Myrtle Beach Information
An interview with Marty Kotis, President,
Kotis Restaurant Group
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FAQ's about Myrtle Beach
- Please express the
economic impact of travel and tourism in MB. (I know that's
a tough one to sum up, but can you give an idea of exactly
who visits MB and why? Recent tourist stats and the impact
on the restaurant industry is important here too) - response
- What is the local unemployment rate?
Is this figure for city or county or greater market area?
- response
- What's your take on long-range population
growth, industrial-development forecasts and the affect
these will have on restaurant commerce? - response
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- The hourly minimum wage for food service
workers in MB: - show me
- The aggregate figure for the local sales
tax which includes any county and municipal components.
- show me
- What is the local average restaurant
lease cost per square foot? Have these rates changed recently
or could they in future? - show me
- What are some of the demographic factors
in MB that influence restaurant development? - show
me
- What percentage of the labor force works
in the restaurant industry? What is the breakdown of labor
within this percentage? E.g. Any anomalies? Are these
folks working in cooking or construction trades? - show
me
- Where would people want you to take them
out to dinner? - show me
- Impact Fees (this affects the cost of
doing a restaurant in a market) - show me
- Liquor License Info - show
me
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FAQ's about Myrtle Beach
- Please express the economic impact
of travel and tourism in MB. (I know that's a tough one
to sum up, but can you give an idea of exactly who visits
MB and why? Recent tourist stats and the impact on the
restaurant industry is important here too)
The total economic impact of the tourism
industry in the Grand Strand area is approximately $4.9
billion annually. This represents approximately 40% of
the State's total revenue in tourism and travel.
Visitors to Myrtle Beach continue to increase (from 9.91
million visitors in 1990 to 13.6 million visitors in 1999).
Approximately 72% of the visitors to Myrtle Beach are
repeat visitors to the area (this figure is almost unheard
of in the tourist industry, as a figure of 30 to 40% would
be considered strong). The visitor profile continues to
strengthen with nearly 50% of the visitor base consisting
of professionals and more than 75% of the visitors achieving
incomes above $45,000. Furthermore, the visitor average
length of stay increased in 1999 to 7.09 days for leisure
travelers (compared to 6.77 days in 1998), which results
in greater potential for additional restaurant bookings.
The Myrtle Beach Convention Center has
recently expanded to include approximately 250,000 SF
of meeting and exhibit space; and a 400-room headquarters
hotel is in the final planning stages, due to break
ground in 2001. Currently, Myrtle Beach does not have
a full-service hotel adjacent to the convention center
which should help to increase Myrtle Beach's position
as a convention destination. Long-range plans include
converting the existing Myrtle Square Mall to an expansive
convention center which would allow Myrtle Beach to
more strongly compete for large national conventions.
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What is the local unemployment
rate? Is this figure for city or county or greater market
area?
3.9% Annual unemployment (1999)
This rate is for Horry County, for which the Myrtle
Beach labor force represents the majority of workers.
It is important to understand the dynamics of the labor
market in Myrtle Beach. Although the unemployment rate
annually is at 3.9% for the area, during the busy summer
months, unemployment is extremely low and labor is difficult
to come by.
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- What's your take on long-range population
growth, industrial-development forecasts and the affect
these will have on restaurant commerce?
Population projections for the Myrtle Beach
area represent continued strong growth. Population estimates
for 2000 and projections for 2010 total 209,200, and 296,000,
respectively, representing a 41% increase (according to
the 1999 Grand Strand Region Economic Forecast prepared
by the Waccamaw Regional Planning and Development Council
and Charleston Southern University). These figures are
based on local resident population which is quite dynamic.
With a current primary population base of between 200,000
and 210,000 during the winter months, the resident population
increases to approximately 500,000 in the summer months
due to second homeowners occupying their homes.
Two major new developments which will
impact population growth and restaurant commerce include
the Grande Dunes Resort and the Barefoot Landing expansion.
These two projects together are estimated to represent
nearly $2 billion in new development.
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Myrtle Beach Statistics
- The hourly minimum wage for food
service workers in MB:
Minimum wage is $5.15 for the Myrtle
Beach area.
Tipped food service workers start at a minimum wage of
$2.14 plus tips.
Overall average wage for food service workers in Myrtle
Beach is $6.69.
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- The aggregate figure for the local
sales tax which includes any county and municipal components.
