03 BLRI009-26 Business Opportunity 3-12-24.pdf

National Park Service U.S. Department of the Interior

Blue Ridge Parkway

Part I

BUSINESS OPPORTUNITY

Food and Beverage and Retail Services at Mabry Mill within

Department of the Interior

Concession Contract No. CC-BLRI009-26

CC-BLRI009-26 Business Opportunity Table of Contents

U.S. Department of the Interior

Blue Ridge Parkway

TABLE OF CONTENTS

INTRODUCTION

SITE VISIT

NOTIFICATION OF INTENT TO PROPOSE

INFORMATION REGARDING THIS SOLICITATION

PROPOSAL OVERVIEW

DOING BUSINESS WITH THE SERVICE

THE NATIONAL PARK SERVICE AND ITS MISSION

BLUE RIDGE PARKWAY

CONCESSION OPPORTUNITY

DRAFT CONTRACT TERM AND EFFECTIVE DATE

REQUIRED AND AUTHORIZED SERVICES

OVERVIEW OF REQUIRED SERVICES

FOOD AND BEVERAGE

RETAIL

REVENUE ASSUMPTIONS

EXPENSE ASSUMPTIONS

UTILITIES EXPENSES

OTHER OPERATING CONSIDERATIONS

INVESTMENT ANALYSIS

MAINTENANCE

MINIMUM FRANCHISE FEE

LEASEHOLD SURRENDER INTEREST

NO PREFERRED OFFEROR

HISTORICAL CONCESSION DATA

HISTORICAL FINANCIAL INFORMATION

MARKET AREA OVERVIEW

LOCAL COMPETITIVE MARKET

BLUE RIDGE PARKWAY VISITATION

CC-BLRI009-26 Business Opportunity Page 1

U.S. Department of the Interior

Blue Ridge Parkway

INTRODUCTION

Site Visit

The National Park Service (“Service”) will host a site visit for organizations interested in bidding on this opportunity on the date listed on the inside front cover of this Prospectus. The site visit provides interested organizations an overview of the concession operation along with a tour of some of the facilities assigned to the Concessioner under the Draft Contract. Each interested Offeror is limited to five persons attending the site visit, and all attendees must be over the age of eighteen.

To attend the site visit, registration is required no later than one week in advance of the scheduled date. To register, please contact the Blue Ridge Parkway Concessions program, at blri_concessions@nps.gov, with the name of the organization you represent, the primary contact for the organization, including contact phone number, mailing address and email address, and the number of people in your party. All parties attending the site visit must disclose to the Service the names of the interested organizations engaging their services. The Service will provide further information and additional directions by return email message to the primary contact.

Site visit participants are responsible for obtaining their own lodging, meals, and transportation. Participants are encouraged to obtain lodging as soon as possible, as lodging in the area is limited. Since the concession operation will still be serving visitors at the time of the site visit, no more than two people per organization will be permitted within the kitchen area. Attendance at the site visit is not required in order to submit a proposal for the Prospectus; however, attendance is encouraged.

Notification of Intent to Propose

If you plan to submit a proposal in response to this solicitation, you must notify William Gordon, Commercial Services Management Specialist, NPS Regional Office Serving Interior Region 2, via email at william_gordon@nps.gov no later than 12:00 p.m. Eastern time on September 3, 2025. The Service will not accept proposals from entities that do not provide notice on or before this deadline.

Summary of Term and Conditions of the CC-BLRI009-26 Opportunity

Location

Blue Ridge Parkway

Draft Contract Term 10 Years

Projected Effective Date January 1, 2026

Required Services Food and Beverage, Retail

2026 Projected Gross Receipts* $600,000 to $900,000

Estimated Initial Investment $320,000

Minimum Franchise Fee 1% of gross receipts

Component Renewal Reserve

0.5 % of gross receipts

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Blue Ridge Parkway

Information Regarding This Solicitation

The Prospectus describes in general terms the previous business operation and the business opportunity for services allowed pursuant to Concession Contract No. CC-BLRI009-26 (“Draft Contract”). It is comprised of five parts:

I. Business Opportunity (this document) II. Proposal Instructions III. Proposal Package IV. Draft Concession Contract Including Contract Exhibits V. Appendices Table of Contents

This Prospectus includes Service estimates of revenue and expenses to assist Offerors in developing financial projections. These estimates reflect Service assumptions based on planning decisions, historical concession operating data, industry standards, economic conditions, and comparable and competitive operations. The Service does not guarantee these projections will materialize and assumes no liability for their accuracy.

