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2015-09-15 Infrastructure and Services Committee Att 1 to Item 4 The J Business Plan 2015-18
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Infrastructure & Services Committee Agenda
15 September 2015
Business Plan 2015 - 2018
The J Business Plan
Creating cultural, community, economic and learning
opportunities for Noosa Shire
September 2015
The J Business Plan 2015-2018
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Full text of the other 34 sections
Section 2
Copyright information This plan remains the property of Noosa Council. Acknowledgements This plan is based on information provided by Noosa Council and The J. It was prepared for Noosa Council by 99 Consulting. The J Business Plan 2015-2018
Section 3
Table of Contents
Executive Summary 1
Action Plan 2
Action Plan 2015-16 3
Action Plan 2016-17 7
Action Plan 2017-18 10
Background 11
Plan purpose 11
Plan context 11
Planning process 12
Plan contents 12
Introduction 13
SWOT 13
Plan principles 14
Plan outcomes 14
Our Business 15
Market position 15
Activities 16
Utilisation 18
Pricing 22
Our Market 24
Catchment 24
Competition 25
Customers 26
Marketing 27
Our Operations 29
Staffing 29
Systems 29
Management 30
Our Finances 31
Revenue 31
Costs 31
Our Future 32
Council plans and policies 32
Lease and MOU changes 32
Venue proposals 32
Management models 33
Renewal and major maintenance 33
i
Section 4
Executive Summary
This Business Plan identifies actions and opportunities to increase Council’s return on
investment from The J by:
increasing community benefit and value.
reducing cost to Council.
The plan highlights the outcomes The J delivers for the Noosa community across four
domains:
1. Community: The J provides an accessible venue so that Noosa people of all ages
can participate in an active, connected community
2. Cultural: The J makes possible arts activities and cultural participation and
experiences for residents of/visitors to Noosa
3. Economic: The J brings business to Noosa Junction and contributes to the shire’s
economy by enabling tourism and business events
4. Learning: Through a long-term partnership with the University of the Sunshine
Coast (USC), The J provides a venue for face-to-face education in Noosa.
2014-15 outcomes
138 performances 7,375 attendances
Community attracted 19,658 Economic at TAFE and uni
people lectures
34,421 tickets sold
for Noosa events
40 community
groups held 377 Cultural $1,467,589 Learning
events
received for Noosa
events
The plan outlines actions to enable these outcomes to be achieved, as well as building
capacity, improving customer service and driving financial sustainability. Specific actions
are provided for each year in the action plan (subject to review year by year), and the
broad strategic goals and objectives are summarised below.
Strategic goal Objective
Increase 1. Enhance performance against Community, Cultural and Economic
community benefit outcome measures above
2. Increase utilisation of all spaces in the venue
3. Increase audiences and performances and events at The J
The J Business Plan 2015-2018 1
Section 5
Strategic goal Objective
Improve financial 4. Increase revenue
sustainability 5. Reduce net cost to Council
6. Increase revenue from commercial user types as a % of revenue
Better understand 7. Improve customer experience
customer wants
and needs
Build 8. Implement system improvements to enable success, as specified in
organisational the action plan
capacity
Action Plan
A year-by-year action plan, summarised below, outlines how Council will achieve these
objectives.
The transition to a stand-alone venue from the pre-de-amalgamation structure means that
some foundation work is needed to position The J to maximise its potential. In 2015-16 this
plan focuses on building capacity within Council and The J’s team to grow and improve The
J over the next few years.
Implementation of this plan will require increased support from management and from
other parts of Council, to supplement the capacity of The J staff team.
The plan is staged to outline priorities for each year.
•Set the scene:
2015-16 develop
capacity and
set goals
2016-17 •Act one: grow
the business
•Act two:
2017-18 consolidate
growth
•Interval:
2018-19 review service
and refocus
plan
The J Business Plan 2015-2018 2
Section 6
Year One 2015-16: set the stage
Objectives:
- Achieve or exceed revenue budget
- Increase community and cultural primary outcome measures by 2% each compared with previous year
- Increase utilisation by 5% overall, compared with previous year
- Increase commercial revenue by 5% compared with previous year
Key actions Objective Description Responsibility Resources
Develop marketing strategy Increase Create a marketing plan with a focus on Community Facilities Marketing tools
commercial hirers; both commercial hirers and audiences and Manager and TBA in strategy
Increase audiences an explicit aim to grow both of these Community
Engagement
Implement workable Increase viability Finalise tools to analyse costs of each event Community Facilities Within budget
financial analysis tools of all events and for quoting and financial reporting purposes, Manager, Community
ease of assessing and to understand true subsidies for Facilities Advisor,
their performance community groups Venue Coordinator
and Council finance
Develop partnerships with Attract events to Develop strong relationships with Director Community Within budget
key stakeholders increase utilisation organisations working to bring or create Services, Community
and profitability events in Noosa that could be brought to Facilities Manager,
The J include: Venue Coordinator,
Council
MICE/ Tourism Noosa
Major event organisers
USC and TAFE
The J Business Plan 2015-2018 3
Section 7
Key actions Objective Description Responsibility Resources
Develop an asset Understand future Create a plan to inform maintenance and Council Asset Within budget
management plan maintenance and renewal planning and budgeting Planning Coordinator,
renewal costs Venue Coordinator
Develop tools to report on Articulate Create a report that measures the KPIs in Community Facilities Within budget
