Flipping omelets and juggling potato cakes over the stove, Martha’s Café owner and chef Michael Payne is happy to have another morning of business on the Corner. With the current economic slump, restaurants like Martha’s are experiencing the financial crisis first hand. Across the nation, casual dining outings are falling by the wayside, and restaurants on the Corner are not immune to this phenomenon.
“There’s definitely been a drop-off in business,” Payne said. “People are ordering less food when they come in.”
Although the restaurateur was busy preparing breakfast for a steady stream of morning customers, he noted that several adjustments have been necessary to deal with the situation.
“We’re offering fewer specials and more discounts on certain types of food,” Payne said. He added that the increasing cost of doing business means hiring fewer employees — bad news for students trying to earn extra spending money.
Fourth-year College student Emily Clausen, a waitress at The Virginian, said she has personally felt the effects of shrinking wallets.
“Tip percentage has noticeably gone down to 17 or 18 percent, instead of 20,” Clausen said.
Not only does this signal declining business for restaurants, but it also indicates that students have less money in their pockets to spend on Corner meals.
Third-year student Colleen Clark had a job every semester until now and said there has been a sizeable reduction in her spending habits.
“I’m definitely using my meal plan a lot more,” she said, adding that she opted out of a brunch with her friends earlier because of budget constraints.
“If you spend under six dollars on something, it doesn’t seem like much, but it adds up when you do that every day,” Clark noted.
Although college students typically survive on limited funds, regardless of the state of the global economy, Clark said she feels a need to be particularly resourceful these days. One area in which spending possibly remains the same, however, is alcohol. When it comes to priorities, Payne said he senses no change in the late-night bar business.
“Students tend to take care of themselves socially before they worry about what to eat,” he said, adding that Martha’s will begin operating during late-night hours this week.
In general, though, Payne seems optimistic about continuing sales, noting that the University’s student population slightly insulates the restaurants on the Corner. Two doors down at the recently-opened Para Coffee, barista and 2007 University graduate Greg Bures agreed that the key to successful sales is location. Although the world economy may be approaching pandemonium, this does not deter many students from buying a warm cup of joe as they pass by the Corner on their way to classes.
Renovations to modify the building into the coffee shop began last April. Although Bures noted that “it’s not the ideal time to open a small business,” Para has nevertheless seen a continuous rise in sales during the past few months. As students study on couches and eclectic furniture, listening to indie rock and sipping fresh brews, it is apparent that Para markets an experience along with its products. Local musical acts also add to this experience, as well as bring in more business for the shop, Bures said.
Para further supports local businesses with products from Shenandoah Joe Coffee, the Albemarle Baking Company and Spudnuts, while finding its own niche on the Corner.
“It’s been a continual learning process,” Bures said, adding that he and owner Eric Kelley hope to create an environment for academics, artists and Charlottesville residents alike. The result is a unique atmosphere, to which Bures attributes the business’s relative success.
Despite the rising costs of goods during the past months, Bures said Para only had to change the price of three or four items on the menu. The ability to make small changes and remain flexible is crucial to surviving in the dining services industry. Independent restaurants can therefore sometimes better adapt to the changing needs of their clientele than much larger chains can.
Payne and Bures, however, both said they cannot be overly optimistic. Right in between their businesses lie the remnants of the restaurant Zydeco — a now vacant building for lease. Just down the street, Sublime also shut its doors for good.
The now-empty buildings are ominous reminders of the tough economic climate in which Corner businesses operate. With summer approaching and many students leaving Charlottesville for a few months, the situation for local businesses could deteriorate further. Even Payne, who has weathered many summers at Martha’s, said he is uncertain about what to expect. For now though, he will continue to man the kitchen and open up for business.
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