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How important are urban restaurants? This recent article by Eduardo Porter makes the argument that they are a "central pillar of superstar cities." They are the social spaces that draw young and smart people to cities (see above) and that fuel our creative economy.
According to Eduardo, in the 1970s, urban consumers in US cities typically devoted about 28% of their overall food budget to dining out. As of 2019, restaurants, bars, food trucks, and other dining establishments consumed about 47% of this budget for people living in cities with a population greater than 2.5 million.
By comparison, people who resided outside of an urban area in 2019, spent only about 38% of their food budget on eating out. Still, these are substantial numbers. A big part of the food and drink that we consume is, at least during normal times, happening outside of where we live.
Right now is certainly not the finest hour for cities. Urban amenities (like restaurants) and social networks are part of what make living in a city so enjoyable. And these two things have been greatly (and rightly) reduced. But I don't for a second doubt the overall resiliency of our cities.
This isn't their first crisis and, unfortunately, it won't be their last.
Image: New York Times
Eduardo Porter recently published this piece in the New York Times on the “relentless economic decline” of small-town rural America. We often talk about rising income inequality, but the greater concern is the alarming rate of joblessness in many of these communities. Earning less than others is not as bad as earning nothing.
I think the below map from the article, depicting population density by county, starts to show how uneven the economic landscape is across the US. Porter puts it this way: “This is the inescapable reality of agglomeration, one of the most powerful forces shaping the American economy over the last three decades.”
But, of course, we don’t really have a solution to this problem. Some are suggesting employment subsidies, such as the earned-income tax credit. While others are suggesting that we need to make it easier to build in the large blue spikes shown above. That way we’ll be able to more affordably accommodate the people who will ultimately need to move from rural to urban.
While this latter suggestion may seem grim for small-town America, it is perhaps a reminder of what cities really are at their core: Cities are labor markets. They are the places where people come to get a job and make money.
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