Village of Sugar Grove - Restaurant Survey Results Data collected July/August 2021, Presented September 2021 Michael Schomas - Village Trustee

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Village of Sugar Grove
                                 Restaurant Survey Results
 Data collected July/August 2021, Presented September 2021
                         Michael Schomas – Village Trustee
Michael Schomas
                         LinkedIn: https://www.linkedin.com/in/mike-schomas-0164b04
                                                                                      Certifications & Training
Education                                                                             •   Project Management (Kepner-Tregoe, PMI, PRINCE II, Agile)
•   Masters - Operations Management - Illinois Institute of Technology May            •   Six Sigma Green Belt Certified
    2010
                                                                                      •   Six Sigma Black Belt Trained
•   B.S. Electrical Engineering - Illinois Institute of Technology May 2003
                                                                                      •   Statistical Process Control & Capability
•   B.A. Physics/Mathematics - North Central College June 1994
                                                                                      •   Measurement System Analysis
Domain
                                                                                      •   Variance Components Analysis
•   Project & Resource Management (Technical & Operational)
                                                                                      •   Internal Auditing to ISO 9000
•   Software Design & Development
•   Electronic Components & Optics
                                                                                      •   Radar Concepts For Technical Personnel
•   Manufacturing/Process Optimization & Various Test Measurement &                   •   RF & Filter Design Fundamentals
    Equipment                                                                         •   Introduction To Systems Engineering
Highlights                                                                            •   Printed Wiring Board Design Guidelines
•   Over 17 years as project lead, project manager, or engineering manager            •   1998 IEEE/UFFC Symposium
•   Over 15 years of generalized, and varied software development activities          •   Cross-Functional Team Training & Problem Solving
•   Over 10 years in Business Process Optimization                                    Technical Profile
•   Over 10 years in SPC and 6-Sigma principles including Certification in 6-         •   Management roles in mainline and consulting organizations, structuring for growth and increased
    Sigma Green Belt from University of Michigan.                                         offerings - > 15 Years
•   Over five years in the telecom components industry                                •   Built several highly effective teams, increasing top-line revenue growth by > 500% and hired
•   Over 4 years in agri-business software development                                    more than 120 technical professionals
•   Over three years in the military / government contract industry                   •   Established reduced cycle time for for various business processes, assembly and testing - 12
•   Over three years in the water treatment and point-of-use water filtration             Years
    industry                                                                          •   Building standard processes for project and resource management methodologies specific to the
                                                                                          organization at hand - 8 Years
Personal/Interests
                                                                                      •   Identifying necessary testing through creation of FMEA and test plan documents - 8 Years
•   Kids 2
                                                                                      •   Assigned as the key technical individual for technology transfers and facility relocations - 4 Years
•   Studio Musician
                                                                                      •   Lead in the transition of electro-optical, automated test equipment from development,  2 to
•   Resident Rock Star
                                                                                          manufacturing. - 3.5 Years
Michael Schomas
                         LinkedIn: https://www.linkedin.com/in/mike-schomas-0164b04
                                                                                      Certifications & Training
Education                                                                             •   Project Management (Kepner-Tregoe, PMI, PRINCE II, Agile)
•   Masters - Operations Management - Illinois Institute of Technology May
                                                                                      •   Six Sigma Green Belt Certified
    2010
                                                                                      •   Six Sigma Black Belt Trained
•   B.S. Electrical Engineering - Illinois Institute of Technology May 2003
•   B.A. Physics/Mathematics - North Central College June 1994                        •   Statistical Process Control & Capability
                                                                                      •   Measurement System Analysis
Domain
                                                                                      •   Variance Components Analysis
•   Project & Resource Management (Technical & Operational)
                                                These are the                         •   Internal Auditing to ISO 9000
•   Software Design & Development
                                                                                      •   Radar Concepts For Technical Personnel
•   Electronic Components & Optics               skills needed
•   Manufacturing/Process Optimization & Various Test Measurement &                   •   RF & Filter Design Fundamentals
    Equipment                                                                         •   Introduction To Systems Engineering
Highlights                                                                            •   Printed Wiring Board Design Guidelines
•   Over 17 years as project lead, project manager, or engineering manager            •   1998 IEEE/UFFC Symposium
•   Over 15 years of generalized, and varied software development activities          •   Cross-Functional Team Training & Problem Solving
•   Over 10 years in Business Process Optimization                                    Technical Profile
•   Over 10 years in SPC and 6-Sigma principles including Certification in 6-         •   Management roles in mainline and consulting organizations, structuring for growth and increased
    Sigma Green Belt from University of Michigan.                                         offerings - > 15 Years
•   Over five years in the telecom components industry                                •   Built several highly effective teams, increasing top-line revenue growth by > 500% and hired
•   Over 4 years in agri-business software development                                    more than 120 technical professionals
•   Over three years in the military / government contract industry                   •   Established reduced cycle time for for various business processes, assembly and testing - 12
•   Over three years in the water treatment and point-of-use water filtration             Years
    industry                                                                          •   Building standard processes for project and resource management methodologies specific to the
Personal/Interests                                                                        organization at hand - 8 Years
                                                                                      •   Identifying necessary testing through creation of FMEA and test plan documents - 8 Years
•   Kids 2
                                                                                      •   Assigned as the key technical individual for technology transfers and facility relocations - 4 Years
•   Studio Musician
                                                                                      •   Lead in the transition of electro-optical, automated test equipment from development,  3 to
•   Resident Rock Star
                                                                                          manufacturing. - 3.5 Years
Personal Career Path / Timeline

