Inn | KRG Hospitality

November 29, 2022by David Klemt David Klemt No Comments

169 Grants May be the End of the RRF

169 Grants May be the End of the RRF

by David Klemt

UPDATE: According to some sources, the report of $180 million in “leftover” RRF money are inaccurate. The disbursement of $83 million represents the final release of RRF funds.

The $83 million in grants going out this week to 169 recipients may be the end of the Restaurant Revitalization Fund in its entirety.

Unfortunately, it’s possible last week’s awards represent the final grants. This, despite the Government Accountability Office (GAO) finding $180 million in funds in July.

As far as the sources of these funds, that topic remains a bit vague.

However, the story is that more than $150 million are the result of clawbacks. More than a third, if reporting is accurate, is the result of recipients or financial institutions returning grants. Reports indicate another $24 million come from the SBA setting aside $24 million for litigation.

Per the National Restaurant Association months ago, the American Rescue Plan Act of 2021 does not include a provision for a litigation fund. Therefore, the NRA called for the SBA to disburse that money to RRF applicants.

What we do know is that last week’s RRF grant recipients should be receiving their funds this week. According to the SBA, 169 recipients were awarded a portion of $83 million in RRF money.

Again, that’s money the GAO found back in July. It’s also less than half of the reported $180 million the government agency found this summer.

Given the fact that the SBA announced a disbursement of just 46 percent of the “leftover” funds, many believed another round was in the works. Sadly, that may not be the case. It’s possible—and increasingly likely, regrettably—that the rest of the $180 million in funds won’t go to grant applicants.

Now, I want to be clear on one important point: I’m relieved for the 169 grant recipients. I truly hope the funds arrive in time to help them and their teams.

While I’ll feel disappointment if a second round of the $180 million never materializes, I’m happy for those who received a portion of the $83 million awarded last week.

Frustration

So, where does the industry go from here? The failure of Congress to replenish the RRF left a reported 150,166 applicants with zero assistance. According to Nation’s Restaurant News, it would have taken $41 billion to award each applicant a grant. Obviously, $180 million was never going to serve to help that many applicants.

Frustratingly, the answer to the question above appears to be: Move forward on our own. And that unsatisfactory answer has flooded with me opinions.

One opinion? Our industry, it seems, is always left to fend for itself. Despite the millions of people hospitality employs, lawmakers and politicians don’t seem willing to assist us—and therefore their constituents—in meaningful ways.

Another opinion? Perhaps we need to build a more powerful lobby to have our voices heard. Such an effort began in earnest to support the RRF. However, too many elected officials were comfortable refusing to replenish the fund.

A third opinion was shaped by Eileen Wayner, CEO of Tales of the Cocktail. As a guest on the Bar Hacks podcast she addressed the perception of operators and hospitality workers as being adaptable and resilient.

While those characteristics can be admirable, Wayner expressed something I think we all feel: Sometimes, we’re tired of being resilient. Sometimes, we’re tired of being expected to adapt. There are times our industry needs help.

When you’re constantly seen as resilient, people believe you don’t need assistance. What we’ve seen with the RRF and its failed replenishment is that too many people with the power to help can write us off. “They’re resilient,” they say. “They’ll figure it out. They’ll be fine.”

Well, we’re not all “fine.” We needed help, and we deserved it.

Image: CHUTTERSNAP on Unsplash

Delivery worker on bicycle on city street

November 28, 2022by David Klemt David Klemt No Comments

$28.82 per Hour for NYC Delivery Workers?

$28.82 per Hour for NYC Delivery Workers?

by David Klemt

In response to the New York City Council’s proposal of $23.82 per hour for delivery workers, some “deliveristas” are asking for more.

Now, before we proceed, no, this isn’t a re-run of an article from last week. This isn’t a case of déjà vu—it’s the evolution of a news story that’s developing rapidly.

So, how much more do delivery workers in NYC want? Well, they’re after a significant bump over the council’s minimum hourly wage proposal.

Requesting that the NYC Council more accurately account for deliverista expenses, some delivery workers are asking for $28.82 per hour.

Early last week, a group consisting of Los Deliveristas Unidos and the Worker’s Justice Project members came together. They gathered at New York City Hall to make their stance on the NYC Council’s minimum wage proposal.

As the deliveristas see it, an increase from $23.82 to $28.82 more accurately reflects their operating expenses. The argument is compelling when one considers costs beyond fuel.

