Ready for the Return of Customers | 1

MATT STANLEY

Spring 2021

CENTER CITY REPORTS | FEBRUARY 2021

Ready for the Return of Customers

CENTER CITY RESTAURANTS & RETAIL

INTRODUCTION: FIGURE 1: NUMBER OF NEIGHBORHOOD AND

REGIONAL RESIDENTS WHO WORK DOWNTOWN
The pandemic and stay-at-home directives from the City and State
significantly reduced the numbers of people who come into Center
City Philadelphia each day for work, school, medical appointments,
leisure and entertainment. Most downtown residents remained.
However, the absence of others significantly eroded the customer
base for the 2,000 retail, restaurant and service businesses that
occupy the ground floor of commercial and residential buildings and 27,100
Workers
the indoor shopping centers within the Center City District.1 29,600
Workers
rs
At the center of the region’s highway and transit system, Center City
is the most concentrated employment node in the region, hosting 84,100
Workers from 26,400
42% of Philadelphia’s jobs, creating opportunity for residents of all Suburban Workers
Pennsylvania
city neighborhoods and surrounding counties (Figure 1). Center
City’s 315,000 workers, 86,000 households and 3.5 million overnight 26,200
visitors concentrated between 400,000 and 500,000 people down- Workers Greater 32,100
Center City Workers from
town each day, generating $2.8 billion in retail, food and beverage Suburban New Jersey
315,500
Jobs
demand in 2019. 34,000
Residents of Greater
With office workers and non-essential health-care professionals Center City work downtown
+9,500
working from home, schools, colleges, theaters and cultural insti- 14,800 Partners, freelancers
Workers & self-employed
tutions closed, hotels emptied of guests, transit ridership, vehicular
traffic and pedestrian volumes temporarily plummeted between 3,300
March and April. Throughout 2020, foot traffic continued to fluctuate Workers from Suburban
Delaware/Maryland
at below-normal levels, depending on the severity of restrictions
Source: U.S. Census Bureau, Local Employment-Household Dynamics 2017,
imposed on business. updated by CCD from Bureau of Labor Statistics, Current Employment Statistics 2019;

