When Milwaukee was selected to host the Republican National Convention, city leaders hailed it as a golden opportunity for local businesses. Promises of increased foot traffic and significant revenue uplift were anticipated. However, the reality on the ground has painted a more complex picture.
As delegates filled Milwaukee this week, some establishments like hotels and specific bars saw a surge in business. At The New Fashioned, a restaurant near the Fiserv Forum, the influx of customers was overwhelming. “Yesterday was the equivalent of about five Bucks games in one day. We were absolutely slammed,” shared Marla Poytinger, the owner and CEO of the restaurant’s parent company.
Yet, this boost was not uniformly experienced across the city. Many businesses outside the immediate convention area struggled. Cheraty Par, owner of Awi Sushi near the convention site, reported a significant drop in customers. Despite increasing staffing and promoting her business actively, she only saw a tenth of her usual lunch crowd. “Most of my customers are the people who work around here, so I think they are working remotely,” Par noted.
The disparity in business outcomes aligns with historical patterns observed during political conventions. Victor Matheson, an economics professor at College of the Holy Cross, explained, “Conventions, with their crowds, security, and road detours, can undercut other industries.” His research on past conventions, such as the Republican convention in New York City in 2004, found a 20% drop in bookings at Broadway theaters.
Similarly, Gary Witt, CEO of the Pabst Theater Group, expressed his concerns about the financial impact on his venues. Expecting a loss of around $100,000 due to a lack of bookings, Witt highlighted the broader challenges faced by businesses in politically charged environments. “Once the candidate was announced, there were tremendous changes that impacted the RNC, adding to the delays of getting anything done,” Witt said.
Local officials remain optimistic despite these challenges. Mayor Cavalier Johnson acknowledged the mixed results but emphasized the overall economic benefit. “Millions of dollars will be spent in connection with the convention, but that money is not necessarily flowing through every single corner of the economy,” Johnson stated. He encouraged both attendees and locals to explore and support local businesses.
While the economic impact has been uneven, the convention has undeniably placed Milwaukee in the national spotlight, showcasing its capacity to host major events and potentially paving the way for future opportunities.