Asking for More

After all, not every delivery worker in NYC (and other markets) uses a car, truck or SUV to make deliveries. That should explain the use of the term “delivery worker,” not “delivery driver.” Some deliveristas ride motorcycles, mopeds, or bicycles. I’m willing to bet some even use scooters, rollerblades, or skateboards.

Using any mode of transportation as a delivery worker comes with requirements, both legal and practical. For example, deliveristas must maintain insurance, maintain their transportation, and purchase and maintain safety equipment.

And yes, that safety equipment is crucial. According to some reports, around a third of NYC those who deliver on two wheels have been injured on the job. Tragically, 33 delivery workers have been killed since 2020. In fact, NYC says delivery workers have the highest injury rate.

Another interesting development may seem semantic. However, when one takes time to truly consider the point it’s rather poignant.

In asking for the proposal of $23.82 to rise by $5 by 2025, are asking for a living wage. Not minimum wage, as the proposal frames the hike, but a living wage.

One worker, Antonio Solís, as quoted by The City, a non-profit NYC news publication, explained: “We are asking the city to make a $5 adjustment, to go that extra mile to ensure we get to a living wage.”

A Request, not a Rejection

It’s also important to note that NYC’s delivery workers aren’t rejecting the council’s minimum wage proposal. Rather, the request is that the council considers updating their proposal ahead of a December 16 public hearing on the matter.

So far, companies like DoorDash, Grubhub, and Uber Eats haven’t released much in the way of statements. However, there have been reports quoting a handful of representatives. In pushing back against the proposal, they’ve mentioned increased costs; reduced deliveries; and the possibility of “locking out” deliveristas if delivery demand is low at a given time.

Should legislation go into effect after the public hearing, it’s likely we’ll see lawsuits from the delivery companies.

Image: Patrick Connor Klopf on Unsplash

November 25, 2022by David Klemt David Klemt No Comments

SBA Releases 46% of Held RRF Funds

SBA Releases 46% of Held RRF Funds

by David Klemt

After receiving pressure from members of Congress and scrutiny from the industry and media, the SBA has released some RRF funds.

This comes after several months of inaction from the Small Business Administration.

The amount released on Wednesday, November 23 isn’t insignificant. However, the SBA disbursed less than half of the RRF money they’re sitting on.

Still, the news is welcome, particularly to the RRF applicants who finally received a grant.

$180 Million in RRF Funds

Several months ago, the Government Accountability Office (GAO) investigated the handling of the Restaurant Revitalization Fund. Back in July, the fruits of that investigation came to light: $180 million of the $28.6 billion in RRF funding had not been disbursed.

Further, it was reported in back August that the SBA was partnering with the Department of Justice to “formulate a plan on how to distribute” the money.

Now, nearing the end of November, it appears the SBA and DoJ have finalized a plan. Two days ago, on the eve of Thanksgiving, the SBA released $83 million of the $180 million that was discovered in July of this year. If every applicant received the same amount, that works out to $491,124 per grant.

With any hope, this means the remaining $97 million will go to deserving grant applicants very soon.

Where did the Money Go?

We don’t yet know which RRF grant recipients received a portion of the $83 million released this week.

What we do know is:

169 applicants received this week’s grants;
applicants were selected by the order in which they applied for grants in 2021;
each recipient was alerted about their grant award this week;
the recipients are expected to actually receive the money some time next week;
grant recipients have until March 2023 to spend the funds; and
the recipients won’t have to repay the money if they spend it on “approved purchases.”

It’s logical that the disbursement of the $97 million in remaining RRF grants will follow the same procedure.

Statements on this Week’s Developments

This week, both the Small Business Administration and National Restaurant Association made statements about the release of $83 million in RRF funds.

“This week, the U.S. Small Business Administration (SBA) began distribution of returned funding in the Restaurant Revitalization Fund (RRF) program, following the program’s closure in June 2021. In doing so, the SBA worked with the advice of the Department of Justice on a plan to distribute the remaining funds, approximately $83 million,” reads a press release from the SBA.

“In addition to other SBA assistance programs, the RRF has helped more than 100,000 restaurants and other food and beverage business owners survive the pandemic,” continues the administration’s statement.

Sean Kennedy, executive vice president of public affairs for the NRA, said the following about this week’s disbursement:

“The SBA’s action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. Today’s announcement is great news for those 169 operators fortunate enough to receive an RRF grant, but hundreds of thousands more are struggling with uncertainty.

