Restaurant plan for Frankston Yacht Club sinks as operators baulk at massive start up costs
PLANS for a restaurant in the new $10.7 million Frankston Yacht Club have stalled again.
South East
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PLANS for a restaurant in the new $10.7 million Frankston Yacht Club have stalled again.
Leader can reveal the restaurant will almost certainly not be open for business by summer for the second year in a row.
Sources said a real estate agent acting for council had told councillors the building had been left “too bare” internally — causing operators to baulk at fit out costs.
The agent is understood to have told councillors there was consequently “no commercial interest” from restaurateurs.
In a statement, council CEO Dennis Hovenden said officials were confident a cafe would open for summer, but he appeared less optimistic about a restaurant.
“We anticipate the ground floor cafe being operational in time for summer, while further detailed work on the first floor restaurant is still being undertaken,” Mr Hovenden said.
The $10.7 million complex was completed in 2016 and so far only the yacht club has moved in.
Frankston Leader reported in August 2016 that negotiations had broken down between council and its preferred operator for the restaurant and cafe.
It is understood tenants have been told they are expected to pay for the flooring, ceiling and airconditioning as part of the total fitout — possibly pushing start-up costs into the hundreds of thousands of dollars.
Industry officials told the Leader in October 2016 this would make the project unviable, particularly as restaurants operated in a highly competitive market with many on a knife edge.
Council funded the bulk of the new yacht club building with the State and Federal Governments also contributing.
Officials previously referred to the planned restaurant and cafe as the “jewel in the crown of the new yacht club”.