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TRANSCRIPT
DOWNTOWN AUSTIN
RETAIL, LIVE MUSIC & SMALL BUSINESS
Downtown Austin Alliance | October 2021
COVID-19 IMPACT & RECOVERY REPORT
INTRODUCTION
Food PlacesBefore the rise of COVID-19, stay-at-home orders and the temporary closure
of businesses across the state, downtown Austin’s small storefront
businesses and nightlife economy was thriving. Storefront businesses
operating in downtown enjoyed access to a growing daytime and nighttime
population as the number of occupied residential units, office space, and
hotel rooms continued to expand annually. Market fundamentals in retail
space reflected the advantages of operating a business in downtown. This
growing and increasingly diverse consumer base has supported the
evolution of downtown’s unique districts. The 700+ businesses within these
districts generally can be divided into four categories: drinks &
entertainment, food places, retail goods, and retail services. In support of
these businesses, the Downtown Austin Alliance developed the Roadmap to
Recovery, a list of short-term strategies and long-term goals, to address the
pandemic's impact on downtown. As we monitor downtown's recovery, this
report will reflect on past conditions as well as highlight the results of our
most recent inventory of downtown storefront businesses .
Coffee & Tea
Restaurant
Juice & Smoothies
Sweets & Desserts
Food Hall
Food Truck
Food Stand
Bar
Breweries, Wineries & Farms
Event Spaces & Banquet Halls
Fun & Games
Movie Theater
Nightclub
Performance Venue
Drinks & Entertainment
Groceries & Convenience
Art Gallery
Clothing Store
Pharmacy
Jewelry Store
Vitamin & Supplement Store
Vapes, Cigars & Accessories
Hat Shop
Beauty Product Store
Shoe Store
Eyewear Shop
Bookstore
DVDs, Records & Video Games
Gifts & Collectibles
Furniture & Home Goods
Liquor & Wine
Furniture & Home Goods
Baby Store
Plants & Flowers
Pet Store
Sporting Goods & Outdoor
Equipment
Office Supply Store
Electronics & Mobile Phones
Toy Store
Retail Goods
Auto Dealers, Repair & Care
Tours & Visitor Info
Tattoo Parlor
Massage & Relaxation
Nail Salon
Barber Shops & Hair Salons
Brows, Lashes, Wax & Makeup
Piercing Parlor
Fitness & Gyms
Graphics Store
Financial Services Center
Laundry, Cleaners & Tailors
Banks & Atms
Repair Services
Pet Care
Day Care Center
Retail Services
0 10 20 30 40 50 60 70 80 90 100
40% 25% 17% 18%
Food Places Drinks & Entertainment Retail Goods Retail Services
Breakdown of Downtown Austin Retail Businesses - February 2020
Source: LiveXYZ, Downtown Austin Alliance
On March 6, 2020, the City of Austin declared a local disaster and in effect canceled SXSW
days before the event was set to occur. The internationally renowned event brings
approximately 400,000 people to downtown Austin annually and in 2019 provided an
estimated economic impact of $356 million dollars across the city. The 10-day long festival
generated much of its economic output downtown. While cancelling this event was the right
thing to do to protect our community, the economic toll on downtown businesses have been
deep and far reaching. Through March and April, downtown office buildings emptied as
thousands of employees worked remotely to help stop the spread of the virus. In May 2020,
the Downtown Austin Alliance conducted a survey of downtown retail and small storefront
businesses, and the results were dire.