1: Shops at Liberty Place, the Fashion District, Reading Terminal Market and the Lits Building.
Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG
2 | Ready for the Return of Customers
THE LOSS OF CUSTOMERS:
From a high point of 21.2 million passengers on SEPTA in February
2020, ridership declined sharply to 2.6 million in April, rebounding
slowly to reach only 6.6 million in December 2020, still 69% below
February 2020 levels (Figure 2).
Parkway Corporation reports that across their multiple off-street
garages, downtown parking volumes in December 2020 were just
35% of pre-pandemic levels.
Cumulative pedestrian volumes passing the 20 digital counters CCD
manages along key retail corridors and in the primary office district
initially dropped 88% from 2019 levels after the stay-at-home order
in March 2020. Combined daily pedestrian counts at these sample
locations then rose from a low of 17,161 in March to 99,574 in Octo-
ber with the expansion of outdoor dining, but tapered off at year-end
(Figure 3). Data from Placer.ai, which samples anonymized cell-
phone data, suggests that the volume of downtown resident
pedestrians actually increased slightly during the summer and
fall of 2020, with the lion’s share of decline accounted for by fewer
workers, tourists and non-resident shoppers. In January 2021, the
number of workers walking on downtown sidewalks was 76% below
January 2020 levels, while tourists and non-resident shoppers were
down 58%. As the City allowed an increase for indoor dining and
permitted arts and cultural institutions partially to reopen, the num-
ber of non-residents increased. End of the year volumes were still
55% below January 2020 levels. (Figure 4).
KEY FINDINGS
1 Philadelphia retailers and restaurants have shown extraordinary
creativity and resilience during a time of unprecedented economic
uncertainty, preserving jobs while serving residents and essential
workers.
2D
 owntown residents, numbering 67,000 in the core and another
128,000 in surrounding neighborhoods, have sustained retail and
restaurant demand.
3 Despite the rise of ecommerce, Philadelphia’s retail employment
at the end of the year is higher than in January 2020, mostly due
to the rise of employment in big box retail and grocery stores.
4 The City’s support for closing streets to accommodate outdoor
seating has been a lifeline for restaurants and reassuring sign of
enduring vitality for city dwellers and visitors.
CENTERCITYPHILA.ORG
The absence of office workers, who account for 40.6% of downtown
employees, is evident in Figures 5 and 6, which highlight differences
in volumes on West Chestnut, West Walnut and East Market and
those on West Market and JFK Boulevard. Pedestrian totals for the
office district since April have hovered around 30% of 2019 volumes,
while shopping streets closest to residential neighborhoods have
achieved 50% to 60% of 2019 levels.
All of these factors temporarily plunged Center City back to condi-
tions that showed similarities to 1991, when Philadelphia was still
reeling from the loss of 250,000 jobs and 500,000 residents in the
prior two decades. What remained then were boarded up buildings
covered with graffiti — circumstances that prompted the launch of
the CCD in March 1991. Indeed, the combined impact of the pan-
demic and stay-at-home order produced a net loss of 68,100 jobs
(9%) in Philadelphia between February and December 2020 with the
biggest declines in accommodation and food services, a loss of 28,000
jobs, 46% of employment in these sectors citywide.
There are huge differences, however, between 1991 and 2021: a
dramatic increase in downtown residents in the last 30 years has
provided a lifeline for most retail premises. Unlike the 9-to-5
office district of 1991, Center City has dramatically diversified into
a mixed-use, 24-hour downtown, possessing all the components
required for revival. As successful vaccine distribution raises inoc-
ulation levels to 30%, 50% and 70%, downtown workers will return,
the convention center and theaters will reopen and hotels will fill
with guests. So too, as college students return and as restaurants,
arts, and cultural institutions are allowed normal levels of activity,
retail and restaurant demand will rebound.
5T
 he number of boarded up premises within the District declined
from 276 in June 2020 to 78 in January 2021 (including 33 that
were closed prior to the pandemic). This represents just 4% of
downtown storefronts.
6 The largest number of businesses that closed between Septem-
ber 2020 and January 2021 were restaurants without covered
outdoor seating that decided to conserve resources; 76% of
these expect to reopen when restrictions are lifted and custom-
ers return; 58% of closed retailers expect to reopen. Overall, in
2020, 35 new retailers opened in Center City. They join four major
residential towers, two office buildings and one medical building
now under construction in Center City, clear signs of confidence
in downtown.
Center City District & Central Philadelphia Development Corporation
 Ready for the Return of Customers | 3

FIGURE 2: SEPTA TOTAL RIDERSHIP BY MONTH, 2020

Trolley Broad Street Line Regional Rail Market-Frankford Line Bus

25,000,000

21.2M
20,000,000
19.9M 18.8M

15,000,000

10,000,000 8.4M 8.5M

7.2M 7.4M 6.6M
5.7M 6.0M
5,000,000
3.2M
2.6M
0
January February March April May June July August September October November December

Source: SEPTA

FIGURE 3: AVERAGE DAILY PEDESTRIANS IN CENTER CITY

120,000
101,730
100,000

80,000

60,000
61,258
40,000

20,000

0
Week
7
14
21
28
4
11
18
25
2
9
16
23
30
6
13
20
27
4
11
18
25
1
8
15
22
29
5
12
19
26

10 /3
10 0
10 7
10 4
1
11 /7
11 4
11 1
8
12 /5
12 2
12 9
12 9
7
2
9
16
23
30
3/

4/

5/
5/

6/

7/

8/
8/

9/

/1
/1
/2
/3

/1
/2
/2

/1
/1
/1
/2
1/
1/
Ending
10

11

12
3/
3/
3/

4/
4/
4/

5/
5/
5/

6/
6/
6/

7/
7/
7/

8/
8/
8/

9/
9/
9/

1/
1/
1/
Source: Center City District

FIGURE 4: AVERAGE DAILY CENTER CITY PEDESTRIANS: RESIDENTS, WORKERS, AND OTHER VISITORS,
2019 2020 2021
(IN THOUSANDS)
300,000
92,023 158,483
250,000 131,684 Workers Residents Visitors and Shoppers
250
114,335
200,000
213 131,684
200
150,000
169
150
100,000
92,348
100
89
50,000
50
53
46 50
0
0Week
2
6

