Lease policy spurs eatery turnover at The Forks Another decades-old restaurant closes down By: Gabrielle Piché Posted: 6:52 PM CDT Monday, Sep. 23, 2024

Hey there, time traveller!
This article was published 23/09/2024 (721 days ago), so information in it may no longer be current.

Another decades-old eatery has left The Forks as a change in the hub’s lease renewal policy could lead to further turnover.

Bindy’s Caribbean Delights, which opened at The Forks in 1989, closed down earlier this month. They’re not the only ones who have moved out of The Forks in recent times — the Original Pancake House closed its doors earlier this year after two decades, while the lease for Skinner’s wasn’t renewed in 2019 following a 30-year tenure.

Zach Peters, communications manager for The Forks, said there is a “correlation” between the departures of the long-standing eateries and a 2016 change in lease renewal policy.

“I think, ultimately, that the model change of 2016 would certainly invite more turnover,” he continued.

Restaurants at The Forks Marketplace must submit a proposal every three years in a bid to keep their location.

Food and business experts evaluate tenants and prospective tenants on how the bidding parties’ values align with The Forks.

Menus, cleanliness, sales and business models are also considered, Peters said.

“(It’s) allowed us to… stay relevant and give our visitors what they want, which is something new each time they visit.”

Surveys and studies The Forks has overseen show patrons want new experiences when they visit, Peters said.

“(It’s) allowed us to… stay relevant and give our visitors what they want, which is something new each time they visit.”–Zach Peters, communications manager for The Forks

A change to leasing agreements in 2016 also brought a new revenue model: instead of paying a flat rate for rent, eateries pay a percentage of sales to The Forks. Unlike years past, The Forks owns most of the large equipment inside the eateries. The percentage of sales The Forks takes varies per food vendor, Peters said.

The Forks deems it a “partnership model.”

“This model really drives us to do well alongside our tenants,” Peters said. “We’re driven to do activations, host events in our space, bring people to The Forks Market.”

Neither Bindy’s (which is transitioning to a spot in Cityplace’s food court) nor Skinner’s responded to questions by deadline. The Original Pancake House declined to comment, with the general manager noting they are focusing on the new Taylor Avenue location.

Owners and staff of longtime eateries inside The Forks say they feel on edge and frustrated.

One entrepreneur with a decades-old operation shared fears of being told to leave. The person, granted anonymity by the Free Press because they run a current eatery at The Forks, believes businesses that’ve been approved since 2016 are treated, and viewed, differently by leadership than those who’ve been around longer and were not deemed worthy by the committees, to begin with.

A staff member of another long-standing business said they regularly get customers asking where Skinner’s and other decades-old tenants have gone. There are few left, they added.

“I see this (as) discouraging existing and prospective owners,” said Sean MacDonald, a University of Manitoba business professor.

The change provides “an unnecessary level of bureaucracy” for restaurateurs, and it’s hard for budgeting, he said.

“(It’s) terrible for fostering relationships. This idea that everyone’s on the same boat — there’s no loyalty for a merchant that’s done a good job.”

Peters disagreed, calling the lease change positive for the business community. He said it was “relatively low risk and relatively low overhead” to grow in The Forks’ food hall. As The Forks takes care of the machinery, the cutlery and plates, entrepreneurs can “hit the ground running,” he said.

“We want to see ourselves as this incubator of cool ideas.

“Can these small entrepreneurs that want to try something come in with little overhead or equity, try to open a food kiosk here, see how it works … and then is there the opportunity for them to move on and explore elsewhere?”

Lease revenue has increased since the change, Peters said. Last year, the North Portage Development Corporation (which oversees The Forks) counted $1.36 million in lease revenue. In 2015, it was $1.31 million, according to financial statements.

Revenue from The Forks Market hit $6.62 million last year, up from $2.09 million in 2015. Visitors are also up: about 3.8 million people are expected to visit this year, which is one million more than in 2015.

The number of tenants surpassing $1 million in sales has nearly tripled over the past eight years, jumping to 11 in 2023 from four in 2015.

The lease change happened in tandem with a makeover of the food hall; renovations cost at least $2.5 million with the launch of the Common, the beer and wine kiosk.

The site is far busier than the food hall of 20 years ago, Peters said.

Lease renewals haven’t changed for longtime retailers, Teekca’s Boutique and Forks Trading Company confirmed. Both last signed five-year leases.

“(We’re) having the best year yet,” said Brad Hewlett, owner of Forks Trading Company. The store expanded last year and had to submit a proposal and compete with other enterprises, Hewlett said.

The Forks says it keeps itself open to expressions of interest from eateries and retailers.

gabrielle.piche@winnipegfreepress.com