DC FOOD ECONOMY STUDY 2019 TABLE OF CONTENTS INTRODUCTION............................................................... ..................................................................................... 6 PURPOSE AND METHODOLOGY ............................................................................................................... 6 THE DC FOOD ECONOMY IS STRONG AND EXPANDING RAPIDLY ................................. 7 TAX REVENUE FROM THE DC FOOD ECONOMY............................................................................ 8 SOURCING AND DEMAND IN THE DISTRICT’S FOOD ECONOMY....................................... 9 SOURCING..................................................................................................................................................................................................... .................... 9 DEMAND ............ ................................................................................................................................................................................................................ 10 TRENDS IN THE DISTRICT’S FOOD SECTORS........................................................ ......................... 13 FOOD AND BEVERAGE RETAIL......................................................................................................................................................................... 14 SPOTLIGHT ON GROCERY STORES .......... ............................. .................................................................................................................. 14 FOOD SERVICES AND DRINKING PLACES.................................................................................................................................................... 15 SPOTLIGHT ON RESTAURANTS ............................................................................................................................................................... 16 FOOD AND BEVERAGE MANUFACTURING .................................................................................................................................................. 16 FOOD AND BEVERAGE WHOLESALE............................................................................................................................................................. 17 WAGES AND OCCUPATIONAL TRENDS IN THE DISTRICT’S FOOD ECONOMY.................................................................................. 18 WAGES WITHIN THE DISTRICT’S FOOD ECONOMY ........................................................................................................................... 18 PROJECTED OCCUPATIONAL TRENDS FOR THE DISTRICT’S FOOD ECONOMY........................................................................ 19 FOOD BUSINESS SURVEYS AND INTERVIEWS............................................................................... 20 STRENGTHS OF THE DISTRICT’S FOOD ECONOMY ................................................................................................................................... 20 CHALLENGES FOR DISTRICT FOOD BUSINESSES...................................................................................................................................... 21 LICENSING ....................................................................................................................................................................................................... 21 LABOR REGULATIONS................................................................................................................................................................................ 22 TAXATION....................................................................................................................................................................................................... 22 OTHER CHALLENGES .................................................................................................................................................................................. 22 WORKFORCE CHALLENGES.............................................................................................................................................................................. 23 REGIONAL FOOD ECONOMY....................... ................................................................................................ 24 FOOD ECONOMY TRENDS IN THE METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS (COG) REGION ..................................................................................................................................... 24 REGIONAL FOOD PRODUCTION...................................................................................................................................................................... 25 REGIONAL COMPARISONS................................................................................................................................................................................ 26 PEER CITY COMPARISON .................................................................................................................................................................................... 27 KEY FINDINGS....................................................................................................................................................... 28 2 TABLE OF CONTENTS RECOMMENDATIONS TO STRENGTHEN THE DISTRICT’S FOOD ECONOMY................ 31 EXPAND CAREER PATHWAYS WITH THE FOOD ECONOMY ................................................................................................................... 31 SUPPORT NEW AND GROWING BUSINESSES WITHIN THE FOOD ECONOMY.................................................................................. 32 SUPPORT THE DEVELOPMENT OF FOOD INCUBATORS ACROSS THE DISTRICT, ESPECIALLY IN AREAS CURRENTLY UNDERSERVED.............................................................................................................................................................. 32 STREAMLINE THE PERMITTING AND LICENSING SYSTEM FOR FOOD BUSINESSES, ESPECIALLY SMALL AND EMERGING BUSINESSES WITH LIMITED STAFF CAPACITY ........................................................................................... 33 SUPPORT LOCAL FOOD PRODUCTION AND DISTRIBUTION ................................................................................................................ 33 CONSIDER A CENTRAL STORAGE AND PROCESSING FACILITY FOR LOCAL FOOD PRODUCTS......................................... 33 SUPPORT LOCAL FOOD BUSINESSES - INCLUDING FOOD AND BEVERAGE MANUFACTURERS, WHOLESALERS, AND URBAN FARMS - TO MEET LOCAL DEMAND OF FOOD PRODUCTS........................................................................... 34 INCENTIVIZE LOCAL FOOD PROCUREMENT BY LARGE INSTITUTIONS............................................................................................ 34 INCREASE HEALTHY FOOD ACCESS IN CERTAIN AREAS OF THE DISTRICT...................................................................................... 35 CONCLUSION......................................................................................................................................................... 36 ACKNOWLEDGEMENTS.................................................................................................................................. 36 TECHNICAL APPENDIX: DATA SOURCES AND METHODOLOGIES .................................... 38 EMPLOYMENT, WAGE, LOCATION QUOTIENT, SUPPLY AND DEMAND DATA, AND PURCHASE REQUIREMENTS DATA........................................................................................................................................................................................ 38 ECONOMIC IMPACT STUDY .............................................................................................................................................................................. 38 FOOD BUSINESS SURVEYS/INTERVIEWS...................................................................................................................................................... 40 INTERVIEWS ................................................................................................................................................................................................... 40 SURVEYS.......................................................................................................................................................................................................... 41 APPENDICES......................................................................................................................................................... 42 APPENDIX A: FOOD SECTOR AND SUBSECTOR DEFINITIONS ............................................................................................................. 42 APPENDIX B: WASHINGTON, DC FOOD SECTORS AND ECONOMIC IMPACT.................................................................................. 44 APPENDIX C: SUPPLY AND DEMAND OF FOOD BUSINESSES IN WASHINGTON, DC.................................................................... 47 APPENDIX D: DIRECT EMPLOYMENT AND WAGES BY SECTOR WITHIN THE DISTRICT’S FOOD ECONOMY .................................................................................................................................................................................. 49 APPENDIX E: OCCUPATIONAL DATA FOR THE DISTRICT’S FOOD SECTORS....................................................................................