1
7

2
9

1
8

5
19
23
30

15
22

14
21
28

11
18
25

16
23
30

13
20
27

11
18
25

15
22
29

12
19
26

10 /3

11 /7

12 /5
1/
1/

2/

2/
3/

4/

5/
5/

6/

7/

8/
8/

9/

10 0
10 7
10 4
11 1

11 4
11 1
12 8

12 2
12 9
6

Ending January February March April May June July August September October November December
/1
/1
/2
/3

/1
/2
/2

/1
/1
/2
10
1/
1/
1/

2/
2/

3/
3/
3/

4/
4/
4/

5/
5/
5/

6/
6/
6/

7/
7/
7/

8/
8/
8/

9/
9/
9/

Source:
*(not a Placer.ai
full week)

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG

4 | Ready for the Return of Customers

FIGURE 5: AVERAGE DAILY PEDESTRIAN VOLUME BY WEEKDAY/WEEKEND

Weekday Weekend
15,000

12,000

9,000

6,000

2,427

1,908
13,406

10,483
3,000
12,848

12,078
11,462

4,804
9,202

5,546
9,455

4,734
5,032
6,623
6,766

5,898

4,537
7,097

3,723
5,071
9,912

5,917
0
16th & 1700 Block 2200 Block 17th & 800 Block 1800 Block 1200 Block 1600 Block 13th & Sansom 1200 Block 1700 Block
Chestnut of Walnut of Market Chestnut of Market of Market of Walnut of Market of Chestnut of JFK

FIGURE 6: AVERAGE HOURLY PEDESTRIAN VOLUME, Q4 2020

1,400

1,200

1,000

800

600

400

200

0
0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

16th & 1200 Block 17th & 1600 Block 800 Block 1800 Block 1200 Block 1200 Block 1700 Block
Chestnut of Chestnut Chestnut of Market of Market of Market of Market of Walnut of Walnut

1700 Block
of JFK 13th & Sansom

FIGURE 7: PHILADELPHIA TOTAL EMPLOYMENT BY MONTH, 2019 VS. 2020 (IN THOUSANDS)

2019 2020
780

740

700

660

620
646.8

656.9

679.9
748.0

692.0
739.4
736.6

736.6

685.3
675.6
753.4

734.3
749.9

744.2

745.9
735.6

742.6
736.2
732.2

739.7
687.5

692.1
691.2
731.9

580
January February March April May June July August September October November December
Source: Bureau of Labor Statistics, Current Employment Statistics, seasonally adjusted

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation


RETAIL AND RESTAURANT CONDITIONS
PRIOR TO RECOVERY:
Unlike traditional recessions, which affect some places and sectors
more than others, the pandemic produced a near-global shutdown.
While many professional and technology businesses could shift
to remote work and/or ecommerce, others that depend on face-
to-face interaction and the presentation of unique experiences,
or those lacking sufficient digital infrastructure, were seriously
hobbled. Global retailers and domestic department stores declared
bankruptcy. National closures in 2020 that affected Philadelphia
include Gap, Aldo, Loft, Century21 and Lucky Brand.
The significant challenge for retailers and restaurants in Center
City, and other central business districts across the country, is
that they are enduring the combined impact of global trends, the
consequences of social disorder and vandalism, and the mandated
withdrawal of a large portion of their daily customer base. As inoc-
ulation rates rise, mandated closures will end and restrictions will
be relaxed.
Philadelphia retailers and restaurants have shown extraordinary creativity
and resilience during a time of unprecedented economic uncertainty,
preserving jobs while serving residents and essential workers.
2: See the presentations by Jerry Sweeney, Leslie Richards and Paul R. Levy at the February 9,2020 forum, Moving the Region Forward Together
https://bit.ly/3rOovSa
Center City District & Central Philadelphia Development Corporation
Ready for the Return of Customers | 5
MATT STANLEY
However, full recovery will not happen on its own. It requires com-
mitted business, civic and public leadership to reactivate safely the
prime drivers of vitality and to champion the restoration of jobs and
opportunity downtown.2 While disruptive and tragic events always
shake confidence, developers in the downtown core are proceed-
ing with four major residential high-rises, two office buildings and
one significant medical facility. In addition, new developments have
been announced. Contrary to fears of urban flight, both the volume
of transactions and sale prices rose in 2020 for homes in Center
City and the city as a whole. The prospect for another federal relief
package has also prompted predictions for a strong economic
recovery by the end of 2021.
The statistics that follow are challenging. However, they describe
conditions just before the start of mass vaccinations, the restoration
of confidence and the return of the diverse range of customers who
support downtown retailers and restaurants.
CENTERCITYPHILA.ORG
6 | Ready for the Return of Customers

