Athens Businesses Q&A

By Autumn Eckenbrecht

Classic City Cents sat down individually with four local business leaders to talk economics.

Chris Barr
Manager, Two Story Coffeehouse
Open since Oct. 2008

Heather Cadle
Store manager, Tena’s Fine Jewelry & Gifts
Open since Aug. 2009

Joseph Causey
Owner, Farm Electric Inc.
Retiring and closing after 52 years

Jason Corrigan
Manager, Starbucks
Open for 10 years

Q: Have you seen any changes in Athens businesses or your own business due to the economy?
Barr: I’ve heard of places struggling. I’ve heard about restaurants and businesses closing, but I’ve always heard about that. There’s a couple locations in Athens that simply don’t work, just from a standpoint of where they are. … I don’t know if it’s really a reflection of the economy or the business owners or a reflection of the vision or mission—so it’s hard to really pinpoint what the issue would be.
Cadle: [When you hear about the economy] it’s all doom and gloom, but we don’t worry ourselves with that. We just make sure the people walking in and out the door are happy. Yeah, maybe our average sale is a little different, but there are still going to be weddings and anniversaries [for buying jewelry].
Causey: It’s been dramatic. We’re wholesale, so we’ve been directly affected by the housing market. Business has been way off by about 35 to 40 percent in our numbers. All of 2008 has been a slow decline. ... I spoke to one builder, and he said he hasn’t started a new house since September a year ago.
Corrigan: We haven’t been at the growth we need to be. I’ve tried to get Bulldog Bucks, but that’s been unsuccessful for us as a corporation—they want to take 15% of my sale, and Starbucks won’t go for that.

Q: Is Athens a good place for businesses to get their start?
Barr: I think it is a good place to open businesses because there’s such a diverse market, but it depends on the market you’re trying to reach. This is a neat town to open creative-type businesses.
Cadle: I think the economy in Athens is a lot healthier than in other places. ... I think anytime you’re in a metropolitan area, chances of success are higher. Number one, you have competition, which keeps you on your game, and number two, the demographic is so vast here. I can’t imagine that you wouldn’t be able to make a good go.
Causey: Athens is a real mixed bag. Property tax is very high—that’s why people live in Watkinsville—and there’s an inventory tax, which means that every year as of Dec. 31 stuff unsold on the shelves is taxed. There are a lot of ordinances. I’m not sure if Athens is business-friendly. ... One thing that keeps people away is that the property tax is very high—two years ago it doubled on Baxter. It’s better to have plenty of capital to begin with because there are a lot of hidden expenses.

Q: In what ways have you seen local businesses cooperate with each other in order to be successful?
Corrigan: I’m a communication person. Just because I work for a corporation doesn’t mean I won’t support other places. With [the manager of] Five Guys, we set up meetings with other managers. That’s what makes it strong.
Barr: Being in Five Points is really unique. There’s a big Five Points community, and in fact, there’s a whole Five Points business association. A lot of managers and owners just get together and they chat about what they can do to help one another. From a local business standpoint, local businesses realize that the way they’re going to succeed is to help other local businesses succeed as well. ... They realize they’re up against something bigger than them anyway—they’re up against corporate, so it’s a lot better to band together and figure out how to be creative.

Edited by Carey O'Neil