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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.