KPIs community benefit this plan, to generate reports to Council Advisor, Venue
from The J Support Officer,
Venue Coordinator
Implement entrepreneurial Increase live Invest budget seed funding in events that Venue Coordinator Within seed
program performances, will increase audiences and generate funding
grow audiences revenue. This may include events co-
developed with community arts groups. Test
audience responses to events initiated by
The J, and track performance in terms of
revenue, costs, audience and other
outcomes
Review ticketing system Improve Finalise preliminary investigation of Community Facilities Within budget
alternatives competitiveness of alternative ticketing systems to determine Advisor, Venue
ticketing service whether another system will attract more Support Officer
ticketing business to The J by decreasing
cost to users
Finalise agreements with Improve revenue Finalise leases with USC and community Community Facilities Within budget
key hirers/lessees certainty radio, and MOU with Hillsong to improve Manager and Venue
certainty and enable longer-term planning Manager
The J Business Plan 2015-2018 4
Section 8
Key actions Objective Description Responsibility Resources
Monitor progress on Increase staff Review Certified Agreement once finalised Community Services Within budget
Certified Agreement flexibility; reduce to determine implications for The J’s Director and
costs staffing. Feed in requirements to Community Facilities
consultation in the meantime if possible. Manager
Refine occupancy targets Set ambitious KPIs Review occupancy targets in this plan as the Venue Coordinator Within budget
year progresses, and increase or adjust as and Community
more information becomes clear about the Facilities Manager
best way to balance utilisation, revenue and
community benefit
Improve data collection Provide useful data Refine current reporting systems to capture Front of House Within budget
and reporting for planning and more information about user types and to Assistant, Venue
analysis enable analysis of community benefit as well Coordinator, Venue
as financial performance. Support Officer and
Community Facilities
Advisor
Introduce new venue hire Increase venue Implement budget rates with caution, Venue Coordinator Revenue increase
rates hire revenue transitioning existing hirers to higher rates to meet budget
where feasible and retaining capacity to
negotiate fees to attract desirable hires.
Develop a risk management Mitigate risks in Work with Council risk management staff to Venue Manager, Within budget
plan operation of The J ensure The J complies with requirements for Governance Advisor
risk management.
The J Business Plan 2015-2018 5
Section 9
Key actions Objective Description Responsibility Resources
Continue to promote Increase venue Promote the kitchen to caterers and market Venue Manager Revenue increase
kitchen hire as a revenue hire revenue stall keepers during off-peak times. to meet budget
opportunity
Articulate community Build Based on effective tools to analyse costs of Community Services Within budget
service obligations based understanding of each event, develop a methodology to Director; Community
on analysis of subsidies for The J’s present information about Council’s subsidy Facilities Manager;
community outcomes contribution of community events through reduced fees Venue Coordinator
at The J. Report this information to Council. and Finance section
Develop business cases for Increase capacity To grow and improve, The J needs more Community Facilities Within budget
budget increases capacity for entrepreneurial programming, Manager and
marketing and development, and technical Community Services
support. In Year One, clearly articulate the Director
case for increases in capacity, to be offset
by revenue increases through growth.
Reinforce positioning of Increase Develop very clear messaging about the role All Within budget
The J as a multi-purpose community and function of The J, as part of the
community cultural venue engagement marketing strategy, to position it clearly as
a local asset for all ages.
The J Business Plan 2015-2018 6
Section 10
Year two 2016-17: Act One – Grow the Business
Objectives: BHAGs - Big Hairy Audacious Goals! Achieving these may be a stretch but the team is up for the challenge!
- Improve on community and cultural outcome measures by 5% each compared with year 1
- Increase revenue by 10% compared with year 1
- Increase utilisation by 10% compared with year 1
- Increase commercial revenue by 10% compared with year 1
Key actions Objective Description Responsibility Resources
Market to promoters and Increase Identify music, comedy and cabaret Venue Coordinator Increased
tour organisers performances and promoters and tour organisers and and Venue Support revenue
increase revenue proactively market to them, articulating the Officer
advantages of The J and of Noosa as part of
a tour
Increase staff capacity Position The J for Add to staffing to improve The J’s ability to Community Facilities Increased staffing
growth grow, particularly for proactive marketing Manager budget offset by
and partnership development increase in
revenue
Publish outcome reports to Build Clearly articulate the benefit to the Community Services Within budget
Councillors and other understanding of community achieved by The J in terms of Director and
stakeholders The J’s community, cultural, economic and learning Community
contribution outcomes Facilitates Manager
The J Business Plan 2015-2018 7
Section 11
Key actions Objective Description Responsibility Resources
Link with Council plans and Increase Ensure The J is factored into Council’s social Community Services Within budget
strategies community benefit and community planning to align its Director and
contribution and focus with Council’s Community Facilities
priorities Manager
Refine understanding of Increase utilisation Analyse occupancy data to identify under- Community Facilities Within budget
occupancy opportunities and profitability used times and spaces; promote these Manager and Venue
opportunities to venue hirers including Coordinator
community groups. Understand conflicts and
transition unviable hirers with high
opportunity costs elsewhere.