SURVEY FINDINGS:
To track trends during the pandemic, CCD staff conducted on-
street surveys of the District, as well as broader areas of Center
City, on three occasions: June 2020, September 2020 and January
2021. Surveyors noted the type of business, whether it was open
or closed, if windows were boarded up, and if there was outdoor
seating.3
In January 2021, CCD staff visually surveyed 1,927 ground-floor
retail and restaurant premises within the Center City District
boundaries, including those inside the Fashion District, Shops at
Liberty Place, Reading Terminal Market, and Lits Building which
were not included in the June or November surveys (see the Appendix).
Restaurants and food establishments accounted for 628 (32.6%) of
the premises, retailers numbered 554 (28.7%) and service establish-
ments (banks, gyms, salons, laundry services, first and second floor
medical and legal offices) accounted for 497 (25.8%). Of the 1,927
premises, 248 were vacant (12.9%) and listed with brokers, 102
(5.3%) were closed with no sign of leasing activity and 238 (12.4%)
were temporarily closed, with information about reopening either
posted on the storefront or online. Based on these sources, 76% of
restaurants that were closed expect to reopen and 58% of closed
retailers expect to reopen.

FIGURE 8: CENTER CITY DISTRICT FIGURE 9: CENTER CITY DISTRICT SERVICE

RETAILER STATUS ESTABLISHMENT STATUS

453 Fully Open 307 Fully Open

Appointments, Online Customer Request,

29 sales and/or Curbside 120 Appointments and/
Pickup only or Teleservice

42
30
Temporarily Closed

Permanently Closed 554

46
24
Temporarily Closed

Permanently Closed
497
Service
Retailers Establishments
Surveyed Surveyed

Source: Center City District Survey Source: Center City District Survey

FIGURE 10: CENTER CITY DISTRICT FOOD SERVICE FIGURE 11: CENTER CITY DISTRICT
ESTABLISHMENTS, JANUARY 2021 FOOD SERVICE ESTABLISHMENT STATUS

251 Full Service Restaurant Open for Takeout,

222 Pickup or Delivery Only
Takeout, Sandwich,
249 or Quick Service Open for eating on
208 the premises
64 Coffee Shop
21
14
Nightlife
Bakery
628 150
(indoor and/or outdoor)

Temporarily Closed 628

Food Service
Food
14 Bar Establishments 48 Permanently Closed Establishments
Ice Cream, Water Ice, Surveyed Surveyed
14 Frozen Yogurt
1 Other*
*Reading Terminal