“We must continue to look forward because the enormous challenges of the industry will continue beyond today. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.”

Image: AR on Unsplash

November 23, 2022by David Klemt David Klemt No Comments

Merchants Support Credit Card Act

100s of Merchants Support Credit Card Competition Act

by David Klemt

Perhaps at least somewhat unsurprisingly, support for the Credit Card Competition Act is growing rapidly among merchants.

In fact, 1,802 merchants are making their position on the bill clear. Those hundreds of merchants drafted, signed, and sent a letter to the House and Senate.

The crux of that letter? To tell our lawmakers to support and pass the Credit Card Competition Act.

To view the letter, sent by the Merchants Payments Coalition (MPC), please click here. For the bill and its status, follow this link.

The Credit Card Competition Act: A Quick Summary

According to the MPC, credit and debit card transactions just in the US reached $3.49 trillion in 2021. Along with those transactions came $77.48 billion in merchant fees—just for Visa and MasterCard.

Why call those out those two processors in particular? Well, it’s because they’re behind about 576 million credit cards. Oh, and they also control 87 percent of the processing market.

In the span of just one decade, Visa and MasterCard swipe fees have risen 137 percent. So, it’s not surprising that merchants are supportive of the Credit Card Competition Act.

There are, indeed, restaurant and hospitality groups attached to the MPC’s letter to Congress. Taking a quick glance, Denny’s franchisees, Dutchman Hospitality Group, and Mandalay Hospitality Group are among the signees.

Obviously, this makes sense—swipe fees are among the highest costs operators face every day.

Where’s this Bill Currently?

It shouldn’t be too shocking to find that this has yet to make much progress. The bill’s sponsors, Sens. Richard Durbin (D-IL) and Richard Marshall (R-KS), introduced it in the senate at the end of July.

Three months later, October 28, an attempt was made to include the bill in the National Defense Authorization Act (NDAA). For those who are unfamiliar, the NDAA is known as a “must-pass” bill. After all, it specifies the US Department of Defense’s (DoD) budget and expenditures each year.

Along with a reported 900 other “riders,” Sens. Durbin and Marshall tried to get their bill passed within the NDAA. Unfortunately for the senators and supporters of the bill, the NDAA vote was pushed until the middle of November…which we’re now past.

Of course, the US did just undergo a mid-term election cycle. So, I suppose it’s reasonable to be a bit more patient with the Senate and the progress of this bill.

Those who work in or support our industry can make their opinion of this bill known. Just follow this link to the National Restaurant Association Credit Card Competition Act portal.

Image: Clay Banks on Unsplash

November 22, 2022by David Klemt David Klemt No Comments

$23.82 Minimum Wage for Delivery Workers?

$23.82 Minimum Wage for Delivery Workers in NYC?

by David Klemt

With a public hearing on the docket for December 16, the New York City Council is proposing “fairer pay for delivery workers.”

The move is a year in the making. Last year, the NYC Council approved legislation with the goal of improving delivery worker pay and working conditions.

Now, the council is moving to increase minimum wage for the 60,000-plus delivery workers in the city.

At the risk of coming across as pessimistic, the legislation is likely to be unpopular with third-party delivery services. After all, when NYC and San Francisco passed laws to cap third-party delivery commissions, the big services filed lawsuits.

So, again, increasing the minimum wage for delivery workers in NYC will probably not go down well with companies like Uber, DoorDash, and Grubhub.

It’s possible we’ll find out before the end of this year. After the public hearing, the NYC Council will consider public comments. Then, the council could move forward and enact the legislation.

What’s in the Proposal?

Should the rule go into effect after the public hearing on December 16, minimum wage would rise to $17.87 per hour for third-party delivery workers. By April 1, 2025, that rate would increase to $23.82.

“This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city,” says New York City Mayor Eric Adams.

According to reports, Brooklyn Borough President Antonio Reynoso is in favor of the legislation as well.

“It’s absolutely unacceptable that the restaurant delivery workers who provide for so many in this city are not justly compensated for their time, reimbursed for their expenses or provided essential benefits,” says Reynoso.

So, how did the council arrive at the $23.82 per hour figure? Well, we actually have that information:

$19.86, which matches standards set by the New York City Taxi and Limousine Commission for ride-hail drivers;
$2.26 for expenses delivery workers incur; and
$1.70 for worker’s compensation.