Explore diversification Increase utilisation Investigate opportunities to partner with Community Facilities Within budget
opportunities, e.g. catered and profitability caterers and event planners to use The J for Manager and Venue
functions functions and events if feasible Coordinator
Undertake community Improve customer Identify opportunities to explore community Community Increased budget
research to better experience desires for events and activities – this may Engagement or for research
understand customer wants be a wider Council research project or may consultant
and needs focus on The J. Include analysis of audience
take-up of offerings at The J to identify
trends and preferences
Increase entrepreneurial Increased Build on findings from 2015-16 seed funding Venue Coordinator Increased budget
activity based on analysis performances project to further develop entrepreneurial for
of year one seed funding programming that builds audiences, entrepreneurial
results increases performances and generates activity
revenue
The J Business Plan 2015-2018 8
Section 12
Key actions Objective Description Responsibility Resources
Fully implement marketing Increased Implement the marketing strategy, including Venue Coordinator/ Increased
strategy audiences, development of tools, channels and Community marketing budget
increased marketing partnerships Engagement
utilisation,
increased
profitability
Review fees based on Increased Review fees to set workable fee structure Venue Coordinator Within budget
market feedback profitability that maximises cost recovery without and Community
excluding high priority users Facilities Manager
The J Business Plan 2015-2018 9
Section 13
Year three 2017-18: Act Two – Consolidate Growth
Key actions Objective Description Responsibility Resources
Review and refine Increase revenue, Evaluate the results of the marketing Venue Coordinator Within budget
marketing strategy increase audiences strategy, update and improve if required and Community
Facilities Manager
and marketing team
Increase utilisation to fill Increase revenue Target venue hire promotion to fill gaps, Venue Coordinator Within budget
occupancy gaps including through partnerships with business
groups and community organisers
Include community benefit Increase Develop methodology to assess community Community Facilities Within budget
assessment in analysis of community benefit value of current and potential venue users – Manager and
current and potential hires this will inform prioritisation of current hires Community Services
and targeting of new users Director
Revise service review Determine future Undertake a follow-up review to examine Community Facilities Within budget
directions progress and clarify future directions, Manager and
including management models and subsidy Community Services
levels Director
The J Business Plan 2015-2018 10
Section 14
Background
Business Plan purpose
Noosa Council commissioned this Business Plan to enhance The J’s performance over the
next three to five years.
The J’s 2014-15 Service Review identified a need for Council to continue to subsidise The J
in line with performance and community venues across Australia. Council’s aim for this
Business Plan is to identify actions and opportunities to increase Council’s return on
investment by:
increasing community benefit and value
reducing net cost to Council.
More detailed action planning will be included in The J’s operational plan for each year –
this Business Plan will guide operational planning and summarise focus areas for action
each year.
Context
In 2014, Council staff undertook a Service Review to examine the functioning of The J. The
Service Review forms the background for the Business Plan, along with investigations
undertaken for previous venue planning work in Council. The Service Review should be
read as an accompanying document as it includes background information, discussion and
data that underpins this Business Plan.
Noosa Council’s Corporate Plan 2014-19 provides the following context for The J Business
Plan:
Mission Delivering transparency, efficiency and innovation with a customer focus
Goal Key Focus Area
Quality Service Delivery Managing community facilities such as… The J
Looking after Community
Focus on maintaining community assets
Assets
Council’s proposed Social Strategy and Cultural Development Plan will provide more high
level strategic guidance for The J.
In the short to medium term, Noosa Council does not plan to expand the facility or
significantly increase operational funding for program development. This plan recognises
the need to operate within existing resources – in the facility as-is – to deliver outcomes
and value for the Noosa community and for Council.
Planning process
The J Business Plan 2015-2018 11
Section 15
This plan draws on the work done for the Service Review and previous venues planning
projects, with some additional research and analysis to inform planning. Council
commissioned 99 Consulting to develop the business plan.
The business planning process included:
review of documents and data
interviews with key staff
desktop investigation of competition and pricing factors
a workshop with The J’s staff and management.
The planning project scope did not include consultation with community, users or
Councillors.
Plan contents
This Business Plan focuses on action to be taken under five broad headings.
1. Our Business: products and services
2. Our Market: customers and competitors
3. Our Operations: staffing and systems
4. Our Financial Performance
5. Our Future: positioning The J for the longer term.
These actions are further developed in the year-by-year action plan at the start of this
Business Plan.
The J Business Plan 2015-2018 12
Section 16
Introduction
SWOT analysis
The Service Review included a SWOT analysis, which is updated here. Key findings are
that:
The J is uniquely equipped in Noosa Shire for cultural and community purposes.
The size and format of The J makes it ideal for small to mid-sized performances
and for a range of meeting and workshop events, but limits its use for larger-scale
events.
The J provides venue and ticketing support for major events in Noosa.
There is significant competition from commercial venues for the more profitable
events.
The J’s financial performance is currently underpinned by two major users – USC
and Hillsong Church- presenting a risk if they were to leave the facility.