Source: Center City District Survey Source: Center City District Survey

3: During these months, there have been two gradual, City-authorized reopenings, a second health-mandated shutdown in November, several days of citywide social protest and
vandalism and widespread – but fortunately unfounded – fears of more disruption around the November presidential election. Boards on windows have gone up and down to
cover or guard against damage. Indoor restaurant seating has moved from 0% to 25%, back to 0%, then to 25% percent with conditional possibility of now achieving 50%. As
the weather has turned cold, many restaurants have elected to install heated outdoor seating; others have shifted to take-out only.
 This has been a tumultuous time. It is not always easy to distinguish between businesses boarded up but operating and those that are closed; businesses that are boarded up,
but plan to reopen when customers return; properties that are boarded up with renovation occurring inside; properties that brokers are actively marketing and properties for
which owners have put leasing on hold. Additionally, surveyors sought to distinguish between businesses that closed and those that are fully open to customers, or partially
open – such as restaurants providing only takeout or outdoor seating; retailers offering curbside pickup or open only by appointment; service establishments open only by
appointment or providing online services. While CCD’s surveyors relied on direct observation and on conversations with owners and brokers, they could not get definitive
information about every property’s status.
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation
 BROAD ST
Ready for the Return of Customers | 7

FIGURE 12:
VINE ST
NEWLY OPENED
RETAILERS
IN 2020
Newly Opened 36
45
Coming Soon

9 32
MARKET ST City Hall
28
39 33
3 43
8 42 29 30
4 5 67 25 41
10 20 34
31
44 11 21 22 40 26
37
2 38 12 13 1415 16 27
24
23
17
35
1 19
18

PINE ST

NEWLY OPENED IN 2020 (35)

1. Sally, 2220 Spruce St 13. Allbirds, 1709 Walnut St 24. Dim Sum Factory, 1304 Walnut St
2. Lost Bread Co., 2218 Walnut St 14. Interior Define, 1605 Walnut St 25. Super Spartan, 105 S 13th St
3. The Garden, 24 S 24th St 15. G
 ovberg Jewelers, 26. Sueno, 114 S 12th St
1529 Walnut St
4. Anchor Light, 1935 Chestnut St 27. Remi Ricotta, 1121 Walnut St
16. S
 ola Salon Studios,
5. The Goat, 1907 Chestnut St 28. Schmear It, 19 S 12th St
1503 Walnut St
6. K
 evin O’Brien Studio, 29. Federal Donuts, 21 S 12th St
17. Hunnie’s Crispy Chicken,
1811 Chestnut St
233 S Sydenham St 30. The Wayward, 1170 Ludlow St
7. Playa Bowls, 1804 Chestnut St
18. E
 vil Genius Brewing, 31. Morea, 110 S 11th St
8. Huda, 32 S 18th St 1602 Spruce St
32. Kate Spade New York Outlet,
9. Pizza in Style, 1735 Market St 19. Steak 48, 260 S Broad St 901 Market
10. A
 ncient Spirits & Grille, 20. Dolce, 1439 Chestnut St 33. American Heritage Federal Credit
1726 Chestnut St Union, 714 Market St
21. T
 he Original Hotdog Factory,
TASKER ST
11.Greens and Grains, 125 S 15th St 34. Pizza Fresca, 707 Chestnut St
1700 Sansom St
22. Blind Barber, 1325 Sansom St 35. Flowers & Co, 267 S 19th St
12. Tiffany & Co, 1715 Walnut St
23. Cockatoo, 208 S 13th St

COMING SOON (10)

36. Alchemy Coffee, 119 S 21st St 40. V

 an Leeuwen Ice Cream, 44. Dr. Martens, 1704 Walnut St
119 S 13th St
37. Equinox, 1911 Walnut St 45. GIANT, 60 N. 23rd Street.
41. Sunnyside, 1221 Chestnut St
38. V
 ictory Brewing Co.,
1776 Benjamin Franklin Pkwy 42. Dolce, 1439 Chestnut S

39. OceanFirst Bank, 1500 Market St 43. R

 emovery,
1800 Chestnut St, 2nd Fl

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG

8 | Ready for the Return of Customers

FIGURE 13: BOARDED

BROAD ST
UP PROPERTIES IN
CENTER CITY,
JANUARY 2021
VINE ST
Storefront

Vacant

CCD Boundary

MARKET ST City Hall

PINE ST

Boarded up storefronts declined from 276 in June to 88 in October and to

78 in January (including 33 that were boarded up prior to the pandemic).