INSTANT ECONOMIC IMPACT
* Four locations used along Congress Avenue in downtown
Source: Placer.AI, EcoCounter, Texas DSH
Weekly Visits Downtown: Residents, Employees, and Visitors
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1/6/2
020
1/13/
2020
1/20/
2020
1/27/
2020
2/3/
2020
2/10/2
020
2/17/2
020
2/24/
2020
3/2/
2020
3/9/
2020
3/16/2
020
3/23/
2020
3/30/
2020
4/6/
2020
4/13/2
020
4/20/
2020
Est
ima
ted
Vis
its /
We
ek
Weekly Visits by Visitors Weekly Visits by Employees Weekly Visits by Residents
Retail & Small Business Survey Results - May 2020
n = 80
62% 71% 50% 20%of respondents
had suspended
operations
temporarily
of respondents
either permanently
or temporarily let
go of employees,
76% of which go
more than 76% of
their staff
of respondents said
they could reopen
immediately once
public health orders
are lifted
of respondents said
they were not sure
if or when they'd be
able to reopen once
public health orders
are lifted
n = 78 & 55 n = 74 n = 74
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
8
16
24
31
39
47
55
2/2/
2020
2/4/
2020
2/6/
2020
2/8/
2020
2/10/2
020
2/12/2
020
2/14/2
020
2/16/2
020
2/18/2
020
2/20/
2020
2/22/
2020
2/24/
2020
2/26/
2020
2/28/
2020
3/1/2
020
3/3/
2020
3/5/
2020
3/7/
2020
3/9/
2020
3/11/2
020
3/13/2
020
3/15/2
020
3/17/2
020
3/19/2
020
3/21/2
020
3/23/
2020
3/25/
2020
3/27/
2020
3/29/
2020
3/31/2
020
4/2/
2020
4/4/
2020
4/6/
2020
4/8/
2020
4/10/2
020
4/12/2
020
4/14/2
020
4/16/2
020
4/18/2
020
4/20/
2020
4/22/
2020
4/24/
2020
4/26/
2020
4/28/
2020
4/30/
2020
Pe
de
stri
an
Co
un
ts /
Da
y*
Ro
llin
g 7
Da
y A
vg. N
ew
CO
VID-1
9 C
ase
s
Pedestrian Counts / Day* Rolling 7 Day Avg. New COVID-19 Cases
Congress Ave Pedestrian Counts / Day & Travis County COVID-19 Cases
City of Austin Cancels SXSW
REOPENING
On April 27, 2020, Governor Abbott signed Executive Order GA-18 outlining the extent to
which businesses could reopen beginning May 1. Although businesses were allowed to
operate, consumer demand in downtown didn’t rebound immediately as visitors and office
using employees have been slow to return. Pedestrian activity along Congress Avenue
remained suppressed throughout the year, albeit steadily rising to where it sits currently at
91% of pre-pandemic traffic. Similarly, taxable alcohol sales at the hundreds of downtown
restaurants, bars and entertainment venues also show a slow yet steady pace toward
recovery after falling 99% year over year in April 2020. Year-over-year downtown's 10,000+
hotel rooms remained well-below 50% occupancy throughout the remainder of 2020.
Source: Texas Comptroller, CoStar, Placer.AI
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1/6/2
020
1/20/
2020
2/3/
2020
2/17/2
020
3/2/
2020
3/16/2
020
3/30/
2020
4/13/2
020
4/27/
2020
5/11/2
020
5/25/
2020
6/8/
2020
6/22/
2020
7/6/
2020
7/20/
2020
8/3/
2020
8/17/2
020
8/31/2
020
9/14/2
020
9/28/
2020
10/12/2
020
10/2
6/2020
11/9/2
020
11/2
3/2020
12/7/2
020
12/2
1/2020
1/4/2
021
1/18/
2021
2/1/2
021
2/15/2
021
3/1/2
021
3/15/2
021
3/29/
2021
4/12/2
021
4/26/
2021
5/10/2
021
5/24/
2021
6/7/
2021
6/21/2
021
7/5/
2021
7/19/2
021
8/2/
2021
8/16/2
021
8/30/
2021
9/13/2
021
Vis
its /
We
ek
Downtown Visits / Week 2017 to 2019 Average
Total Weekly Visits Downtown
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan 2
020
Feb 2020
Mar
2020
Apr 2020
May
2020
Jun 2
020
Jul 2
020
Aug 2020
Sep 2020
Oct
2020
Nov
2020
Dec
2020
Jan 2
021
Feb 2021
Mar
2021
Apr 2021
May
2021
Jun 2
021
Jul 2
021
Aug 2021
% H
ote
l R
oo
ms
Occu
pie
d
Downtown Hotel Room Occupancy Rates
Downtown Monthly Alcohol Sales Receipts
0
5M
10M
15M
20M
25M
30M
35M
40M
1/31/2
019
2/28/
2019
3/31/2
019
4/30/
2019
5/31/2
019
6/30/
2019
7/31/2
019
8/31/2
019
9/30/
2019
10/3
1/2019
11/3
0/2019
12/3
1/2019
1/31/2
020
2/29/
2020
3/31/2
020
4/30/
2020
5/31/2
020
6/30/
2020
7/31/2
020
8/31/2
020
9/30/
2020
10/3
1/2020
11/3
0/2020
12/3
1/2020
1/31/2
021
2/28/
2021
3/31/2
021
4/30/
2021
5/31/2
021
6/30/
2021
7/31/2
021
CURRENT STATE
The Downtown Austin Alliance has completed its second biannual effort to inventory
all storefront retail and small businesses located downtown. Between August 24
and September 5, 2021, the effort identified 532 operating businesses, including 36
new businesses, out of 740 occupied storefronts. The number of businesses
operating downtown has increased by 64 since our previous count in February
2021. The results highlight the extraordinary creativity and resilience shown by the
many retailers, restaurants, and live music venues during this time of economic
uncertainty. Unfortunately, the effort has also identified at least 97 businesses that
have permanently closed their downtown locations since the pandemic began.