Strengths Weaknesses
Unique facility in the area
Quality performance and technical Small seating capacity limits appeal
capabilities and profitability for some events
Multi-purpose with retractable seating Ticketing cost high for some users
Central location Limited financial reporting tools to
analyse event profitability
Easy access
Skew towards community-rate hires
Extensive parking
reduces revenue
Experienced, multi-skills staff
High costs due to nature of the
Commercial kitchen
facility
Stand-alone website
Current CA restrictions not flexible
Leased spaces and recurring hirers provide
for operational needs
revenue certainty
Strong community ownership
Unforeseen maintenance costs
Potential of MICE market Need for facility renewal in the
Partnerships with entrepreneurs and event longer term
organisers Risk of loss of revenue from one of
Potential to increase some fees and two major users leaving
charges Competition from commercial
Increase revenue through kitchen hire venues for profitable components of
New CA may increase staffing flexibility the business
Reduced community access to the Dynamics in the economic
Bicentennial Centre has increased demand environment threatening major
for The J events such as the Food and Wine
Festival
Population transience affects
audience recognition and loyalty
Opportunities Threats
The J Business Plan 2015-2018 13
Section 17
Plan principles
The outcomes of the Service Review, and evolution of The J over the nine years since its
opening, make this an opportune point to clarify the role and position of The J.
This plan is based on the following principles or position statements:
1. The J is a multi-purpose facility for people of all ages
2. Community access is an important part of The J’s role
3. The J’s auditorium is unique in the Noosa area
4. The J serves the Noosa community by providing a venue that enables cultural,
community, learning and economic outcomes
5. The J will deliver maximum benefit at reasonable cost.
Plan outcomes
The J delivers outcomes for the Noosa community across four domains:
Community: the J provides an accessible venue so that Noosa people of all ages can
participate in an active, connected community
Cultural: The J makes possible arts activities and cultural participation and
experiences for residents of and visitors to Noosa Shire
Economic: The J brings business to Noosa Junction and contributes to the shire’s
economy by enabling tourism and business events
Learning: The J provides a venue for face-to-face education in Noosa.
2014-15 outcomes
138 performances 7,375 attendances
Community attracted 19,658 Economic at TAFE and uni
people lectures
34,421 tickets sold
for Noosa events
40 community
groups held 377 Cultural $1,467,589 Learning
events
received for Noosa
events
Outcomes Actions:
Develop annual reporting KPIs to improve on these outcomes, based on an increase
from 2014-15 (the baseline year)
Publish annual – or more frequent – outcomes reports to stakeholders including
Councillors and Council management, to build understanding of The J’s
performance.
The J Business Plan 2015-2018 14
Section 18
Our Business
The J is Noosa’s premier community and performance venue, providing meeting and
performance spaces, theatre/ auditorium, commercial kitchen and break out spaces. It
incorporates facilities purpose built for lease to the University of the Sunshine Coast and
Noosa Community Radio.
The J was established in 2006 with a broad brief, as a multi-purpose youth, community and
arts space. A lack of Council funding for youth, community or cultural programming has
seen the venue increasingly focus on its role as a community venue for hire and a
performance venue.
Market position
The J began life as a hybrid youth, community and cultural centre, with funding from a
number of sources and a high level of community involvement.
Over time, The J has evolved into a broader community and cultural facility, with the
emphasis on youth outcomes reducing because of:
restrictions to operational funding for youth development programs
provision of alternative facilities, activities and venues by organisations such as
United Synergies and Edmund Rice
unsuitability of the venue for youth drop-in or low-cost activities
increase in availability of facilities on school sites through the Building the
Education Revolution hall funding program.
The J continues to be the venue for activities for a youth audience, such as school
performances, Blue Light discos and school holiday programs – approximately 13% of venue
hire hours are for events catering to children and young people. However these are
delivered by external agencies rather than initiated by Council or The J.
Positioning Action:
Articulate The J’s position clearly to community and Council audiences, to
reinforce its role as a multi-purpose community and cultural space.
The J Business Plan 2015-2018 15
Section 19
Activities
Broadly, The J undertakes six types of activities to generate revenue.
Leasing: permanent letting of spaces to the University of the Sunshine Coast and to
Sunshine Coast Radio
Ticketing: selling tickets to events at The J and events in other venues e.g. Food
and Wine Festival, Noosa Long Weekend
Venue hire: renting part or all of The J to a hirer, e.g. Hillsong church or Sunshine
Coast Youth Theatre or Richard Clapton’s promoter
“Entrepreneured” events: initiating activities and running them at The J’s risk
rather than a hirer’s risk
Event support and equipment: providing support for events in The J, such as
technical support, marketing, set-up and front-of-house on a cost recovery basis
(associated with venue high activities)
Bar and kiosk sales (associated with venue hire or entrepreneured events).
As shown in the chart below, more than 50% of revenue comes from venue hire and
associated recoupments – equipment, staff, printing, marketing etc, with a further 15%
from bar and kiosk sales associated with venue hire and entrepreneured events. 10% of
revenue is from commission from ticket sales for venue hire events as well as events held
in other venues e.g. Noosa Long Weekend.
Self-generated revenue - ticket sales from events and activities initiated by The J only
represents 3% of revenue currently.
