Jefferson National Expansion Memorial

Analysis of New Food & Beverage Service and Prospectus Development

Dornbusch has completed all tasks with the exception of only the Prospectus Preparation and Delivery. We performed a Market Analysis, Financial Feasibility Analysis, and Personal Property Purchase & Replacement Schedule for an entirely new restaurant, vending, mobile food cart(s), box lunches, & catering food and beverage services. The analysis included estimating demand, prices, operating revenues, investment and operating expenses for the next 20 years. It was particularly challenging, since no previous restaurant existed previously and therefore lacking historical demand data upon which future revenue and cost trends might be estimated.

Tasks included examining the local/regional competitive environment, comparable restaurant operations at 8 other national parks; developing staffing requirements and estimating labor and other direct costs, personal property equipment investment and replacements, all based upon the most appropriate food menu offerings, etc. We worked closely with Park staff to understand development and operating restrictions, issues and parameters that would impact the concession’s financial conditions, including facility location and layout, cooking and food preparation restrictions and potentials, operating hours, etc. We reviewed and applied as appropriate industry standards and restaurant trends from both published sources and our own proprietary files.

Dornbusch developed scenarios to determine the financial impact, and particularly the impact on the minimum franchise fee, of adding or changing services, such as coffee cart operations as a required service and of adding special event catering. Compensation to the concessioner for both financial and operating risks were applied in the financial analysis and model. The project was initiated in December 2013 and the final Prospectus Preparation and Delivery tasks are being completed.