From the pedestrian perspective, one can get the impression that
almost one-third of retail premises are closed, even though many
are open by appointment or for takeout. But some are rebuilding
from vandalism, while others are in the challenging chicken-and-
egg conundrum of being unwilling to incur the costs of reopening
TASKER ST
until more customers return.
The largest increase in shuttered businesses between September
and January occurred in the restaurant sector with 198 closures, as
many of those without covered outdoor seating decided to conserve
resources. During that same time, 13 boarded retail premises re-
opened or new tenants moved in. Overall, in 2020, 35 new retailers
opened in Center City, a clear sign of confidence in downtown.
Finally, in the last quarter of 2020, 22 service establishments also
reopened (Figure 13).
On the horizon in 2021, projected new openings include Victory
Brewing, Brooklyn's Van Leeuwen Ice Cream and Chicago’s Sunny-
side. On West Walnut Street, Govberg Jewelers and Wells Fargo
will be relocating to new addresses at 1521 Walnut Street and
1632 Walnut Street, respectively. Furthermore, Dr. Martens will be
opening their new location at 1704 Walnut Street, next door to their
former site, and Le Pain Quotidien extended their lease. Overall,
brokers report many new prospects actively seeking locations in
Center City.
Counting boarded up storefronts is the simplest way to measure
progress. They declined from 276 in June to 88 in October and to 78
in January (including 33 that were boarded prior to the pandemic).
While a troubling appearance, boarded premises constitute just 4%
of all storefronts in Center City. They are also concentrated where
the most vandalism occurred. Stop and listen outside many and you
will hear construction going on inside.

CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation

 Ready for the Return of Customers | 9

CHALLENGES AND PROSPECTS FOR Metropolitan Bakery, DiBruno Brothers and Reading Terminal
Market, have successfully integrated ecommerce into their business
RETAIL RECOVERY: model. Finally, when children return to school and employees return
The pandemic accelerated the long-term trend toward ecommerce. to the workplace, it will make less sense to let deliveries sit on
Between 2000 and 2019, ecommerce steadily expanded market doorsteps all day.
share. Just prior to the pandemic, 11.2% of national retail sales took
With more than 85% of sales still taking place in physical stores,
place online. With mandated closings in 2020, ecommerce soared by
Center City remains most competitive with its unique mix of local
43%, rising to 16.1% of all sales during the second quarter of 2020
and regional owner-proprietors. They make up 70% of downtown
before dipping to 14.3% in the third. Retail giants such as Amazon,
tenants and can capitalize on their proximity to both well-known
Walmart, and Instacart continue to attract buyers with low prices
national chains and an unparalleled array of restaurants, arts, and
and convenient home delivery, creating challenges for local retail-
cultural institutions. Quality merchandising and customer service,
ers. Nevertheless, brick and mortar retailers both large and small
and the ability to offer an unmatched experience, all remain hall-
are staying relevant to their customers by integrating ecommerce
marks of successful urban retail.
into consumer options. Even local proprietors that sell food, like

FIGURE 14: 2020 SHIFTS TO ECOMMERCE TRENDS

Ecommerce Market Share Prior Current Future

20%

15%

10%

5%
14%
14%

14%

14%
16%

16%

16%
18%
18%

15%

15%

15%

15%

15%

15%
12%

12%

13%

13%

13%
11%

11%
4%

6%

6%

6%

6%
5%

8%

5%

8%

8%
3%

0%

Food Takeout Alcoholic Prescriptions Personal Home DIY Apparel, Luxury Consumer Average
(for cooking or delivery beverages care items décor tools and footwear, goods electronics
at home) materials and accessories

Source: Accenture COVID-19 Consumer Research, conducted April 17-27 2020

FIGURE 15: CENTER CITY RETAIL MIX, JANUARY 2020 FIGURE 16: MONTHLY RETAIL TRADE
EMPLOYMENT, 2020

344 Index January 2020 = 100 Philadelphia National

Boutique/Independent/ 120
Local Retailers 100 104
100
102
210 80
National Retailers