Activities breakdown as % of revenue
3%
10% 18%
Lease
Venue hire
15% Employee cost recovery
Equipment hire
Sundry recoupment
3% Bar and kiosk sales
29% Ticket sales commissions
9%
Ticket sales - entrepreneurial
13%
Source: 2015-16 budget (Note: 2014-15 figures unavailable at time of writing, but budget
proportions reflect past performance)
The J Business Plan 2015-2018 16
Section 20
In recent years, The J has largely functioned as a passive enabler of activities and events,
providing venue hire and ticketing services for others. This role is clearly valued by the
community and meets a need for a facility for community and cultural activity.
The J’s proactive role in generating cultural and economic outcomes has been limited due
to budget and staffing constraints.
The table below summarises current and potential situations for these activity types.
Service type Current Potential
Venue hire – Currently about 70% of hours There is some potential to
meetings and booked in the venue are for this increase utilisation of meeting
workshops purpose (including church rooms and alternative spaces,
sessions) recognising the inability to use
some spaces simultaneously due
to design constraints.
Venue hire - About 20% of hours booked in the There is potential to increase
performances venue are for performances usage of the theatre for
(including youth activities). performances at commercial
rates by targeting promoters
Performances tend to generate
and touring performers.
more revenue than other types
of uses because of associated
charges such as equipment and
staffing hire. However care is
needed to ensure profitability.
Entrepreneured Events initiated by The J A small amount of seed funding
performances and represent a very small in 2015-16 will enable The J to
events component of activity initiate some cultural activity to
boost the venue’s role as a
cultural centre for Noosa.
Ticketing Ticketing commissions generate The Service Review flags the
10% of revenue currently. If the need for a review of ticketing
Noosa Food and Wine Festival systems to reduce cost to users
does not go ahead, a significant and increase competitiveness.
shortfall in revenue will occur.
Leasing Leasing to USC represents a Negotiations are well under way
significant, stable income stream to lock in leasing arrangements
and a generator of traffic and for the next ten years.
profile for the centre.
Leasing to community radio is at
a very significantly discounted
rate
Other Kitchen hire by market stall There is further potential to
holders and small catering hire out the kitchen during off-
businesses has increased peak times.
The J Business Plan 2015-2018 17
Section 21
Activity Mix Actions:
Use entrepreneurial seed funding to generate cultural activity, including potential
partnerships with cultural groups. Track and report outcomes from this activity to
assess the potential for future growth.
Review ticketing system to increase competitiveness
Pursue kitchen hire to increase revenue
Promote the venue to promoters and touring performers to increase venue hire for
performances
Identify under-utilised times and spaces and target venue hire promotion.
Utilisation
There are a number of methods to measure occupancy in cultural and community venues.
As a hybrid of both, The J needs to adapt these methods to recognise the unique
characteristics of the venue.
Performance venues
Performance venues traditionally measure occupancy in terms of days used per year,
irrespective of the number of hours used per day. This recognises the difficulty in using a
theatre style space back to back given the significant set-up and technical requirements.
The Australian Performing Arts Centres Association benchmarking suggests average
utilisation for the main theatre space in an Australian performing arts centre should be
around 70%. The J’s theatre is currently running at about 60% occupancy using the APACA
methodology, showing room for increase.
Community venues
Community halls and multi-purpose spaces traditionally measure occupancy in terms of
hours used. It is difficult to apply a benchmark to The J because some spaces are not able
to be used while others are in use, depending on the type of use. For example, while a
theatre performance is on, there is limited access to the Board Room and noise levels in
the upper foyer would be too high for an event that wasn’t associated with the activity in
the theatre.
Application at The J
Calculating potential availability at The J is complicated by the inter-relationship between
the spaces in the venue. For example:
The upper foyer is usually not usable when the theatre is being used due to noise
transfer
The Boardroom is often unavailable when the theatre is being used due to
congestion
The kitchen is used as a kiosk for many events at The J and is therefore not
available for hire at those times.
The J Business Plan 2015-2018 18
Section 22
These conflicts may mean that increasing occupancy in the ancillary spaces is counter-
productive from a financial perspective, in that it may make the theatre unavailable.
While the information below sets out draft occupancy targets for The J, these will need to
be managed and reviewed to ensure the highest priority uses (e.g. commercial rate
performances, conferences and entrepreneured events) are able to access the venue.
Performance
Community venues
venues
Benchmark 70% days used in 55-65% considered good for single-space venue
theatre (previous halls studies)
APACA average 2009 Estimated maximum for each space in a multi-space
venue would be 40% per space depending on venue
factors.
The J 60% days used in 25-42% per hireable space including theatre:
theatre 42% Theatre
33% Deck room
25% Board room
Draft occupancy targets
Over the next three years, the following occupancy targets are recommended, subject to
annual review:
o Use of theatre – 70% of days/ year by 2017-18 (i.e. activity in the theatre
255 days per year)
o Use of Deck Room – 43% of 84 hours (i.e. 36 hours per room per week) by
2017-18
o Use of Board Room – 35% of 84 hours (i.e. 29 hours per week) by 2017-18.
Annual targets to achieve full potential occupancy are shown in the table below.
