Buying Locally Does Help Community Life

Kimberly Watson, Editor in Chief
June 11, 2012 /

Your could be one of the many people in various communities, who would like to know that when they spend money in their home stores, at least part of it will be utilized locally. Whether spending in a restaurant, for the movies or with any other provider, consumers would be happier knowing that they are contributing to their particular environment.

The answer to this question is that on average; about 50% of the money you spend is retained within your community. The reason for this is economic based. For example; buying locally helps a community benefit. This is because an item or service from a locally owned business means that they are contributing more to the community than a nationally owned business.

There are relatively few primary companies associated with, for example, the restaurant trade, which control the big named, nationwide brands. In any community, these compete with the larger and wider range of independently owned restaurants in most of the cities and towns in America, irrespective of size.

Various reports show that buying locally helps a community in varying degrees. A national restaurant chain provider will utilize about $13 from every $100 earned. This will be directed into the community. However, buying locally helps a community to a greater extent, when it is from a local and independent restaurant, as $45 from every $100 of their revenue is dispensed throughout the community by various sources.

It has been recorded that in the first quarter of this year, public company restaurant usage followed a negative trend; the first of this nature since 2003. Further information revealed that primary chain restaurants in the larger cities experienced a 3% decline in usage. In a further report, it was shown that lesser sized restaurants in the smaller cities, recorded a decline in usage of just over 11%.

On a more positive note and one related to the concept that buying locally helps a community; it was also recorded that locally owned independent restaurants, did not experience a significant decline in traffic. In fact, certain segments in this market sector, registered small increases.

To support the concept of buying locally helps a community; in some areas, locally owned restaurants have formed purchasing groups, for greater buying power. They also help members with promotion and other community oriented support.

 

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