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    SPECIAL SECTIONS > PRIDE 2008


    Treading water in tough times
    Mar 28, 2008
     By Kristen Tolleson

    Ellen Fu, owner of the downtown Chinese restaurant Cheung Sheng, and waiter William Bao help a customer during the lunch hour rush.
    Photo by: Nick Lovejoy, The Free Lance
    Many small merchants in San Benito County are feeling the pain from hard economic times while faced with finding new ways to rejuvenate business.

    With the economy affecting sales in most markets, small family-owned businesses are often getting hit the hardest. Some business see the effect of the slow economy more than others.

    "We depend on local businesses to support us," said Ellen Fu, owner of Cheung Sheng Chinese restaurant.

    With prices escalating for just about everything, such as gas prices, it seems more people are staying home more, she said.

    Fu said in 20 years the restaurant has raised prices twice but that inflation is still hurting the business.

    Some business owners have been around for a long time, so they've weathered previous economic storms.

    "We have seen these things before," said Terry Woodard, owner of Hard Times Cafe.

    Bill Mifsud Jr., owner of Bill's Bullpen, said his business started feeling the effect last August. Although his business did well during Christmas, it was still one of the slowest times in five years, he said.

    With an economy that has taken a toll on many people, some just can't afford eating out, and many people have lost homes or businesses, which in turn can be a potential loss for other local businesses.

    "Regulars who used to come twice a week now only come twice a month," Fu said. "Offices shut down, and we don't see those people anymore."

    With the slow economy most people feel some change. People don't go out as much or buy new things because money is tight.

    "Right now people don't go out during the week. (They) reserve that (for) one day," Fu said.

    This past February, Bill's Bullpen had a 20 percent store-wide sale and the business still didn't surpass the numbers from last February when there was no sale, Mifsud said.

    Larger businesses such as chain restaurants could have a hand above the small businesses. Mifsud said unfortunately his business is at the bottom of the food chain. Mifsud hopes with tax season in full swing that people will get their checks soon and want to spend them.

    Fu said chain restaurants can afford national TV and marketing, while her restaurant depends on loyal customers and word of mouth.

    "All we can do is keep moving along," Woodard said.

    Mifsud said he hopes things gets better but that it's hard to predict if they will or not. He's skeptical in the short term, he said. Prices for milk, gas and bread are rising. Meanwhile, he noted, the Federal Reserve keeps lowering the interest rate, which he said is a good thing.

    Mifsud's philosophy is 'take one day at a time' he said.


    Kristen Tolleson
    Kristen Tolleson covers San Benito County and education for the Free Lance. Contact her at ktolleson@freelancenews.com or (831) 637-5566, ext. 335.

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