   High
                  Dell                    EPLAN
  School
                 >5 Yrs                    5 Yrs
   1990

   Illinois     Northrop                Efficiency
 Wesleyan       Grumman                 Associates
 1990-1992        4 Yrs                     1 Yr
                        MS MITOM IIT

   North          CTS                      CNHi
  Central        >5 Yrs                  Circa 5 Yr
 1992-1994
                                        Education
BA Physics                              • Masters - Operations Management - IIT May 2010
/ Mathematics                           • B.S. Electrical Engineering - IIT May 2003
                Culligan                • B.A. Physics/Mathematics - North Central College June 1994
                 >3 Yrs     BS EE IIT
So what does
     this mean?
I’m a numbers weenie!!!!
A Brief Story About Me:
•   I almost purchased a franchise….like incredibly
    close…like I had the plane ticket purchased to sign the
    contract close.
•   Why: I spent a HUGE amount of time researching my
    options over nearly a year, food and otherwise, and
    interviewed countless companies.

My point?
• I've got some experience here on how these things
  work, and how the market analysis is done

Franchise Vs Chain?
• Individual ownership vs. ownership group
Private Ownership
• Financing to build something from the ground up will be
   a challenge for a restauranteur to secure financing
Some notes on the analysis:
•   853 respondents, representing about 8.5% of the total village
    population
     • 5% seems to be typical in industry for e-mailed surveys
     • Is this higher since our e-mail list probably skews toward a
        population that is normally more engaged ? Probably

•   I am assuming that the respondents represent a typical distribution
    of our community population in my assessments

•   853 respondents, 5 choices, gives 3408 discrete data points
     • Not everyone wrote 5 suggestions
A Note On Statistics
         I needed to baseline the data … And I need to qualify my comments
• The survey was not set-up in a fashion that follows the Scientifically proper
  methods that one would do in a proper Design of Experiments (DoE)
   •   We don't have a "Null Hypothesis" … necessarily.
   •   The results can’t technically be considered "statistically significant“ (ex: Are these results
       different from other cities/towns/villages?)
   •   I am assuming however that the data is statistically relevant (See previous slide)…there is a
       difference

• Experienced statisticians may take issue with my analysis
   •   The survey didn't follow the “proper” methods … don’t shoot the messenger here.
   •   I could not do an "Analysis of Variation" (ANoVA) study, nor could I verify through a p-Test,
       or t-Test checking for bias, determining level of significance, etc. since there was no null-
       hypothesis

• The questionnaire assumed that "everyone wants more restaurants" and didn't
  force the respondents to force rank their responses.
Data Set-Up for Analytics
                       Structure the data so it could be analyzed

• Data was put into one column
• Three sub-categories were added by me (discussed in next slide),
  interpreted by me….This does provide some opportunity for error
   •   3 categories for 3400 data points took a while
   •   I attempted to remain blind/anonymous/un-bias in the assignments so that the results
       could be the results and allow the findings to be as objective as possible.

• Note: Taking consideration into the comments shared from Next Site on the
  types of restaurants with unique options, I am focusing my
  recommendations in my conclusions on places that aren't necessarily
  “typical”
Data Structure
Franchise         Sit-Down/Drive-Through (Self Service)/Both   Types
Franchise/Chain   Sit-Down                                     American (Burgers/Chicken/Dogs/BBQ/Gyros)
No Franchise      Drive Through (Self Service)                 Mexican
Not Specified     Both                                         Italian/Pizza
                  Not Specified                                Asian/Sushi/Thai/Indian
                                                               Steak House
                                                               All Day Breakfast/Bakery
                                                               Diner
                                                               Coffee
Note: The discussions to follow will start by                  Bar & Grill/Brewery/Sports Bar
                                                               Salad/Sandwich
  breaking down these three categories                         Fine Dining/Upscale
                                                               Desert/Ice Cream
                                                               Sea Food
                                                               Not Specified
Data Set-Up
 for Analytics   We are going to be looking at the
                  largest “Pieces of the Pie” only
                                                     So Here Goes….