Offerors must compile and present their own financial projections based on independent assumptions, due diligence, and industry knowledge.

Offerors must review all sections of this Prospectus, especially the terms and conditions of the Draft Contract, including its exhibits (Part IV), to determine the full scope of a future concessioner’s responsibilities. In the event of any inconsistency between the description of the terms contained in this Prospectus and the Draft Contract, the Draft Contract will control.

Certain federal laws apply to this solicitation including the National Park Service Concessions Management Improvement Act of 1998 (Title IV, Public Law 105-391, and hereafter referred to as “the 1998 Act”), as amended, and its implementing regulations at 36 C.F.R. Part 51. In the event of any inconsistency between the terms of this Prospectus and 36 C.F.R. Part 51, 36 C.F.R. Part 51 will control. 36 C.F.R. Part 51 is available at the Government Printing Office’s Electronic Code of Federal Regulations website1.

Parts I, II, and III refer to Blue Ridge Parkway as “the Park” or “the Parkway”.

“Concessioner” refers to the entity that will be the concessioner under the Draft Contract.

“Previous Concessioner” refers to Cape Leisure Mabry Mill, LLC, the concessioner under Concession Contract CC-BLRI009-14 (“Previous Contract”). The term of the Previous Contract was from January 1, 2014, to December 31, 2023. A copy of the Prior Contract is included as an Appendix to this Prospectus.

The Service intends to award the Draft Contract around November 1, 2025, or around two months prior to the anticipated effective date when the Concessioner would commence operations on January 1, 2026.

Visitor services were historically open from May through October, and the Concessioner may extend the length of the operating season if desired. The Service intends to announce the selected Offeror around September 1, 2025, or around four months prior to award. This should give the selected Offeror the opportunity to observe the winterization of facilities prior to the seasonal closure. Award of a concession contract does not occur until the competitive process has been completed and both the selected Offeror and the Service have signed the concession contract. While the Service will make every effort to meet this schedule, it is subject to change.

1https://www.ecfr.gov/current/title-36/chapter-I/part-51 https://www.ecfr.gov/cgi-bin/text-idx?SID=d03628d94ca3851e02f00f86e5142962&mc=true&node=pt36.1.51&rgn=div5

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Blue Ridge Parkway

Proposal Overview

Part II of this Prospectus contains the instructions for submitting proposals. Offerors must carefully read and comply with those instructions.

Part III of this Prospectus contains the proposal package Offerors must complete in its entirety. The proposal package contains a required transmittal letter, five principal selection factors, and two secondary selection factors. Each selection factor identifies the minimum and maximum points the Service may award depending on the quality of the response. The following paraphrases the information sought under each selection factor. The wording of the actual selection factors controls.

Principal Selection Factor 1 requires Offerors to describe how they will protect, conserve, and preserve the resources of the Park. Offerors must describe how they would address maintenance.

Principal Selection Factor 2 requires Offerors to describe how they would improve the visitor experience through improvements and adjustments to food and beverage and retail services.

In Principal Selection Factor 3, Offerors must describe their organizational structure and provide documentation to help the Service understand the Offeror and its relationship to other entities. The Service does not score the first portion of Selection Factor 3 but may use it to understand responses elsewhere in a proposal. Incomplete submissions may lead to a lower score elsewhere if the information submitted does not support claims made in response to specific subfactors in this and other selection factors. The Service provides forms Offerors must complete depending on their organizational structure. The rest of this principal selection factor, which is scored, requires Offerors to describe their experience providing similar services, strategies for employee recruitment and retention, and history of violations or infractions and overall strategy to minimize and resolve them.

