Local Businesses Learn Value of Cooperation Over Competition

Local businesses use the Two Story Coffeehouse bulletin board to advertise their services.

By Autumn Eckenbrecht

There’s only one vacant table in the café, and the tow truck driver is making his rounds next door; customers have a habit of parking at adjacent stores despite towing warnings. The manager makes a lap around the café, just in time to inform two customers that their cars are about to be hauled off.

The parking lot is full once again at Two Story Coffeehouse, a business in Five Points that opened last November. It’s a far cry from the dismal graphs in newspapers and on television screens—this summer’s numbers show an increase in unemployment by over 2 percent in Athens-Clarke County in the last year, according to the Bureau of Labor Statistics. For manager Chris Barr, ever since news of the recession became pervasive in 2008, things haven’t been all that different.

“I’ve heard about places struggling, and I’ve heard about restaurants and businesses closing,” Barr said. “But I’ve always heard about that.”

What distinguishes successful businesses from the struggling ones is leadership through communication and a core vision, Barr said. For Two Story, that core vision has meant looking past competing with other coffee businesses and focusing on offering something unique and supporting other companies.

“Local businesses 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,” Barr said. “A lot of business owners get afraid. They get scared, and they say, ‘What’s going to happen?’ It’s a valid question, but many owners will make their decisions based on that fear, as opposed to making their decisions based on sound practice and what they know to be true.”

Fear didn’t stop Heather Cadle from opening Tena’s jewelry store on Aug. 3 in the heart of downtown.

“When you hear about the economy, it’s all doom and gloom, but we don’t worry ourselves with that,” Cadle said. “We just make sure the people walking in and out the door are happy.”

Cadle remembers the initial days of starting up a new Tena’s in Athens. She says she used every resource she could find—the Terry School of Business, the Downtown Development Authority, the Athens Chamber of Commerce and other nearby mom-and-pop stores for things as simple as “Where’s the water company?”

Even the owner of the store Tena’s replaced, Jane Foster of Foster’s Jewelers, stops by every now and then to help, Cadle said.

“People really want to see local downtown businesses survive,” Cadle said. “I can’t tell you how many people have come in and said, ‘I’m so glad you’re here! We don’t need any more bars.’”

Like Foster’s Jewelers, which had operated in Athens for over 50 years before retiring, Farm Electric is also retiring after 52 years of service in Athens. Unlike Barr, Joseph Causey, 59, the owner of the hardware supply store, said he has felt the blows of the recession.

“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,” Causey said. “I spoke to one builder, and he said he hasn’t started a new house since September a year ago.”

With nearly 10 fewer staff members than he had a year ago, Starbucks manager Jason Corrigan also sees the changes in his numbers—which seem even more daunting when he sees the amount of Starbucks employees wanting to transfer to the Athens store.

The number is in the hundreds, and he can’t say yes to any of them.

“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,” Corrigan said. “They want to take 15 percent of my sale, and Starbucks won’t go for that.”

Nevertheless, Corrigan said life’s too short to worry about it. He said that, even if people are trying to be frugal by cutting their luxury expenses, a genuine customer connection will keep them coming back. In the meantime, he meets with other managers from businesses like Five Guys to discuss business strategy.

The story of how the nation’s economy is affecting Athens seems to be more about the solution rather than the problem. The remedy for local businesses—even the corporate ones—is using each other as resources so they can do more than just stay afloat. The same trend proves true for Barr, Cadle, Causey, and Corrigan.

“There’s a whole Five Points business association where a lot of managers and owners just get together and chat about what they can do to help one another,” Barr said. “It’s a give and take thing.”

Edited by Sarah Smith

Unemployment affects Athens’s residents and students

By ANTIONETTE ROLLINS

Unemployment in Athens, Ga. is something that affects locals and students alike. Many people are forced to adjust their career goals to cope with the current economic situation.
Dr. Douglas Bachtel, housing and consumer economics professor at the University of Georgia, said that the effect of the current economy has been especially severe in Athens.

“The recession has had a more significant impact in Athens because of the city’s relatively high unemployment rate,” Bachtel said.

Estimates for the Bureau of Labor and Statistics show that Athens Clarke-County has had a steady increase in the unemployment rate since 1999, while national rates have slightly fluctuated through the years. As of July 2009, the unemployment rate in Athens was approximately 7.7 percent.

Athens locals aren’t the only ones affected by unemployment.

