Restaurant business big in BG
Published 12:00 am Sunday, May 29, 2005
Food and drink are major tourist magnets for county
Sunday, May 29, 2005
Some believe Bowling Green has more restaurants per capita than any other city.
Officials in both the local tourism office and health department have heard similar claims. Data supporting the claim are shaky at best, but it doesnt take a government-sanctioned study to recognize the vibrant restaurant activity along Scottsville Road and the bounty of locally owned eateries in the downtown and surrounding areas.
Former Bowling Green Chief Financial Officer Kirby Ramsey in his day had proposed passing a 1 percent restaurant tax, which he said would generate $1 million annually, said Gary West, Bowling Green Area Convention and Visitors Bureau executive director. That means the restaurant business in Bowling Green is a $100 million a year industry.
That estimate was not too far off, and is probably even closer to accurate considering the growth Bowling Green has seen since Ramseys tenure.
People like to eat, and like to shop, West said. Its the number one activity to ensure a good experience.
What youve created in Bowling Green is a hub for good restaurants. With the road work in the surrounding areas it has made it easier for people to come to Bowling Green.
Many of the local restaurants are a draw for people within an hours drive, said Bowling Green Area Chamber of Commerce President and Chief Executive Officer Jim Hizer.
Theyre destinations, he said. Obviously restaurants and dining are a factor groups consider when looking at which community to hold their events in. Restaurants are part of the attraction.
Hizer said a lot of people dont look at restaurants as part of economic development, but the evidence is to the contrary.
The way to look at economic development is like a bucket, he explained. Its a leaky bucket with dollars that leave and come in. You want to limit your leaks, limit the number of people that leave the community and at the same time maximize the amount of water coming in.
The exact economic impact of the restaurant industry in Bowling Green is difficult to discern, but looking at certain figures can give a general idea.
According to data in the Barren River District Health Departments Form 40 Report, there are 333 eating establishments in Warren County. This includes full-service, limited-service, concession and cafeteria operations in the county. At least 64 were listed as restaurants serving alcohol, indicating, to a degree, the number of casual dining restaurants.
The Form 40 report has health department data on each restaurant in a county, including name, address, number of seats, permit number, city and water/sewage use.
Other data help indicate the wider economic impact of the industry and its viability compared with other similar communities. According to the most recent U.S. Bureau of Labor Statistics data, in 2003 the number of people employed by food service and drinking establishments in Warren County was 4,309. Nearly half those employees, 2,139, worked in a full-service restaurant. Annual wages paid to food service and drinking establishment employees were $45.3 million.
The Kentucky Cabinet for Economic Developments Web site provides some empirical data on the economic impact of different Kentucky industries. Kentuckys chief labor market analyst, Carlos Cracraft, said the data is derived from two surveys taken each month. One survey is of employers/establishments, and the other is from households. The household survey provides employment data by asking people where they work. That information is compiled and included in industry databases.
We code every business to some industry, he said. Restaurants and cafeterias would fall under food services, but if Kmart has a snack stand it would be listed as a department store.
Not all restaurants that open in the area can sustain their businesses. Competition, location and menu play a role in a restaurants success. One group in town helps support local restaurant owners.
Robert Stupar owns Brickyard Cafe and is head of the local chapter of the Kentucky Restaurant Association. The group hosts the annual Taste of Bowling Green fund-raiser for the Dream Factory. Brickyard has been open for seven years and has been a member of the group since its second year.
From what I see, the market supports (the industry), but competition is tough, he said. Every year youll see a few open and a few close. As the county grows and as traffic on I-65 grows, the industry will grow as well.
Im especially happy about our downtown, he added. We have more restaurants down here than ever and hopefully it will continue to expand.
The local KRA group is made up primarily of independently owned restaurants, but there are some chain restaurant members.
Stupar said the group will publish a map with a list of members that will be distributed to local gas stations and tourist welcome centers.
Stacy Roof, president and CEO of the Kentucky Restaurant Association, said myths about having the most restaurants per capita are not exclusive to Bowling Green.
Thats what they say in Portland, San Diego and Memphis, said Roof, who is based in Louisville.
I used to think we had tons and tons of restaurants in Kentucky. I was at a conference with the head of the National Restaurant Associations research department and they reported that the industry would grow 4 to 5 percent in the next year. So is it saturated? Absolutely not.
Restaurants are tough animals to tame, Roof said. Owners must be prepared for the challenges of the industry and must be willing to work to succeed.
There is no other industry where you have to comply with so many regulations, she said. If you can find a match, then youve really got something. If you can operate your business right, youll be competitive. Daily News ·813 College St. ·PO Box 90012 ·Bowling Green, KY ·42102 ·270-781-1700