Three booming businesses that make Denver stand out

A concert venue built into a natural rock formation outside of Denver, CO

Amy Sparwasser | iStock Editorial | Getty Images

This story is part of CNBC’s quarterly Cities of Success series, which explores cities that have transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies and employees.

Two cities in Colorado are experiencing tech-fueled economic booms, with Denver’s skyline transforming and Boulder’s gross domestic product surging. This growth is driven by a mix of factors, including a strong military presence, leading universities, and a focus on high-tech industries such as aerospace and quantum tech, as reported in CNBC’s primetime special “Cities of Success: Denver & Boulder,” which airs April 11 at 10 p.m. EDT.

However, the influx of people and businesses has brought challenges like a growing homeless population, affordability issues and infrastructure strain. 

While the tech boom benefits both cities economically, Denver stands out because it continues to see growth in other areas: professional sports, a popular outdoor recreation venue, and a cannabis industry that is expected to see double-digit growth in the future.

Cannabis correction, not retreat

Marijuana plants at a grow facility in Denver.

Matthew Staver | Bloomberg | Getty Images

In the past decade, legal marijuana sales have added a staggering $15 billion to Colorado’s economy, with nearly $3 billion of that coming from taxes.

“Cannabis is a strong sector. [It represents] tens of thousands of jobs in Colorado — billions of dollars of economic activity,” Colorado Gov. Jared Polis told CNBC in a recent interview.

The city of Denver has benefited significantly, with marijuana sales surpassing $6 billion since 2014. According to data from the Denver Department of Excise and Licenses, the city’s marijuana tax revenue collection crossed the half-billion mark last year, hitting $501.5 million in August 2023.

Despite being a national trailblazer since 2014 — when it was the first state to legalize recreational marijuana — the Centennial State’s cannabis industry has been experiencing a significant decline following the pandemic.

A recent report shows a 24% drop in Denver’s cannabis revenue compared with 2021. Despite this dip, Polis told CNBC that he remains optimistic about the future of marijuana.

Industry experts predict a return to growth. The governor’s Office of State Planning and Budgeting forecasts a 16% revenue increase for the state overall in 2024, highlighting the industry’s long-term potential.

“There is still healthy growth

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Behind the booming, multi-million-dollar business of Roxham Road

It’s an industry worth hundreds of millions, or more, with the cost only growing for Canadian taxpayers

Published Mar 13, 2023  •  Last updated Mar 13, 2023  •  7 minute read

Refugees who crossed the U.S.-Canada border at Lacolle on Feb. 23, were processed and moved by bus to their next stop. Photo by Dave Sidaway /Montreal Gazette

PLATTSBURGH, N.Y. — Around 3 p.m. on a February Friday, in the middle of a snowstorm, a Greyhound bus slowly turns into a combination gas station and Dunkin’ Donuts on the outskirts of Plattsburg, N.Y., a small city roughly 30 minutes from the U.S.-Canada border.

The bus, originating from New York City, is tailed closely by a handful of taxi vans, some painted in trademark taxi yellow with “Cornwall, Roxham, and LaColle borders” boldly emblazoned on each side. They race into the parking lot, and their drivers jump out and rush towards the bus doors.

As soon as the first passengers step off the bus, the cab drivers start jostling for their attention.

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How Luxury Department Store Harrods Built A Booming Restaurant Business

Dining is not the first thing that comes to mind when consumers think of Harrods—despite its retail Food Halls being internationally famous. As one of the world’s top destinations for luxury, showcasing over 3,000 brands, the department store in Knightsbridge, London maintains a high-fashion image based on exclusivity and tailored service.

Even the retailer’s website is shy about the 26-strong restaurant and bar offer—you have to hunt around at the bottom to find the details. Yet eating and drinking in-store has blossomed to the extent that towards the end of last year it was trading 44% higher than it was pre-Covid, and transaction values were also 47% up on 2019. More widely, Harrods turned a profit again in the last financial year for which figures are available.

The latest addition to the roster of dining venues—which features fêted names like Jason Atherton, Vineet Bhatia, Tom Kerridge, Angelo Musa, Gordon Ramsay, and Em Sherif—arrived at the end of 2022. Studio Frantzén, brought another Michelin-starred chef to the store, this time from Sweden.

Björn Frantzén’s à la carte restaurant, with a signature Asian-influenced take on Nordic cuisine, is literally the pinnacle of Harrod’s dining experiences because it is found at the very top of the department store’s building on two floors, plus an outdoor terrace. The latter is claimed to be the only rooftop terrace in Knightsbridge and Mayfair, two of London’s most desirable districts. As well as being a choice for foodies, the 150-seat Studio Frantzén is open late and has a buzzy vibe with two bars, one of which offers sweeping views.

Data-led gains

So what is the attraction of having so many eating and drinking spots in the store? I had the chance to catch up with Harrods’ director of restaurants and kitchens, Ashley Saxton, to find out how food and beverage (F&B) is fast becoming a revenue driver and a cornerstone of the business.

“Our research has found that when customers engage with our restaurants they also engage more often with the store. They spend twice as long in the building and spend twice as much money,” he said.

That insight alone has given Saxton quite a bit of freedom

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