Ready, Set, Go    Agenda:
                  • Franchise
                  • Sit-Down vs. Drive Through
                  • Food Types
First, We Have to Eliminate the Statistical “Outliers”
                                    These are the Non-Answers – “The Negatives”

                                                                                                                                           Sit-Down/Drive-Through (Self
                                                                                                               Franchise     Category      Service)/Both
•   Remember, the survey assumes that all                Any new restaurant
                                                         Any nice sit down restaurant with out door seating &
                                                                                                               Not Specified Not Specified Not Specified

    respondents wanted more restaurants                  entertainment                                          Not Specified   Not Specified Not Specified

•   These answers don’t fit
                                                         anything not fast food
                                                         Anything other than fast food, we have plenty in Sugar
                                                                                                                Not Specified   Not Specified Not Specified

                                                         Grove                                                  Not Specified   Not Specified Not Specified
                                                         Combo entertainment/restuarant                         Not Specified   Not Specified Not Specified
                                                         Dinner theater                                         Not Specified   Not Specified Not Specified
•   Represents < 1%...we call that the noise floor and   Family owned restaurant                                Not Specified   Not Specified Not Specified
                                                         Food is good                                           Not Specified   Not Specified Not Specified
    are removed from the analysis.                       food truck pavilion                                    Not Specified   Not Specified Not Specified
                                                         I don't have a preference                              Not Specified   Not Specified Not Specified
                                                         Live Music Venue                                       Not Specified   Not Specified Not Specified
                                                         Locally owned                                          Not Specified   Not Specified Not Specified
                                                         Native Foods                                           Not Specified   Not Specified Not Specified

•   Subset here:
                                                         New American
                                                         New business
                                                                                                                Not Specified
                                                                                                                Not Specified
                                                                                                                                Not Specified Not Specified
                                                                                                                                Not Specified Not Specified
                                                         Non-fast food                                          Not Specified   Not Specified Not Specified
                                                         Non-fast food restaurant                               Not Specified   Not Specified Not Specified
                                                         Not pizza                                              Not Specified   Not Specified Not Specified
                                                         Outdoor style                                          Not Specified   Not Specified Not Specified
                                                         Place for teens to go eat and hang out with wifi       Not Specified   Not Specified Not Specified
                                                         Restaurant                                             Not Specified   Not Specified Not Specified
                                                         Restaurant with outdoor seating                        Not Specified   Not Specified Not Specified
                                                         roof top hotel                                         Not Specified   Not Specified Not Specified
                                                         Something entertaining other than a restaurant         Not Specified   Not Specified Not Specified
                                                         Something not fast food                                Not Specified   Not Specified Not Specified
                                                         Something with outdoor dining                          Not Specified   Not Specified Not Specified
                                                         town village styled after Compton Hills. Don't care
                                                         what type of restaurants. Just a nice, classy town.    Not Specified   Not Specified Not Specified
                                                         venue with a menu that had a lot of variety and a
                                                         moderate price point.                                  Not Specified   Not Specified Not Specified
                                                         X                                                      Not Specified   Not Specified Not Specified
Franchises & Chains
• Chains & franchises offer the financial backing & more financing options for
  owners to handle the start-up costs needed in building a physical presence

                                 No Franchise

                                                              This Section
                                                                  First
                                                Franchise /
                       Not                        Chain
                     Specified
•
                                   Franchises & Chains
    We need to talk about Portillo's
•   Though each person had a potential of 5 choices, we had 853 respondents, and Portillo's
    representation accounts for 22% of all respondents.
     •   It's a compelling statement to take to their corporate offices
     •   It may be an uphill battle there, they want territories with a larger immediate population, but they have gone
         franchise now as I understand, so … maybe?
     •   Bouna Beef, or The Patio might be good alternatives to address those requests, and The Patio offers a full bar at
         most locations….more on that later.
     •   The Patio doesn't have a location in Geneva, St Charles, Batavia, and the closest one is by Fox Valley. I think they
         would listen.
•   But … Portillo’s is a destination
                                                                   Portillo's