In Principal Selection Factor 4, Offerors must provide documentation demonstrating that they have the financial resources to commence and carry-on operations under the Draft Contract, including a business history form. Offerors also must complete the provided Excel workbook and provide other information to demonstrate an understanding of the operations under the Draft Contract.

In Principal Selection Factor 5, Offerors provide the franchise fee they will pay on gross receipts generated under the Draft Contract. Failure to agree to pay at least the minimum franchise fee set out in this selection factor will result in the Service finding the proposal non-responsive and ineligible for award of the Draft Contract.

Secondary Selection Factor 1 requires Offerors to describe how they would reduce solid waste and minimize environmental impacts of their operations.

Secondary Selection Factor 2 requires Offerors to describe their marketing plan.

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Doing Business with the Service

The Service has worked with private parties to provide services to visitors dating back to the earliest times of national parks. Many of the iconic lodges and other structures found in America’s national parks were constructed and operated by private parties, and that relationship continues today.

We use the term “commercial visitor services” when generally describing services, benefits, and goods provided to visitors within an area of the National Park System by a third party for a fee. Simply put, the term “commercial visitor services” includes lodging, food and beverage, retail, marina operations, guided recreation, rental of equipment, experiential transportation, and similar services the National Park Service itself does not provide. Congress has passed several laws guiding the Service in contracting with third parties to provide these services, including the 1998 Act. The Service implemented regulations for many aspects of the law, primarily to set out the process for soliciting bids for new contracts and managing concessioners’ investment in structures owned by the United States.

Working with the Service in providing commercial visitor services differs from operating outside a park in several respects. By law, we approve rates to ensure park visitors do not pay higher fees for goods and services merely because such transaction occurs within a park. Section 4(B) of the Operating Plan (Exhibit B to the Draft Contract) lists the rate methods for all visitor services. As with the private sector, concessioners must develop and follow environmental management programs, risk management programs, and similar programs to ensure operations comply with applicable laws. Service employees review the quality of concession operations and compliance with contract requirements including the maintenance of facilities.

Even with those regulatory actions, concessioners in national parks enjoy significant benefits. Many parks function as unique visitor destinations. Concessioners frequently operate with few, if any, in-park competitors, even though we do not grant exclusive rights to provide any visitor services. Although we approve rates, our processes ensure the rates are competitive with similar services near the operating locations. Our contract oversight reflects the best management practices of the private sector industries. We developed operating standards based on similar ones in the private sector to reflect best industry practices for the services provided under the concession contracts.

The National Park Service and its Mission

In 1916, President Woodrow Wilson approved legislation creating the National Park Service within the Department of the Interior. That legislation stated that Congress created America’s National Park Service to:

…conserve the scenery and the natural and historic objects and the wild life therein, and to provide for the enjoyment of the same in such a manner and by such means as will leave them unimpaired for the enjoyment of future generations. Pub. L. No. 64-235, § 1 (codified at 54 U.S.C. § 100101(a)).

Additionally, Congress has declared that the National Park System should be:

…preserved and managed for the benefit and inspiration of all the people of the United States. Pub.

L. No. 91-383, § 1 (codified at 54 U.S.C. § 100101(b)).

The Service has as its overall mission the preservation and public enjoyment of significant aspects of the nation’s natural and cultural heritage. To learn more about the Service, visit www.nps.gov. The website includes information about the Service’s mission, policies, and information on individual park units.

http://www.nps.gov/

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Blue Ridge Parkway

BLUE RIDGE PARKWAY

In 1936, Congress formally authorized the construction of Blue Ridge Parkway, a designated National Scenic Byway and All-American Road intended to connect Shenandoah National Park to the Great Smoky Mountains National Park. The Parkway, which was built over a period of 52 years, is almost 500 miles long and crosses through the states of North Carolina (NC) and Virginia (VA) along the Blue Ridge mountain range. Land alongside the Parkway is maintained by the Service and, in many places, borders land protected by the United States Forest Service.