Why Legislate Delivery Worker Pay?

It appears the main reason is an incredibly simple one. In short, third-party delivery workers aren’t making minimum wage in NYC.

Per the Department of Consumer and Worker Protection (DCWP), delivery workers average less than the city’s $15 minimum wage. With tips, they’re averaging $14.18. And without tips? As one can imagine, the hourly rate plummets: $7.09 per hour.

According to the DCWP, the average hourly expense a delivery worker incurs is $3.06. So, that drives their hourly pay to $11.12 with tips, $4.03 without.

In an argument likely to be cited in any lawsuit filed by DoorDash (or at least shared in a public statement), the company claims its delivery workers make almost $29 per hour.

Clearly, there’s a discrepancy somewhere. Either delivery drivers are woefully underpaid for the service they provide or multiple researchers are misinterpreting hourly pay data.

Several sources have cited a statement made by a DoorDash representative about the NYC Council’s proposal:

“Dashing allows so many across New York City to earn when, where and how often they choose,” says the rep. “Unfortunately, the proposed rule does not appropriately account for this flexibility or that Dashers are able to choose which deliveries they accept or reject.”

Their statement continues, addressing a possible rise in costs and drop in orders:

“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support.”

Why Should I Care if I Don’t Operate in New York City?

We’ll see—quickly, apparently—if this proposal becomes law. Should that happen, there’s reason to assume similar proposals will pop up in other cities and states.

We’ll also see whether or not third-party delivery companies file lawsuits in response. They’ve done so for commission caps, after all.

At any rate, this is one to watch. Similar legislation could be coming to your market.

Image: Nik Shuliahin 💛💙 on Unsplash

November 21, 2022by David Klemt David Klemt No Comments

Traffic Up but Margins Thinner

Traffic Up but Margins Thinner

by David Klemt

The One Table 2022 report from Datassential focuses on the state of the operator and what the industry can expect moving forward.

This informative report shares survey results from 801 operators across America. While some of the findings are positive, it’s clear many operators are enduring significant challenges.

For some, traffic and sales are up. However, that’s not the situation others find themselves in.

To download and review the Datassential One Table 2022, please click here.

The Respondents

For this report, Datassential shares the survey answers from 801 respondents.

Most survey respondents are independent operators. In fact, they account for 71 percent of the participants. Making up the rest of the field are chain operators (15 percent) and franchise operators (14 percent).

As far as segment types, the majority of survey participants operate in the fast-casual space (18 percent). Unsurprisingly, fine dining is the smallest group of respondents at six percent. Thirteen percent operate midscale restaurants, and 12 percent are at the helm of casual-dining concepts. Somewhat surprisingly, just ten percent of participants operate QSRs.

Interestingly, the service format is fairly even among survey participants. Fifty-three percent of operators are full-service and 47 percent are limited-service.

Similarly, survey respondents represent the country’s regions pretty evenly:

South: 30 percent
Midwest: 29 percent
Northeast: 21 percent
West: 20 percent

In terms of market type, most respondents operate in the suburbs (49 percent). Following somewhat closely are urban-market operators, at 31 percent. Just 20 percent of survey participants operate in rural markets.

Traffic, Sales and Margins

At first glance, Datassential’s survey reveals positive news.

Now, I’m sure people find the terms “pandemic, “pre-pandemic,” and “post-pandemic” exhausting at this point. However, there’s no denying we continue to feel the aftershocks sent through the industry by the pandemic.

So, how do things look now in comparison to pre-pandemic traffic and sales levels?

First, the positives. Nearly half of survey respondents—47 percent—say their traffic is up in comparison to where it was pre-pandemic. Add to that the 14 percent who say their traffic is the same and 61 percent of operators appear to be in good shape.

In terms of sales, 51 percent of survey participants have good news. That news is that their sales are higher in comparison to pre-pandemic levels. Again, add the 14 percent who don’t see any change. So, that’s 65 percent of operators who appear to be performing well.

But with the good there’s bad. Unfortunately, 39 percent of respondents report lower traffic than pre-pandemic levels. And sales are lower than they were before the pandemic for 35 percent of survey participants.

Operator margins are lower for all respondents. Generally speaking, the profit margin for operators before the pandemic sat at 21 percent. Now, the average is 13 percent. QSRs and fast-casual restaurants are a bit higher among survey respondents: 17 percent and 15 percent, respectively.

