High Stakes in the Recession Era, But Downtown Businesses Can Increase Their Odds
DOWNTOWN LOS ANGELES — How Downtown business owners can make better use of their existing customer base. Part 1 in a series on weathering the economic storm.
Can Downtown still grow in the midst of an ongoing recession?
We've all heard the news. Economic recovery may not come around until 2011 at the earliest. And the challenges we face are significant: Increasing unemployment, reduced spending and a sudden drop in domestic and international tourism.
Ironically, while many may look to government for help, our neighborhood is disproportionately affected by drastic state budget cuts and a stalemate in Sacramento: Unpaid furloughs affect the Civic Center's government employment sector, leaving fewer customers for area restaurants.
Still, several high-profile projects will soon bring thousands of visitors, residents and workers to the area daily, including the Ritz-Carlton Hotel at L.A. Live, the Metro Gold Line Eastside Extension, the new LAPD Headquarters and several new residential buildings. Even with the recession, Downtown's five square miles are packed with over 400,000 jobs and 40,000 residents that need food, goods and services. We just need to ensure they're purchased in Downtown.
A look at the neighborhood's other major assets:
Staples Center hosted 250 events in 2008, drawing nearly 4,000,000 visitors last year.
The Music Center packs in 2.3 million visitors per year across five performance venues.
With an estimated impact of $1.1 billion in 2007, the Los Angeles Convention Center is one of Downtown's biggest economic engines.
Downtown's highly successful Art Walk draws between 5,000 and 6,000 visitors every month.
How many of these visitors' dining, hotel and service needs were met outside of the neighborhood? Local business owners can make smart choices to maximize the available customer base.
General Good Practices
Get (and maintain) a website: As our society does more and more via the Internet than ever before, why would a good number of Downtown restaurants and retailers still not have a website? Keep it simple and up-to-date, with contact information, hours of operation and even a small map pinpointing your location. Restaurant owners, be sure to post your menu (with prices).
Get a Twitter account: I'm a believer in Twitter the power of an efficient Twitter account to help build your brand and encourage a loyal following. Update your customers with news on new specials, discounts or sales. (Part 3 of this series will explain how to take advantage of Twitter for your business.)
Get an A-frame sign: Though the city has varying rules on A-frames placed in the public right-of-way, well-placed signage can draw pedestrians into your establishment. De-clutter exterior signage, make sure your storefront is well-lit in the evening, and most importantly, keep a clean sidewalk frontage free of garbage and caked-on dirt (or worse).
How to Reach Commuters
Lunchtime may be a restaurant's top grossing hour, even "subsidizing" slow periods in the evening.
Though the majority of commuters head directly to their parking structure once that clock hits 6:00pm, a small increase in the number that stay Downtown past the end of the business day will have a huge impact for local eateries.
Institute a happy hour with food and drink specials.
If permits allow, bring live music acts in on some nights.
Offer a small discount or a free drink or appetizer to those who show a monthly transit pass.
How to Reach Convention-goers, Game Attendees and Tourists
Luckily, you don't need to be located at L.A. Live in order to benefit from the increasing number of conventions and games in South Park.
Offer a discount for convention-goers; Lakers, Clippers, Kings and Sparks fans on game nights; and visitors staying in local hotels.
Reach out to hotels. Though many in Downtown have in-house restaurants of their own, introduce yourself and your business to front-desk employees; some clerks may recommend your business to their guests or stock your menu in an information kiosk or guest welcome package, especially if a coupon is included.
Local hotel managers: Make sure guests have all the information they need to get around town using various modes of transportation. Hotels aren't islands unto themselves; instead, an overall more pleasant experience means repeat business. Include maps, subway schedules, dining guides and sightseeing information in rooms and lobbies. Consider package deals linking room rates with tickets to museums, events, or docent-led tours, such as the LA Conservancy's walking tours
How to Reach Residents
The full-time population of Downtown L.A. is on the rise, but there's a lot more competition out there than ever before.
Tie discounts and promotions to local events, such as Pershing Square's Neighbor Day Weekend, performances at the Music Center or MOCA's late-night cultural events.
Add bike racks in front of your business if space and permitting allows.
Sponsor the Downtown L.A. Art Walk to be listed on the official map. Many restaurant owners report their busiest night of the month is the Art Walk Thursday.
What do you suggest for local businesses trying to ride out the storm?
Susana Benavidez writes:
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DOWNTOWN LA HOTEL INVITES GUESTS TO “BEAT THE HEAT”
The High Temperature for the Day is All You Pay
Los Angeles – June 19, 2009 – Wilshire Grand Los Angeles hotel, located in the “heart of downtown Los Angeles”, announced a new summer promotion for “Staycationers” coming to the burgeoning new art and entertainment scene in downtown Los Angeles centered on the brand new LA LIVE! sports, dining and entertainment project that opened this past December. “Beat the Heat” is a simple concept! Your Room rate will be based on the HIGH TEMPERATURE of the day of your stay (Fahrenheit) for DOWNTOWN Los Angeles as determined by AccuWeather.com. Your "Staycation" package includes a Superior room and 20% off all your meals in any of the five restaurants and lounges located at the hotel. An upgrade to a Junior Suite is available for $20 additional plus everyone will receive Grand Discount coupons, issued at check-in, for great deals on spa treatments, sightseeing tours, and much more. If global warming is your concern, your rate will be capped at $99+tax for your protection!! The average high temperatures for downtown Los Angeles is between 82 and 86 degrees, but savvy travelers can expect some great bargains during June gloom! Grand Discounts Coupons issued at check-in include: 15% discount off all services at Salon Belleza spa and a free 10 minute Chair Massage, 10% discount off all Guideline Sightseeing Tour Packages, $10 discount per day at Avis Car Rental, 20%discount off tours of the L.A. County Museum of Art and of Beverly Hills, an 11% saving pass at Macy’s Department Stores as well as discounted tickets to Disneyland, Universal Studios and The Grammy Museum to name a few! Restrictions do apply on certain dates based on hotel availability and occupancy. Tax is additional and this offer can not be combined with any other offer.
Less than thirty minutes from the Los Angeles international airport, the Wilshire Grand is conveniently located adjacent to a Metro subway station (with direct links to Hollywood and Universal Studios Hollywood). The Wilshire Grand Los Angeles’ complimentary features include free high-speed wireless internet access, a 24-hour fitness center, outdoor swimming pool and spa. The abundant, studio-sized Junior Suite Rooms (which include seating areas, second bathrooms and two closets) were designed to give guests a residential feel during their stay in LA and are perfect for families! The Wilshire Grand (spread out over an entire city block) is located a short walk away from the Performing Arts Center, the Walt Disney Concert Hall, MOCA (Museum of Contemporary Art), the Nokia Theater, LA LIVE!, the financial, fashion and jewelry districts.
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