The maximum speed limit never surpasses 45 miles per hour with no direct interchanges with interstate highways, making it possible for visitors passing through to leisurely and safely enjoy the passing scenery. The Parkway’s varied and scenic environment is designed to showcase the natural beauty and culture of the surrounding area.

From Milepost 0 at Rockfish Gap, VA to Milepost 355 near Mount Mitchell State Park, NC, the Parkway lives up to its name by following the crest of the Blue Ridge Mountains, averaging about 3,000 feet in elevation, and occasionally dipping down into the coves and hollows or crossing low-elevation water gaps. At Mount Mitchell, the Parkway veers westward through the Black Mountains, then into the Craggy Mountains before descending toward Asheville, NC. From there, the road climbs to elevations over 6,000 feet in the Balsam Mountains before entering the Great Smoky Mountains National Park near Cherokee, NC.

Along this route an unsurpassed diversity of climate zones, vegetation zones, physiographic zones, and geological features are traversed. The more than 81,000 acres of Parkway lands pass through a highland area of five degrees longitude and approximately 3 degrees latitude, making it the third largest unit of the National Park Service in terms of area covered. Park resources include 600 streams (150 headwaters), 47 Natural Heritage Areas (areas set aside as national, regional or state examples of exemplary natural communities), a variety of slopes and exposures, and possibly 100 different soil types. The Parkway provides a home for both southern species at the lower elevations and northern species on the mountaintops.

Due to the varied topography, weather conditions can vary dramatically. The highest point on the Parkway (Richland Balsam Mountain at Milepost 431) is often closed from November to April due to inclement weather such as snow, fog, and even freezing fog from low clouds. A few facilities located on the Parkway are open year-round, although a large majority (such as visitor centers, campgrounds and picnic areas) begin opening on a staggered schedule in late April and stay open through the fall leaf color.

Exhibit 1 on the following page presents a map of the Parkway. Additional information about the Park can be found at www.nps.gov/blri.

http://www.nps.gov/blri

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Exhibit 1. Map of Blue Ridge Parkway

Source: National Park Service

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Blue Ridge Parkway

CONCESSION OPPORTUNITY

The Draft Contract requires the Concessioner to provide food and beverage and retail services at Mabry Mill during the operating season from, at minimum, May through October each year. The Concessioner may extend the operating season if desired.

Located at Milepost 176.2, Mabry Mill is one of Blue Ridge Parkway’s most popular visitor attractions due to its rich history and picturesque environment. Facilities at Mabry Mill include the historic gristmill, sawmill and blacksmith shop, which were built shortly after the turn of the 20th century and restored to provide visitors a view of pioneer life in Appalachia. A short trail connects these structures and provides informative exhibits and interpretive displays. Visitor activities at the Mill include demonstrations that showcase old time skills like basket weaving, blacksmithing and apple butter making as well as special events that focus on local music and dancing. The mill has historically been open to the public seven days a week from 8 a.m. to 6 p.m. from May through October.

Directly south of the historic area is the Mabry Mill Restaurant and Gift Shop, which caters not only to those stopping to view the mill, but also to visitors passing by and staying within the area. The Parkway offers a variety of recreational activities in the area that include hiking, camping and picnicking. Nearby towns including Floyd and Meadows of Dan offer many retail and dining opportunities, which are detailed in the Market Overview section of this document.

Draft Contract Term and Effective Date

The Draft Contract has a term of ten (10) years with an effective date of January 1, 2026. The effective date of the Draft Contract may change prior to award if necessary; however, in such event, the Service will change the expiration date of the Draft Contract, if necessary, to provide ten operating seasons.

Required and Authorized Services

The Draft Contract includes the following required and authorized services.