2014-15 2015-16 2016-17 2017-18
Theatre days used per year 219 226 241 256
Deck room hours used per
week 28 29 33 36
Board room hours used per
week 21 23 26 29
The table overleaf depicts a “typical” week at The J – from Monday 1 June 2015 to Sunday
7 June 2015.
Analysis of usage patterns suggests there are timeslots when there is potential to attract
more venue hire activity or initiate more entrepreneurial events to fill under-used days
The J Business Plan 2015-2018 19
Section 23
and times. In particular, there is potential to increase usage of all spaces during the daytime periods when the venue is already staffed and additional costs would be minimal. The J Business Plan 2015-2018 20
Section 24
Theatre Boardroom Deck Room Kitchen Upper Foyer
Morning Piano tune Aliance Francaise Alliance Francaise
Renee's Cookies
Monday Afternoon Coast Academy
Night Noosa Film Society
Morning Mojo Foods
Tuesday Afternoon
Night Noosa Chorale Happiness Network
Morning Kindermusik
Glutenfreek
Wednesday Afternoon
Suncoast Repertory
Night
Morning Hillsong Church Mylestones
Thursday Afternoon Employment
Night Suncoast Repertory
Morning Mylestones
Mojo Foods
Friday Afternoon Employment
Night Blue Light Disco
Morning
Saturday Afternoon
Night Suncoast Repertory
Morning
Sunday Afternoon Hillsong Church
Night
Total hours 48.5 34 19 32.5 16
Utilisation (% of 84 hrs) 58% 40% 23% 39% 19%
The J Business Plan 2015-2018 21
Section 25
Occupancy opportunities
Opportunities to improve occupancy and increase community benefit in areas that the J does not
currently actively pursue include:
MICE – meetings and conferences
Catered events such as parties, school events and ceremonies
Commercial performances such as live music touring shows
Entrepreneurial programming
Specialised cinema screenings.
Current and potential partnerships to achieve growth include:
development of partnerships with University of Sunshine Coast and TAFE to develop their
education offerings and events
ongoing commitment to partnerships with event organisers to support local events
potential partnerships with MICE organisers
relationships with youth agencies such as United Synergies and Blue Light Discos to retain
and grow youth programming in The J, including use of kitchen
collaborations with local arts groups, entrepreneurs and promoters to develop local products
and events
Noosa Chamber of Commerce, including linkages with the proposed film festival.
Occupancy actions
Test feasibility of draft annual occupancy targets and test feasibility of these targets over
two years considering venue factors (e.g. an increase in theatre usage might necessitate a
decrease in Board Room usage):
o Use of theatre – 70% of days/ year (i.e. activity in the theatre 255 days/ year)
o Use of Deck Room and Board Room – 40% of 84 hours (i.e. 33.6 hours per room per
week).
Pricing
Previously The J has used three pricing tiers – community (NFP), community (other / regular and
commercial. The intent of this approach is to make venue usage affordable for community
organisations and to reward regular use.
In 2015-16 these categories have been consolidated to two: commercial and community. The ability
to negotiate rates will continue.
As shown in the graph at right, Revenue categories 2014
only 8% of revenue is at the full
commercial rate. Most revenue is 8% Commercial
not at any of the “rack” rates
11%
but is negotiated individually Community
(other) / regular
14%
The J Business Plan 2015-2018 Community (NFP)
22
66%
Negotiated
Section 26
with the hirer. In most cases, the negotiated rate is lower than the community rate.
Hirers with negotiated rates include:
community cultural groups relocated to The J because of changes at the Bicentennial
Community Centre
Hillsong Church, which uses all spaces in the venue all day every Sunday, contributing 43% of
venue hire revenue
school performances, which involve significant rehearsal time.
In some cases, political decisions have led to large pricing reductions for some users. For example,
Noosa Community Radio pay well below market rates for the premises they lease, while
community-based groups re-located from the Bicentennial Centre have been given significant
discounts to compensate.
The table below presents some pricing comparisons which indicate that the proposed fees for The J
are at the top end of what could be charged compared with competitors.
Space Category The J LKCC hall NCC hall NCC small Good
2015-16 1/ MR 1 Shepherd
Community $57.50 $42 $88 $38 $35
Theatre Regular NA $44 $120 $48 $35
Commercial $150 $75 $280 $115 $35
Community $20 $19
Meeting
Regular NA $24
room
Commercial $40 $28
Pricing Actions
Rework data collection to flag user type for negotiated rates
Focus venue hire marketing efforts on commercial hirers
Transition to new rates with caution, bearing in mind competitive factors. Retain ability to
negotiate rates.
The J Business Plan 2015-2018 23
Section 27
Our market
Our catchment
Analysis of ticket sales data
undertaken for strategic planning
purposes at Sunshine Coast Council
venues in 2012 demonstrates that the
catchment for The J is concentrated
in the Noosa Shire area. While The J
sells tickets to people from interstate
and other parts of Queensland for
major events like the Noosa Long
Weekend, most events attract
audiences from a half hour drive
radius, mostly on the coast and close
hinterland.
This is consistent with social planning
benchmark approaches that categorise
The J – based on size and capacity – as
a district venue rather than a regional
venue.
Catchment Action:
Position The J as Noosa’s own
venue.
The J Business Plan 2015-2018 24
Section 28
Competition
The J’s spaces and functions are diverse, which means it faces competition from diverse types of
provider, as shown in the table below.
