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Business News

Rapidly Growing Cincybite to Expand Delivery Area and Service Offerings

Just about a year ago, a new food delivery service entered the Cincinnati market. The idea behind it was one not uncommon in other larger urban centers around the country, but was new to the area.

While it can be simple to get sandwiches, pizza, or Chinese food delivered locally, that tends to be the limit of your options. But Robbie Sosna, who had lived Miami, New York City and Los Angeles after growing up in Blue Ash, knew the city could do better. So he launched Cincybite last December.

What Cincybite does is partner with area restaurants to deliver their regular menu items to hungry customers around the city. Sosna said they first started with just six restaurant partners and delivered only during dinner time in the center city. However, after a strong start, Cincybite quickly added lunch delivery options and added an additional seven restaurant partners within two weeks after their initial launch.

The early success of the business is yet another example of the retail services not keeping pace with the city’s population growth. While the age-old idea of ‘retail follows rooftops’ may still be true, technology is also now allowing some of that to be bypassed through innovative on-demand delivery services.

“In New York and LA there were restaurant delivery services, and I was surprised to find none existed in town,” Sosna explained. “The response has been phenomenal and I’m working hard to expand the service through the metro area.”

This is not his first foray into the food industry. In 2009, he purchased his first Freshii franchise in Los Angeles before ultimately moving those operations to Cincinnati and bringing the popular fresh food chain to the region in 2012.

Cincybite’s offices are located downtown and are currently staffed by six employees who are tracking all sorts of data and usage patterns. The data they are collecting, Sosna says, is what is helping them determine what other restaurants to approach, types of food to add, and which areas to expand to next.

One area that has not yet been officially added to Cincybite’s delivery area is the city’s west side neighborhoods, but they say it is only a matter of time, and drivers, before that happens. As for now, the focus remains on the region’s center city neighborhoods and many on the city’s east side and along the I-71 corridor.

“When looking at future areas of growth, my director of ops and I study our current sales data and customer feedback,” Sonsa explained. “We’re looking at strengthening our variety of restaurants in our current zones and planning our growth north.”

When asked where those next areas of operations might be, he said that they are looking at Kenwood, Madeira, Blue Ash, Montgomery and Indian Hill, but also clarified that Cincybite has unofficially also begun serving the west side.

Growing Cincybite’s delivery area and food options is just the beginning of the company’s overall growth plans. They have just launched a new service that offers delivery of basic grocery items and other incidentals like batteries, cleaning products, toiletries, over the counter medicine, baby food and supplies, and snacks. Likening the service to Amazon Fresh, Sosna says that he is working with a number of other businesses in order to add even more items.

“We’ve had conversations with local pet shops, butcher shops, dessert companies and a variety of other businesses looking to add additional revenue and awareness to their brand,” said Sosna. “There really is no limit for what Cincybite can offer Cincinnati, and we’re working hard to expand the delivery zones so everyone in the city can enjoy.”

Those who want to use the service merely need to register for an account and then shopping as would typically be done with any online retailer. The website also allows customers to select the date and time they would like to have their items delivered, and also allows for the user to pre-select an amount to tip the driver.

But one thing that was made clear was that none of this would be possible for Sosna without the resurgence taking place in Cincinnati. Had it not been for that, he said he may have stayed in Los Angeles instead of coming home.

“The commute back and forth for 2.5 years helped calm my nerves, but as I opened my Freshii location and began spending more time in the city, I realized a lot of progress had been made and the city was headed in the right direction,” Sosna told UrbanCincy.

“The approval of the streetcar, construction of The Banks, revival of OTR, food scene throughout the city, investment in tech with Brandery and Cintrifuse, and GE selecting Cincinnati for their future operations center were just a few of the reasons highlighting how great the city had improved and made the transition all the easier.”

Categories
Business Development News

Will Saks Fifth Avenue Remain in Downtown Cincinnati Following Collapse of its Kenwood Move?

News spread quickly yesterday that the deal for Saks Fifth Avenue to relocate from downtown Cincinnati to Sycamore Township at the new $200 million Kenwood Collection had fallen through.

The announcement drew immediate speculation about what happened and where the high-end department store might locate instead, if anywhere at all. Since representatives at Saks Fifth Avenue have been mum during the whole process, little information is known about what will happen in 2016 when they had been expected to relocate to Kenwood.

Here’s what we do know.

The current Saks Fifth Avenue store downtown opened in 1983 and was renovated in 1996 and again in 2003 thanks to $8.7 million in city funds. The 2003 renovation also included a stipulation that Saks extend the lease for their downtown Cincinnati store for 15 years (2018), and not open another store within 30 miles for at least seven years (2010). For what it’s worth, Kenwood Collection is located approximately 11 miles from Fountain Square.

The terms of that 2003 agreement, however, are a bit murky. According to the Business Courier,

Part of the agreement with the city says Saks can be released if “Saks sells the Saks store on the property to an entity which acquires the majority of the Saks stores then located in the states of Ohio, Michigan, Illinois, and Pennsylvania.” Toronto’s Hudson’s Bay Co. acquired Saks in a deal that closed at the beginning of November.

The clause basically appears to give Saks an out on their lease agreement that would otherwise keep them at 101 W. Fifth Street until 2018. While the existing store is 72,640 square feet, Saks had reportedly signed a letter of intent with Kenwood Collection for a slightly larger 80,000 square-foot space.

The rumors following yesterday’s announcement largely discussed one of three potential scenarios: 1) Saks closes its only store in the Cincinnati region as it has done in other mid-sized markets; 2) Saks relocates into the retail space at the $140 million dunnhumby Centre, which, interestingly enough, was to become the home of a Maison Blanche in 1998 and then eyed for a Nordstrom in 2000; or 3) Saks relocates into the retail space at a restructured unnamed development at Fourth/Race.

The first scenario is something that would be very difficult to predict, but the second and third scenarios present interesting opportunities and challenges.

The biggest challenge with Saks moving across the street into the dunnhumby Centre is that it only has 30,000 square feet of retail space. Since the building is already far along in construction, it seems unlikely that the development team would be able to modify it in a manner to provide an additional 50,000 square feet of space for Saks.

The unnamed development at Fourth/Race had a grocery store lined up to occupy its even smaller 20,000 square feet of retail space, but that development agreement has since been substantially restructured and is currently being reworked. This leaves open the possibility that Flaherty & Collins and the Cincinnati Center City Development Corporation (3CDC) could adjust the design as to accommodate Saks.

In both of these cases it would allow for the redevelopment of Saks’ existing structure at the southwest corner of Fifth and Race Streets. This would prove to be important in order to clear the way for developers to build a new residential high-rise in its place. Both of these options would also keep Saks within a block of Macy’s 180,000 square-foot downtown store, and along the stretch of Race Street that city officials hope to turn into a shopping corridor.

The combined demolitions of the aging Pogue’s Garage and existing Saks Fifth Avenue store would also allow for the removal of two to three skywalks/bridges over Race Street.

Of course, there is one more option. Saks could simply stay where they are and live out their lease through 2018, or even renew it beyond that.

CORRECTION: In the original story it was incorrectly stated that the existing Saks Fifth Avenue store in downtown Cincinnati is 185,000 square feet. The store is actually 72,640 square feet.