Exhibit 2. Required Services of the Draft Contract

Service Location Food and Beverage: Family Casual (10-FBF), Quick Service (10-FBQ) or Fast Casual (10-FBC)

Mabry Mill

Retail: Souvenirs, Gifts and Recreation Specialty Mabry Mill

Exhibit 3. Authorized Services of the Draft Contract

Service Location

Vending Mabry Mill

Hiker Shuttle Mabry Mill

Overview of Required Services

A summary of each of the required services is provided below. Offerors should reference the Draft Contract and its exhibits for additional information. All minimum operating hours are specified in the Draft Contract Exhibit B Operating Plan in the appropriate section for each service type and location. Rate methods for Food and Beverage and Retail services are summarized below.

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Food and Beverage

The Concession operation includes the Mabry Mill Restaurant, which serves country cooking in a casual setting. The Dining Room occupies 800 square feet of space and has seating for up to 65 people. Historical utilization trends indicate that peak demand occurs during the morning (breakfast) and early afternoon (lunch) hours.

The Parkway will allow the Concessioner under the Draft Contract flexibility in how and when it provides food service.

Food service may be Family Casual, Quick Service, or Fast Casual as defined in NPS Commercial Services Standards.

At a minimum, the restaurant must be open five hours per day, four days per week. The Concessioner may operate during breakfast, lunch, or dinner meal periods.

The Service will approve proposed operating hours yearly. After approval, operating hours will remain fixed for the season unless changes are approved by the Parkway.

Food and Beverage Prices

Under the Draft Contract, Food and Beverage prices will be subject to Competitive Market Declaration (CMD). Food and Beverage prices may be set based upon market conditions.

The Previous Concessioner’s core menu items with 2023 prices are presented in Appendix I to this Prospectus.

The Concessioner will have the flexibility to offer food and beverage items different from historical menu items.

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Retail

The Concession operation at Mabry Mill also includes a Gift Shop that occupies approximately 800 square feet of retail space in the same building as the Restaurant facility.

The Gift Shop sells gifts, souvenirs and prepackaged food and beverages.

The Parkway plans to allow the Concessioner flexibility in opening hours for the Gift Shop.

Minimum operating hours are 10:00 a.m. to 2:00 p.m., at least four days per week.

As part of the retail operation, the Concession operation supports interpretive programs at Mabry Mill, including:

• Sales of craft items made by Service interpreters on site. On infrequent occasions, Service Interpretive Rangers produce marketable products as part of their interpretive demonstrations. Such products include, but are not limited to, items produced in the blacksmith shop, brooms, and baskets. The Concessioner offers these products for sale in the Gift Shop and provides a portion of the proceeds of the sale to the Service, in accordance with 16 U.S.C. 1a2g.

The Concessioner and the Service will agree on this portion of the proceeds, which will represent the cost of the materials used in the demonstration.

The Mabry Mill musician program. On occasion, the Service brings local or regional musicians to perform in the Mill demonstration area. During their performance, the Concessioner is encouraged to offer the featured musician's CD for sale in the Gift Shop. The Concessioner and musician will negotiate this transaction.

Under the Draft Contract, retail prices will be under CMD.

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Revenue Assumptions

In developing prospective revenue estimates, the Service assumed changes from historical revenue in part, but not limited to, the following:

• Modified Food and Beverage service (previously Family Casual with table service; now assumed to be Fast Casual or Quick Service with counter service)

• Change from Core Menu pricing to Competitive Market Declaration

• Flexibility to reduce operating hours to close in early afternoon (as early as 2 p.m.)

• Flexibility to reduce operating days to as few as four days per week

• Flexibility to simplify the menu to emphasize speed of service

• Flexibility to expand the retail operation into space currently occupied by food service operations or to expand the food service operation into space currently used for retail.

The Service assumed no utility add-ons in its revenue projections.

Estimated Projections by Department

The following exhibit provides a summary of projected departmental revenues for the first operating season under the Draft Contract (2026).

Exhibit 4. Summary of Projected Departmental Revenues

Department 2026 Food and Beverage $400,000 - $600,000 Retail $200,000 - $300,000

TOTAL REVENUES $600,000 - $900,000

Less: Deductions* $0

GROSS RECEIPTS $600,000 - $900,000

* Authorized deductions (exclusions) are listed in the definition of “gross receipts” in Sec. 2 of the Draft Contract.

