine.
I don't think hard liquor is a necessity.
SCA should approach Mr. Weiss into opening a smaller menu version of his Deli and Bakery. (2744 N Green Valley Prkwy)
It would be a plus for SCA all around.
No one can argue about a good bowl of chicken soup!!
I think making catering a criteria is beyond our shared, basic need.
There are plenty of bigger commercial operations to serve the clubs in that manner.
I can answer some of the questions that were asked.
1. The reason the empty space costs SCA $50,000 a year is that the area is still serviced by the total air conditioning system, there are property taxes on restaurants that even stand empty, general maintenance, cleaning. These all come to $50,000 a year.
2. I believe that a vendor who has multiple locations, great experience in catering, a coffee shop type menu, gambling can make it profitable WITHOUT an SCA subsidy but with free rent ($1 a year).
I can see why some think a subsidy is appropriate. That's because our dues "subsidize" amenities many of us do not use by our own choices and yet our annual dues cover those amenities.
I forgot to mention the issue about putting this to a vote.
I do not believe this issue should be put to a vote by the membership.
For good or bad, the Board is an elected representation of the community and their vote gives them the right/power to make these decisions (good or bad).
If you don't like the way a Board votes, come to a Board meeting and speak up OR elect members who are inclined to agree with your position!
Form your own opinions without being "swayed" by Blog recommendations!
Thanks for clarifying the $50,000 expenditure, as well as, your other thoughts, but to use your own words, namely "I believe" without some form of proper marketing research to back up yours and others "thoughts", are merely..."thoughts".
All are entitled to their beliefs, but speaking from a business point of view...one must consider the vast expenditure of association funds, and the "bang for the buck" that would result from such an investment.
To date, the actions resulting from the "thoughts" of the inexperienced, have had predictable results, all sadly negative to the financial well-being of Sun City Anthem.
As a result of those horrible results, the "thought process" requires analyzing by a more experienced source, one that will provide the necessary ingredients to allow a proper qualified decision.
We have had one person mention "Weiss Deli"...a wonderful place to enjoy an informal sandwich...
...but...what do we know of Mr. Weiss, himself?
The profitability of his business, his personal and business financials, his market plan, his advertising, his ability to attract a continual source of revenue ???
I'm not picking on this particular individual, but these questions need answering from any organization that SCA would enter into an agreement.
We need a "pro" to do the research or at the very least, fresh minds who have the ability to uncover data that will produce a professional result on which to make an intelligent decision.
In my mind, those "fresh minds" are located at UNLV's business administration department.
Why not consider contacting the Dean of that Department at UNLV and asking him/her to have a marketing instructor make this subject a class project?
Make the degree of graduating seniors a meaningful experience by having them test the skills they acquired over their years of undergrad studies, to the REAL WORLD?
My guess is that it would be fun to them; they would have a real interest in the project, and the results they would produce, would be valuable not just to us, but to them as well, as they enter the working world.
Why do I believe this?
From personal experience.
As a graduate of College of Business Administration at the University of Illinois a long time ago, in our Senior year, we were asked to prepare a complete marketing program for a new product that was about to hit the marketplace at the time...we were asked to determine A to Z the pricing, channels of distribution, advertising.
We used a room filled computer to decipher the surveys we took, to validate our recommendations, and low and behold, that company used our study to help market their product.
The company donated $1000-$2000 to the University as well.
That product was called ..."Exercyle", and for those of you who visit the gym, to this very day, the basic concept conceived by that product, became the forerunner of much of the equipment used today.
...and it sure looked good on a resume when we went job hunting after graduation.
This is "thinking outside the box"...realizing that the "youth of today" count, are a lot smarter than many believe.
Our age group belong to a bygone era of business planning, something that it's time we all realized.
At the workshop last week they emphasized how patronage of any restaurant by SCA residents was very important to minimize any subsidies.
They threw out various numbers of how many meals per day would be required and other factors.
The number I remember was that even with a $1/year rent and no payments for utilities, insurance, taxes, etc the restaurant revenues would need to be at least $1 million per year.
There was no detail, but that is likely total revenue including casual dining and catering.
If revenues fall below that then subsidies would be required.
I totally agree with your observations. The first restaurant in Sun City actually was profitable with its catering operations. Unfortunately, the owners seemed to abuse us by finding ways to not pay for the operation. A restaurant that does catering and has an additional revenue stream with slots would help ensure the restaurant's viability.
I know one of the applicants who has been very successful starting with his work with Tillman Fratita, the owner of Bubba Gump and other properties. In his own right he was very successful restaurant owner and the managed several restaurants. We need someone with that experience.
I believe we need a restaurant that is not expensive and perhaps provide a small discount to Anthem residents. I think residents would patronize a restaurant that is reasonably priced and allow the lessee to make a good profit.
I agree whole-heartedly with Mr. Weinstein's comments about a restaurant here in Anthem.
(1) The residents want a reasonably-priced coffee shop! NOT a high-priced fancy restaurant.
(2) We want to be able to take our food to the pool area or home.
(3) We want to be able to go in after a round of cards, pool, craft activities, etc. to have a sandwich, simple dinner item, slice of pie or cake, or an ice cream sundae.
(4) We would like to order a soda or beer (if they can get a liquor license).
(5) We want the restaurant owner to have a proven record of success in other home communities.
(6) Many (if not most) of us would be fine with quiet slot machines, if they are put in and run by a slot company, if we can earn a profit from the slots, and if doing so doesn't cost us any money.
(7) The restaurant owner must be qualified and experienced in performing catering services.
The needs and wants of the majority of the homeowners is the important issue. LISTEN to us! This is NOT a matter for six or seven people to decide for everyone.
Our new "head honcho" is NOT in charge! She works for US, the people.
This should be a democracy, not a dictatorship type of community.
How many times and how many ways do we need to say the same things before we are heard?