Tuesday, December 17, 2024

Winnipeg in 2025

Many large projects are slated to begin in 2025 across Winnipeg head to next phase in the new year. This comes at the same time as city council has indicated they have drained the rainy day fund and are in the hole for next year. The threat of tariffs by Donald Trump will certainly spook many export related businesses in the city and beyond. Is it a negotiation tactic or will there may be some painful times coming?
The election of Donald Trump who takes office in 2025 could have huge influence on how well Canada does and by extension Winnipeg. A tariff war could hurt Winnipeg which is geared for exports. There is a promise by the Conservative to cut the $122 million accelerator housing program funded by the federal government and awarded by the city if they get in office. It has attracted huge interest across the country and housing projects are starting in the new year or are under way. But does it stop after next year?

Portage Place is now fully in True North's hands and signals the largest investment in downtown in a generation. The new Pan Am Clinic will be the best health clinic of its kind in Canada when completed. And just like Grant Park will be busy seven days a week.  And it is this type of activity which is needed centrally in Winnipeg. Grant Park is along a bus route that is not nearly as well used as Portage Avenue.

Portage and Main, for better or worse, is under construction as it ends the days of the Concourse. The first section is around the former Bank of Montreal where the Metis are building offices and a museum. This section along East Portage could look quite different in 2025. If the museum attracts the tourism that is expected, this could result in a lot of surface foot traffic.
The Manitoba Metis Federation is not the only indigenous group with big downtown plans. The MMF will be working on the Bank of Montreal museum but also absorbing their office building purchases along Main Street. Meanwhile, the Southern Chiefs Organization will continue their work on converting the down Bay into offices and housing with the $200 million budget they have. The only problem is that their chief has been replaced and it is still unknown how it might affect the schedule or direction of the work. The SCO really needs to make clear what is happening.
In the southern party of the city, the long awaited University of Manitoba acquired lands of the Southwood Golf Club. It has been a painfully slow period of development. The housing needs of students on campus remain a concern and yet nothing announced these last years. Construction was to start this year but so far no announcements have been made. The expected 10,000 units of residential units over the next decades is estimated to cost around $6 billion. It will transform the area with 12 million square feet of development. 
We should see some announcements in 2025 as it is likely the demand in this area will be immense. It is odd that the smaller University of Winnipeg that doesn't have the large land gift U of M has next to it has not seen as much housing as the University of Winnipeg. 
The University of Winnipeg has been the most consistent builder of apartments in the downtown in recent years. The above picture shows another apartment town amidst a bunch that the University has built in earlier years. They don't seem to be slowing down which is good as they are building today's and tomorrow's neighbourhoods.

There are several other areas of the city that should show physical growth in terms of retail and residential. Very few offices are being built. The post pandemic world means more people work from home. It might be a while before we see another office tower go up. As far as business investments go, we are seeing many manufacturers gear up although many in Manitoba will be wary on Trump tariffs. It seems the sustainability of growth in Winnipeg and Manitoba will depend on that. 

Sunday, December 8, 2024

Will Chi Chi's Return to Winnipeg?

Excitement in the U.S. about the return of Chi-Chi's had a number of people remember when the restaurant opened on Maroons Road and St. James in Winnipeg in 1982. The above grainy picture shows Chi Chi's, Fingers and the large McDonald's that were popular places to go to when shopping at Polo Park or attending Jets and Bombers games or the Red River Ex which for many years was called Manisphere.

While the Polo Park location wasn't the only place in the city that Chi Chi's was, it had that reputation that it could be open till 4 AM on game days. The Mexican menu was a hit, the deep fried ice cream was a treat and the birthday party liquor flowed. It became very popular for hockey and football players to visit Chi Chi's. It was a very different time as smoking was permitted in restaurants but not permitted at the sporting venues except in designated areas. It meant that people went to the lounges at Chi Chi's and Fingers and smoked like crazy. Add to that legal happy hours. A smoking ban would not come till 2004. Around the same time happy hour limitations came into place.

Since Chi Chi's closed in 1992 in Winnipeg, the name has been by Hormel Foods in Minnesota which has licensed food products with the restaurant name with some success. The last restaurants before bankruptcy in the U.S. were around 2004. A Hepatitis outbreak pretty much defeated them at that time. 

The son of the former owner from Minneapolis has been given permission to start opening updated versions of Chi Chi's. At it's height, over 200 locations were across North American and beyond. They key of course is updated versions of what worked way back and none of what didn't work out and won't now. For example, most restaurants now have to be part of the pick up and delivery system. Perhaps not a drive-thru but an area of the restaurant for takeaway. We see it less in Canada but it is everywhere in the U.S.

Cost is having a huge impact on the restaurant industry. Chili's has made a bit of comeback because they have been very price conscious. TGI Fridays has struggled. And so it goes in the restaurant industry. The novelty of Tex Mex isn't a thing anymore. Shredded lettuce in abundance might have worked in the past but an improved Chi Chi's menu with some of the faves and a new offerings is probably the only thing to avoid a repeat of the previous failure.
The Polo Park Chi- Chi's was simply the biggest restaurant in all of western Canada with 400 seats. That title eventually went to the IKEA restaurant in Winnipeg which has 650 seats.

It is shocking how any people can point to work experience at Chi- Chi's, a birthday event or pre or post sports attendance at the restaurant. If two Chi Chi's are planned for Minnesota, I expect we'll see quite a few people from Manitoba visit those locations. And I fully expect there will be a few enquiries from Winnipeg on franchise opportunities. The big question is where. Polo Park no longer has the sports facilities that made it is a triple threat. Close to the football stadium seems unlikely. If it didn't work for Earls, why would it work for Chi Chi's? Downtown is possible with The Keg building a new location. Would a Chi Chi's near the arena where Jets, Moose and Sea Bears games are? Or is Polo Park still king even without sports?