It’s a risky business with a high level of cost and multiple considerations; and many economics professors would advise against it. But starting a restaurant in Poplar Bluff might not be the worst idea.
In what seems to defy conventional wisdom as it applies to businesses in small towns, Poplar Bluff boasts more than 50 restaurants in a town with a population of less than 20,000 people.
“I would say that it is a good indication of how much of a hub Poplar Bluff is,” remarked Greater Poplar Bluff Area Chamber of Commerce President Steve Halter. “This area serves as a primary/secondary market for approximately 168,000 people.”
In addition to his duties with the chamber of commerce, Halter also teaches economics courses online for William Woods University and is well-acquainted with different business models and standard predictors of success.
One obvious measurement indicative of the local anomaly would be comparing the number of restaurant businesses to those of a larger area. For example: Cape Girardeau has more than double to population of Poplar Bluff; but the Cape Girardeau Chamber of Commerce lists 48 restaurants, while Poplar Bluff lists 50.
“That number of 50 is just the ones that are members of the Chamber of Commerce,” Halter remarked. “I’m sure there are several more than that number (of 50) in town.”
Halter noted the restaurant business is viewed as being an extremely risky endeavor due to the cost of materials, goods and labor; and the market can be fickle depending on the area.
“It’s not the most encouraged type of business venture,” he noted. “But I learned a long time ago not to give advice.”
Halter noted Poplar Bluff is in a good location that happens to be an intersection of sorts between other major locations.
“We are kind of an island here and we pull business from multiple areas,” Halter explained. “All of our restaurants here do good business. And when you compare the amount of business our restaurants do to other restaurants in larger markets, it’s very surprising.”
Dr. Wes Payne, Three Rivers College president, has also been an instructor of economics and statistics; and he isn’t surprised at the local restaurant success.
“As with other areas applicable to economics, it’s all about supply and demand,” Payne remarked. “And the market will typically fall into some kind of equilibrium.”
Halter pointed out Poplar Bluff serves as a busy hub in multiple categories, such as: health care, banking, retail, education and manufacturing. Payne concurred with that assessment.
“You must consider the fact that there is a line at some point in each direction outside of Poplar Bluff,” Payne stated. “For example: the lines might be, say, Corning to the south, Doniphan to the west, Greenville to the north, and Dexter to the east. People that are on the Poplar Bluff side of those lines are going to be compelled to do business here in Poplar Bluff.”
“There are plenty of reason for people to regularly come into Poplar Bluff,” Halter noted. “And that isn’t slowing down any time soon.”
Payne describes it as an “economic gravity,” and noted that Poplar Bluff has substantially more draw than other areas.
“Just one example might be: many people commute from nearby areas to work in Poplar Bluff, and it might not be feasible for them to drive all the way home for lunch,” Payne noted. “So, if they don’t bring their lunch from home, then they will patronize businesses here. Many of the people who work in Cape Girardeau also live there, so they can be more likely to afford going home for lunch.”
Both Payne and Halter noted Poplar Bluff also has a large number of pharmacies, banks, dentists, and other various types of businesses.
“Plainly put: if you drive through any other community of 17,000 people, it’s not going to look like Poplar Bluff,” Payne remarked. “This area is quite different in many regards.”
Halter explained it is for those reasons that he and many other people anticipate substantially more growth for the greater Poplar Bluff area in both the near and distant future.