VCU Area Restraunts Suffer as Recession Deepens

Old and new restaurants near Virginia Commonwealth University’s Monroe Park Campus are trying to cope with a difficult economic climate.

Missy Wernstrom opened the doors of the Bagel Czar, a breakfast eatery by day and a music performance venue by night, in Sept. of last year. “It is always difficult to start up a restaurant. Now it’ll just be a little harder.” She said

It took Wernstrom over a year to gut out what remained of Nancy Raygun, the night club that was there before her. “The economy was in good shape when I started this, now at restaurants all across Richmond the checks are smaller and there are fewer of them.”

But it’s not a downturn in customers that is really hurting this new business owner, it’s the high food costs. In the “old” restaurant business model food costs accounted for 20 percent of operating costs, now Wernstrom says it’s closer to 30 percent.

Conrad Lewane owns the Stuffy’s sub shop around the corner from Wernstrom which has been open since 1975 and he agrees. His volume of customers and sales has stayed the same, but his income has dropped. “It’s not just the food prices that went up, it’s the butcher paper, the plastic bags, and the electricity bill.” Said Lewane.

One thing that business owners in the VCU area have going for them is a steady stream of potential customers from the university. Lewane estimates that 85 percent of his business comes from VCU. “The really loyal customers are the faculty and staff; as long as I have them I think I’ll be ok.”

Cliff Edwards, professor of religious studies, comes in to buy a sandwich almost everyday. “I love to eat here, and I’ll keep coming here till my wife tells me to stop.” He does admit though there is a price breaking point, and that if prices went up another dollar he’d have to start “brown bagging” it.

Business owners have to find other ways to cut costs. Lewane and Joseph Musgrave, the owner of the Harrison Street Café across the street from Stuffy’s, have found that the best way to do that is to do more of the work around the store themselves. “I have to come in a little earlier, and give my people a few less hours.” Said Musgrave.

Musgrave has seen a decrease in the number of orders that come to his all vegetarian restaurant, but says that it isn’t really hurting him. “Since we make everything that we sell here we don’t have to worry about excess supplies, if we get fewer orders then we make less food.”

Owners are the only ones whose pockets are getting squeezed. John Hewitt is a Sophomore at VCU and he has to pay for school with the money he makes waiting tables at Café Rustica on Main Street Hewitt has worked there for over a year and sees “a definite decline in our dinner business.”

“Not only do I have to work harder to make rent, I don’t have money to go out to eat myself.”, Hewitt said.

Not all students are hurting for money though, Caitlin Grohoviack is a sophomore in the design school at VCU. She is aware of the recession, but says that it hasn’t really affected her much. “I actually have more money to spend on food.” She says, because her grants got larger.

And maybe it is students like Grohoviack who will help keep VCU businesses’ heads above water in the months, and maybe even years, to come.