To swiftly boost local spending and support small businesses, Southlake, a city in the Dallas-Fort Worth metroplex, has rolled out a novel approach to stimulate its economy. The Southlake Open Rewards program furnishes shoppers and diners with a 5% cash back on transactions at over 300 participating businesses.
The incentive, designed to combat post-holiday slumps and pandemic aftershocks that have strained the local economy, encourages consumers seamlessly to earn rewards through an app named Open Rewards. According to The Dallas Express, the city has dedicated $75,000 of hotel occupancy tax revenue to fund the cash-back program.
Daniel Cortez, the director of economic development and tourism for Southlake, emphasized the community's motive. "The city wants to support local businesses here in town, and the truth is, there is no catch," he said. The Open Rewards program is straightforward to use. Individuals can download the app from their version of the app store, link their credit card, and start earning cash back on eligible purchases made at businesses ranging from eateries to retailers, per The Dallas Express.
Southlake has observed that periods following the holidays often result in decreased sales tax collection. The Open Rewards program steps in to reverse this trend and, simultaneously, to provide relief to retailers grappling with rising rents and wages. Cortez told the Fort Worth Star-Telegram, "Inflation hits everyone including businesses."
Since its soft launch in January, the initiative has returned over $3,000 to shoppers. The Open Rewards app boasts 550 users and over 4,600 transactions, as reported by Cortez. He projected the program would continue into late spring or early summer, depending on when allocated funds are expended.
Local businesses are not required to do anything extra other than promote the app to customers. Cortez and his team are doing their part to make sure businesses are up to speed with the program, ensuring a community-wide effort toward the city's economic rejuvenation. Remarkably, according to Cortez, around 60% of Southlake's sales tax dollars are derived from non-residents, indicating a significant opportunity for boosting tourism through such innovative programs.