7.5% (includes 5% State sales tax, 1.5%
County tax, 1% City tax - all of Grand Strand area)
In addition, there is a 2% accommodations tax for hotels
and motels (not including timeshare units).
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- What is the local average restaurant
lease cost per square foot? Have these rates changed recently
or could they in future?
Land prices are running anywhere between
$500,000 and $750,000 per acre, while land leases are
going for about $50,000-$80,000 per acre. Prime in-line
restaurant space, before upfit allowances, fall between
$18 and $25 per square foot. These numbers are expected
to increase as more national chains enter the market.
Historic trends bear this out as well. The past five years
have seen land prices increase excess of 200%.
Site costs are approximately 50% more
expensive in Myrtle Beach when compared to more inland
areas, such as Columbia. Whereas site cost for a 1-acre
tract would run, on average, around $100,000 farther
inland, the same site work would cost approximately
$150,000 in Myrtle Beach.
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- What are some of the demographic
factors in MB that influence restaurant development?
- The seasonality of the tourist market.
Myrtle Beach is no longer a summer-only destination.
The spring and fall months attract the majority of
golfers (who played an estimated 4.23 rounds in 1999
and who generally like to dine out), with the summer
months representing strong family vacation months.
The Holiday season is growing in visitation due to
the holiday theatrical shows and shopping areas.
- Seasonality of the resident population,
which spans from approximately 200,000 to 210,000
during winter months, to nearly 500,000 residents
during the peak season months.
- Restaurants must be able to plan
for fluctuations in seasonality, including staffing
workers accordingly and being able to service large
crowds in peak months and fewer patrons in the off-season.
- Finding and keeping labor during
the peak season summer months is crucial to success
in this market. The labor market in Myrtle Beach is
very fickle and will move to another restaurant for
another $0.15 per hour. Restaurateurs must be able
to keep up with changing wage rates and labor supply.
- The time of year a restaurant opens
is important. Most restaurants want to be open in
time to capture the strong spring and summer demand,
but also need appropriate training periods and start-up
time to work out the kinks.
- Current and planned roadway improvements
can have a direct impact on what is considered a good
or bad restaurant location. With $900 million of roadway
improvements in the works in the Myrtle Beach area,
this becomes a strong factor.
- Along the same lines, the location
of planned residential and hotel developments is important
to supplying restaurant demand.
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- What percentage of the labor force
works in the restaurant industry? What is the breakdown
of labor within this percentage? E.g. Any anomalies? Are
these folks working in cooking or construction trades?
Approximately 73% of the work force in
Myrtle Beach is in the service industry. Unfortunately,
there is no breakdown within the service employment category.
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- Where would people want you to take
them out to dinner?
New York Prime (much like a Ruth's Chris
or Morton's - prime steak restaurant)
Collector's Café (local art, coffee shop and gourmet
restaurant)
Greg Norman's Australian Grille (Collaboration between
Todd English of Olive's Restaurant - in Boston and Las
Vegas; and Greg Norman the golfer)
Divine's Seafood (Local Seafood)
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- Impact Fees (this affects the cost
of doing a restaurant in a market)
Within city limits, restaurants are required
to pay a one-time impact fee. Fast food uses are charged
$387.08 per seat, sit down restaurants $218.79, delicatessens
and bars $117.81 per seat. This is fee is transferable,
meaning a new owner/operator is not required to pay the
fee if he/she has acquired the restaurant from a previous
owner who has. This fee is multiplied by 1.5 if the location
sits outside city limits.
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- Liquor License Info
State of South Carolina
Department of Revenue
Application Packet for Beer, Wine, and Alcohol Liquor
Form ABL-901
License Type
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License Fee *
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| On or off premises beer & wine |
$ 400 biennially |
| Sunday/Sabbath beer & wine |
$ 500 biennially |
| Sale & Consumption (minibottle) |
$ 1,500 biennially |
| Brewpub |
$ 2,000 biennially |
| Wholesale beer and wine |
$ 2,000 biennially |
| 7-day off-premises beer & wine |
$ 2,000 biennially |
| Retail liquor store |
$ 1,200 biennially |
| Wholesale liquor store |
$20,000 biennially |
| Alcoholic liqueurs (cooking license) |
$ 50 biennially |
| Brewery or winery |
$ 200 biennially |
| Liquor manufacturer |
$50,000 biennially |
* biennially -- payable every two years
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