An economic outlook report recently published by Yelp has placed two Buffalo neighborhoods in the nation’s top 50 for most improved economic opportunity.
Based on data accumulated by the crowd-sourcing business review app in 10 primary categories, Yelp ranked North Buffalo at No. 10 and Elmwood Village at 45. The rankings are based on data from the third quarter of 2017: July through September. The improvement is based on a comparison between the third quarter of 2017 data and the third quarter of 2016.
Yelp’s inaugural Local Economic Outlook report, authored by Yelp data editor Carl Bialik, tracks which areas have the most potential for success for small businesses. “This program is an ongoing effort to surface insights from Yelp’s deep data stores to help businesses succeed and to arm policymakers with the information they need to make effective change that will boost local economies,” the report states.
Buffalo ranked 34th overall for economic opportunity, just behind Minneapolis, Minn., and ahead of Pittsburgh, Pa. Charlotte, N.C., Jacksonville, Fla., and Omaha, Neb., rounded out the top three.
The report analyzed growth in businesses in individual neighborhoods, not limited to the cities in its top 50 ranking. It also ranked the economic health of neighborhoods based on a range of other factors, including growth of health services, beauty services, active lifestyle services, and automotive and home services, along with restaurants, shopping, and nightlife.
For North Buffalo, nightlife was cited as the category driving business growth.
Nick Kotsis, owner of The Burning Buffalo Bar & Grill on Hertel Avenue, has been a part of that economic growth in the last year. With three co-owners, he opened the restaurant in December 2016 as a casual neighborhood gastropub with a rotating selection of craft beers and a menu that rises above typical bar food.
Kotsis, who worked in the Buffalo restaurant industry for over a decade before spending four years at a local bank, saw the former Shadow Lounge location posted for sale on Craigslist. He and his business partners bought the building and transformed it into a bar and open dining room, with dart boards in the back and two-person tables tucked against the back wall. Its menu is highlighted by rotating wild game burgers and brisket chili nachos, along with Buffalo staples like Friday fish fries and wings.
“We’ve been watching Hertel blossom before our eyes,” Kotsis said recently while bartending on a midweek evening. “Everything is happening so quickly. There are diverse businesses opening just as quickly, and we were lucky to end up with property in the heart of it.”
Kotsis owns the location with his brother George, Gretchen Gonzalez, and Seth Stromberg, all North Buffalo residents. Living in the neighborhood means they’re invested in being good neighbors and being a part of the community.
North Buffalo also was ranked ninth for net business growth in the top 10 neighborhoods. Nationally, event planning and services, active life, and home services are the categories seeing the most growth in the last year, while restaurants is 10th.
For Kotsis, the restaurant industry is still cutthroat. Expectations have changed in Buffalo, he says, which is why he seeks to provide a friendly, North Buffalo bar atmosphere with a refined menu and rotating draft.
“Consumers are more educated about the food they’re eating,” Kotsis says. “They’re expecting a higher quality, and not just food, but a quality beer and cocktail list, too. That wasn’t necessarily the case 10 years ago.”
Yelp points to three benefits in its data by which it built its report: real-time data, a zoom-in view of neighborhoods, and even streets as compared to surrounding cities and zip codes. Context to this data is provided thanks to Yelp ratings, reviews, and photos, allowing readers to better understand why a neighborhood may be rising or falling in its small business environment.
“The restaurant industry remains challenging and competitive, but the outlook for new restaurants is improving relative to openings in other business categories,” the report states.