Restaurants play a major role in the United States’ economy. Last year, despite the pandemic, restaurant industry sales generated $799 billion in our nation and employed 14.5 million Americans (National Restaurant Association).
As a renowned foodie haven, the economic impact of food and beverage is particularly strong in Frederick. Here are seven ways our restaurants are positively affecting our local economy:
Directly Contributing to LOCAL GDP
In 2020, there were 469 “Food Service and Drinking Places” in Frederick County, Maryland. Together, these establishments collectively produced approximately $300,000,000 in GDP for the county (Jobs EQ).
2. Providing employment Opportunities
Last year, “Food Service and Drinking Places” hosted more than 3500 employees in The City of Frederick alone —- that’s over 7% of the total local jobs! (Jobs EQ).
3. Offering Economic Mobility
The restaurant industry offers significant upward mobility opportunities from entry-level positions into management positions. According to the National Restaurant Association, 9 in 10 restaurant managers started in entry-level positions.
For those seeking to own their own business, these starting jobs also offer tremendous experience. In fact, 8 in 10 restaurant owners started their industry careers in entry-level positions (National Restaurant Association).
4. Encouraging Broad Representation
The restaurant industry is one of the most diverse segments of our economy. According to the 2021 U.S. Department of Labor, nearly half (47.8%) of all restaurant employees are minorities. Importantly, restaurants also employ more minority managers than any other industry (National Association of Restaurants).
5. Facilitating Tourism
Restaurants also play a pivotal role in attracting and supporting visitors to our community. In 2019 (pre-COVID 19,) Frederick County received 2.1 million visitors which created $425 million in tourism-related revenue (VisitFrederick).
Looking at pre-pandemic statistics, visitors to Frederick’s Visitor Center consistently ranked “Eat and Drink” in the top 3 stated interests of their visit —- with 15% stating it as their specific reason for visiting Frederick.
“Frederick’s eclectic restaurant scene and the emerging craft beverage industry both provide major and growing veins to our Frederick County Tourism and certainly add immensely to the lengthy list of remarkable reasons people visit Frederick,” said Dave Ziedelis, Executive Director of Visit Frederick.
“There is such amazing diversification and related themes to our multitude of fine restaurants while simultaneously we also have more tap and tasting rooms than any other county in the great state of Maryland.”
Downtown Frederick has established itself in particular as a food destination. In 2021, more than 15% of all web traffic to downtownfrederick.org came from people looking for information about dining and craft beverages options in Downtown Frederick (Downtown Frederick Partnership).
"Downtown Frederick has more than 80 restaurants and craft beverage purveyors within less than a mile of each other, which makes it the perfect destination for gastronomy lovers everywhere. Our food scene is diverse and exciting. You can find authentic Cuban, Thai food, Japanese and Indian cuisine right alongside avante garde gastropubs, fine dining and some of the best craft beverages this state has to offer." - Leeann Crews, Downtown Frederick Partnership.
6. Supporting the Supply Chain
Restaurants indirectly encourage peripheral companies such as farmers, distributors, food manufacturers, drink purveyors, equipment suppliers, and others that have developed their own business models to meet restaurant’s needs. These spin-off businesses create countless more jobs in our community. In Frederick, suppliers within the food industry include some major City employers such as: Dairy Maid Dairy, McCutcheon’s Apple Products, Saputo, and FoodPro.
7. Pacing Our Economic GROWTH
The economic impact of Frederick’s restaurant scene is sizeable and growing. From 2010 to 2020, Frederick County gained nearly 100 new Food Service & Drinking establishments (Jobs EQ).
Over this same period, the industry added 608 jobs. After adjusting for national growth during this period and industry mix share, the part of this employment change due to local competitiveness was a gain of 318 jobs—meaning this local industry was more competitive than its national counterpart during this period. (Jobs EQ)
Are you a food entrepreneur looking to start a new venture in The City of Frederick? Explore our webpage - businessinfrederick.com or contact the Department of Economic directly at business@cityoffrederickmd.gov.