Type of activity Competitors The J’s competitive position
Popular music Licensed venues such as clubs, The J is most suited for live music for
Joe’s Waterhole, Imperial Hotel sit-down crowds. It is too small for big
etc, Noosa Surf Club, Noosa RSL, name acts, and licensed venues
Lake Kawana Community Centre, compete aggressively for music events
Nambour Civic Centre, outdoor that will generate bar and gaming
venues such as AFL grounds revenue. For large “name” shows, they
will offer the promoter a higher return
than The J can due to size constraints.
Classical and Good Shepherd, Leisure Centre The J is well-positioned for mid-sized
jazz music (for Noosa Long Weekend), events
Outdoor venues such as Lions
Park
Theatre Arts Theatre, Nambour Civic The J is the best venue in the region for
performances Centre, Coolum Civic Centre, shows expected to attract more than
Matthew Flinders 100 people. However pricing deters
some community groups, who prefer to
do more shows in a smaller, cheaper
venue.
School School halls The J is better equipped than most
performances, school halls for events requiring higher
events and level technical support, but price is a
ceremonies factor
Dance School venues e.g. Matthew Few venues – including The J – have
Flinders, Sunshine Coast Council large stages suited to large-scale dance
venues performances including dance school
concerts.
Community Community halls, church halls, The J offers good facilities at a good
activities and libraries price for small groups but is not
meetings appropriate for large hall-style activities
Commercial Resort facilities, surf club Resort facilities offer catering and
events and boardroom accommodation, but The J has proven it
meetings can do this role well – however, it does
not have a high profile for this type of
work
The J Business Plan 2015-2018 25
Section 29
The map below was prepared by Sunshine Coast Council to show the array of venues servicing this
region.
Customers
The J has two broad types of customers:
Hirers, such as community groups, promoters, event organisers
Audiences and attendees – the people who buy tickets or attend events at The J.
Hirers
Hirers largely fall into the not-for-profit category, with commercial for-profit hirers mainly limited
to promoters who book the venue for a live music or other show and businesses who book the venue
for a conference, meeting or exhibition.
The not-for-profit category is generally clearly defined: schools, community-based theatre groups,
churches, community associations and the like fall into this broad category.
There is occasionally contention around a third category, known variously as “community – other”
or “community enterprises”. Small businesses such as dance schools are often included in this
The J Business Plan 2015-2018 26
Section 30
category, on the basis that they provide opportunities for local people to participate in activities
that make up a rich community life, and do not generate significant profits for their proprietors.
The ability to negotiate rates gives The J management the opportunity to use discretion to balance
community benefit with commercial imperative.
Audiences
There were 63,621 attendances at The J in 2014, although the number of individual visitors is
unknown.
This planning process has not included an analysis of customers, except to note that:
38% of attendances at The J are people attending Hillsong church activities
8% of attendances are students attending university or TAFE classes
6,200 attendances were for ticketed events at The J where The J sold the tickets.
Available data does not allow an analysis of market share and segmentation: what proportion of
individual Noosa residents is a current customer of The J; what are the characteristics of this
market; what are the potential market segments that The J is not currently reaching.
Customer Actions
Analyse customer and attendance data to identify opportunities to grow the customer base.
Seek input from customers about how The J is perceived, and the sorts of activities people
would like to see offered (one suggestion is to approach USC to do this as a student
project)
Marketing
Currently The J has limited marketing capacity, with a marketing schedule focused on promotion of
events. Marketing capacity includes:
A database
A website
Social media platforms
Press advertising
Printed promotional materials.
Development of a strategic marketing plan targeting potential hirers and partners as well as
audiences would potentially improve both commercial and community outcomes, and is seen as a
priority action in 2015/16.
Customer and marketing actions
Develop and implement a marketing plan targeting hirers and partners as well as audiences
Build the audience database and engagement
Understand audience demographics and target promotion etc accordingly
The J Business Plan 2015-2018 27
Section 31
Our operations
Staffing
The J is staffed by a 4.7FTE team. Three of these are permanent full-time staff and 1.7FTE consists
of casuals. The team is flexible and multi-skilled within the constraints of the current Certified
Agreement.
Venue Coordinator The J
(currently contract)
Front of House Technical Officer Casual Front of
Venue Support Assistant Sound Technician House
Venue Officer
Officer (incl. marketing) (Casual) Assistants
LGOA L3 (Casual) (Approx. 6 staff)
LGOA L2 LGEA LAT
LGEA LAT FOH THRETECH LGEA LAT FOH
The focus of the team is on operational matters – there is limited capacity within existing resources
to be more proactive about strategy, marketing, partnership development or entrepreneurial
programming. The J will need to gain support from within Council for some of these roles. The
Manager Community Facilities will need to work with the Community Facilities Advisor and the
Venue Coordinator to implement the action plan included in the Business Plan.
The development of a new Certified Agreement may provide more scope for flexibility in keeping
with operating a 7 day a week performance venue.
Systems
The Service review highlighted some opportunities to improve systems including:
Ticketing system:
As flagged earlier, The J will review ticketing options to identify potential cost savings for
customers
Management information:
Council has done some work to produce financial analyses of individual events but this work is still
in its early form. This makes it difficult for The J management to assess whether hires and events
are covering all the costs associated with each event in order to plan and quote better in future.
