7. APP F. Economic Matters RFI Response

•   Each of these days the worker will spend $7.82 on takeaway food. This is a very conservative
    estimate given that a typical cup of coffee (or cold drink) is between $3.50 and $4.00, and a
    sandwich or hamburger costs over $7.00. (These prices are based on observed prices at the
    takeaway offers in the industrial precinct when I conducted research on 12 March 2015.)
Based on this very conservative estimate, it is possible to extrapolate a potential annual takeaway
spend from the workers of the industrial precinct. Assuming that there are 4,700 workers, the total
takeaway expenditure is in the order of $6,768,000. This level of expenditure can support
approximately 1,436m2 of takeaway floorspace (assuming Retail Turnover Density [RTD] of $4,714/m2
for takeaway food).

Information Required: Provide an estimate of the likely turnover of the development
(or those parts of the development the economic need and impact assessment relates
to), and utilise this estimate to assess the likely impact of the proposed development
on the centres network.
We would expect that the service station (convenience retail) element of the proposed development
would achieve annual gross turnover of approximately $500,000. This turnover represents a viable
volume of activity and is feasible. This is equivalent to ~$4,065/m2. On this volume, the proposed
centre would be capturing approximately 16% of residual expenditure or 11.8% of residual + worker
expenditure (2011 estimates) (refer Table 5). As a percentage of total expenditure, the anticipated
turnover is equivalent to 2.4% (or 2.3% if the worker expenditure is added to the total base). Either
way, this represents a negligible total impact on existing centres.
As for takeaways, the worker expenditure alone can support 1,436m2 of takeaway food offer. As the
proposed “tradies’ café” is not positioned competitively vis-à-vis Noosa Civic in particular, the
relevant consideration is in relation to the takeaway and café floorspace that is located within the
industrial precinct. As noted above, with the proposed development the total area is in the order of
508m2. This is substantially below the quantum that the estimated worker expenditure could support.
Indeed, based on the RTD outlined above, this amount of fast food and café floorspace could be
supported by expenditure of $2.27m, which is 33.6% of total estimated worker takeaway expenditure.
As such, even if the already conservative estimates are further diluted by a factor of 2/3, the proposed
“tradies’ café” could still be supported along with the other three fast food providers in the industrial
district.

Conclusions
The proposed service station and “tradies’ café” development meets the needs of convenience
shoppers from the surrounding residential community and the workers of the nearby industrial
precinct. These offerings contribute to the amenity of the nearby population – and in particularly the
convenience of the workers in the industrial precinct – and are extremely unlikely to give rise to any
significant economic impacts on retailers or takeaway food and café operators at the supermarket-
anchored centres located within the relevant Catchment.
Put plainly, the proposed offerings – at the scale contemplated – meet a discernible need and are
unlikely to generate discernible adverse impacts on the two major centres and their tenants.
Combined, these centres offer almost 30,000m2 of retailing and generate annual pedestrian visitation
of over 6.8m. In relative terms, therefore, a proposed convenience retail offer attached to a service




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