Wednesday, April 22, 2009
Drive by economics: The local coffee shop
When I think of it, I've been asking small businesses how things are going. Even in New Jersey, business owners make a point of sounding optimistic, but adjusting for that you can get some sense of how things are locally. Today I asked the owner of the local ersatz Starbucks (something called "It's a Grind") how her business was. She said that it had been down during the winter, especially January, but that it had recovered to the point that this April was running at about the same level as last April. That strikes me as small good news suggesting that around here, at least, consumer confidence is perhaps on the toilet, but not in it.
Any similar news from your part of the country? As you wander through you day, ask a few people and post your "results" in the comments.
9 Comments:
By 
, at
Wed Apr 22, 08:19:00 AM:
Can you say Earned Income Credit.
By , at
Wed Apr 22, 09:15:00 AM:
I ask all around also. Small restaurants that give excellent service, non-chain coffee houses, etc are maintaining their clientele. More people are learning to clean their own drains, so equipment rental is up, plumber calls down. Self remodel is up, Kitchen and Bath companies way down. I observe that people walk out of clothes stores with one bag instead of several.
All in all a healthy direction for the consumer, and a dangerous climate for small and medium businesses and the towns that live on their sales tax receipts. It is definitely a mixed bag here in Colorado.
By , at
Wed Apr 22, 09:16:00 AM:
Down here in Chapel Hill ... the coffee/hang out place shut down at least 6 months ago, and my favorite (and the only quality) men's store is having its going out of business sale today.
I don't go out to eat all that often, but have read quite a bit about how folks are just spending less ... fewer drinks or no drinks with dinner (high margin item), skipping the coffee or dessert, etc.
By , at
Wed Apr 22, 09:18:00 AM:
One other thing ... I spend a lot of time in Best Buy and the local Home Depot and Lowes.
All of them are tumbleweed central ... I've been in HD when I'm the only non-employee there, which I find shocking as an accountant, thinking about just what it must cost to keep the lights on per hour. The check out folks, who I have come to know quite well, tell me that revenue is way way down.
By , at
Wed Apr 22, 10:01:00 AM:
I drive a taxi. The business is down. Battle Creek has been especially hit hard.
Ft. Custer the Industrial Park has mostly auto parts suppliers. It is nearly a ghost town. All the temps have been let go. There was massive shrinking, third shift being disbanded. Workers are only working four days. It was nine hours and then shrunk down to eight. Denso offered a great buyout plan to employees to further reduction. Musashi Auto parts let go of all senior workers and kept the new hires.
Whereas the old fence company, I worked at was back to work full time, last April, this April, it's only the foremen that are working.
The Solar Panel Plant was built recently here but is not hiring or starting production because of drop in orders.
The State of Michigan has dropping revenue and is 783 million dollars in the red.
Kellogg Co. hurt by the recent Peanut recall has lost business and put plans on hold to build another six story building to house its engineering department that is on Potter street.
No one is making money---just hanging on.
By , at
Wed Apr 22, 10:58:00 AM:
Our local video rental store went out of business recently. Our local hangout restaurant's owner went to work for our electric utility PSE&G. A doctor who does colonoscopies said some people cancel appointments because they can't afford the co-pay, the art gallery closed up at this site, the hardware store is still hurting from the new Home Depot, the library had to lay off.
Signs proliferated recently trying to drive business to town...its not healthy!
By 
John, at
Wed Apr 22, 11:14:00 AM:
I'm from a smaller city in upstate New York, and business owners all evince a similar confidence, but here's something telling: the owner of the Guitar store/lessons place across the hall from my office tells me his sales for April are similar to last April's, except the majority is credit cards; last year the majority was cash. Apparently people haven't learned about compounded debt.
By , at
Wed Apr 22, 05:24:00 PM:
This is a mid-sized city on the edge of the Plains. It is holding on fairly well because citizens are conservative in their lifestyles and so are the local businesses including the handful of Fortune 100 and 200 companies located here. The really remarkable local food and beverage establishments have hunkered down and are weathering the downturn. Fringe retailer chains are failing while others are doing well. Basically, if your products are first rate, you're in business.
By , at
Wed Apr 22, 06:11:00 PM:
In Ohio, the steel and auto companies are, in a word, bad.
And all the ancillary small and medium size companies that support auto manufacture are in bad shape, too (and that includes Honda, who has gone to a four day week).
My brother in law works for a major steel mill (foreman of a specialty shop) and they have had quite a few weeks of furlow (off without pay) since the beginning of the year.
The beer can company across the street (supports Anheuser Busch) is still running around the clock.
-David
