‘Forget about it’ While New York has a history of overcoming economic shocks like the September 11 terrorist attacks and the 2008 financial crisis, business owners say they are struggling to adapt to the new three-day workweek.
Sam’s Falafel owner Emad Ahmed said foot traffic near Wall Street is the worst it's been in his 30 years of business. Only on a sunny midweek day do sales recover to about 60% of what they were, he said. Meanwhile, the rising cost of gas and ingredients have pressured his business.
“Monday, Friday, forget about it,” said Ahmed, 57, who parks his truck in Zuccotti Park and notches only 30% of his pre-Covid revenue on those days. “You lose money when nobody is here.”
Jordan Cohen, the manager of Bryant Park Grill in Midtown Manhattan, said about 40% fewer diners are now showing up on Mondays and Fridays for the power lunch hub’s $22 chicken Caesar salad and $50 braised lamb shank.
To make up for the lost business, the restaurant has leaned on corporate events on slow weeknights and has clawed back around 90% of pre-pandemic revenue. But even those events get dinged by the hybrid workweek: At parties where employers invite 300 attendees, only about half will show up, Cohen said.
And Sweetgreen, a salad chain ubiquitous with New York City’s fleece-vest set, said the start and end of the week used to be its strongest sales days, but “Mondays and Fridays are definitely not the same,” said Sweetgreen co-founder and CEO Jonathan Neman, on a November earnings call.
On a Monday in October at a Bryant Park Sweetgreen known for lines stretching down the block on busy days, office workers in button-down shirts and high heels breezed in and out with $15 salads in hand.
“That was surprisingly easy,” a woman leaving the salad counter said to her companion.
“Yeah, it doesn’t feel like a madhouse in there, which is weird,” he replied.
Bloomberg found the longest wait for a salad at the Bryant Park Sweetgreen at noon was around 13.5 minutes on a Wednesday. By contrast, it took only four minutes to breeze through the line on a Friday.
Sweetgreen is now renegotiating leases with landlords to structure rent as a percentage of sales, versus a fixed amount common with commercial rents.
With offices emptier on Mondays and Fridays, business travelers are cutting hotel stays short by a day or two and flying in just for midweek, said Vijay Dandapani, president and CEO of the Hotel Association of New York City.
Business travel has rebounded the most in places like Austin, Texas, and Charlotte, North Carolina, where workers are back in physical offices, according to hospitality data and analytics firm STR. In Austin, hotels recovered to 92% of pre-pandemic occupancy on Mondays of last year, while New York hotels were only around 83% recovered, and San Francisco was even further behind, at 74%.
Resistance to coming into the office at the end of the week runs so deep that when a large financial company rented out a Fitzpatrick Hotel Group bar in Midtown Manhattan on a Friday evening, only about a third of the 130 invited employees showed up, said John Fitzpatrick, who owns the company's two New York City hotels.
“To lose that amount of business on a Friday, which is one of your busiest days, is huge,” said Fitzpatrick, who depends on business travelers for 70% of his clientele.
To drum up business, he’s considering raffling a free trip to Ireland to Friday bar customers. Another marketing idea is to encourage tourists to extend their New York City holidays by promoting the hotel as a remote-work haven on Fridays.
“We have to come up with something,” Fitzpatrick said.