The following exhibits provide a breakdown of projections of operating statistics by department.

Exhibit 5. Projected Food and Beverage Operating Statistics

Mabry Mill Restaurant Transactions 24,000 – 30,000 Average Revenue per Transaction $17.50 – $19.50

Exhibit 6. Projected Retail Operating Statistics

Mabry Mill Gift Shop Transactions 33,000 - 39,000 Average Revenue per Transaction $6.50 - $8.50

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U.S. Department of the Interior

Blue Ridge Parkway

Expense Assumptions

In developing projected expense estimates, the Service assumed adjustments of certain direct, indirect and fixed expenses to reflect costs associated with the changes in operations. The Service projects that most expenses will be within industry average ranges.

Utilities Expenses

The Service will provide water and wastewater service to the Concessioner. The Concessioner must obtain all other utilities (electricity, solid waste, telephone, propane and fuel oil, and internet) from out-of-park suppliers.

The Service charges utility users (including concessioners) the utility systems’ operating and maintenance costs and amortized cost of capital improvements to utility systems. The Service has reviewed projected operating and maintenance costs and amortized costs of capital improvements for these utility systems and services and has developed projected rates. The rate for water and wastewater charged to Concessioners in 2025 is $73.62 per thousand gallons, and the Service estimates the Concessioner will use approximately 300,000 gallons in 2026. The Service has incorporated this rate into its franchise fee calculation and will not approve a utility add-on. Refer to Director's Order #35B (a link to which is included in the Appendices to this Prospectus) for more information on this policy.

Other Operating Considerations

The Service assumes the Concessioner will have flexibility to test different food and beverage service concepts, different operating hours, and different weekly schedules (open and closed days).

The Concessioner will be permitted to provide outside seating in the areas identified in Exhibit D to the Draft Contract.

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U.S. Department of the Interior

Blue Ridge Parkway

INVESTMENT ANALYSIS

As shown in the following exhibit, the Concessioner’s total estimated required initial investment as projected by the Service is $320,000 in 2026 dollars. This includes personal property, inventory, supplies, start-up costs (staff hiring, training, etc.), and working capital (investment needed to cover expenses incurred in advance of offsetting revenues).

The Concessioner will incur start-up costs prior to commencing operations under the Draft Contract. Start-up costs include staff hiring, training that may involve compensation in addition to normal wages, systems implementation, legal support services, and marketing and advertising beyond normal annual expenditures.

The Previous Contract does not require the Previous Concessioner to sell and transfer to its successor other property associated with the concession operations. The Service assumes the Concessioner will acquire personal property similar in value to the property owned by the Previous Concessioner. A list of the Previous Concessioner’s personal property as of 2023 is provided as Appendix H to the Prospectus.

Exhibit 7. Estimated Initial Investment

Item Estimated Amount (2026 Dollars)

Initial Personal Property Investment $200,000

Inventory Investment $50,000

Start-up Costs $35,000

Working Capital $35,000

Total Initial Investment $320,000

In addition to the initial investment, the concessioner must cure Deferred Maintenance over the first two years of the Draft Contract term.

Deferred Maintenance

The Concessioner must cure, within the first two years of the Draft Contract’s term, all deferred maintenance ("DM") for all real property assets assigned under the Draft Contract. The Draft Contract requires the Concessioner to maintain buildings according to the Maintenance Plan (Exhibit H to the Draft Contract), which means DM will not accumulate. The Draft Contract lists DM projects in an attachment to the Maintenance Plan.

The following exhibit presents estimated DM costs. The Service has estimated these costs for illustrative purposes only; Offerors must develop their own estimates. In addition, the Concessioner must cure the DM to the satisfaction of the Service even if the actual cost total exceeds the estimates provided in this Prospectus.

