San Jose businesses look beyond big events for downtown recovery

By CBS Bay Area

For downtown San Jose restaurant owner Adolfo Gomez, big events like the Super Bowl and FIFA World Cup watch parties can make a big difference.

This week, Gomez is welcoming large groups of software developers into his restaurant, Mezcal, as San Jose hosts the inaugural WeAreDevelopers convention in North America. One party alone includes 25 developers from an artificial intelligence startup.

But as thousands of visitors fill downtown for major conventions, Gomez says the bigger challenge is keeping that momentum going once the crowds leave.

“What really is helping San Jose, in a way, it’s exactly what’s happening with WeAreDevelopers,” Gomez said.

Since the pandemic, Gomez has shortened Mezcal’s total weekly operating schedule. He is now closed Mondays. He said the business has become increasingly dependent on major events to drive customers through the door.

“We need FIFA, we need Super Bowl,” he said.

The challenge, Gomez said, is what happens on the ordinary days in between.

Downtown San Jose has seen a shift in its daily rhythm since the pandemic. Gomez said the nightlife remains busy, but the lunch crowd has not returned to pre-pandemic levels.

“When you talk about office and lunch — doesn’t exist,” he said.

Fewer workers coming downtown in person means fewer potential customers stopping in for lunch or happy hour, he said.

There is also the issue of perception. Sead Ahmetović, CEO & Co-founder of WeAreDevelopers, said San Jose was selected for the organization’s first North American convention in part because of its role in the technology industry.

“You have all the big companies here,” he said. “I think that San Jose is indeed the capital of Silicon Valley.”

Gomez said that positive image does not always translate to people’s perception of downtown itself.

“When I walk in here, it’s not a dirty city and you walk in and everything’s clean,” he said. “It’s just sometimes people have that perception, and perception is super important.”

San Jose Mayor Matt Mahan said the city recognizes the challenges facing downtown and is trying to build an economy that is not dependent solely on major events.

“We can’t just rely on the experience economy,” Mahan said.

He said attracting people downtown for major events is one piece of a broader strategy that also includes efforts to spur housing development.

“I am hopeful, and I think we’re seeing some evidence, that that can help unlock more housing,” Mahan said.

For Gomez, the goal is ultimately bigger than a busy convention week. He wants downtown San Jose to become a place people choose to visit any day of the week.

“Give us a chance,” he said.

Marketing organization Visit San Jose said the economic impact of convention center events has been growing and is projected to increase another 10% this year. The organization also expects hotel room bookings next year to surpass this year’s total.