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Recession Hits Downtown Athens

by Chris Anthony
04/01/2009

As the global economic crunch worsens, Athens commerce, especially the food industry, is certainly feeling its effects.

Businesses around Athens are watching their purse strings as news of economic woe is delivered each day. Several local businesses have even had to go to the lengths of closing up shop.

In recent months, financial difficulties have seen the Mean Bean taco shop in Five Points and Zim's Bagel Bakery & Cafe on Alps Road close their doors.

Mean Bean owner Tony Young told The Athens Banner-Herald, "The final quarter of last year and the start of this year has [sic] not been kind to the restaurant community."

Local restaurants are suffering because consumers, trying to weather their own economic difficulties, are reluctant to spend money.

"Restaurants have been down," said Kathryn Lookofsky, executive director of the Athens Downtown Development Authority. "People aren't eating out as much. People have less disposable income, so [they] are choosing to stay home. They don't want to buy something unless they really have to."

These sentiments were echoed by David Cappi, a manager at the downtown location of Depalma's Italian Cafe. Cappi said that business at Depalma's is down roughly 7 percent from this same time last year.

Although that number is not astronomical, it has forced the restaurant to make some changes.

"We've made some staff cuts," Cappi said. "And we've tried to be more conscious of food costs."

Cappi said that one full-time managerial position as well as several part-time positions, estimated between four and six, were part of the staff cuts.

Other downtown restaurants are also evaluating ways to cut budget costs.

Peter Dale, a manager at The National, said the eatery is "not buying a lot of equipment or adding a lot of staff" in light of the recession.

Although Dale said The National hasn't seen "too much of a decline" in business, the restaurant is warily eyeing the summer months, a normal slow-down period in Athens.

"This one might be tougher than other summers," Dale said.

With fewer college students around Athens in the summer, the recession might be particularly hard-hitting this year. As Cappi put it, "Downtown lives and dies with students."

Brigitta Hangartner, executive director of Cine, is also expecting the downtown cinema to experience an above average slowdown this summer.

"Summer has been a very slow time for us," she said. "Many of our customers are in some way related to UGA. I expect this year to be worse yet."

Athens' commerce woes are not limited to restaurants though. Georgia Traditions, a condominium building in downtown Athens, is facing foreclosure, while the U.S. Postal Service announced earlier this month that it may layoff employees at its Athens office.

"We're looking at ways to make operations more efficient, and this is one of the ways we're looking to do that," said Michael Miles, a U.S. Postal Service representative.

Although the recession has many businesses reeling, Lookofsky said downtown businesses such as Bel-Jean and Jackson Street Books have implemented aggressive marketing campaigns to attract new customers.

In other promotions, Depalma's offers half-price wine nights to make it easier on customers' pocketbooks, Cappi said. And The National and Cine have joined forces to offer a $25 dinner and a movie deal on Mondays and Tuesdays.

But with no clear end in sight to the recession, even more Athens businesses may face the possibility of going under before economic fortunes recover.

"It's tight for everybody," Lookofsky said. "I keep stressing that people need to get out and shop locally to support businesses. We're hoping for a turnaround."