Sponsored by Dinova
Between 2015-2018, many enterprise level companies have, or will, move headquarters and/or offices from one city or state to another. When companies relocate, it brings a profitable opportunity for the communities around those offices, especially restaurants.
Dinova, the only proprietary marketplace that connects business diners to restaurants, has seen large shifts in business dining spend from companies that participate in its marketplace when these relocations happen. The annual corporate dining spend of a large company in a home state is significant, as it often represents an influx of tens of millions of incremental spend to the vicinity. Business dining accounts for $60B in meals and entertainment expenses annually, so these geographic spending shifts can have a sizable impact.
According to Dinova’s proprietary market data:
Approximately 14% of a corporations dining spend occurs within the company’s home state
17% of enterprise-level corporations that participate in Dinova’s marketplace have or will relocate by 2018
Of those Dinova companies planning relocations, 13% will relocate within the same state, and 4% will relocate from one state to another
When looking at business dining spend, the most dramatic changes are for companies that moved offices or headquarters from one state to another. General Electric, a Dinova partner company, has seen an increase in overall business dining spend in Massachusetts while the spend gradually decreased in Connecticut, once the headquarters began its move from Fairfield, CT to Boston, MA in 2016.
Steven Clark, Director of Government Affairs from the Massachusetts Restaurant Association, mentions that there is an uprising of “Live. Work. Play.” Particularly in Seaport, a revitalized part of the state that has attracted companies from all over, including GE. Even GE’s chief executive, Jeffrey Immelt saw the potential in moving to a burgeoning area like Seaport and shared “we want to be at the center of an ecosystem that shares our aspirations.” Choosing an area that has the potential for growth is a key decision factor in why companies move from one location to another.
Clark also attributes the thousands of employees from companies such as Reebok, Vertex and PWC as a solid factor in why the Seaport area continues to grow. An estimated 75-80 new restaurants inhabit the area and serve the hundreds of offices that have moved in to surrounding buildings.
Similarly, San Francisco’s Market Street is a bustling hub for restaurants, offices, and more.
“As the economy grows and jobs are created, the restaurant industry flourishes,” said Gwyneth Borden, Executive Director of the Golden Gate Restaurant Association. “Company relocations bring employees and visitors to the city that helps to fill restaurant seats, and restaurateurs are often willing to take a chance on moving into locations where job growth is anticipated. Based upon the numbers, there has been corresponding restaurant growth (both in number of restaurants and employees) in San Francisco as overall jobs have grown.” Nearly 20 restaurants opened in Mid-Market as a result of the revitalization.
In the same way, the West Loop area of Chicago has been hard at work rebranding as an up-and-coming area, that is now home to some of the most “cutting-edge restaurants.” This is exactly why, in 2016, Google moved its employees to a new 200,000-square foot office location in the heart of the West Loop.
“When large offices relocate, the restaurant business in the surrounding area typically sees a boom, with Chicago’s West Loop neighborhood (which now houses the Google offices) as a prime example” said the Illinois Restaurant Association. “We’re excited to see how the restaurant landscape continues to change as large companies enter the market.”
Another example from a Dinova partner company is Newell-Rubbermaid, who moved its global headquarters with more than 1,000 people from Atlanta to Hoboken, New Jersey. Hoboken sits just across the river from New York, where restaurant choices abound. Not surprisingly, Dinova has found that since the move, Newell-Rubbermaid’s business dining spend has decreased in Atlanta with a corresponding increase to its partner restaurants in New York and New Jersey.
For restaurants that participate in Dinova’s business dining marketplace, being in the know on upcoming corporate relocations into the area, and being able to reap the benefits of new-found corporate dining spend is a big competitive advantage over other local restaurants.
To learn about how your restaurant can reach more business diners with Dinova, please visit Dinova.com or call 888-DINOVA8 (888-346-6828).