Pittsburgh leaders are betting small businesses are the city's secret sauce.

Why it matters: After losing a third of its foot traffic since 2019, Downtown's recovery may hinge on whether small local shops can bring people and spending back.

State of play: The Pittsburgh Downtown Partnership (PDP) this year started a Vibrancy Initiative focused on making it easier to start small businesses in the neighborhood using a three-pronged approach:

• Offering temporary rent abatement funding and allowing short-term leases for pop-up businesses.
• Using public art installations to fill vacant storefronts.
• Improving infrastructure around the neighborhood to make it more attractive for businesses to move in.

Follow the money: PDP raised $1.5 million from philanthropic groups for its small business initiative, said PDP president Jeremy Waldrup.

Case in point: The group allocated about $400,000 in rent abatement, helping businesses like De Fer Coffee & Tea and The Silly Goose Unapologetic Gifts & Novelties.

• The Moonshot Museum set up a pop-up simulation lab across from the new Arts Landing park.
• Infrastructure upgrades — from big projects like the Market Square upgrade to fixing sidewalks and broken curbs — are moving forward with guidance from PDP and city government.

By the numbers: Downtown's business district has only recovered about two-thirds of its daily activity compared to 2019, according to data from the PDP.

• It lost over 60 businesses after the pandemic, more than 15% of its total business inventory.

What they're saying: Attracting residents and shoppers is key to keeping people spending in Downtown, Waldrup said, and that sometimes means getting more creative than just accepting big businesses that pay the most rent.

• "We have seen a proliferation of banks, and those pay top dollar, but we don't want a Downtown full of branches," he said.

The latest: PNC's requirement for many of its 11,000 regional employees to return Downtown started last week.

• U.S. Rep. Summer Lee recently announced $1 million in federal funds to help convert old office buildings into affordable housing, joining broader efforts.

The bottom line: "We can bring all the new businesses, but unless people change their shopping habits and come Downtown more, these things aren't going to be sustainable," Waldrup said.

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Business is booming at one of De Fer Coffee & Tea's newest spots.

The big picture: The coffee shop, which opened in January 2025, is one of the 28 small businesses, pop-ups and art installations that have joined the neighborhood with help from PDP.

By the numbers: De Fer president Matt Marietti told Axios the Downtown location's sales are up about 60% compared to last year.

What they're saying: "I don't think we would be 60% if Downtown was stagnant," he said.

Case in point: Marietti said the shop's clientele the first year was mostly Downtown residents, but it now includes more tourists and visitors.

Between the lines: The location used a rent abatement program that paid 50% of the rent for the shop's first year.

• Marietti said he plans to stay in Downtown long term.

Zoom in: Try De Fer's rotating list of seasonal syrups, suggested Marietti.

• The vanilla lavender was delicious.

If you go: 725 Penn Ave., Downtown.

• Monday-Friday 7am-4pm, Saturday-Sunday 8am-4pm.

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🫏 Sen. John Fetterman said he has no plans to leave the Democratic Party in a Washington Post op-ed last week. Politico previously reported a number of Republicans are pushing him to switch parties or go Independent.

• Fetterman has rankled fellow Dems by breaking on issues like DHS funding and Iran — at times aligning with President Trump.
• "I'd be a terrible Republican who still votes overwhelmingly with Democrats," he wrote. (Washington Post)

🥫Canned food supplier Del Monte — fresh off a post-bankruptcy acquisition — is moving its food operations hub to the Pittsburgh area. (Press release)

🏢 Pitt approved a plan to build a new 420-bed freshman residence hall in Oakland amid climbing enrollment and a student housing crunch. It could open by fall 2028. (TribLive)

💿 The House of Vinyl is now open Downtown at 645 Smithfield St. on the second floor of Sports World Specialties. (Press release)

Sen. Dave McCormick told Axios last week gas prices should come down rapidly when the Iran war ends, which he expects will be relatively soon.

Why it matters: Pittsburgh's average gas prices are the highest in the state, at over $4.92 a gallon as of Friday and near all-time highs, according to AAA.

What they're saying: McCormick first praised the economic situation of the country, saying "economically, people are better off than they were a year ago." He added that inflation is down, wages are up, and Americans are benefiting from an average tax refund of $3,500 — an 11% increase compared to last year.

Reality check: Inflation is down from its peak in 2022, but Americans feel worse off now compared to any point in the last 25 years, according to a Gallup poll.

Yes, but: McCormick acknowledged gas is too expensive and the cost has impacted families.

• "I get it. They're feeling it. And if you're a family living on $52,000 a year and you're [paying] $1.20 a gallon more, you really feel it. So I don't want to make light of it. It's a real thing."

The bottom line: "I think when the conflict ends, which I suspect will be relatively soon, gas prices are gonna come way down, so I don't think this is a long-term adjustment."

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