The Scene of Establishments Rented Out for Dining Purposes
Spinning the Story:
Hey there! Let's dive into the crazy world of real estate—or at least, the Big Apple's property scene. While I might not be flipping homes for a living, I can spot a good deal a mile away. I'm not talking about a sweet spot at our spaceship-like co-working spot, Bworks (shout out to Josh Halpern, our Bworks hero du jour). Nope, I'm talking about scoring a prime apartment in Manhattan, the concrete jungle where dreams are made of.
And guess who's going to be grinning ear-to-ear? Apartment renters, that's who! After a whopping two years of rental rates skyrocketing, they're finally getting a break. The average rental for new lease signing? It only increased by a measly 2% over the past 12 months, marking one heck of a deceleration compared to any other year in history.
But when it comes to restaurants, the situation looks quite different. A whopping 54% of small business owners are crying broke—they're paying more for rent now than they did six months ago. Crazy, right? This data has been crawling up since day one of the pandemic, being collected from an army of 4,500 troops—I mean, respondents, according to Alignable. In the worst-case scenarios, 14% of small businesses have seen their rent balloon by a crippling 20% since December.
This is a tough pill to swallow for restaurant owners. You guessed it—they're feeling the sting of high inflation, with a staggering 54% citing it as their top concern, as per the U.S. Chamber of Commerce Small Business Index.
And yet, restaurateurs are steely-eyed and optimistic. Our philosophy is simple: Invest in tech that streamlines operations, benefits operators, and hopefully fattens our wallets. As Sharon Miller, resident small business whiz and head of Specialty Banking and Lending at Bank of America, explains, newfangled tech can help "retain and attract talent, and explore new tools like AI, to stand out in a ridiculously competitive market." Rock on, restaurateurs!
Despite a global pandemic, mind-boggling inflation, and a scarcity of labor, the hook's still in the jaws of restaurants—they're as resilient as a 3-piece set of drumsticks played by the one and only Paul McCartney at 80 years young. And ain't that something? 76% of small business owners are confident their businesses can weather an economic downturn, while a boisterous 65% is expecting revenue growth in the next 12 months.
So here's the lowdown: while residential properties cuddle up to a comfy, stable market, the restaurant realm's a whole 'nother beast. Higher vacancy rates, rental adjustments, and a rollercoaster of challenges make it a tumultuous landscape, as compared to the pristine peace of residential properties. But as there's a song for every singalong, there's a tech-enabled solution to every restaurant-related problem. Don'tcha know it.
- An entrepreneur in the small-business sector, specifically in the restaurant industry, is considering investing in technology to help streamline operations, attract talent, and stand out in a competitive market, as highlighted by Sharon Miller, the head of Specialty Banking and Lending at Bank of America.
- In the housing market, particularly the Manhattan rental sector, renters are experiencing a break from the previous two years of continually rising rental rates, with the average rental rate for new lease signings increasing by only 2% over the past 12 months.
- Despite the uncertainty and challenges in the real-estate sector, particularly in the restaurant industry, a majority of small business owners (76%) are confident their businesses can weather an economic downturn, and a significant portion (65%) is expecting revenue growth in the next 12 months.
