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HomeMy WebLinkAbout03. CDC Dine in Downey Promotion AGENDA MEMO DATE: May 25, 2010 TO: Chairman and Members of the Community Development Commission FROM: Office of the Executive Director By: Brian Saeki, Director of Community Development SUBJECT: APPROVE THE DINE IN DOWNEY LOCAL RESTAURANT PROMOTION FOR 2010 RECOMMENDATION That the Community Development Commission approve the Dine in Downey local restaurant promotion program. BACKGROUND In 2009, the City of Downey (“City”) implemented a Dine in Downey promotion that promoted local restaurants. Local restaurants are important for the City because they generated more than $1,500,000 in sales tax revenues in 2009. This figure is just more than 14% of the total sales tax revenues collected during 2009. City staff members believe that Downey has some great local restaurants that, with some additional promotion, could increase their sales.The Dine in Downey promotion benefits local restaurants by attracting additional business and also benefits the City when sales increase at Downey eateries. The 2009 Dine in Downey promotion was generally well received and successful. City staff carried out an online survey of the 40-plus restaurants that participated in the 2009 promotion, and the responding restaurants indicated that the promotion brought in new customers and was helpful to business. These restaurants also made many suggestions for future promotions including offering bigger discounts and extending the time period for the Dine in Downey promotion. DISCUSSION As requested by the Downey City Council, the Dine in Downey promotion will be implemented in 2010 and it aims to build on the success of the 2009 program. First, staff is working with the 40+ restaurants that participated last year to implement a better promotion in 2010. Generally, the 2010 Dine in Downey promotion will be an approximately two-month program from late June to late August. The program will offer free promotion to participating local restaurants and discounts to prospective customers. Similar to 2009, City staff will coordinate promotion of Dine in Downey in local newspapers. Staff will also create posters, postcards, and discount coupons. CITY OF DOWNEY, CALIFORNIA To improve the program in 2010, staff members intend to have promotional materials distributed at public gatherings, including the concerts in the park series at Furman Park and the Downey Farmers Market. Further, staff is working with Raw Inspiration, the nonprofit manager of the Downey Famers Market, to feature four or five local Downey restaurants at the Downey Farmers Market every Saturday during the Dine in Downey promotion. Staff estimates that design, printing, promotion, distribution, and logistics necessary to implement the 2010 Dine in Downey program will cost $12,000. This amount is an approximate 20% increase from 2009 because staff intends to extend the program for a longer period and be more aggressive with promotion. FISCAL IMPACT Approval of the 2010 Dine in Downey promotion will decrease the Downey Community Development Commission budget (business retention line item) by $12,000. Page 2 of 2