Big plans for Sydney River
Local McDonald’s franchise owners plan large new retail hub SYDNEY RIVER, N.S. — The owners of the McDonald’s restaurant franchises in Cape Breton are turning a former grocery store and call centre space into a 32,000-square-foot hub of retail activity.
Expectations are that Sydney River Square, owned by Cape Breton’s Kennerknecht family, will be home to one national tenant as early as this fall.
The original home of the Superstore in Sydney River and former home of the Servicom call centre will also have space for other retail clients and perhaps some office space.
“We have had lots of opportunities to lease it already but we’ve held back,” Wayne Kennerknecht said of the building owned by his wife Gail’s company.
“The reason why is because we are going after one national tenant. The plan was for these people to fly in and look at the location. With the COVID-19 virus on, everything sort of was put on hold. We are still there with them, just everything was held back a little bit.”
Due to the sensitivity of negotiations, Kennerknecht couldn’t name the potential national tenant but believes 5,000 people would be quick to sign a petition saying they want the company in Cape Breton if that was required.
A local company has also asked about acquiring a large portion of the square footage at the 1172 Kings Rd. location. Landing that national client first and foremost is necessary before the rest of the square footage can be divided up, though.
“If the one tenant commits the rest of it all falls into place.”
The Kennerknecht family acquired the building in November along with some additional parcels of land around it.
The first of the project is scheduled to be ready this fall and include the utilization of between 8,500 square and 26,000 square feet. The second is set to be ready by summer 2021 after an upgrade to the building adds up to 6,600 square feet.
As many as six retail units of 1,500-2,000 square feet each are expected to be built as part of the second phase of construction.
Kennerknecht called the Kings Road area a high traffic generator that sees more vehicles pass through than even Sydney’s Welton Street.
Provincial road upgrades, including several roundabouts, will potentially add even more value to the area.
Kathleen Yurchesyn, CEO of the Cape Breton and Area Chamber of Commerce, called news of the planned development at Kings Road very encouraging, especially as people look to rebuild the economy from damages caused by COVID-19 and associated restrictions.
“That’s very interesting,” she said. “That’s encouraging that a sign went up in the midst of this.”
She said many experts think the recovery could be "fast and furious."
The Kennerknecht family became McDonald’s franchise owners in 1993 with the purchase of the Glace Bay restaurant, followed by the acquisition of all Cape Breton McDonald’s a short time later.
Despite the current economic climate, they remain as positive about the present and future of Cape Breton as they have always been. That’s evident with the Kings Road development and a $1-million renovation project at the McDonald’s on Welton Street.
Upgrades at McDonald’s have improved the drive-thru portion of the restaurant and made the play palace the thirdlargest of its kind in Canada.
An improved preparation area, a more contemporary and modern feel for the seating spots and an open kitchen concept are part of the renovations, too.
The kitchen also includes the latest equipment available for faster grilling and a better sear on the beef.
There are plans for a complete remodel and extension of the Sydney River restaurant to begin before June.
“It’s been a good run. It’s been a strong brand,” said Kennerknecht. “There have been some really successful years.”
Through it all, he said credit goes to the good people around him in the form of long-standing and valuable employees.
The community has also offered ongoing support, so they like to give back as much as possible. Last year’s McHappy Day, run by Gail Kennerknecht, raised $87,000 in Cape Breton for the Cape Breton Regional Hospital Foundation. Overall, their restaurants all around Cape Breton and as far off as Antigonish raised over $100,000 that day.
In Cape Breton, those funds allowed the intensive-care unit to purchase a new ultrasound machine and add comfort items to the waiting area for that department. Those were items the family saw were needed when their son Justin was an ICU patient for a long time after having a stroke.
“My son was on life support, they couldn’t take him downstairs, they couldn’t get the right diagnostics with him,” he said. “With this new machine, they are going to be able to hit it on the mark and make the right decisions.”
His son is on his way to a full recovery and works for the franchise. Kennerknecht said it was nice that they could turn something so terrible into such a positive.
Many schools, teams and others have been sponsored by the family’s McDonald’s franchises through the years.
“My wife has really stressed a lot it’s all about giving back and doing things like that. I’m not looking for the recognition, my wife isn’t either. We stay low profile. I’m not out there all the time.”
COVID-19 measures have had an impact on current business, even though much of their food can be served through drive-thru windows. Kennerknecht sits on advisory board for McDonald’s Canada that plans to reopen stores on a phase-by-phase basis. That could initially include some test restaurants opening their lobbies for take-out only.
Plans for Sydney River Square are expected to keep a fall opening schedule.