sus custom millwork are other examples where a building can be “assembled” ver- sus constructed on-site.
BRAND FORWARD/ BRAND NEW
For any planned construction project, it’s important to think beyond the build- ing’s key functions—i.e., providing rent- als and selling food—despite the likely high initial costs of thinking bigger. The magic happens when you add something special to increase the perceived value of your offering beyond the costs of doing business, including the fixed cost of a very expensive building. When you offer a good product and spin a good story, that can make the difference between profit and loss. Your brand is your mousetrap. Your brand is what separates you from your competitors and gives your guests a rea- son to choose your resort over someplace else. A strong brand, moreover, often allows you to deliver value to the custom- er while charging a premium. An expen- sive burger, for example, may be worth it when it is especially easy to order (conve- nient), tastes great (sensory), and is served with flair within a one-of-a-kind envi- ronment that is memorable and worth talking about (an Instagram moment). Consider Loon Mountain, N.H., which is building its brand around the use of innovation and guest-friendly technology with the goal of becoming New England’s go-to destination, as out- lined in the resort’s “Flight Path: 2030” 10-year growth plan. The resort’s Kanc 8 lift facility, new in 2020-21, with its sleek steel, glass, and timber structure, which houses a first-in-the-East Doppelmayr eight-passenger, high-speed, bubble D-Line chairlift, meets that brand stan- dard. The unique design solution (a guest skis into the building to load) increases capacity and efficiency, driving fresh revenue growth, and the building itself has wow-factor, transforming it into an social media icon. Or, at Sundance, the resort is rein- forcing the Old West, “Butch Cassidy and the Sundance Kid” spirit lovingly nurtured by Robert Redford, the resort’s previous owner, with projects like the new Outlaw Express lift, the re-built Lookout dining facility, and a 56-unit
a construction cost of up to $1,000 per square foot. The operational focus can then move from seats to pushing volume and increasing revenue and profitability. Dine and dash. Another big trend: Expanded cafés and “general store” con- cepts that offer packaged items and good food to go. This approach not only saves labor (items can be prepared in advance and are often self-serve), it also minimiz- es the need for indoor seating at the tune of 15 square feet per seat. Plug-and-play construction. Off-site construction can play a role in reve- nue generation. At first blush, the trend appears to be more about saving money than revving up sales. But it represents what we see as an increasingly holistic view regarding construction that fac- tors in a combination of scarce labor, the quality of the local subcontracting market, and the speed of construction. Look at it this way: a construction meth- od that’s more expensive up front might be the better option if it means getting the job done quickly. The faster the com- pletion date, the earlier one can generate income to earn a return. A post and beam, cross-laminated timber (CLT) structural system offers an example. While this is an expensive design option, there are advantages in off-site production, ease of assembly, and pre-finished interior wall and ceiling panels. Prefab wall and ceiling panels, railings, and purchased case goods ver-
Forget about fresh. A big food-and-bev- erage trend several years ago was all about fresh, locally sourced ingredients and products produced on site. Not anymore. On mountain real estate is too valuable (read: expensive), and many resorts have seen wage inflation over the last few years at close to 50 percent, a rate that exceeds construction inflation by quite a bit. The move away from fresh ingredients cor- responds to the improved availability of quality frozen products. The pre-prepped product itself may prove a bit more expen- sive, but it can be much cheaper overall when considering the costs of labor and resort real estate. Turn, baby, turn! For years, the assumption of 3 to 3.5 turns per seat has been the industry standard for a high-volume dining hall. Today, we are looking to increase the average turn to 4 or even 4.5. How are resorts doing so? By adjusting pricing models by the hour, providing varied seating, including stand-up options, and by more rigorous- ly policing dining room real estate grabs and brown bagging. Do the math: a reduction of the need for 125 seats by increasing turns trans- lates to a cost reduction of $1.875 mil- lion, assuming 15 square feet per seat and Above: The Kanc 8 lift facility at Loon Mountain, N.H., which houses a top-of-the-line eight-place lift, reinforces the resort’s technology-forward brand and has added wow-factor.
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