On paper things do look up for many operators. However, the industry is still suffering, with a third struggling to rise to even pre-pandemic levels of traffic and sales.

Image: Daniel Bradley on Unsplash

November 18, 2022by David Klemt David Klemt No Comments

Is There Demand for Non-alcohol?

As the Holidays Approach, is There Demand for Non-alcohol?

by David Klemt

There’s no denying that non-alcohol is a growing beverage category, but does the data support the hype and operator consideration?

A report by behavioral research firm Veylinx offers compelling insight into non-alcohol and consumers.

By now, there’s really no excuse for failing to give non-alc serious consideration. When planning menus, operators should treat non-alc as much more than an afterthought.

Admitting fully that I’m repeating myself, giving alcohol-free beverages the same attention as their full-proof counterparts is crucial. Doing so is smart business; non-alc is capable of driving traffic and revenue.

And then there’s the guest experience element of the non-alc equation. Hospitality is about service, about ensuring every guest is comfortable. Giving guests who are abstaining from alcohol consumption a different experience than others isn’t hospitality—it’s alienation. Not only is that the antithesis of hospitality, it’s bad business.

Reviewing Veylinx data shows that non-alc is worthy of operators’ time and consideration. In my opinion, it’s even more important that non-alc menus and offerings be dialed in now. After all, the end-of-year holidays on our doorsteps.

The infamous Busiest Bar Night of the Year is nearly here. From November 23 through New Year’s Eve, people will be meeting up with family and friends. Many will also be seeking an escape from the stress of those gathering and the holidays.

Non-alcohol by the Numbers

One of the most important points made by Veylinx is this: Abstinence from alcohol isn’t limited to “social media” events like Dry January and Sober October.

Rather, consumers are choosing to abstain from alcohol throughout the year for myriad reasons. Specifically, Veylinx data reveals that more than 75 percent of Americans have abstained from alcohol consumption at some point for at least one moment.

Further, 46 percent of Americans plan to reduce their consumption of alcohol “right now.” As in, the holidays may be upon us but they’re actively working on a plan to drink less, not more.

Two major factors motivating this behavioral change are mental well-being and physical health. In service of those factors, more than half of LDA drinkers in America plan to replace beverage alcohol with non-alc beverages.

Interestingly, Veylinx finds that these consumers will pay more for non-alc alternatives in comparison to the general population.

Drilling down further, this shift in consumer behavior appears to be driven by a handful of consumer types:

21- to 35-year-old consumers;
“light” drinkers; and
consumers who have set aside alcohol consumption for one month or more.

Speaking of the first group, demand for RTDs is 48 percent greater in comparison to those aged 35 or older. Add CBD to RTD and the demand among the 21 to 35 cohort grows by 18 percent.

However, not all non-alc growth comes from the 21-to-35 group. Non-alc beverages with mood boosters see an increase in demand from the 35-plus group of 29 percent.

In short, if an operator is ignoring the non-alc consumer, they’re harming their own business and reputation. Alcohol-free RTDs, cocktails, beer, and wine are growing.

Savvy operators will leverage that growth.

Image: Helena Yankovska via Unsplash

Newfoundland and Labrador during daytime

November 16, 2022by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

If you’re wondering which province in Canada is the happiest, Statistics Canada has the answer—and the happiest may surprise you.

Of course, those who live and work in the happiest province won’t find it shocking. After all, they’re largely happy to be there.

However, if you expect the happiest province to be the home of Toronto, Vancouver, Montreal or Canada… Well, you’re in for a surprise.

Earlier this week we took a look at the happiest cities and states in America. Congratulations Fremont, California, and Hawaii, respectively. To learn where 181 other cities and 49 states rank, please click here.

The Happiness Survey

Or more accurately, the “life satisfaction” survey. For this survey, that’s what Statistics Canada reveals: life satisfaction.

Interestingly, the survey is very simple. Apparently, Statistics Canada simply asked participants to rate the satisfaction of living in their province, zero through ten. For this survey, zero is least satisfied, ten is most.

Ages 15 through 75 (and older) were able to participate. The survey was also broken down to gauge the satisfaction of men and women.

Before we jump into the breakdown of province satisfaction or happiness, some good news. Reviewing the Statistics Canada data, most participants across all age groups are happy. In fact, age groups 65 to 74 and 75-plus appear to be happiest.

