There are many things that I’d like to tell you about from my recent travels, which dramatically improved as soon as I took off from Ottawa and touched down in Toronto. (If you missed last week’s column, all is explained there.) I would like to spend some time talking about what great retailers the people at Summerhill Market are; how tasty the food was at Osteria Giulia on Toronto’s Avenue Road; what a delight it was to eavesdrop on a nearby stranger (did someone say “Beirut”?) and end up striking up a conversation with a former diplomat and his publisher birthday companion, tour Sid Mashburn’s sharp space in Georgetown, dine with the Swiss ambassador and his chic wife at the stunning residence in DC, and how great the new McNally-Jackson bookshop at Rockefeller Centre is. But there’s a more urgent set of topics that needs addressing: North America’s hollowed-out city centres, the problem with work from home and the creation of an underappreciated service class. Where to start?
Downtown Toronto
You’d think that the second week of the new year would be a busy one, particularly in the heart of one of North America’s biggest financial centres. But on a Tuesday morning, Toronto’s financial centre is dead. There are a few commuters trickling into town, the odd businessperson in front of a hotel loading luggage into a cab and some couriers delivering and collecting packages. But who’s receiving and sending? A couple of weeks ago I commented on what some readers relayed to me about the state of the city’s depleted downtown and, while I trusted their views, I needed to see it first-hand, walk the streets and get a proper sense of the situation.
Here’s a frightening number: 18. According to a real-estate consultant, 18 per cent of the office towers housing the Royal Bank of Canada, CIBC, Bank of Montréal, large law firms and various national and global brands are occupied. And here’s another number: 50. That’s the percentage of shops, restaurants and services that have shuttered their operations at street level and in the underground concourses that link much of downtown Toronto. As recently as three years ago there was a sense of hustle, of buying and selling, deals being done over lunch, contracts inked in conference rooms and expense accounts being stretched at the various bars favoured by bankers. Today such behaviour feels like it might have been from a heady era decades earlier, not 36 months ago.
Toronto’s mayor, the CEOs of the banks and the property groups who own and manage these towers need to snap to it and show some leadership. For all the ESG/CSR guff they all trot out about building better communities, inclusion and “bringing people along”, what about doing the correct and quite simple thing and telling staff that it’s time to get back into the office and do their bit for reviving the city they most likely enjoy calling home. The alternative is a Toronto (insert any North American city here) that will resemble the world portrayed in Emily St John Mandel’s Station Eleven. It’s already veering in that direction – at speed.
‘I’m here, where are you?’
There’s a crisis in service, retail is imploding, it’s impossible to run a restaurant and airlines are having to hire tens of thousands of flight attendants. At the same time, it has never been more difficult to retain staff and some companies are now so desperate that they’re paying potential recruits to simply show up for an interview. How did we get here?
For sure, the world’s big consultancies have various theories and fancy solutions (for sale) but let’s cut to the chase. The reason for the shortage of staff in frontline positions is that both the public and private sector have created a climate where the joys of working remotely are being celebrated and those who have to make the commute, put in the hours and be in direct with customers and suppliers are not recognised for their efforts and, too often, looked down upon because they’ve become the 21st-century version of blue-collar workers.
It’s rather difficult to be a shop or restaurant manager working 10-hour shifts knowing that your boss, who used to be in a nearby office and walked the floor, no longer bothers because the company has allowed him to relocate to the other end of the country. Likewise, it’s hard to respect junior partners in your law firm who want to enjoy all the same perks as the seniors who built the firm but don’t want to meet clients within the walls of the office that defined the business in the first place. We either get to a place where HR and PR departments stop talking about equality in the workplace and accept that there’s a class and status divide or we set a course correction to get back to a better place that helps to build culture, revenues and brand equity.
The view from Washington
While in DC, I looked at some office space for a possible new Monocle setup. It was Wednesday afternoon but it could have been early Sunday morning. Most of the traffic on the street was homeless men and women pushing around shopping carts, picking through bins and harassing Starbucks staff. I toured a few offices and asked the agent what percentage were back working in this particular building and Washington in general. “High twenties, maybe low thirties,” she replied. “It’s so, so bad and no one’s doing anything about it.”
As we made our way to look at another suite, she paused and turned. “Correction. The mayor of Washington just wrote a letter to the president to tell her that it’s not sustainable for the capital that so many people are being allowed to work from home. And she’s completely right. How can you be a business encouraging people to get back to the office when the president of the country doesn’t have your back?” You didn’t hear it here first but it all starts at the top.