NorCal businesses close despite strong economy

For the first time in 20 years, the economy of the greater Sacramento region recovered faster than the state of California, second only to Riverside. New data from the Federal Reserve Bank of St. Louis shows that the greater Sacramento region has recovered all the jobs lost during the COVID-19 pandemic — but there’s another problem that’s affecting some downtown business owners. Even though the “WANTED” signs are posted outside the restaurants, the problem isn’t fewer applicants, but instead keeping the ones they have and being able to pay them. Antojo Taco Street Bar at 16th and N Streets did $300 in sales on Wednesday.”I don’t think in the next two years this restaurant will survive. It’s not easy to keep businesses open right now,” said restaurant owner Mauricio De La Rosa. And it’s not the only restaurant facing the problem. Scott Ford, the director of economic development at the Downtown Sacramento Partnership, said retail restaurants on the ground floor are having a tough weekday.”I’m really encouraged that we continue to see more investment on the residential side. Local residents spend an average of 3:1 more than an office worker does in ground-floor retail, so overall it creates a healthier downtown core,” Ford said. Downtown Sacramento Partnership is active in organizing more events in its six districts such as Concerts in the Park, Capi farmers market on Wednesdays tol Mall and Bodega Days in César Chávez Park on Thursdays and new businesses.| RELATED | Things to do this weekend in the Sacramento area De La Rosa also owns La Garnacha a few blocks away. Although sales at that location have been great, dwindling revenue and a six-year, roughly $11,000/month lease at Antojo Taco Street Bar are pushing him to sell La Garnacha to pay off debt and keep the second location afloat.” I’m not doing enough money to continue running both businesses. I’m losing money,” De La Rosa said. At the same time, the greater six-county region of Sacramento is seeing an increase in new businesses. According to Barry Broome, president and CEO of the Greater Sacramento Economic Council, other cities and counties are doing a better job of preparing for investment than the city of Sacramento. “We still attract companies, but suddenly the implosion of downtown and 10,000 homeless people in the urban core; we’re going to have a real challenge to get investment in the city,” Broome said. Broome adds that recent crime and low traffic, added to the homelessness problem, are not making Sacramento’s downtown area more attractive to residents.| MORE | Map: Here the Sacramento and Stockton shootings so far in 2022

For the first time in 20 years, the economy of the greater Sacramento region recovered faster than the state of Californiafalling to second place behind Riverside.

New data from the Federal Reserve Bank of St. Louis shows that the greater Sacramento region has recovered all the jobs lost during the COVID-19 pandemic — but there’s another problem affecting some downtown business owners. Although “WANTED” signs are posted outside restaurants, the problem is not fewer applicants, but instead keeping the ones they have and being able to pay them.

Antojo Taco Street Bar at 16th and N streets did $300 in sales Wednesday.

“I don’t think in the next two years this restaurant will survive.” It’s not easy to keep the business open right now,” said restaurant owner Mauricio De La Rosa.

And it’s not the only restaurant facing the problem.

Scott Ford, director of economic development for the Downtown Sacramento Partnership said ground-floor retail restaurants have tough business days.

“I’m really encouraged that we continue to see more investment on the housing side. Local residents spend on average 3:1 more than an office worker in ground floor shops, so overall it creates a healthier central core,” Ford said.

Downtown Sacramento Partnership is active in organizing more events through their six districts such as Concerts in the Park, Wednesday Farmers Market at Capitol Mall and Bodega Days at César Chávez Park on Thursdays, and new businesses.

| RELATED | Things to do this weekend in the Sacramento area

De La Rosa also owns La Garnacha a few blocks away. While sales at that location have been great, dwindling revenue and a six-year, roughly $11,000/month lease at Antojo Taco Street Bar pushed him to sell La Garnacha to pay off debt and keep the second location afloat.

“I’m not making enough money to continue running both businesses. I’m losing money,” De La Rosa said.

At the same time, the greater Sacramento six-county region has seen an increase in new businesses. According to Barry Broome, president and CEO of the Greater Sacramento Economic Council, other cities and counties are doing a better job of preparing for investment than the city of Sacramento.

“We still attract companies to come here, but the sudden implosion of downtown and 10,000 homeless people in the inner city; we’re going to have a real challenge to attract investment to the city,” Broome said.

Broome adds that recent crime and low traffic, added to the homelessness problem, are not making Sacramento’s downtown area more attractive to residents.

| MORE | Map: Here are the shootings in Sacramento and Stockton so far in 2022

Leave a Comment

Your email address will not be published.