Exhibit 8. Estimated Deferred Maintenance

Year Amount

2026 $34,000

2027 $34,000

Total $68,000

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Additionally, the Draft Contract has other financial requirements that are ongoing through the term of the contract, including the following. Your responses in the proposal package should address these items.

Maintenance

Assigned Facilities

The Draft Contract, Exhibit D, Assigned Land and Real Property Improvements (Concession Facilities), contains a complete list and maps of assigned land and real property improvements.

Component Renewal Reserve

The Draft Contract requires the Concessioner to establish a Component Renewal Reserve to ensure funds are available to accomplish certain component renewal and replacement activities. Please see Section 10(C) of the Draft Contract for guidance on the terms and conditions of the Component Renewal Reserve. The Service will require the Concessioner to fund the Component Renewal Reserve for the Draft Contract with two percent (2.0%) of gross receipts as defined in Sec. 2 of the Draft Contract. As further explained in the Draft Contract, the Concessioner must expend sufficient additional monies to maintain the Concession Facilities to the satisfaction of the Director, which may require the Concessioner to expend more than the amount that it pays into the Component Renewal Reserve.

Minimum Franchise Fee

Offerors must agree to pay the minimum franchise fee, as set out in Principal Selection Factor 5 of the Proposal Package (Part III of this Prospectus), although Offerors may propose higher franchise fees in accordance with terms of the Prospectus.

The following describes the minimum franchise fee acceptable to the Service for each year of the contract term:

0.50% of gross receipts

Leasehold Surrender Interest

The Concessioner will be eligible to obtain LSI as outlined in the Draft Contract and Exhibits A (“Leasehold Surrender Interest”) and F1 (“Concessioner New Construction and Major Rehabilitation Project Procedures”) to the Draft Contract, subject to all requirements set forth therein.

No Preferred Offeror

The Director of the Service has determined that no preferred offeror for this Draft Contract exists pursuant to the terms of 36 C.F.R. Part 51. This solicitation for commercial visitor services is fully competitive.

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HISTORICAL CONCESSION DATA

This section presents information regarding historical revenue and operating data to assist Offerors in developing projections for future operations associated with the Draft Contract.

Please note that the COVID-19 pandemic and associated closures and restrictions impacted operations during the 2021 operating season.

Historical Financial Information The following exhibit presents gross revenues by department from 2021 to 2023 for the Previous Contract.

Exhibit 9. Previous Contract BLRI009 – Historical Gross Revenues by Department

2021 2022 2023

Food and Beverage $349,434 $435,766 $453,880 Retail $218,059 $235,831 $284,662 Total $567,493 $671,597 $738,542

Exhibit 10. Previous Contract BLRI009 – Historical Franchise Fees Paid

2021 2022 2023 Franchise Fees Paid $8,512 $10,074 $11,078

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MARKET AREA OVERVIEW

Mabry Mill is located in Floyd County, Virginia. The closest large metropolitan center is Roanoke, which is located approximately 60 miles to the north, and Winston-Salem, NC is about 60 miles to the south. In closer proximity are several smaller cities and communities, which include Meadows of Dan, Floyd, Christiansburg, Radford, Blacksburg, Dublin and Pulaski. The nearby town of Floyd has become a popular destination for tourists seeking Appalachian music and culture.

The map below illustrates the location of Mabry Mill within the surrounding area.

Exhibit 11. Regional Area Map and Location of Concession Facilities

Source: National Park Service

Virginia’s Music Heritage Trail, designated the “Crooked Road,” crosses over the Blue Ridge Parkway near Mabry Mill. The Crooked Road consists of over 300 miles of interconnected byways and Route 58, which passes through much of the far southwest corner of the state. Several music festivals are held throughout the summer along the Crooked Road, in towns including Floyd, Galax, Marion, and Abingdon. More information is available at http://thecrookedroadva.com.

