Restaurants are a vital part of any local economy. Beyond offering great dining experiences, restaurants provide employment opportunities for locals, contribute to rising property values, support local suppliers, and generate tax revenue that benefits the entire community.
Restaurateurs can benefit from a full understanding of their businesses' local economic impact, and how to maximize business growth and community support.
What is the local economy impact of restaurants?
Restaurants impact the success of communities in many ways. These are some of the most critical ways restaurant owners help local economies flourish.
Create restaurant economic benefits
The restaurant and food service industry is the second largest private sector employer in the US, employing 15.5 million Americans. Thriving local businesses play a key role in job creation in restaurants. By offering flexible work arrangements, including job sharing, part-time hours, or split shifts, restaurants attract a diverse workforce, from high school students to seasoned professionals.
As a restaurant owner, consider expanding your restaurant hours to include breakfast or lunch services to boost employment and revenue. Another option is to partner with a third-party delivery platform like DoorDash to create opportunities for increased business that could help your operation expand and hire additional staff.
One of the many ways DoorDash makes a local economic impact is through the DoorDash Accelerator for Local Restaurants, which provides financing and education to help local restaurants grow and expand employment opportunities. This means more money circulating within the local economy, which fosters growth across business categories.
The community impact of empowering businesses is significant: 91% of surveyed merchants say that without partnering with DoorDash, their new customer growth would have been lower, and 19% also say that their business would not currently exist without DoorDash.
Boost property values with restaurants
Successful local restaurants also significantly impact neighborhood property values. A thriving culinary scene draws more foot traffic, which attracts other small businesses to the area, including cafes, art galleries, and boutiques. Neighborhood buzz and revitalization spark investment interest from homeowners and real estate developers. By maintaining high standards of service and quality, restaurants can become a community staple and improve the overall desirability of the area.
As a restaurant's business, revenue, and profitability grow, so do its contributions to the local economy through property and sales taxes. The tax revenue a restaurant generates supports local infrastructure, schools, and community services.
Offering delivery is an easy way for restaurants to increase reach beyond a single neighborhood and boost online visibility, especially as the demand for takeout options shows no signs of slowing.
Partner with local suppliers
Customers want to support independent restaurants — a recent survey found that 33%) of consumers actively seek out local restaurants when ordering delivery food. Many successful restaurants form partnerships with nearby farms and suppliers, which further strengthens the local economy. Some of the most common local food vendors restaurants source key ingredients from include:
Bakeries: A wide range of both every day and artisanal baked goods, from bread to pastries
Butchers: A great source of grass-fed, organic meats
Farmers: Buying local produce supports food security and long-term sustainability
Seafood suppliers: Access to fresh and not-frozen seafood supports small-scale local fishers
Coffee shops: Sourcing beans from a local roaster or coffee shop puts a premium on freshness
Breweries, wineries, and cideries: Restaurants can collaborate on seasonal products and special offers
Foster a healthier community
Restaurants that offer a diverse variety of health-conscious options on the menu also tap into the growing demand for more healthful food alternatives. This aligns with various food movements, including the farm-to-table movement — which advocates for ethically sourced, organic, and locally produced food — and the locavore movement, which involves consuming locally-grown or produced food. Partnering with local food suppliers caters to socially conscious consumers, stimulates the local economy, and helps businesses grow.
Support minority-owned businesses
Restaurants and community growth go hand in hand. Restaurants are more commonly owned by minority groups than other types of businesses: according to the National Restaurant Association, 41% of restaurants are owned by minorities, compared to 30% of other private sector businesses. Of this percentage, 19% are Asian-owned, 14% are Hispanic-owned, and 9% are Black or African-American-owned.
For a minority-owned business, success plays a valuable role in contributing to the economic diversity and growth of the community. Highlighting your business's connection to the community can help attract customers who appreciate and want to support local and diverse businesses.
"I'm prideful of my background, and this is my way of giving back to my country and my community. I want to show kids from different backgrounds that you can jump into a space that's unrepresented. If you have an idea, something you've been wanting to do, just try it."
Grow your business for a local economy impact
Interested in contributing to your local economy while growing your business? Learn how DoorDash helps with supporting local restaurants and can partner with you to reach more customers to continue making a positive community impact.
