Hybrid Work Schedules
Hybrid work schedules provide employees unprecedented convenience. But for the businesses located on the streets those workers once walked daily, the schedule shift is proving decidedly inconvenient.
Worker-catered services, such as restaurants and hotels in downtown areas of major metros, have seen sales return to pre-pandemic levels — but only on Tuesday, Wednesday, and Thursday. Even with restrictions lifted, Monday and Friday remain incredibly slow for these businesses, putting a significant dent in sales.
With remote flexibility now a workplace norm, this trend may not change anytime soon.
No More Happy Hours
In most major metros, hybrid work schedules have led employees to spend thousands less at local businesses throughout the year.
For example, WFH Research estimated the average worker in New York City spent $4,661 less at businesses near their workplace between June and November of last year. The same is true for workers in city centers across the US, with over a dozen metros seeing a decrease in spending by at least $2,000 per person.
This suggests that hybrid schedules aren’t just keeping people home for the workdays, but for the coffee runs and happy hours, too. The reduced spending is leaving many businesses struggling to keep the doors open.
Back to the Burbs?
Trends like this showcase the power that consumers have to influence the economy. A single shift in preference can trigger a ripple effect felt for years to come.
As customers leave town, service workers — whose wages are dependent on traffic — will follow. In turn, businesses may do the same. Restaurant options will most likely start to shutter in downtown areas and reemerge in surrounding suburbs to cater to work-from-home employees.
With this in mind, if you have a favorite restaurant downtown, you might want to consider going out of your way to continue supporting it. There’s no telling how it might be faring – and how a simple decision you make could change that.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.