Southwest Virginia is also well known for Appalachian crafts and handiwork. The Heartwood center in Abingdon is a regional center for craft, music, food, and local culture. It is the headquarters for ‘Round the Mountain, a network of more than 400 Southwest Virginia artisans and craftspeople. This organization has developed 15 “Artisan Trails” connecting studios, vineyards, galleries and music venues in the area. Two Artisan Trails near Mabry Mill include the Floyd County Trail and the Harmony Trail. More information is available at http://www.roundthemountain.org.

http://thecrookedroadva.com/ http://www.roundthemountain.org/

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Local Competitive Market

Food and Beverage Service

The closest comparable dining alternative to Mabry Mill within the boundaries of the Parkway is the Restaurant at Peaks of Otter Lodge (at Milepost 86). The following table presents a list of several food and beverage outlets within 20 miles of Mabry Mill.

Exhibit 12. Food and Beverage Services near Mabry Mill

Restaurant Name Description Location

Jane’s Country Café Regional specialties Meadows of Dan, VA

Primitive Coffee Coffee shop, baked goods Meadows of Dan, VA

Longfin Grill Fish entrees, burgers, BBQ Meadows of Dan, VA

Crossroads Café Sandwich shop Stuart, VA

Chateau Morissette Restaurant Winery, elevated Southern Off Blue Ridge Parkway (Floyd)

Jim’s Grill Burgers, subs, chicken Willis, VA

Dino’s Restaurant Salads, sandwiches, subs Willis, VA

Tuggles Gap Roadside Inn Breakfast, sandwiches, wraps Tuggle’s Gap, VA

Maples Restaurant at Olde Mill Regional specialties Laurel Fork, VA

Crooked Oak Restaurant Breakfast, sandwiches, salads Hillsville, VA

Parkway Grill Breakfast, sandwiches, dinner Floyd, VA

Floyd Country Store Café Salads, sandwiches, soups Floyd, VA

Blue Ridge Diner Breakfast, sandwiches, lunch Floyd, VA

Pickle & Ash Restaurant Locally-sourced specialties Stuart, VA

Source: Consultant

Retail Service

Similar to food and beverage, the closest alternative retail services to Mabry Mill within the boundaries of the Parkway are at Peaks of Otter Lodge. Retail services at Peaks of Otter include a gift shop that sells souvenirs, apparel, and artisanal crafts as well as a country store and the Sharp Top store. Several small communities in close proximity to Mabry Mill offer a range of retail alternatives.

Exhibit 13. Retail Services near Mabry Mill

Restaurant Name Description Location

Concord Corner Store Gifts, clothing, unique items Meadows of Dan, VA

Poppy’s Gifts, yarn, crafts Meadows of Dan, VA

Poor Farmer’s Market Sandwiches, snacks, market Meadows of Dan, VA

Nancy’s Candy Company Candy, chocolate Meadows of Dan, VA

Floyd Country Store Gifts, souvenirs, music, food Floyd, VA

The Station Crafts, farmers market, gallery Floyd, VA

Source: Consultant

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Blue Ridge Parkway Visitation

Blue Ridge Parkway visitation numbers are among the highest in the National Park system and are based on a variety of counting procedures and formulas, including numerous traffic count locations along the entire Parkway. Between 2013 and 2023, Parkway recreation visitation increased at an average annual rate of 2.6%. Park visitation was only modestly impacted at the strart of the COVID-19 pandemic, with visitation declining by roughly 6% in that year. However, visitation rebounded significantly in 2021 to 15.9 million visitors, an increase of 13.1% over 2020 visitation. Vistation set a new record in 2023 at approximately 16.7 million visitors, 6.1% higher than in 2022.

Exhibit 14. Blue Ridge Parkway Recreation Visitation

Year Recreation Visitors Percentage Change

2013 12,877,368 - 2014 13,941,749 8.3%

2015 15,054,603 8.0%

2016 15,175,578 0.8%

2017 16,093,765 6.1%

2018 14,690,418 -8.7%

2019 14,976,085 1.9%

2020 14,099,485 -5.9%

2021 15,948,148 13.1%

2022 15,711,004 -1.5%

2023 16,667,164 6.1%

CC-BLRI009-26 Business Opportunity Page 18

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