If people don’t go to the office, all the infrastructure that’s been put in place to support employees is no longer viable.
Remote and hybrid work are reshaping downtown economies, and restaurants are among the businesses hardest hit.
“As remote or hybrid work continues to be popular, office attendance declines. The decline in in-person work may increase office vacancies and reduce foot traffic at other businesses in densely office areas,” the Federal Reserve data shows.
This shift was experienced firsthand near my previous office, when a Starbucks in the attached hotel closed after the pandemic.
For businesses, being cut by paper a thousand times means death. It’s not that one customer is lost, it’s that thousands of customers are visiting less often.
Restaurants, cafes and bars are all feeling the pinch of hybrid working environments.
“While Wednesday and Thursday can be busy, Monday and Friday can be very slow,” Andrew Rigie, executive director of the New York City Hotel Alliance, told CNBC. “If someone walks by a restaurant on a Thursday at lunch or dinner, they might say, ‘Wow, that restaurant was packed, they were too busy,’ but that’s not the case every day.”
This is not unique to New York.
According to CNBC, “In cities such as New York, Los Angeles and Atlanta, three days of in-person work a week has created challenges for hospitality companies. With fewer employees in the office on Mondays and Fridays – the strongest sales days for some businesses – many businesses have been forced to change work arrangements or launch initiatives to attract customers at the beginning of the week and weekends.”
This change in consumer behavior forced Boston’s iconic market to close its doors for good.
Food courts are on the rise in many tourist areas.Shutterstock · Shutterstock
Food courts have become a growing trend in tourist areas as the coronavirus pandemic shuts down buffets. In Las Vegas, nearly every hotel on the Strip used to have a buffet, now only a few remain and more food courts have opened.
A food court is a modern interpretation of a mall food court, housing multiple restaurants under one roof. Some even provide QR code ordering services, making it easy to eat dishes from multiple restaurants.
The concept has been adopted in cities as well, as one of the most famous food halls, Time Out Market, located near Fenway Park, has decided to close its doors as a way to serve workers.
Time Out Market CEO Michael Marlay said in a statement: “As we see the Boston market recover and grow post-pandemic, we are focused on initiatives to drive further growth; however, footfall in the region has remained inconsistent to date due to ongoing hybrid efforts, in addition to increased operating costs, all of which have hindered continued profitability.”