On the other side, ages 15 to 54 had the most people who rated their life satisfaction between zero and five. Even so, just over 20 percent of survey respondents rated their satisfaction a five or less.

So, on the whole, Canadians seem satisfied or happy with their lives, regardless of the province in which they live. Personally, I find that to be great news.

The Happiest Province

Okay, let’s dive into the reason you’re here: to learn which province is the happiest.

Newfoundland and Labrador
Prince Edward Island
Quebec
New Brunswick
Manitoba
Alberta
Saskatchewa
Nova Scotia
Ontario
British Columbia

The above rankings are determined by the percentage of survey respondents who rated their life satisfaction eight, nine or ten. So, if you’re in Newfoundland and Labrador, Prince Edward Island or Quebec, wow—you’re apparently one incredibly happy person.

Conversely, below you’ll find the rankings as determined by the largest percentage of respondents who rated their satisfaction a five or lower. As you’ll find, the list below isn’t simply the inverse of the one above.

Ontario
British Columbia
New Brunswick
Alberta
Nova Scotia
Prince Edward Island
Manitoba
Saskatchewa
Quebec
Newfoundland and Labrador

As far as Canada overall, the results of this particular survey are positive. Just 19.4 percent of survey respondents rated their satisfaction or happiness zero through five. And only 28.9 percent provided a rating of six or seven.

More than half of Canadians, 51.7 percent, rate their lives an eight, nine or ten. That’s some great and welcome news.

Image: Erik Mclean on Unsplash

November 15, 2022by David Klemt David Klemt No Comments

The Most-stressed Cities in the US

These are the Most-stressed Cities in the US

by David Klemt

There’s a simple argument to be made that one characteristic the happiest cities share is being among the least stressful to live.

Yesterday we took a look at the happiest cities in the US, according to WalletHub analysis. Click here in case you haven’t yet read that article.

Today, let’s check out the most- and least-stressed cities in America. As with their happiest and least-happy cities list, WalletHub ranks 182 cities based on stress levels.

Of course, “least stressed” doesn’t mean “stress-free.” Nor should it—some stress is good for us. After all, stress can push us to perform our best, bring out our problem-solving creativity, and even energize us.

The rankings below may surprise you. Like me, you may even find yourself raising an eyebrow and disagreeing with some of them.

However, it’s a compelling list worth reviewing if you’re an operator, leadership team member, hospitality professional, or in the site-selection portion of opening a restaurant or bar.

The Top 25 Cities of Stress

When determining their results, WalletHub ranked 182 cities according to four main categories. Those categories are: work stress; financial stress; family stress; and health and safety stress. The categories consist of 40 key metrics in total.

I think it’s safe to assume that no city wants to be in the top 25 of this list, or even the top 50. Neither, I’m certain, does any city want to wear the crown of “Most Stressed US City.”

Unfortunately, someone must be number one. Below, the top 25 “Cities of Stress,” per WalletHub:

Cleveland, Ohio
Detroit, Michigan
Gulfport, Mississippi
Baltimore, Maryland
Philadelphia, Pennsylvania
Memphis, Tennessee
New Orleans, Louisiana
Birmingham, Alabama
Louis, Missouri
Toledo, Ohio
Augusta, Georgia
Jackson, Mississippi
North Las Vegas, Nevada
San Bernadino, California
Fayetteville, North Carolina
Akron, Ohio
Wilmington, Delaware
Houston, Texas
Montgomery, Alabama
Shreveport, Louisiana
Cincinnati, Ohio
Newark, New Jersey
Mobile, Alabama
Columbus, Georgia
Indianapolis, Indiana

Alas (I don’t get to use this word much), Ohio has four cities on this list. In fact, the Buckeye State has two cities in the top ten.

Of course, Ohio isn’t the only state with multiple cities in the top 25 stressed cities. Alabama has three cities among the top 25. Also, Mississippi and Louisiana each have two cities on this part of the list, unfortunately.

Cities 26 Through 91

As you’ll see below, Ohio shows up a couple of times in this portion of the list. However, so do a handful of other states.

For example, ten Texas cities land on this part of the list. That means Texas has 11 cities among the “top” half of the most-stressed US cities.

