The shareholders of Arkadia Marketing Ltd, the fully-owned subsidiary of the Mizzi Organisation which won the Suq tal-Belt concession, has opted to double the normal project payback period of around six years.
This is partly the result of insistence on a prestigious project – in fact the initial investment will be €8 million for the restoration and fitting out of the complex and €2 million working capital, well above the minimum €5 million specified in the project brief.
The company will also be focusing on a sustainable business model for its tenants.
“We do not want people to come in with innovative ideas but then after a year pull out because the model was not sustainable,” chief operating officer Maria Micallef stressed.
Having said that, innovation is going to be one of the main criteria when it comes to allocating space in the Suq tal-Belt, which is in high demand. Ms Micallef said the company was keeping an open mind but she already seems quite clear about what the food hall will not be – and it will certainly not be an Arkadia supermarket, a rumour doing the rounds in the early stages of the project, before she and her general manager Antoine Portelli gave a presentation to the parliamentary committee last January which quelled all the fears and was given unanimous approval, prior to the resolution vote on the transfer of public land.
“Those who can come up with innovative concepts will have a very high weighting in our decision, along with the financial offer! But it also needs to generate turnover, which will be part of the financial package.
“We would also like people of a certain standing and reputation: the best 12 people who operate in catering in Malta. There is room for newcomers if they can turn our heads though!” she said.
The company has come up with a clever way to reach the vision they clearly have for it: “The branding will be Suq tal-Belt so if there are well-known franchises, they would have to be willing to use that brand and not their own, which many of them will not be willing to do. The coffee franchises and fast food franchises are clearly interested in the site and it would be very easy for us to go for this option – which our contract allows us to do – but this is not our intention. We are determined to keep the Suq tal-Belt brand which will impose a natural selection process,” she said.
I want it to be an attraction for the Maltese because it is going to be a year-round operation which will require their patronage
She and Mr Portelli believe that innovation is the key to making this 1,300 sq.m. space viable as it would falter if the choice were too limited.
“We do not want to give everything away but let us take pastizzi. I would like to have them there but they do not need to be the traditional ones but perhaps ones that explore new ingredients.
“I want it to be an attraction for the Maltese because it is going to be a year-round operation which will require their patronage. But we also want to market this as an attraction to tourists. So the stalls on the front, for example, will be mostly Maltese traditional recipes, but with a twist.”
The 12 stalls in the ground level food hall are only part of the new project, with its wine bars complemented by two restaurants on the piazza.
The company will be spending €250,000 on the piazza embellishment, negotiated with government as an extra contribution.
The basement will be a market for fresh fruit and vegetables and other raw produce, but with a completely different way of being displayed, Mr Portelli said.
“Going to the market was a ritual and I want people to feel that experience again. The spirit of the market has been lost over the years,” he said.
“There has been as much interest generated in the food market as there has been in the food hall. Let us not forget that this is an iconic location where we will bring the past back – but in a better organised, more hygienic setting,” he said.
The company is also planning to offer electric ‘tuk tuks’ to take clients back to their cars, and to deliver orders to offices, without which the model would definitely suffer, they believe.
The upper level will be a cafeteria in the morning, morphing into a multiple purpose area in the evening where patrons can enjoy a cocktail or glass of wine.
“It will be food-related – but with a relaxed atmosphere, offering live music, cultural activities, exhibitions. We have a commitment to both V18 and the Malta Arts Council and are in the process of signing an agreement,” he said.
“The first focus will be 2018 but in the long term, with the Malta Arts Council, we will have a periodic review of what cultural activities can take place within the building as well as on our piazza.
“This is something that occurs regularly in other similar markets and we are also looking at some form of twinning agreements with our overseas counterparts.”
Ms Micallef added that the company was eager to get feedback from its focus group made up of people who already active in this sphere – and that it would work with destination management companies to keep them aware of all that was going on that could be of interest to foreign visitors.
This may all sound like a recreation of many of the old elements of the original market but there will be crucial differences, the main one being the opening hours: it will be open from 6.30am to 10.30pm – seven days a week.
“If you offer a service, the Maltese will use it. I fought a big battle at Arkadia but I have been proven right. Today, Sunday is our busiest day…” Ms Micallef said.
This condition was one of the first ones that she had to explain to the sitting tenants, one they were not willing to accept. In fact, all of them had moved out by December.
“The problem that Antoine and I found was that they were very set in their ways. They each opened and closed at different times, for example. And because our business model would be based on a share of their turnover, they would have to be completely up to date with their accounts each and every months… We will need to work very hard to pay our commitments and to give a decent return to our shareholders,” she said.
We have the opportunity to create a proper food market. We have worked very hard to be entrusted with this gem
Apart from the sitting tenants (which Arkadia had to deal with), the government had to deal with the restaurant using the piazza and around a dozen monti stalls which had crept into the area. This delayed the start of the project, but works finally started on April 19 and the plans are to open in the fourth quarter of 2017 – in line with the original 17-month project parameters.
The piazza has now been surrounded by hoarding to ensure site safety during the construction phase, and the major demolition works have already been carried out.
At the rear of the building, Arkadia is recreating the servicing and loading area using the slip road that runs along the back of the building adjacent to St Paul’s Street so traffic will not be affected by day-to-day operations.
“We have already started looking at rosters for delivery vans to operate the various outlets and concessions. Don’t forget that we handle substantial volumes in our food and supermarket outlets. So we have experience in the logistics, easily able to calculate how many deliveries would be required,” Mr Portelli said.
Once it is operational, 140 full- time equivalents will be employed on site, reflecting not only the number of outlets but also the fact that the long opening hours will necessitate shifts.
The most important aspect remains choosing the right operators. Ms Micallef said the company was looking, in theory, at five-year contracts, but reassured that it would take into account the operator’s investment and return on a case-by-case basis. “I can tell you that there are many clients who want to be there. The allocation will be transparent and will depend upon concepts and the attractiveness of the offering.
“One of the things that has been missing from Product Malta for tourists has been a proper market. Our village markets often sell cheap, imported and possibly counterfeit products.
“We have the opportunity to create a proper food market. We have worked very hard to be entrusted with this gem. I want to make sure that we have the best product, one we can really be proud of, even at an international level.
“This is going to be a landmark. Tourists visiting there are a very important part of our business model and we have to make sure that we are going to give them the right experience.”