“Unemployment also takes its toll on University of Georgia students who are working their way through school,” Bachtel said. “Firms will let students go.” Without reliable income, students have a hard time funding their education.
Other students whose parents are suffering from unemployment have a more difficult time paying school tuition.

Many students are worried about finding employment after graduation. This number includes Jasmaine Williams, a senior majoring in biology and Spanish from Stockbridge, Ga.

“I would work for a couple of years if the economy was better,” Williams said. Instead, she plans to attend graduate school after she receives her bachelor’s degree in May. Despite these plans, she is still anxious about the future.

“It’s scary to think about going through a five year program and not getting a job with a Ph.D.,” she said.

Attending graduate school is an option that many Athens’ students choose instead of pursuing a career with present unemployment rates.

“I’m not really concerned about unemployment because I’m not worried about a career at this point in time,” said Samantha Gabai, a senior from Sandy Springs, Ga. Like Williams, she plans to attend graduate school next fall.

Even with constant reminders about the rising rate of unemployment, there are still opportunities.

“Be persistent,” said Lori Chafin, the unit supervisor for the Georgia Department of Labor Athens Career Center. “Don’t give into those around you saying ‘the economy is bad, you’re never going to find a job, because that’s simply not true.”

For those actively seeking employment, the Athens Career Center can be of great assistance. Chafin advised job seekers to use the Center’s available resources.

“There are so many resources here like internet, fax machines and resume critique workshops,” Chafin said. “The main focus is helping job seekers to increase their marketing skills, to be creative in their approach to job seeking and tap into all of the resources that are available to secure employment.”

Athens area job seekers who would like help finding employment can visit the Georgia Department of Labor at www.dol.state.ga.us.

Edited by Robert Carnes

Students find new ways to save in hard economic times

Brooke Springfield saves money by shopping at Wal-Mart

By William Moore

Faced with the current economic downturn, many students are finding new ways to save money. Many things that were affordable in years past have become luxuries and no longer have a place in the already-tight budget of the average college student.

With prices on the rise, saving money wherever possible is becoming more and more important. Despite gas prices being much lower than in the past few years, the constant cost of filling the tank can add up to a lot. Chris O'Neill, a 21 year-old Athens native has taken to riding a scooter instead of driving a car.

“You get over 125 miles-per-gallon on a scooter,” said O'Neill, “and spend roughly six dollars a week on gas.”

According to O'Neill, the initial cost of a scooter is much cheaper than a car, and if the engine is less than 50 cubic centimeters, you don't have to pay for insurance.

“On top of the great gas mileage, you never have to pay for parking,” said O'Neill. “With a scooter it’s always easy to find a parking place and it’s always a free one.”

For students who are no longer on the UGA meal plan, groceries are a constant source of expenses. To help save money, many students have taken to shopping at Wal-Mart instead of Kroger and are buying generic brand food instead of the name-brand items.

“I used to do all of my grocery shopping at Kroger,” said Brooke Springfield, a third-year Publication Management major from Cartersville, “but now I try to shop at Wal-Mart whenever I can. It’s basically the exact same food but a little bit cheaper. It might not seem like much of a difference, but every little bit counts.”

Similarly, many students are cutting back on luxury goods and services such as premium television and internet packages. In less trying times, expensive cable and internet packages were more affordable, though with money tight, as little as $10 or $15 per month can make a huge difference.

“I recently downgraded my cable package to better fit my budget,” said Kevin Row, a fourth year Psychology major from Atlanta. “It was nice when we had more channels but it made sense now to get a cheaper package. The money I save adds up to over $100 a year.”

Another student similarly cut down on her television package to fit the economy. Sarah Grace Hudspeth, a fourth-year speech therapy major from Watkinsville, removed premium channels from her cable package to reduce the monthly bill.

Even students with mostly pre-determined budgets are finding ways to save money. Living on campus in the dorms with the UGA meal plan sets the budget of many students in stone, but there are still ways to save a few bucks on the side.

“I live in the dorms and am on the meal plan, so I try not to eat out very often,” said Briana Gerdeman, a second-year Journalism and International Affairs major from Duluth, “but when I do go out to eat, I usually get water instead of a soft drink. It doesn't cost anything extra for water, and its better for you anyways.”

Edited By Austin Pratt

Dry job market sends students to grad school

By ASHLEY STRICKLAND

University of Georgia graduates are returning for graduate school after meeting with meager internship and job offerings over the summer. During the times of the economic downturn, students may be better off staying in school before attempting to enter the real world.