                                                                            Panera                         Will talk about Panera on the
                                                                                                                      next slide
                                              Everything                        Chick-Fil-A
                                                 Else
                                                                           Olive Garden

                                                                                Chipotle

                                                                                           Taco Bell
                                    McAllister's                                       Chilis
                                       Deli        Noodles &               Popeyes               Texas
                                                   Company Wendy's Coopers                     Roadhouse
                                                                    Hawk
Franchises & Chains
•   All in all, 35% of all Franchise responses were in the direction of "American Fare", which this is still 2X
    higher than the next two categories.
•   But…
•   The next category Salad/Sandwiches…I know, we all would love a real New York style deli, or even a
    place like Jake's Bagels …
     •   Panera, though they advertise themselves as a "Bakery", isn’t really a “bakery” per se. I talked to a franchisee years
         ago who said they make more money on their Salads, Soups and Sandwiches
     •   My experience has been the same….they have more traffic at Lunch, vs. Breakfast
     •   Panera also already has a location in North Aurora, and in Yorkville.
     •   Therefore, in the direction of a Franchise/Chain for Salads/Sandwiches, I believe Jason's Deli should be considered.
         They offer similar choices and healthier options, which was requested by several in their comments.
•   Italian and Mexican will be covered later
                                                                     Remaining
                                                    Steak House

                                                                                           American
                                                   Bar &                                 (Burgers/Chick
                                              Grill/Brewery/                             en/Dogs/BBQ/
                                               Sports Bar                                    Gyros)

                                                               Mexican

                                                                         Italian/Pizza
                                                                                                 Salad / Sandwich
Sit Down vs. Drive                            Both

      Through
                                  Not
                                Specified

                                                      Sit-Down

• 44% Want Sit-Down/Full
  Service Experience
                                     Drive
• 35% Want a Drive Through or       Through
                                      (Self
  Self Service Experience           Service)
Look at Sit Down First
• People want to have drinks…well clearly want sit-down, full service, restaurants
• People want places where they sit, eat a slow meal & spend time with friends and
    family.
•   Of the 44% who listed "sit-down" establishments, the vast majority…82% of
    those … were places that were "Full-Service" and serve "Adult Libations".

                                       Remaining

                                                                  Bar &
                                                          Grill/Brewery/Sport
                                                                  s Bar
                                Mexican

                                                               Italian/Pizza

                       American
                  (Burgers/Chicken/D         Diner
                    ogs/BBQ/Gyros)                   Steak House
Look at Drive Through Self Service Next
• Separating out Drive Through/Self-Service, and pulling out the Portillo's numbers,
    the Mexican fare will be discussed later
•   Salad/Sandwiches discussed earlier         Asian/Sushi/Thai/I Remaining
                                                     ndian Coffee
                                                Italian/Pizza

                                                     Desert/Ice
                                                      Cream

                                                                                  American
                                                                              (Burgers/Chicken/
                                                                              Dogs/BBQ/Gyros)
                                                Mexican

                                                          Salad/Sandwich
Types
•   Of the 729 American Fare selections, 600 of those are "Franchise/Chain" options (talked
    about those already), so what’s next?
•   Folks want Mexican (a relatively close second behind American), specifically sit down
    Mexican (62% are Sit down, or Not Specified)
     •   I recommend a chain looking to grow with little current penetration in the Chicago Market
     •   Using the information from the earlier slide, we should pursue On The Border, or Chevy’s - Places
         with a bar (Margherita's)                  Not Specified  Fine Dining/Upscale
                                     Desert/Ice Cream              Coffee                          American
                                                                                            (Burgers/Chicken/Dogs/B
                                                        Sea Food
                                                                                                   BQ/Gyros)
                                                        Diner

                               All Day Breakfast/Bakery

                              Asian/Sushi/Thai/Indian

                                                        Steak House
                                                                                        Mexican

                                         Salad/Sandwich
                                                                    Italian/Pizza

                                                                                              Bar &
                                                                                    Grill/Brewery/Sports Bar
Types
• Something else interesting is happening here:
   1)   Need to talk about Italian
   2)   What if we group Coffee, Diner, and Breakfast/Bakery together
                                                           Not Specified       Fine Dining/Upscale
                                                  Coffee
                               Desert/Ice Cream
                                          Sea Food

                                         Diner
                         All Day
                     Breakfast/Bakery                                             American
                                                                           (Burgers/Chicken/Dogs
                                                                                /BBQ/Gyros)
                Asian/Sushi/Thai/India
                          n

                                         Steak House
                                                                                            Mexican

