Issue - meetings

Report of the Assistant Director - Economic Growth and Housing

The Committee considered the report of the Assistant Director – Economic Growth and Housing advising that Southport Market (the Market) was repurposed into a Food and Drink Market and opened in July 2021; and outlining its year 3 performance, particularly in the context of economic conditions affecting the sector and venues including, but not limited to, Southport Market.

The report referred to the importance of the offer at the Market continuing to evolve; that in the third year of trading no changes had occurred in the business mix with all traders still trading, with many of the original traders still operating in the market despite the continuing pressure in the hospitality sector; that two units had changed their trading name to reflect menu changes; and that the Market also had a large events space called The Extravaganza Room that could accommodate 200 people.

The report advised that food traders and the bar paid a turnover rent rather than a set rent measured on square footage; that this arrangement was now common practice in many food markets and allowed the landlord to be rewarded the more successful the operation became; that it also importantly allowed new start-up businesses breathing space to become established and to build up a robust cash flow; and provided information on the financial performance of the Market in respect of:

·       Year 2 v Year 3 Food and Drink Sales

·        Year 3 Rental Performance v Business Plan Targets

·        Year 3 Expenditure v Business Plan Targets

·        Year 3 Actual v Business Plan

·        Revised Year 3 v Business Plan

·       Year 2 Actuals V Year 3 Actuals

The report also referred to the sector pressures in respect of the trading environment for the hospitality sector which continued to see significant changes and challenges due to cost-of-living crisis, inflation and other factors impacting on Southport; and detailed that the events space to the rear of the Market continued to be a success, with multiple sell out events throughout year 3 with thousands of tickets sold for Easter events, themed nights and Christmas extravaganza events and that income from events was up 128%.

The report concluded that as part of the new business plan an extensive review by an independent hospitality expert was taking place, and that the review would look at the full operation including trader menus and sales, market operation including staff training and welcome, capital investments, events and marketing.

Members of the Committee asked questions/commented on the following issues:

·       future works planned

·       future events planned i.e. extravaganza

·       the demographic of the clientele

·       how traders were being supported during recent economic challenges

RESOLVED:

That the report on the year 3 performance at Southport Market be noted.