“It has always been challenging for students to find jobs,” Marian Higgins, career consultant and diversity coordinator for the University’s Career Center, said. Higgins said the difficulty for recent graduates securing jobs has increased ever since the economic downturn.

“As career consultants, we are seeing students take an interest in adding certificate programs or professional schools to prolong entering the job market,” Higgins said.

Nearly a year ago, the Atlanta Business Chronicle published a report stating that the University’s graduate school reached a record enrollment of 7,125 students in fall 2008.

“Our application numbers for fall 2009 increased above the numbers for the previous year, but we do see an increase every year,” Krista Haynes, director of graduate admissions and students services for the University’s graduate school, said. No specific numbers for this year’s enrollment were given.

The possibility that employers are turning away recent graduates is alarming for students enrolled in the University as undergraduates and they are turning to their academic advisers for help.

“I have definitely seen an increase in the number of students inquiring about graduate school,” Maria Cooper, academic adviser in the Grady College, said. “I believe this is a direct result of the economy and the poor job market and lack of jobs.”

Students are encouraged now more than ever to pursue specialization that will make them more attractive and competitive in the job market.

Some students do this through certificate programs allowing them to completely master their field of interest. Others are adding courses that are related to their majors to increase their marketable skills.

“When a student asks about graduate school options, I strongly encourage them to look into a variety of different programs to see what interests them the most and what would increase their chances in the stagnant job market,” Cooper said.

“I also inform students that graduate school is not to be taken lightly. It is a lot of work, and they will invest a lot of time into the program, so they need to be sure that they are passionate about the program they choose,” she said.

But what about students who feel it is too late to change their major or specialized field of interest?

“There are jobs out there, this situation just requires more networking,” Higgins said.

Government jobs are always available, and students don’t have to be limited by their major when looking for jobs, Higgins said. And for students considering remaining in the education field, teachers who specialize in math, science or special education are still needed.

Students concerned with finding jobs are encouraged by career consultants to attend one of the many events put on by the Career Center. The Classic Center will be hosting the Fall Career Fair on Sept. 23. At least 130 potential employers seeking interns or full-time applicants are expected to attend and the list covers a broad range of career options.

The Career Center also offers workshops that will cover career choices in various majors. The workshops will cover resume writing, interviewing etiquette, networking and graduate school information.

Students can view the full calendar on the Career Center’s Web site, www.career.uga.edu, or stop by Clark Howell Hall to speak with a career consultant.

Meanwhile, recent graduates are still dealing with economic upheaval.

Olga Herndon, a triple major in cultural anthropology, human geography and global studies, graduated in the spring and has been working odd jobs. She is considering going to grad school, but wants to ride out the economy for now to see how it goes.

“I want to see how scary it is,” Herndon said. “It’s not just the economy, it’s your attitude about the economy.”

Edited by Carey O'Neil

Work-Study Program Grows In Popularity

By Carey O'Neil

University of Georgia student Ashley Bene doesn't mind juggling school and work. Since both her parents lost their jobs, she does as much as she can to help out.

“It's tiring, but you get used to it,” she said. “I'm a little crazy, like the Energizer Bunny, I guess.”

Bene, a junior from Woodstock, said she does her best to stay positive.

“That's all you can do,” she said. “If you beat yourself up about it then you just go crazy.”

She begins her day at 7:30 a.m., then bounces between classes and work until walking home around 6:30 p.m.

Bene is a member of the University's Federal Work-Study Program, which has been increasingly
popular as unemployment rates have increased.

Sherryl Fern, federal work-study coordinator for the University, said work-study positions are all most likely filled.

Fern said students must apply to be eligible for work-study jobs. After applications are submitted, Fern's office determines which students receive admission to the program, then allows them to apply for jobs through a Web site similar to Monster.com.

Fern said this semester, all of the work-study program money was applied for by April 6.

“It ran out a little earlier this year than last year,” she said. “It could be a combination of more people applying and more people applying early.”

Bene has been in the program for several years working at the library on the Georgia Newspaper Project converting newspapers to microfilm.

While the job isn't the most exciting, Bene said she enjoys the people and is happy to be working.
“If that's what I need to do to go to UGA I'll make it work,” she said.

Lucille Davis, student assistant coordinator for the libraries, hires work-study students. Because the federal government pays 75 percent of work-study students’ wages, Davis said her department has been taking advantage of the money.

