How downtown Boston is trying to transform to attract new businesses — and customers

Long viewed as an expanse of office space dappled with flashes of retail, Downtown Boston is trying to reinvent itself.

These days if you visit the neighborhood, you might come across a new small business, some curious public art or even a block party.

It's all part of an effort to reverse downturns in pedestrian traffic and business activity after many people's commutes and work schedules changed during the pandemic.

Despite consistent rebounds over the last few years, foot traffic in downtown Boston was still down roughly 42% at the end of 2023 compared to what it was before the pandemic, according to the Downtown Boston Business Improvement District. The organization has been working to increase the allure of downtown.

"Instead of kind of hoping for the day that the office worker comes back — which I do think more of them will continue to come back — we are focusing on broadening the audience and trying to provide retail options for the broader spectrum of visitors," said Michael Nichols, the group's president.

That means focusing less on office workers and more on students, tourists and residents, according to Nichols. He said his organization hopes to appeal to a younger, more diverse clientele by making downtown more of a destination for special experiences  — such as having a cuppa at Silver Dove Afternoon Tea or teeing up at Five Iron Golf.

"We're seeing many more of those types of businesses proposed where people are getting together and gathering for an activity of some type," Nichols said.

There's also a new crop of entrepreneurs coming into the neighborhood thanks to the city's $9 million SPACE grant program, aimed at helping small businesses fill vacant storefronts. The initiative is part of broader city efforts to make downtown more lively.

"We're really excited about downtown,"said Marcus Hamblin, co-owner of Flourish & Foundry, a home goods company set to have its grand opening Friday. "There's a history of the department store and all of this, like really rich shopping that has sort of scattered over the years, but we're really excited to be part of bringing that back to downtown."

Hamblin and co-owner Sarah Marchione received a $200,000 SPACE grant, which helped them set up their first brick-and-mortar store. Until now, the business has largely relied on online sales and pop ups.

They are part of the first cohort of businesses the city selected for this initiative. A second cohort of grantees is expected to hear if they've been chosen this month.

The business duo said they feel encouraged by the city's investment in the area. Though foot traffic isn't what is once was, they hope to attract potential customers by operating mostly mid-week and weekend afternoons. They will also use their space to host events, like a charcuterie class and an herb planting workshop.

"It's really important to us to connect with community," Marchione said. "Our goal is that this is just a rolling calendar, and we'll always have fun, unique experiences throughout the year."

Marchione and Hamblin hope event attendees will remember the experience and return to shop, in person or online.

Downtown's accessibility to multiple train lines and proximity to several neighborhoods has attracted some entrepreneurs, like Akou Diabakhate, the owner of Bold Skin Babe. Diabakhate started her skincare business during the pandemic and has salons in Back Bay and in Brockton. She will open a downtown location in February — her largest at 2,000 square feet.

"The downtown location that we have is absolutely perfect," said Diabakhate, a licensed esthetician who specializes in Black and brown skin. "If you go by foot, or you're driving, we have a parking garage right next to us, and we are very close to all the T stations."

She said the expansion was possible because of a $100,000 SPACE grant from the city. Diabakhate believes the new location will allow her to serve more clients and work with other entrepreneurs to sell their merchandise in her space.

"It's great that the downtown area now are opening more to small businesses," Diabakhate said. "I feel like it's a good step forward to having a melting pot of businesses in the downtown area."

Roughly half a dozen other small businesses that received grants from the city are currently evaluating retail space downtown, according to the Downtown Boston Business Improvement District. There are roughly 75 vacant storefronts in the neighborhood, down from nearly 100 in 2022, Nichols said.

One post-pandemic bright spot is that downtown has more restaurants now than it did before the pandemic, according to Nichols. That could help the area develop a reputation as a destination for diners. Brian Piccini, the owner of Boston Chops, said he's glad to have new neighbors.

"Temple Street alone has had four new restaurants open on it post-pandemic, and a lot of people think: 'Do restaurants compete?' I think they help each other because it creates more of a destination," Piccini said.

He has also seen a shift in customers since the pandemic. Boston Chops, which has been in the neighborhood since 2018, now serves fewer "corporate diners" and more of a "celebratory" crowd — people marking special occasions or gathering before a show in the nearby theater district.

"We can easily swing from 100 to 200 people as our first seating when there's a good show opening," Piccini said. "That feels much more robust post-pandemic because we saw more of a busy bar scene pre-pandemic."

Piccini said he's even shifted his restaurant's hours and staffing to cater to theater performances. The restaurant also exceeded its event bookings at the end of 2023 compared to pre-pandemic, he added.

"We see our trends going up right now," Piccini said. "Obviously there are some concerns of the broader economy. So, we're keeping some acorns stored away, but at the same time, we see great growth."

Boston's downtown has had many highs and lows over the years; this isn't the first time the historic area has tried to reinvent itself. In recent years, the city has redesigned nearby City Hall Plaza to make it a gathering space for events. Starting this month, more public art is popping up in Downtown Crossing as part of a walkable art experience called "Winteractive."  And the Downtown Boston Business Improvement District plans to bring more block parties, street fairs and festivals to the area.

It remains to be seen how this latest effort to transform one of the city's oldest areas — and attract new customers — will pan out.