Baton Rouge, Louisiana
Las Vegas, Nevada
Huntington, West Virginia
Springfield, Missouri
Dover, Delaware
Norfolk, Virginia
Milwaukee, Wisconsin
Chicago, IL
Newport News, Virginia
Washington, DC
Dallas, Texas
Richmond, Virginia
Tulsa, Oklahoma
Chattanooga, Tennessee
Bridgeport, Connecticut
San Antonia, Texas
Atlanta, Georgia
Glendale, Arizona
New York, New York
Tucson, Arizona
Columbia, South Carolina
Columbus, Ohio
Knoxville, Tennessee
New Haven, Connecticut
Brownsville, Texas
Rochester, New York
Casper, Wyoming
Vancouver, Washington
Oklahoma City, Oklahoma
Jacksonville, Florida
Corpus Christi, Texas
Charleston, West Virginia
Henderson, Nevada
Phoenix, Arizona
Modesto, California
Wichita, Kansas
Winston-Salem, North Carolina
Little Rock, Arkansas
Moreno Valley, California
Louisville, Kentucky
Stockton, California
Spokane, Washington
Fresno, California
Miami, Florida
Kansas City, Missouri
El Paso, Texas
Salem, Oregon
Hialeah, Hawaii
Los Angeles, California
Fort Smith, Arizona
Fort Worth, Texas
Denver, Colorado
Arlington, Texas
Buffalo, New York
Greensboro, North Carolina
Bakersfield, California
Fort Wayne, Indiana
Providence, Rhode Island
Tacoma, Washington
Port St. Lucie, Florida
Lewiston, Maine
Laredo, Texas
Cape Coral, Florida
Grand Prairie, Texas
Garland, Texas
Aurora, Colorado

Cities 92 Through 137

This is where things begin to turn around, at least mathematically. This is the “bottom” half of the list.

Or, to phrase it another way, this section starts identifying the least-stressed cities in America.

Portland, Oregon
Ontario, California
Lubbock, Texas
Reno, Nevada
Huntsville, Alabama
Sacramento, California
Amarillo, Texas
Albuquerque, New Mexico
Tampa, Florida
Long Beach, California
Colorado Springs, Colorado
Fontana, California
Tallahassee, Florida
Las Cruces, New Mexico
Worchester, Massachusetts
Orlando, Florida
West Valley City, Utah
Fort Lauderdale, Florida
Peoria, Arizona
Riverside, California
Mesa, Arizona
Nashville, Tennessee
Des Moines, Iowa
Nampa, Idaho
Tempe, Arizona
Irving, Texas
Oakland, California
Grand Rapids, Michigan
Charlotte, North Carolina
Rancho Cucamonga, California
Boston, Massachusetts
Pittsburgh, Pennsylvania
Honolulu, Hawaii
Oceanside, California
Pearl City, Hawaii
Anchorage, Alaska
Warwick, Rhode Island
Virginia Beach, Virginia
Cheyenne, Wyoming
Petersburg, Florida
Chesapeake, Virginia
Billings, Montana
Lexington-Fayette, Kentucky
Durham, North Carolina
Santa Ana, California
Jersey City, New Jersey

Cities 138 through 182

Finally, we reach what cities, according to WalletHub analysis, experience the least amount of stress.

Salt Lake City, Utah
Aurora, Illinois
Santa Clarita, California
Glendale, California
Manchester, New Hampshire
Paul, Minnesota
Garden Grove, California
Pembroke Pines, Florida
Yonkers, New York
Chandler, Arizona
Oxnard, California
Juneau, Alaska
Anaheim, California
Santa Rosa, California
Chula Vista, California
Charleston, South Carolina
Raleigh, North Carolina
San Francisco, California
Huntington Beach, California
Omaha, Nebraska
San Diego, California
Gilbert, Arizona
Scottsdale, Arizona
Rapid City, South Dakota
Austin, Texas
Seattle, Washington
Minneapolis, Minnesota
Missoula, Montana
Boise, Idaho
Nashua, New Hampshire
Plano, Texas
Cedar Rapids, Iowa
Lincoln, Nebraska
Portland, Maine
Irvine, California
Burlington, Vermont
Sioux Falls, South Dakota
Bismarck, North Dakota
San Jose, California
Columbia, Maryland
Fargo, North Dakota
Overland Park, Kansas
Madison, Wisconsin
South Burlington, Vermont
Fremont, California

Twelve of the cities on this part of the list are in California. Further, the least-stressed city in California: Fremont. If you read yesterday’s article, you know that WalletHub ranked Fremont, California, the happiest city in the US.

