500,000 Reasons to Oppose This Ordinance
As we have discussed elsewhere, the BYOB ordinance will force Midnight Hookah to close or move to another location. Obviously that is quite a negative impact on the patrons of this establishment, but there is a fairly dramatic downstream economic effect if this happens.
If Midnight Hookah is forced to close or move, then the people who are going there will instead go to New London or Norwich, taking their money with them.
We estimate that the economic impact could be over half a million dollars per year if this were to happen. Sounds like a lot, doesn't it? Let's look at the numbers.
Where do people go when they leave Midnight Hookah. According to the information we have been able to gather, most people who leave will stop and spend money somewhere else before going home. That spending is mostly right here in the Groton economy.
Approximately 300 people patronize the Groton Townhouse each week from Midnight Hookah. If we assume that they spend an average of $15 per person ($20 with tip), the we are talking about $6000 per week of economic activity.
Over 50 weeks, that is $300,000 of business just for the Groton Townhouse.
Then we have various 24 hour convenience stores, gas stations, etc. If we figure that half as many people (150) spend half as much money ($10 each), then it's $1500 per week, or $75,000 per year.
That's after they leave, but if we're talking about a Bring Your Own Bottle establishment, as we are, they had to get that Bottle somewhere. While some people may be purchasing alcohol out of town and bringing it in, it is likely that most people are acquiring their Bottles nearby at Groton establishments.
Let us conservatively, assume that the same 300 people who end up at the Townhouse each spend $10 on whatever they're bringing to the lounge. That's another $3000 per week, or $150,000 per year.
Altogether, that adds up to $525,000 per year in lost economic activity.
If this ordinance passes, then that sucking sound you hear will be half a million dollars of economic activity being sucked across and up the Thames River and out of our town.
But wait, there's more.
Many of the patrons of Midnight Hookah work at Electric Boat. Electric Boat is desperately trying to create an environment where younger workers want to stay in Groton, rather than take their valuable and marketable skills to other, hipper, more fun cities elsewhere in the country. A community space like Midnight Hookah is just the kind of community that draws down roots for the professionals who patronize it. A place like that, where they can hang out with and make new friends and community connections can be the difference between staying here for the long term and moving to Boston or San Diego.
The value of that is much harder to quantify.
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| Roughly how much money Groton's economy gains on an annual basis in secondary economic activity from Midnight Hookah. |
If Midnight Hookah is forced to close or move, then the people who are going there will instead go to New London or Norwich, taking their money with them.
We estimate that the economic impact could be over half a million dollars per year if this were to happen. Sounds like a lot, doesn't it? Let's look at the numbers.
Where do people go when they leave Midnight Hookah. According to the information we have been able to gather, most people who leave will stop and spend money somewhere else before going home. That spending is mostly right here in the Groton economy.
Approximately 300 people patronize the Groton Townhouse each week from Midnight Hookah. If we assume that they spend an average of $15 per person ($20 with tip), the we are talking about $6000 per week of economic activity.
Over 50 weeks, that is $300,000 of business just for the Groton Townhouse.
Then we have various 24 hour convenience stores, gas stations, etc. If we figure that half as many people (150) spend half as much money ($10 each), then it's $1500 per week, or $75,000 per year.
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| Our favorite, local, all-night restaurant could lose as much as $300,000 in business annually if Midnight Hookah closes due to this ordinance. |
That's after they leave, but if we're talking about a Bring Your Own Bottle establishment, as we are, they had to get that Bottle somewhere. While some people may be purchasing alcohol out of town and bringing it in, it is likely that most people are acquiring their Bottles nearby at Groton establishments.
Let us conservatively, assume that the same 300 people who end up at the Townhouse each spend $10 on whatever they're bringing to the lounge. That's another $3000 per week, or $150,000 per year.
Altogether, that adds up to $525,000 per year in lost economic activity.
If this ordinance passes, then that sucking sound you hear will be half a million dollars of economic activity being sucked across and up the Thames River and out of our town.
But wait, there's more.
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| One of Electric Boat's greatest challenges is retaining their most skilled and valuable workers. When someone does leave, quality of life in the local community is a common issue cited. |
Many of the patrons of Midnight Hookah work at Electric Boat. Electric Boat is desperately trying to create an environment where younger workers want to stay in Groton, rather than take their valuable and marketable skills to other, hipper, more fun cities elsewhere in the country. A community space like Midnight Hookah is just the kind of community that draws down roots for the professionals who patronize it. A place like that, where they can hang out with and make new friends and community connections can be the difference between staying here for the long term and moving to Boston or San Diego.
The value of that is much harder to quantify.
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