“This year we're hiring more student workers than we ever have,” she said. “We're right at about 31, 32 students. There are a couple more that we're waiting on.”

The library is just one of 65 departments taking advantage of the work-study program, Fern said. Although most students work as office assistants, Fern said a few lucky ones get more interesting jobs.

“We have a couple of jobs through poultry diagnostics, and there's one job where they feed the animals,” she said.

It is also possible for students to work as lab assistants, and this semester there was an opening at the University Health Center in the dental lab.

Most students in the program are paid the minimum wage of $7.25 an hour and are eligible to earn up to $1,500 a semester. To earn the full amount, the average student would have to work nearly 14 hours weekly.

Holly Getchell, director of employer relations for the University Career Center, said her office has gotten mixed messages about student looking for jobs.

"We had a part-time job fair in August and that attendance was amazing," she said. "We've had other events, just things like our regular walk in hours, and the numbers from that have been basically the same or even less than what we would expect."

Although the Career Center has been getting mixed messages, Getchell said the career fair on Sept. 23 will clearly indicate how many students are worried about jobs.

Bene said she feels lucky to already have a job. She said she finds her school work schedule almost relaxing compared to the summer, when she worked two jobs for around 50 hours a week.

“I get one day off when I go home, so that's my summer,” she said. “It hasn't given me much room to breathe.”

Bene said she doesn't mind the work, especially when student debt is her only alternative. With a little brother starting college the year after she graduates, she said she does what she can to be frugal.

“It's not a good time to be in my family,” she said, “but we always work it out and figure it out and we're always fine.”

Edited by Ashley Strickland

Local baby store finds success despite economic downturn.

By Austin Pratt

Competing against giants like Wal-Mart and Target may seem like a daunting task, but a baby store in a small shopping plaza has found its niche.

Rattles and Rhymes, located at 112 Athens West Parkway, has grown into one of the largest baby stores in Northeast Georgia. The store was opened by Maxine Guerrera in 2002 after she saw the need for a baby store in Athens, according to store manager Christi Morris. Guerrera was unavailable for comment on this story.

Morris said the store has tripled in size since it opened and is considered one of the largest baby stores in Northeast Georgia both physically and financially.

“Our customers were asking for products we didn’t carry when we first opened,” Morris said. “So, being the only real baby store in Athens, it made sense for us to bring in more products and expand the store size.”

Like many businesses in the current economic situation, Rattles and Rhymes has earned less this year than it has in previous years. However, according to Morris, business has been affected only slightly.

“A baby is one thing you can’t postpone,” Morris said. “If you’re having a baby you will need to buy the products to take care of it and prepare for it. So, our customers are prepared for the economy.”

Morris believes that Rattles and Rhymes still finds success during the downturn in the economy because of the relationship they have with customers and the knowledge they possess concerning the store’s products.

“Most big retail stores have employees selling products that are just regular 9-5 type workers,” Morris said. “The difference with our employees is that we are very comfortable with our product and what it has to offer. We want a relationship with our customers because we really do care.”

Christopher Hanks, entrepreneurship director at the Terry College of Business, believes that the key to a successful business is the ability to adapt to new situations and not make excuses during tougher times.

“You want to play the cards you’re dealt,” Hanks said. “To have success, there should at least be one thing the business offers that is compelling, provocative, and that makes it unique. You never want to be a ‘me too’ business.”

Hanks refers to a quote by Jack Welch, former CEO and Chairman of General Electric, when it comes to running a business, “if you don’t have a competitive advantage, don’t compete.”
With a large product selection, employees with knowledge about the items they carry, and a strong desire to build a relationship with their customers, Rattles and Rhymes has found a competitive advantage.

It also helps that Rattles and Rhymes is the only real baby store in Athens.

Maura Snow, mother of two, has been coming to Rattles and Rhymes since she became pregnant with her first child three years ago. She said that she really loved the look of the store and was fully prepared for her baby after shopping there.

“I come here because they have almost everything I need,” Snow said. “This store is basically a one stop shop for me.”

Julie Fitzgibbons, mother of one, has recommended Rattles and Rhymes to many of her friends after having great experiences as a customer in the store.

“The employees there really do their best to take care of you,” Fitzgibbons said. “The focus was always on me, my satisfaction, and anything they could do to make that time in my life as easy as possible.”

Edited by William Moore