Image: Nathan Dumlao on Unsplash

November 14, 2022by David Klemt David Klemt No Comments

Which Cities and States are the Happiest?

Which US Cities and States are the Happiest?

by David Klemt

As an entrepreneur and operator evaluating a market for a first location or expansion, it can help to know where people are happiest.

Equally as helpful: Knowing the cities and states that are the least happy. Not, necessarily, so an operator can avoid these markets.

Rather, one’s concept may be a ray of stress-free sunshine for a given community. Providing a great workplace with a positive culture can work wonders for both the happiest and least-happy places. And as the cornerstones of the communities they serve, restaurants and bars can improve their guests’ quality of life.

We’ve looked at the US cities with the greatest inflow and outflow (which can reveal happiness levels), as identified by Redfin. And we’ve checked out the best US retirement cities, researched by Clever.

Now, we’re taking a look at which US cities and states are the happiest and least happy, according to WalletHub. In case you’re unaware, personal finance site WalletHub researches a vast array of topics. You can browse them here.

Happiest Cities

While determining which are happiest, WalletHub identified the happiest 182 cities. Obviously, that’s a far cry from how many cities are in the US.

According to one source, there 19,495 cities, towns, and villages across the country (per data from 2018). Of those, 4,727 cities have populations of 5,000 or more. A total of 310 cities have populations of at least 100,000, and only ten are home to one million people or more.

So, living in any of the 182 cities WalletHub suggests one is pretty happy. However, these are the ten happiest cities, in descending order:

Fremont, California
Columbia, Maryland
San Francisco, California
San Jose, California
Irvine, California
Madison, Wisconsin
Seattle, Washington
Overland Park, Kansas
Huntington Beach, California
San Diego, California

As you can see, six of the 10 cities are in California. In fact, 29 of the 182 cities on this list are located in the Golden State.

To create their list, WalletHub analyzed several metrics that make up three main categories: emotional and physical well-being; work environment; and community and environment.

Fremont, CA, is number one for emotional and physical well-being. The top spot for work environment goes to San Francisco, CA. And the number-one city for community and environment is Casper, Wyoming, which is number 79 on the list overall.

Least-happy Cities

Again, understanding that there are more than 19,400 cities, towns, and villages in the US alters the context of this list a bit.

Living and operating in one of these 182 cities indicates a person is living in a happy city. Basically, it isn’t the worst place to live if it’s on this list.

At any rate, let’s look at the 10 cities that make up the bottom of WalletHub’s list. Or, the “least-happy” cities, at least as far as these rankings are concerned.

Detroit, Michigan
Gulfport, Mississippi
Memphis, Tennessee
Huntington, West Virginia
Montgomery, Alabama
Cleveland, Ohio
Augusta, Georgia
Fort Smith, Arizona
Mobile, Alabama
Shreveport, Louisiana

Happiest States

WalletHub also ranked 50 states to determine the happiest and least happy. I checked, and, yep, that’s all of ’em! I will say it’s a bit disappointing they didn’t include Puerto Rico, but it isn’t the 51st state (yet).

WalletHub focused on 30 metrics to rank the states, which make up three main categories: emotional and physical well-being; work environment; and community and environment.

In descending order, the happiest states in America are:

Hawaii
Maryland
Minnesota
Utah
New Jersey
Idaho
California
Illinois
Nebraska
Connecticut

Hawaii doesn’t just take the top spot overall, it also claims number one for emotional and physical well-being. Utah takes first for work environment, and community and environment.

Rounding out the “happiest half” of the US are:

Virginia
South Dakota
North Dakota
Massachusetts
New Hampshire
Iowa
Delaware
Florida
Georgia
North Carolina
Wisconsin
Washington
New York
Maine
Wyoming

Least-happy States

Conversely, the following are the least-happy states, starting with the unhappiest:

West Virginia
Louisiana
Arkansas
Kentucky
Alabama
Mississippi
Oklahoma
Tennessee
New Mexico
Missouri

Filling out the least-happy half of the country are:

Alaska
Michigan
Ohio
Indiana
Texas
Nevada
Vermont
South Carolina
Kansas
Arizona
Colorado
Montana
Rhode Island
Pennsylvania
Oregon

In terms of the three metrics WalletHub analyzed, West Virginia is ranked last for emotional and physical well-being. Unfortunately, Mississippi is last for work environment. And Texas comes in last for community and environment.

Image: chaitanya pillala on Unsplash