Commission See Collection Increase

BENTONVILLE — A surge in tourism attributed to Crystal Bridges Museum of American Art attracted dozens of restaurants to open in the city over the last three years.

Those openings are translating to more money in the coffers of the Bentonville Advertising and Promotion Commission.

The food and beverage tax collected by the commission was up more than $2,000 from March 2012 to this March, reaching $92,116. Overall, taxes collected are more than double what they were 10 years ago, according to commission records.

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Cracker Barrel

Cracker Barrel is planning to open at the former Travelodge at 2307 S.E. Walton Boulevard. The company received approval from the Board of Adjustments on Wednesday for a sign variance. The vacant hotel was the site of a bomb scare Wednesday.

Source: Staff Report

“The growth of our leisure market has really allowed us to draw in more variety in our restaurant market,” said Kalene Griffith, director of the Bentonville Convention and Visitors Bureau. “We have unique dining experiences, but we also have the demographics now that chain restaurants want.”

Just in the last month, new restaurant announcements in Bentonville have included a Chipotle Mexican Grill, Cracker Barrel, Dunkin’ Donuts and Yeyo’s Mexican food truck. Taxes collected are up from the increasing number of diners, but collection still hasn't met budget for the last two months.

The commission budgeted $94,465 for March 13 and collected $92,116. The discrepancy represents a few restaurants that consistently pay their Advertising and Promotion taxes late, said Johnna Duncan, finance coordinator.

“Food is just a little off forecast,” Duncan said. “We have two or three restaurants that aren’t reporting on time.”

Several restaurant closings have accompanied the surge . T.H. Benton’s closed just south of the Bentonville square last month. Jack’s Bakery, the Bear’s Den and Metro Italiano all also closed this year.

One of the newest restaurants in town, The Hive at the 21c Museum Hotel, was among the the top earners for non-chain restaurants with $1,435 collected. Eleven, the restaurant at Crystal Bridges, led non-chain restaurants with $2,089 collected.

The five McDonald’s locations in Bentonville paid the most taxes with $7,068 collected.

March was the first month of collection for the 21c Museum Hotel. The hotel was third in earnings among Bentonville hotels and paid $3,652 in taxes. Doubletree Guest Suites and the Hilton Garden Inn paid $5,803 and $4,604, respectively.

The commission is looking at using a portion of those tax dollars to buy touch-screen kiosks to help visitors find their way to the city’s hotels, restaurants and attractions. The kiosks would cost about $2,500 a month each and would be placed at hot spots for visitors such as Crystal Bridges, the Walmart Home Office and outside the Visitors Bureau on the square.

Griffith said visitors could print maps or coupons from the kiosk.

Tourism staff in Charleston, S.C., installed the kiosks and told Griffith they have seen returns on the investment.

“They said hands down it was one of the best things they’ve done,” she said.

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