National restaurant chain Lone Star still looking for franchisee at Timaru development

Friday, 29 September 2023

Countdown, at The Showgrounds, was the first business to open at the development in March.

A national hospitality chain is still hoping to open a restaurant at Timaru’s newest retail development, but is yet to sign a franchisee up for the site.

The nationwide Lone Star franchise was confirmed as a tenant in the 34,000 square metre development in March 2022.

This week, Lone Star director of new business, Shane Hausler, confirmed the company was still interested in opening at The Showgrounds, and said it was still looking for a franchisee almost a year after he told The Timaru Herald it was advertising for an operator for the site.

Hausler said initial enquiries from interested parties had “not made it through the company’s assessment process”.

Lone Star is still advertising for a franchisee for The Showgrounds in Timaru.

“There has been no-one on the books,’’ Hausler said.

“The development seems to be going well, and we’re very keen to be there. The developers are still keen to see a Lone Star there.’

An advert on the Lone Star website still lists the new franchise for Timaru with an estimated opening date of 2022, but this was revised by Hausler in October 2022, when he told The Timaru Herald the restaurant was expected to open late 2024.

The ad describes South Canterbury as vibrant, with the population of the Timaru District “fast approaching 50k’’.

“Strategically located between Washdyke and Timaru town centre,’’ it says.

“Modern, architectural building on high profile site overlooking the main arterial route through Timaru.’’

The purpose built site will have indoor/outdoor flow and a north-facing deck, it says.

It also says there is “an abundance of car parking’’ and “high consumer demand for the Lone Star brand’’.

An impression of the Lone Star building proposed at The Showgrounds.

The restaurant will have a dedicated cafe, bar and function areas with a footprint of 400m², plus an outdoor area.

“Investment from $1 million,’’ it says.

In May 2022, Lone Star was caught up in confusion over whether it would be able to open at the site as planned, and whether the business would constitute a tavern.

Clause 34 of the agreement for the sale and purchase of Timaru Showgrounds, between the developer and Timaru District Holdings Ltd, prohibits the public sale or supply of alcohol from a tavern on the site until after April 1, 2025.

Almost 10 years ago a Lone Star restaurant opened in Timaru. That restaurant, located where Bullock Restaurant and Bar is now situated, closed in February 2017.

At the time, Lone Star issued a statement from its Christchurch-based head office announcing the closure with director Steve Ward saying it had planned a “structured closure” of the Timaru restaurant with the site owners.

In thanking the community for its support of the business, Ward signalled the chain intended to re-establish in a new Timaru location.

Lone Star closed its Timaru franchise in February 2017, after opening in the town in November 2013.

The Showgrounds developer Tony Gapes, of Redwood Group, told The Timaru Herald last week work was continuing with the construction of ‘building 1’, a double storey complex at the site, to be anchored by a national gym chain.

A spokesperson for one national gym operator confirmed they had been looking at opening at the complex, but were now no longer interested.

Earlier this week, a Waka Kotahi NZ Transport Agency letter to stakeholders indicated a delay to the second stage of the development, and said it was in the process breaking its contract with the developer over delays to renewal work on a nearby culvert.