FundKite CTO Alex Shvarts was recently featured on Restaurant-Hospitality.com for the article “Long Island City eateries mourn the loss of Amazon.” The piece discusses both sides of those who favored and those who dreaded the arrival of the new Amazon headquarters in LIC, Queens New York. The announcement would have affected all aspects of city life with an influx of people moving into housing and commuting by train. This article focuses on the impact the cancellation had on the restaurant industry specifically.
“According to Alex Shvarts, founder and CTO of FundKite, a New York-based company that specializes in helping small businesses achieve working capital, many Long Island City businesses had already started implementing strategies to expand their brands in light of the promised foot traffic from Amazon employees.
Briskin, for example, estimated that the Amazon headquarters would have generated $2 million in revenue per Maiella location. He had also begun the process of opening a third location one block inland, but now he has abandoned the expansion project.
Shvarts suggested that restaurants should re-evaluate their business strategy now that they can’t rely on a new corporate campus as a crutch.
“If you’ve already invested in expanding, my advice is to re-evaluate, see how you can turn that around and readjust,” he said. “All you can do now is keep your customers happy and grow your current base.”
The Restaurant-Hospitality.com article weighs both sides of the issue. Some restaurant owners were excited for the extra business amazon would bring, assuming employees would eat off campus. Other business owners feared that the addition of a major headquarters would increase competition among landlords, causing rent prices to skyrocket and put long-standing companies out of business.
The debate on whether or not Amazon HQ2 in LIC would have a positive or negative effect is still ongoing as politicians continue to try and work out a deal. There will definitely be many trade offs in pros and cons if Amazon were to continue its plans to expand to New York City. To read the full article, click here.