For hundreds of years, cities have been the cultural centers of just about every community on the planet. Proximity puts people at the intersection of commerce and art, and that has hardly wavered in the modern era.
Think of the great museums, galleries, theaters, churches, hotels and, yes… restaurants. They’re often fairly close to each other, because if you’re going to sit through a three-hour opera, you’ll want to make sure you’re well fed before you take your seat. If you’re going to book a hotel in a new city, you’ll want to make sure there are things to do within walking distance of that hotel. And if you live in a neighborhood, you’ll probably want to know that you have multiple dining options nearby.
This is something we’ve long taken for granted.
And sure, there are the outliers… but very few worth mentioning. Simply put, cities have thrived when culture is everywhere.
And yet, there is a significant trend right now with the way the workforce is shifting. Take a look out your window and you can’t help but witness the death of the 9-to-5. For example, here in N.Y.C., where I live, ridership on the nation’s biggest subway system is still half of what it was pre-pandemic. Office workers spent two years grinding it out at home, being just as productive (sometimes more so) than they had been at their cubicles.
And employers took note. They couldn’t help but notice the way people enjoyed their roles better when they cut out 10 to 12 hours commuting to and from work each week. For many, that meant a great workout each morning and a home cooked meal each night.
And if workers are more productive at home, then why not let them stay at home? Companies began to add up the real estate costs, realizing they could shrink their footprint and save a significant amount on their overhead.
Given how connected we are these days, this was all probably inevitable, and the pandemic just sped up the timeline.
But now there is a domino effect happening, and I’m not hearing enough people in the bar and restaurant industry talk about it. Even a 20 percent decrease in pre-pandemic traffic represents a devastating impact on our cities. Public transportation will suffer, real estate will collapse and, yes… all those bars and restaurants will struggle to survive.
And yet in every crisis, there is opportunity.
A Big Shift for Independent Bar and Restaurant Operators
All those people who are no longer required in the city are spending more time than ever near their homes in the suburbs. And the industry better pay attention. There will be a desire for more varied options – and more quality options – than what the chains have to offer.
Not only will consumers crave it, but they will come to expect it. And this represents a huge shift for independent bar and restaurant operators everywhere. Indeed, the industry has an opportunity to serve its audience in a way that it never has before.
Think About This…
- Bar and restaurant guests are spending all day working in the same space where they live, so they’ll need to escape every once in a while at the end of their workday.
- They wake up, workout, shower, eat breakfast and sit down at their desk. Many would love an excuse to leave their house – even just for 10 minutes – before they start their workday.
- Happy Hour was invented for people who had time to kill before their train home. I promise, there is an equivalent in this new normal that just hasn’t been invented yet.
- Chain restaurants exploded in the ‘90s and early 2000s largely because their existence went uncontested. Today, bar and restaurant guests have become more discerning and will demand things that the chains simply will not be able to deliver.
- Bar and restaurant patrons used to entertain clients in the city because that’s where everyone worked; it was simply more convenient to host a dinner at one of the fancy restaurants downtown. But if so many people are working from home – even for part of their workweek – how might they prefer to entertain their clients in this new normal?
Save in the ‘Burbs, Turn a Faster Profit
The bottom line is this… if I were opening a bar or restaurant in 2022, there’s no way I would look at spaces in a city. There is a huge untapped market out in the suburbs, where spaces can be secured for a fraction of the cost. That savings will help operators turn a profit faster and, perhaps, build a more ambitious concept than what could ever be achieved downtown.
If you’re interested in some further insights on the topic, if you decide to explore this route, check out this terrific feature in The New York Times, or this brilliant read from Harvard Business Review.
Chip Klose is based in N.Y.C., where he runs the marketing agency Chip Klose Creative, working with chefs and restaurant owners to help them grow their brand presence and increase revenues. Klose is also the host of a marketing podcast, Restaurant Strategy, where he talks about many of the strategies and tactics he uses day-to-day in marketing restaurants. To learn more, visit ChipKlose.com.
Plan to Attend or Participate in
Bar & Restaurant Expo, March 27-29, 2023
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo, March 27-29, 2023 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
Veronica Gonnello
(for companies A to G)
e: [email protected]
p: 212-895-8244
Tim Schultz
(for companies H to Q)
e: [email protected]
p: (917) 258-8589
Fadi Alsayegh
(for companies R to Z)
e: [email protected]
p: 917-258-5174
Also, be sure to follow Bar & Restaurant on Facebook and Instagram for all the latest industry news and trends.