Furthermore, the status of another 44 businesses that continue to occupy their
space are unknown or showed no signs of operating during the inventory effort.
Weekly visits to downtown in August averaged 637,797 visits, or 81% of our 2017 to
2019 average, and continue to move in the right direction. Similarly, hotel occupancy
downtown has remained above 50% since March with thriving weekends carrying
most of that weight. Unfortunately, weekdays continue to struggle, and businesses
that rely on office using employees continue to wait for the consistent return of their
customer base.
Operating
Temporarily
Closed
Status
Unknown
Permanently
Closed
New Business
Source: LiveXZYZ, Downtown Austin Alliance
N = 199 N = 127 N = 123N = 291
68% 73% 76% 75%
Drinks & Entertainment Food Places Retail Goods Retail Services
N = 742 N = 742 N = 740
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0 49%
23%
3%
25%
63%
15%
12%
11%
72%
5%
6%
12%
6%
Percent of Downtown Storefront
Businesses Operating as ofJuly 26
2020
Feb 7
2021
Sep 5
2021
Storefront Business Operating Status by Business Type
Map of Storefront Business Operating Status
36
New Businesses
It’s been a rough road for the downtown businesses over the last year and a half, and the
Downtown Austin Alliance is committed to assisting in their recovery. Joining in this effort
to rebuild are 36 new businesses that have opened locations across downtown, a sign of
faith in downtown’s recovery. In fact, P. Terry's reconsidered their decision to vacate its
downtown space during the pandemic and has recently reopened its operations on 515
Congress Avenue. Restaurants and bars make up the majority of these new businesses
with 13 and 11 opening in downtown, respectively. Almost half of these businesses, or 15
out of 36, have filled the space of a previous tenant. Two are occupying newly built
space as part of recently completed real estate developments. The remaining 19
businesses have filled retail space that was vacant prior to the pandemic. Increased
investment in downtown is a positive sign as downtown continues to recover.
20
18
16
14
12
10
8
6
4
2
0
Not Applicable,New Building
PermanentlyClosed
Business
Vacant Space
2 15 19
Storefront Status Prior to New Business
New Businesses Operating Downtown
Source: Downtown Austin Alliance
12
10
8
6
4
2
0
Bar Barber Shops& Hair Salons
Business,Commercial &Professional
Services
Clothing Store Electronics &MobilePhones
MedicalServices
Restaurant Sweets &Desserts
11 1 5 2 1 1 13 2
Breakdown of New Businesses by Subcategory
Retail Goods
Food
Places
Drinks &
Entertainment
Retail Services
Map of New Businesses Operating Downtown
Weekdays and Weekends
Source: EcoCounter
Total Weekday Weekend Pedestrian Counts Along Congress Avenue
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
7/5/2021 7/12/2021 7/19/2021 7/26/2021 8/2/2021 8/9/2021 8/16/2021 8/23/2021 8/30/2021 9/6/2021 9/13/2021 7/2/2021 7/9/2021 7/16/2021 7/23/2021 7/30/2021 8/6/2021 8/13/2021 8/20/2021 8/27/2021 9/3/2021 9/10/2021
Tota
l P
ed
est
ria
n C
ou
nts
Weekdays or Weekends Beginning
2019 Comparable Weekday Total 2021 Weekday Total 2019 Comparable Weekend Total 2021 Weekend Total
Note: Weekdays = M, Tu, W, Th
Weekends = F, Sa, Su
Overall pedestrian activity and total visits in downtown Austin have come within reach of our pre-
pandemic average; however, the distribution of that activity is unevenly distributed between
weekends and weekdays. Total pedestrian counts along Congress Avenue for recent weekends
have consistently achieved 80% of their counts for comparable 2019 weekends. Weekdays, on the
other hand, have been consistently at or below 60% for comparable 2019 weekdays. Throughout
downtown’s recovery, weekdays have lagged weekends. Beginning November 2020, the
Downtown Austin Alliance Foundation worked with local businesses along the 600 block of
Congress Avenue to activate the sidewalks and outdoor areas with socially distanced dining areas,
music, and programming through the City of Austin’s Shop the Block program. One participating
business said “Shop the Block has been the best thing that has ever happened to the 600 Congress
Block. It’s changed the entire look and feel and made it much more inviting to spend time in.” This
