For many, watching a hockey game is closely related with having a drink and appetizers at their favourite downtown bar. However, many local businesses in the restaurant industry are currently facing the consequences of the NHL lockout. In Vancouver, where hockey plays a vital role in the sustenance of other industries, many businesses are finding their desired profit goals out of reach.
The BC Restaurant Association announced that the Vancouver Canucks create the most energy in our downtown core; more than the Vancouver Whitecaps, BC Lions or other major events. They also claim that with no season on its way, restaurants may lose up to 6% in revenue per month. As a result, Vancouver’s eateries have let go of numerous employees and staff.
Porter’s 5 Forces depict a rivalry among businesses that exist in any downtown core. With the lockout present, the buyer power has shown significant strength as customers are shying away from restaurants. Substitutes, such as watching other sports elsewhere, are being made.
The NHL Lockout shows the connectivity that is present in our economy and how a setback in one industry can cause the collapse of another. Many large firms aren’t too impacted by the lockout but smaller businesses with large competitors are having difficulty. This all begs the question, are local/small companies too dependent on the impacts of large industries (NHL) for the success of their own?
Sources:
http://bc.ctvnews.ca/businesses-brace-for-nhl-lockout-1.958696