There is some debate about which costs should be included in these analyses. The most useful
analysis will include a picture of variable costs associated with the particular event to establish the
The J Business Plan 2015-2018 28
Section 32
direct financial impact of each event on The J’s bottom line, as well as a full cost analysis to show
each event’s contribution to fixed and corporate costs.
KPI reporting will also require some development to report on outcomes and KPIs identified in this
plan.
Management
The Service Review noted a number of gaps in management, including lack of a risk management
plan and long-term asset management planning. Council is working toward developing these plans
for all facilities and activities.
Operations actions
Prepare a risk management plan
Develop an asset management plan
Finalise methodology and tools for event P&Ls
Develop KPI reporting tools and schedule
Monitor progress on Certified Agreement to identify opportunities to improve industrial
arrangements.
The J Business Plan 2015-2018 29
Section 33
Our Finances
The table below presents summary budget information and projections for the plan period.
2014-15 2015-16 2016-17 2017-18
actuals budget projected projected
Revenue $460,176 $466,625 $513,287* $564,616*
Total expenditure (incl
depreciation and internal charges) $1,202,430 $1,195,304
Net operating cost (excl
depreciation and internal charges) $273,585 $258,605 $248,204* $234,950*
*assumes 10% increase in revenue per year from 2015-16 onwards; 5% increase in direct costs
De-amalgamation makes it difficult to examine historical financial performance in terms of
reported costs. However it appears that the net cost to Council of operating The J has not
increased in recent years – in 2011-12 it was $372,000 for example.
The Service Review includes a comprehensive analysis of the need for ongoing subsidy from Council
for The J, and establishes that the current subsidy levels are low compared with similar venues in
other jurisdictions. However utilisation benchmarking suggests that value for money could be
improved through increases in activity in The J.
Revenue
Opportunities to increase revenue have been discussed in other sections of this plan, and include:
restructure of fees
improved marketing
increasing audience numbers for entrepreneured / shared risk and ticketed events
increasing venue hire usage
increasing the quantum and proportion of commercial-rate hires to balance hires at
discounted rates.
Costs
While the planning process did not include a thorough analysis of cost structures, it appears there is
limited scope to reduce costs further without endangering the potential to grow revenue and
improve outcomes. The potential changes to the Certified Agreement may bring some potential
savings in staffing costs but this is unknown as yet.
There is some potential to grow revenue without increasing costs, for example by improving
utilisation during hours the venue is already staffed. Beyond that, careful management is required
to grow revenue in profitable ways, for example by ensuring quotes for price negotiations include
all additional costs.
The J Business Plan 2015-2018 30
Section 34
Our future
The next three years present an opportunity to position The J for the longer term as the
environment changes.
Council plans and policies
As Noosa Council develops plans and policies for community, cultural, economic and educational
outcomes, The J will need to position itself to support the goals of Council and the Noosa
community. Current work on a social strategy and planned work on a cultural plan may highlight
opportunities for The J to further develop its contribution to community life.
Lease and MOU changes
At the time of developing this plan Council was finalising MOUs and lease agreements with three
significant users:
University of Sunshine Coast has flagged its intention to continue to lease The J for a further
ten years
Sunshine Coast Radio has indicated it intends to remain in the premises for the foreseeable
future
Hillsong Church has indicated willingness to sign a three-year MOU to continue its extensive
usage of the facility for services and activities.
These arrangements offer The J a buffer against financial uncertainty, and help to activate the
venue and increase its profile. During the period of this plan, The J will need to develop plans to
replace any one of these users if they do not continue the current arrangements. In particular, any
exit by Sunshine Coast Radio would offer an opportunity to increase revenue through a lease on a
commercial basis.
Proposals to redevelop The J and/ or develop alternative venues
Since The J was built, stakeholders have suggested alterations to increase its seating capacity and
improve aspects of its functionality including acoustics. The Service Review included an option to
modify The J to seat 450 (an increase of 110) at an estimated cost of $5 to $6 million.
Meanwhile, the local Chamber of Commerce is seeking support for a feasibility study to develop a
conference facility in the carpark of The J. Sunshine Coast Council continues to support a proposal
to develop a large convention and exhibition centre at Maroochydore (as yet unfunded). Sunshine
Coast Council continues to review the future of the Nambour Civic Centre as the lease for that
facility approaches its end point.
Council will need to consider future development of The J, and expansion of its facilities, in the
context of venue provision on the whole Sunshine Coast.
The J Business Plan 2015-2018 31
Section 35
Management Models The Service Review included a discussion of alternative management models for The J. The review recommended continuing with the current approach of internal management, subject to review if one of the venue lessees – USC or Sunshine Coast Radio did not renew the lease or if the major hirer, Hillsong, stopped using the venue. In that case an anchor tenant/ manager model may be worth exploring. Renewal and major maintenance The J is nine years old and appears to have been maintained at an appropriate standard in that time. However a long-term asset management plan will identify the likely cost of renewal and major maintenance of big ticket items such as air conditioning. Once that information is available Council will need to plan and budget accordingly. The J Business Plan 2015-2018 32