60

131 Apparel 24 Entertainment

40
Jewelry & Art, Collectibles,
117 Watches
22
or Hobbies
20
75 Food or Drink 19 Optical
Retailers
14 General 0
Beauty, Health, Merchandise Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
51
or Fitness 8 Book Store
Source: Bureau of Labor Statistics, Current Employment Statistics, seasonally adjusted
34 Home & Garden
32 Other
27 Electronics

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG

10 | Ready for the Return of Customers

Citywide, retail employment rebounded by July 2020 nearly to During a mild December when indoor seating was still prohibited,
pre-pandemic levels (Figure 16). However, this occurred as demand outdoor seating declined moderately to 4,699. But with the onset of
shifted away from walkable retail in the core of downtown to driv- cold weather and the return of indoor seating at 25%, outdoor seats
able, big box stores along highways and major traffic arteries. As dropped to 3,716 in January, when they now depended on expensive,
rates of inoculation climb and restrictions are lifted, demand will be heated, temporary structures in parking lanes (Figure 18). Despite
redirected to downtown. the restaurant closures that occurred between October and January,
the number of opened restaurants in January (427) is higher than
In 2019, prior to the pandemic, JLL ranked East Market and West
June (352), though lower than October (460).
Walnut Streets among the top 10 of 33 most visited retail corridors
in North America. At the same time, their rents made them very Several restaurants have pivoted their business models to adapt to
affordable locations for retailers seeking new opportunities.4 the limited indoor dining restrictions and increased take-out and
delivery. Earlier this year, restaurateur Jose Garces repurposed his
RESTAURANT RECOVERY: full-service restaurant, Tinto, as a wine shop focused on takeout and
delivery orders. Vesper and Oloroso have also temporarily switched
Nearly a year after the first stay-at-home order, restaurants are now
to “ghost kitchens” — Hunnie’s Crispy Chicken and Remi Ricotta,
permitted to open at 25-50% capacity for indoor dining, depending
respectively — focusing only on delivery orders. Other notable open-
on ventilation systems. However, restaurants have had to deal with
ings in 2020 included The Wayward, Huda, Steak 48, Cockatoo, and
several waves of changing restrictions and diminished demand due
Federal Donuts.
to changes in customer behavior. Employment in food and drinking
establishments in January 2021 was 46% lower than January 2020 To sustain restaurants, especially those unable to invest in heated
(Figure 17). outdoor seating, CCD launched a “Takeout Philly” marketing cam-
paign to encourage residents to order directly from restaurants and
Outdoor seating has been the survival strategy. While Center City
tip generously. CCD has licensed the campaign, which will contin-
restaurants have been able to deploy sidewalk seating since the late
ue until the end of March, at no cost to neighborhood commercial
1990s, most recently the Department of Commerce and the Office of
corridors across the city,
Transportation and Infrastructure not only worked to allow sidewalk
seating citywide, they also expedited the approval of temporary
street closures to replace indoor seating with socially distanced
chairs and tables in roadways. Within the District, these closures
have continued since the summer on South 13th Street, South 18th
Street and on the 1500 block of Sansom Street. CCD has conducted
four surveys of outdoor seating and with the exception of June and
December 2020, all were conducted when restaurants also had the
option of indoor seating at 25% of normal capacity. Outdoor seating
within the District increased from 2,997 seats in June to 5,152 seats
in September.

FIGURE 17: MONTHLY FOOD SERVICES AND DRINKING PLACES EMPLOYMENT, 2020

Index: January 2020 = 100 Philadelphia National

120

100
100
83
80

60
54

40

20

0
January February March April May June July August September October November December
Source: Bureau of Labor Statistics, Current Employment Statistics, seasonally adjusted

4: J LL, City Retail: The most acclaimed urban shopping districts, 2019 https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/am-retail-2019-
city-retail-report-final-hr-pages.pdf
CENTERCITYPHILA.ORG Center City District & Central Philadelphia Development Corporation
 Ready for the Return of Customers | 11

FIGURE 18:

BROAD ST
OUTDOOR SEATING
IN CENTER CITY,
JANUARY 2021
VINE ST
10 or less
11 to 25
26 to 50

51 to 100

101 to 240

MARKET ST City Hall

Sidewalk Cafe only

Streetery and
Sidewalk Cafe
Streetery Only

Source:

PINE ST

NUMBER OF OUTDOOR SEATS

OUTDOOR SEATING TYPE JUNE 2020 SEPT 2020 DEC 2020 JAN 2021

Sidewalk Cafe N/A 2,628 2,355 1,549

Sidewalk Cafe and Streetery N/A 2,414 2,148 1,961
Streetery Only N/A 110 196 206
GRAND TOTAL 2,997 5,152 4,699 3,716
*CCD did not record seating type during first survey.

FIGURE 19: CENTER CITY DISTRICT SERVICE BUSINESS RECOVERY

SERVICE PROVIDERS
Service businesses, including banks, gyms, salons and laundry
TASKER ST
services, as well as some first and second floor medical and legal
Beauty and offices, have steadily reopened when permitted by regulations.
Health 186
Those fully or partially open increased from 329 in June (61.7%) to
Other 124 419 in September (82.0%), to 427 in (85.9%) in January.
Bank/Financial 94
CONCLUSION
Fitness 43
The January 2021 survey captures conditions at what is probably
Laundry 25
the lowest point in the economic cycle, just before widespread
Professional
Services 12 vaccination begins. Through the sustained deployment of CCD’s on-
street staff, increased bike safety patrols, social media, traditional
Home 7
advertising, email newsletters, a Restaurant Week promotion at
Childcare 6 the end of September, events in our parks and a takeout campaign,
Source: CCD Survey, January 2021
the Center City District has been working to reassure residents and
workers and attract customers to downtown shops and restaurants.
All communications have underscored the importance of observing
health safety guidelines. CCD has also collaborated with Center

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG

12 | Ready for the Return of Customers
City retail associations, merchants and the City of Philadelphia to
secure approvals for weekend street closures that have expanded
outdoor seating capacity. The next major step will be the phased re-
opening of office buildings and a concerted effort to attract existing
workers and new tenants to downtown. Leisure tourism will follow,
as will meetings, conventions and international travel.
In the short term, several grants and funding options are available
to assist restaurants and small businesses impacted by Covid-19,
including Restart PHL, Salesforce Care Small Business Grants,
The Red Backpack Fund, Citizen Bank Small Business Recovery
Program, and more.5
5: See Business Recovery Resources on the CCD website https://www.centercityphila.org/news/reopening-resources
CENTERCITYPHILA.ORG
Center City merchants have shown extraordinary creativity and
resilience, adapting to one of greatest challenges most have
experienced in a lifetime, during a time of unprecedented national
political uncertainty. As in all recessions, unfortunately not all busi-
nesses will survive. However, Center City possesses all the diverse
components required for revival, the restoration of jobs, the reopen-
ing of restaurants and shops and the creation of new businesses.
With dedicated corporate, civic and public leadership, we should
use this crisis not simply to restore the status quo, pre-Covid, but to
address long-standing challenges that have limited Philadelphia’s
full potential to create more inclusive opportunity and prosperity.
Center City District & Central Philadelphia Development Corporation
 Ready for the Return of Customers | 13

APPENDIX

SURVEY RESULTS WITHIN CENTER CITY DISTRICT

OPERATING STATUS JANUARY

RESTAURANTS
Open for Takeout, Pickup or Delivery Only 222
Open for eating on the premises (indoor and/or outdoor) 208
Temporarily Closed 150
Permanently Closed 48
TOTAL 628
RETAIL
Fully Open 453
Appointments, Online sales and/or Curbside Pickup only 29
Temporarily Closed 42
Permanently Closed 30
TOTAL 554
SERVICE
Fully Open 307
Customer Request, Appointments and/or Teleservice 120
Temporarily Closed 46
Permanently Closed 24
TOTAL 497
Vacant - Closed 248
GRAND TOTAL 1,927

Center City District & Central Philadelphia Development Corporation CENTERCITYPHILA.ORG