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Restaurant survival during the COVID-19 pandemic: Examining operational, demographic and land use predictors in London, Canada

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Abstract

The COVID-19 pandemic placed considerable stress on restaurants from restrictions placed on their operations, shifting consumer confidence, rapid expansion of remote work arrangements and aggressive uptake of third-party delivery services. Industry reports suggest that restaurants are experiencing a much higher rate of failure in comparison to other sectors of the economy. Restaurant survival was assessed in the Middlesex–London region of Ontario, Canada as of December 2020 using a novel dataset constructed from public health inspection permits, business listings and social media. Binomial logistic regression models were used to determine the association of operational, demographic and land use factors with restaurant survival during the pandemic. Operations-related factors were considerably more predictive of restaurant survival, though some demographic and land use factors suggest that urban processes continued to play a role in restaurant survival. Restaurants that offered in-house delivery and phone-based ordering methods were considerably less likely to close. Restaurants with a table-based service model, drive-through or an alcohol licence were also less likely to close. Restaurants proximal to a concentration of entertainment land uses were more likely to be closed in December 2020. Closed restaurants were not spatially clustered as compared to open restaurants. The pandemic appears to have disrupted established theoretical relationships between people, place, and restaurant success.

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This study tested whether geographic clustering differs by restaurant segment due to the differences in consumers’ hedonic and utilitarian values by using Ripley's K function and a Tobit model. This study found that higher priced restaurant segments have stronger clusters than lower priced restaurants, which implies that restaurants that focus on hedonic values tend to cluster more than utilitarian focused restaurants. However, the results differ depending on whether or not restaurants are located within a central business district (CBD). For example, quick service restaurants have stronger clusters than casual restaurants outside CBDs. Practical applications may apply to new restaurants that are attempting to open. Up-scale restaurants have the advantage of reducing research costs by locating near similar restaurants. Moreover, casual restaurants do benefit by clustering near existing ones under the condition that demand is not severely hurt by competition, while quick service restaurants benefit by diffusing from each other.
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Recent studies show that, within countries, manufacturing labor productivity growth has outstripped aggregate labor productivity growth, putting significant downwards pressure on national manufacturing employment shares. We compile the first (nearly) global database of national manufacturing employment and output levels over time, and use it to document two facts seemingly at odds with these results: (1) the manufacturing sector’s share of global employment did not fall between 1970 and 2010; and (2) manufacturing and aggregate labor productivity at the global level grew at similar rates. We show that these trends occurred because rapid within-country manufacturing productivity growth was counterbalanced by a shift of manufacturing jobs towards lower productivity economies.
Book
A guide to using S environments to perform statistical analyses providing both an introduction to the use of S and a course in modern statistical methods. The emphasis is on presenting practical problems and full analyses of real data sets.
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Urban neighbourhoods are defined as much by their commercial character as their residential; retail services not only provide material needs for those living nearby, but less-tangible social and cultural capital as well. It is reasonable to expect, then, that excessive churn in these businesses can threaten the stability of a neighbourhood. Using a longitudinal data set on mixed-use neighbourhoods in New York City, we test whether or not neighbourhoods of varying circumstances and characteristics experience different degrees and types of retail turnover. Results suggest that there are meaningful differences in retail turnover across neighbourhoods. Retail turnover is directly associated with the type of business activity, commercial infrastructure and the neighbourhood’s consumer profile. However, when all three sets of factors are considered simultaneously in a regression analysis, consumer-related characteristics explain turnover more than those related to the local commercial environment. Specifically, businesses that provide necessity and more frequently consumed goods/services are more stable and chain establishments are more likely to venture into markets with some housing price discounts, growth potential and possibly less organised opposition. Neighbourhoods with less (and more heterogeneous) general retail (as opposed to food service) concentration, as well as bigger businesses, are more stable. More importantly, bigger households and higher shares of white residents are most strongly associated with less retail churn, and population growth is the strongest predictor of more turnover.
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Martin R., Sunley P., Gardiner B. and Tyler P. How regions react to recessions: resilience and the role of economic structure, Regional Studies. This paper examines how employment in the major UK regions has reacted to the four major recessions of the last 40 years, namely 1974–76, 1979–83, 1990–93 and 2008–10. The notions of resistance and recoverability are used to examine these reactions. The analysis reveals both continuities and significant changes in the regional impact of recession from one economic cycle to the next. Further, while economic structure is found to have exerted some influence on the resistance and recoverability of certain regions, in general ‘region-specific’ or ‘competitiveness’ effects appear to have played an equally, if not more, significant role.
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The economies of modern cities are dependent on an advanced retail system; so too are the people who inhabit them. The origin and evolution of retailing in London, Canada, was studied using a historical geographic information system (GIS) to document the relationship between a city and its retail sector. Visualization and spatial-statistical techniques afforded by the historical GIS were implemented to study change over time. The locations of retailers and the types of the goods they sold were examined for four periods in the city’s early history: 1844, 1863, 1881, and 1916. The distances traveled to shop were also calculated for a variety of goods. The results indicate that the retail system was ingrained in the development of the city, showing marked locational patterns and a high degree of rationality in the shopkeepers' business strategies. Mapping the retail landscape in each era using historical GIS allowed for the examination of the relationship between retail and residential development in the growing city. While the downtown area remained the primary retail district for the city, considerable retail expansion also occurred at the urban periphery during this early stage of the city's development.
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The past two decades in Canada have witnessed significant economic restructuring and public policy innovation. While most research concentrates on federal recovery plans and provincial adjustment strategies, this article makes the case for studying actors and places on the restructuring front lines. Offering an ideational analysis of change dynamics in London, Ontario, a mid-sized manufacturing city, the article reveals a pattern of incremental policy adjustment even as bold ideas contesting the status quo were brought forward. Arguing that particular institutional-political settings operative at different governance scales shape the policy influence of ideas, the article situates the London experience in broader theoretical debates about institutional innovation. At the national level, ideas often supply "weapons of mass persuasion" for political parties seeking electoral breakthroughs. At the local level, ideas serve a different purpose-providing focal points for problem-solving networks that over time and across issues may bring about significant change.
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Scholars interested in applying the two dominant theories of American urban political economy to the politics of Canadian cities are likely to be disappointed. As this study of the politics of downtown redevelopment in London, Ontario, illustrates, the theories offered by Paul Peterson and Clarence Stone have limited applicability to Canadian urban politics. The decisions made by London city council concerning the location of theatres in the city, the creation of an economic development corporation, and the construction of an arena illuminate Peterson's general misunderstanding of the source of local political conflict. The fact that the politics of downtown redevelopment in London did not give rise to a variant of Stone's urban regimes should remind scholars of the substantive differences between the politics of Canadian and American urban governments, and the challenges they raise for cross-national theoretical development. © 2003 by the Institute of Urban Studies All rights of reproduction in any form reserved.
Article
Many descriptions of the structure of retailing at both the regional and urban scale refer to concepts which have originally been formulated in connection with settlement and general land-use studies. This is epitomized in the extension of central place theory, and particularly the notion of the hierarchy, to distinguish structural size-orders in the relative importance of shopping centres. In addition, there is a strong similarity in the nature of those classifications which have been made about types of settlements, general land-use forms, and different retail configurations. While distinct similarities may be found in the methods of these studies, however, in certain important respects parallel lines of enquiry that might have been expected have not been undertaken. There has been little attempt, for example, to relate the locational characteristics of shopping centres to theoretical postulates about urban land-use patterns. This paper reviews the extent to which analogies have been drawn, and may subsequently be developed, between various conceptual models of general human occupance and tertiary activity.