program along with other recovery measures led to a quicker re-opening of Royal Blue Grocery and
Caroline’s restaurant
0
20
40
60
80
100
120
140
160
180
200
220
12:15
AM
12:4
5 AM
1:15 A
M
1:45 A
M
2:15
AM
2:45 A
M
3:15
AM
3:45 A
M
4:15
AM
4:45 A
M
5:15
AM
5:45 A
M
6:15
AM
6:45 A
M
7:15
AM
7:45 A
M
8:15
AM
8:45 A
M
9:15
AM
9:45 A
M
10:15
AM
10:4
5 AM
11:15
AM
11:4
5 AM
12:15
PM
12:4
5 PM
1:15 P
M
1:45 P
M
2:15
PM
2:45 P
M
3:15
PM
3:45 P
M
4:15
PM
4:45 P
M
5:15
PM
5:45 P
M
6:15
PM
6:45 P
M
7:15
PM
7:45 P
M
8:15
PM
8:45 P
M
9:15
PM
9:45 P
M
10:15
PM
10:4
5 PM
11:15
PM
11:4
5 PM
Pe
de
stri
an
Co
un
ts /
15
Min
ute
s
Average September Day in 2019 Average September Day in 2021
Average September Day at 609 Congress Avenue in 15 Minute Intervals
Nightlife Economy & Live Music
Monthly Alcohol Sales Receipts by District Indexed to 2017 to 2019 Average
0
20
40
60
80
100
120
140
160
180
200
1/31/2
020
2/29/
2020
3/31/2
020
4/30/
2020
5/31/2
020
6/30/
2020
7/31/2
020
8/31/2
020
9/30/
2020
10/3
1/2020
11/3
0/2020
12/3
1/2020
1/31/2
021
2/28/
2021
3/31/2
021
4/30/
2021
5/31/2
021
6/30/
2021
7/31/2
021
100
= 2
017
to
20
19 A
vg
E 6th W 6th Red River Rainey
The storefront inventory shows that the East 6th Street entertainment district and Red River Cultural
District have the lowest operating rate for storefronts and the highest permanent closure rate for
businesses among the entertainment districts. Total monthly alcohol sales and weekly visits to East
6th Street and Red River have consistently lagged their counterparts in recovering. This highlights
the economic losses these businesses have experienced during the pandemic as live music stages,
the key driver to these districts, were closed throughout most of 2020. Currently, venues are able to
operate at full capacity under strict COVID protocols to ensure that large gatherings remain safe for
attendees and the community at large. While venues have been able to operate for quite some time,
the demand for live music remains varied. Staffing levels in the industry remain below their pre-
pandemic levels as the aggregate number of concertgoers have not fully recovered, nevertheless,
we are encouraged by downtown still being able to attract well-known artist and sold out venues.
Monthly Visits by District Indexed to 2017 to 2019 Average
0
20
40
60
80
100
120
140
160
180
200
1/1/2
020
2/1/2
020
3/1/2
020
4/1/2
020
5/1/2
020
6/1/2
020
7/1/2
020
8/1/2
020
9/1/2
020
10/1/
2020
11/1/
2020
12/1/
2020
1/1/2
021
2/1/2
021
3/1/2
021
4/1/2
021
5/1/2
021
6/1/2
021
7/1/2
021
100
= 2
017
to
20
19 A
vg
E 6th W 6th Red River Rainey
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
E 6th W 6th Red River Rainey
68%
20%
8%
70%
10%
5%13%
69%
6%9%
13%
88%
6%6%
Operating New Business Temporarily Closed Permanently Closed Unsure if Operating
Operating Status by Entertainment District
Source: Downtown Austin Alliance, Texas
Comptroller, Placer.AI
Conclusion
Downtown is recovering. However, while some entertainment districts like Rainey and West 6th Street appear to be thriving,
districts that rely heavily on live music – like Red River and East 6th Street – continue to lag behind. Austinites can help reconfirm
and support our Live Music Capital of the World status by attending a show or dining in these districts. Similarly, businesses that
are dependent on weekday foot traffic continue to experience slower demand as office employees and convention attendees
have yet to return to the same extent as weekend visitors. Austinites can help these businesses by being intentional about
frequenting them especially during weekday hours.
There are plenty reasons for optimism as the Downtown Alliance is thrilled to be able to celebrate the 36 new businesses that
have joined our community since February 2020. These new businesses that opened in the midst of a pandemic are a testament
to the innovative and 'can-do' spirit of Austin. They also represent the retail, small business, culinary and nightlife economy that is
a vital part of downtown’s identity and a major contributor to our region’s economy. The Downtown Alliance is working to ensure
all of downtown fully recovers so that our world renowned reputation is strengthened and more resilient than before the
pandemic.