                                           Salad/Sandwich

                                                                             Bar &
                                                                     Grill/Brewery/Sports
                                                       Italian/Pizza          Bar
Italian
•   Of the sit down Italian, about 60% of those respondents were for an Olive Garden specifically, so I would
    say that folks are looking for mid-grade Italian more than high end, with a bar
•   The results showing Drive through/Self-Service being so close to Not specified means that we may need
    to consider two options here:
     •   The sit-down scenario is the most obvious regardless of how to consider the Not Specified options
     •   Consider Lou Malnati’s or Giordano’s that include both a sit-down and carry-out…could we pull Avanti's North out of
         Central Illinois?
     •   The other side is the "Self-Service" option, especially if we assume that portions of "Not Specified" lean that direction
     •   I recommend Mod Pizza (Like Chipotle, but for Pizza instead of Burritos).
     •   I know the manager of the St Charles location, and he can set up a discussion with their ownership group
                                                               Both

                                                                        Not Specified
                                             Drive Through (Self
                                                   Service)

                                                            Sit-Down
Coffee/Breakfast/Diner
                                                     Pancake House?
•   Combining Coffee, Breakfast/Bakery and Diner gives 353 "hits", or > 10%, making it the 5th highest response category
    – These are all places people go for coffee
•   Why? The Next Site report indicated that there is about $1M going outside of the community for coffee.
•   223 of the 353 (63%...2/3rds) want a sit down coffee/breakfast place, not drive and go, but somewhere where they can
    sit and drink "Jo" with friends
•   Consider pursuing Buttermilk, Egglectic Café, Egg Harbor Café, or any one of the "Egg" chains as there is no local
    market presence by any of those places
     •   They tend to like places with high foot traffic – Town Center
•   In the mid-grade range, a Perkins might also be an option for closer to the toll road someday.
                                              Drive Through    Both
                                              (Self Service)

                                              Not Specified

                                                                         Sit-Down
1)    Old Chesterbrook Academy – Stakehouse, Italian?
                           2)    160/140 buildings an option for a proprietor - A neighborhood
Existing Properties              eatery?

in Sugar Grove             3)    779 Heartland (the bank) - Changed ownership in April ($500K), but
                                 is still posted "For Lease" on one web site, but no "For Lease" sign
Today                            at that location

                           •    Restaurants, especially chains, want "Main Street Access“
Could they be used for           •   These are tucked a little behind
dining by an independent
proprietor?                •    The Board should think outside the box here!

Lower Start-Up Costs!      •    What else?
Honorable Mention
• I was surprised at the amount of interest in an Ice Cream/Desert location
   •   The questionnaire asked for "Restaurants", and most people probably didn't consider a
       desert option
   •   So those answers definitely bias strong
• …would Oberweis put something here when there is something in North
  Aurora, Batavia and Oswego?

• Side comment: An Ice Cream/Candy store might be a great place for the
  Town Center
Conclusions

• Assumptions
   •   Data collection is normalized throughout the community, and is representative
   •   Data assumes that all respondents want more restaurants/eateries
   •   Grouped each data point into three categories

• Not another Burger Joint !!!!! / No More Fast Food !!!!!
   •   The data doesn’t agree with this directly
   •   Analyzing the data shows some relevant trends

• My Opinion (not statistically part of this analysis):
   •   We should seek out lesser-known chains/franchises who are looking to make a splash in the
       industry for providing an alternative and don't have a local presence in the immediate area
   •   This was supported by Next Site
Based on the data received, the Village should address with the
              following priorities…
                  1)   Bar & Grill / Brewery / Sports Bar: (or other places where folks can sit and
                       have a drink)
                       • I did not list a specific recommendation since bars & chain bars with
                          catchy unique aspects are many (ex brew on site, have their own
                          distillery)
                       • Recommendation: Take the results to potential proprietors as we have a
                          compelling argument.

Conclusions       2)   American Fare: Portillo's and/or The Patio (with a full-service bar)

                  3)   Sit-Down Mexican: Chevy’s or On The Border (again, with a full-service bar)

                  4)   Breakfast/Bakery: Eggclectic Café, Buttermilk or similar…maybe Perkins

                  5)   Sandwich/Deli: Jason's Deli, locations in Naperville, Oakbrook and
                       Rockford….they don't have anything within 30-40 minutes of here…Panera
                       is in North Aurora, and in Yorkville

                  6)   Italian: Lou Malnati's or Giordano’s (Sit-Down/Full-Service) & Mod Pizza for
                       Self Service Option
Questions
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