FoodService Warehouse plans to locate a newly designed 475,000 square foot distribution center underground when it moves into SubTropolis, the world’s largest underground business complex located about 100 feet below Kansas City, Missouri.
The approximate $11 million project includes FSW’s $1.75 million capital investment and Hunt Midwest’s $9.25 million investment to retrofit and customize the space. The lease includes options to grow to 792,000 sq. ft. over the next four years. A steady year-round temperature ensures tremendous energy savings and the opportunity to reduce greenhouse gas emissions for FoodService Warehouse.
FSW sells and distributes a variety of food service supplies and equipment to restaurant, fast food, and bar owners nationwide. In addition to enabling FSW to more quickly and efficiently transport supplies and equipment to every corner of the nation, the company cites the potential to grow its footprint with the underground and access to high-speed connectivity.
“An internal audit revealed Kansas City as the most economical and efficient location for our fulfillment and distribution center,” said Madhu Natarajan, CEO of FSW. “When we toured SubTropolis, we immediately saw the opportunity it held for our company. The logistics alone are impressive, but the potential to grow our footprint within the underground and the access to high-speed connectivity helped us make our final decision to move here.”
With five million sq. ft. of leased warehouse, light-industry, and office-space, and a network of more than two miles of rail lines and six miles of roads, SubTropolis is a bustling enterprise zone for the State of Missouri.
“Companies that have embraced technology are truly the ones that will move our economy forward and what we work hard to attract,” says Mike Downing, Director of the Missouri Department of Economic Development. “Missouri’s strong transportation infrastructure, highly-skilled workforce, and pro-business climate make for the perfect platform for companies to engage in e-commerce and distribute their goods to clients quickly and efficiently.”
To assist FSW with its expansion, the Department of Economic Development has offered a strategic incentive package that the company can receive if it meets strict job creation and investment criteria. The Missouri Partnership, the City of Kansas City, the Kansas City Area Development Council, the KC SmartPort, the Clay County Economic Development Alliance and KCP&L also partnered with FSW to help make the expansion possible.