The renowned hospitality group behind Sydney’s celebrated Grounds of Alexandria is set to take over the Lagoon Restaurant site in North Wollongong. This decision was confirmed after the Wollongong City Council unanimously approved the lease in a meeting held on Monday, December 15.
The Grounds, known for its Instagram-worthy aesthetic and culinary offerings, emerged victorious in a competitive tender process, surpassing the only other contender, Top Pub Mittagong, which operates the Mittagong Hotel. The lease, initially set for five years with an option to extend for another five, marks a significant shift for the Lagoon Restaurant site, which has been a staple in the area for many years.
The Competitive Tender Process
The current Lagoon Restaurant has held a 20-year lease since 2006, scheduled to expire in July next year. As the site falls under council ownership, a competitive tender process was mandatory. The submissions were evaluated based on five criteria:
- Proposed annual rent payable to the council
- Proposed business plan
- Demonstrated strengthening of local economic capacity
- Staff qualifications and experience
- Demonstrated experience and satisfactory performance in operating premises of similar size, scope, and risk profile
According to the council’s business papers, the staff report recommended The Grounds for the lease, citing their robust business plan and potential to enhance the local economy.
“Council should endorse the recommendations in this report and approve entering into a commercial lease agreement with The Grounds of Alexandria Pty Ltd for the beachside restaurant at Stuart Park, North Wollongong,” the business papers stated.
Impact and Expectations
The Grounds of Alexandria has gained international acclaim, often highlighted as one of the most popular restaurants on Instagram. This reputation is expected to bring a fresh wave of visitors to North Wollongong, potentially boosting local tourism and economic activity. The transformation of the Lagoon Restaurant site is anticipated to reflect The Grounds’ signature style, combining innovative gastronomy with a visually captivating environment.
Local businesses and residents have expressed mixed reactions. While some welcome the potential increase in foot traffic and business opportunities, others are concerned about maintaining the site’s historical charm and community focus.
Looking Ahead
The Grounds’ takeover of the Lagoon Restaurant site represents a new chapter for the North Wollongong area. As the hospitality group prepares to bring its unique blend of culinary excellence and aesthetic appeal to the region, local stakeholders are keenly observing how this change will unfold.
With the lease secured, The Grounds is expected to begin renovations soon, aiming to open its doors to the public by mid-next year, aligning with the expiration of the current lease. This development is poised to redefine the dining landscape of North Wollongong, offering both challenges and opportunities for the local community.
As this transition progresses, the community and council will closely monitor the impact on local businesses and the broader economic environment, ensuring that the new establishment aligns with the region’s values and aspirations.
