Jacksonville News
Most businesses at the Beaches are feeling the same economic pinch as companies throughout the country. Some have gone out of business or moved, but others have maintained and even thrived over the past several months. Many business owners contend people who shop locally at the Beach will keep them in business.
One business that relies on local shoppers, and has thrived in the past few months, is Bali Cargo Co., which imports furniture, crafts and goods from Bali. Kim Rogers, one of three owners, decided to move the business from Jacksonville Beach to Neptune Beach in May. Since then, she said, business has been up 30 to 40 percent.
The only thing that kept her business going during the three years she was in Jacksonville Beach were the locals, the people who would make it a point to stop in, even though her store was not in a major shopping center.
Rogers said she moved the store because retail business success is all about location. She said she looked at many locations and talked to many people who offered cheap rent and incentives, but she wanted a location with similar shops. She said part of her rent goes toward a group pot of money that is used on advertising events in the shopping center and that all of the businesses work together to make the shopping center an attraction.
"Your money goes further. The advertising makes this place a destination," Rogers said. Being close to the One Ocean Resort and the Sea Horse Oceanfront Inn also brings in lots of tourists.
"The tourists are so important; they kept me busy all summer," Rogers said.
Rogers said the business, which has been open about 31/2 years, has been increasing sales every year.
But she's also aware of the current economic climate, and shops for products in Bali accordingly. Last year around the holidays, she noticed that while people were buying the same amount of gifts as the year before, they were spending less money per gift. Rather than $40 per gift, they were spending $20. This year, as Rogers was shopping in Bali, she made sure to stock up on items that she could price in her store at $20 and $30.
Jill Sprowell, executive director of the Beaches Chamber of Commerce, said businesses that have found a way to adapt to the new economic climate by offering sales, specials or finding a new niche have done well. She said more local business owners are joining the chamber because they want to get ideas on how to market their goods and services locally.
"There has been an uptick in chamber members because they are using grassroots marketing," Sprowell said. "At the Beaches, we've got such a unique and fairly tight-knit community that people here support their local businesses as much as possible."
Linda Nottingham, spokeswoman for the Jacksonville chapter of SCORE, an organization that counsels America's small businesses, said savvy business owners are using the economic downturn as an opportunity to adapt and collaborate.
Many business owners are using social media, such as Facebook, Twitter and Linkedin, to promote their businesses and grow their client base, said Nottingham, who also does consultation work for the Jacksonville Women's Business Center.
She said using these social networking devices is smart because they are free. She has also seen businesses that would normally be in fierce competition with each other learn to collaborate, often sharing employees with different skill sets to meet payroll.
"Going to competitors to work collaboratively, to share employees, helps all of them make payroll, which in a down economy is tough for small businesses," Nottingham said. "Most of these small businesses have had their lines of credit chopped down or taken away."
She knows of small-business owners who have taken on part-time jobs to make ends meet and keep their small business afloat.
"They have learned how to be productive, not just busy," she said.
Tom Nuijens' business, Half Moon Bay Trading Co. in Atlantic Beach, which distributes pepper sauces and condiments made in Costa Rica, has been affected by the economic downturn. His sales to restaurants have slumped about 30 percent due to people dining out less.
But his sales in specialty food stores have increased by about 5 percent. He attributes that to people eating at home more often and wanting to add something new and exciting to their home-cooked meals.
"Everything took a dive last October; our Christmas sales were affected," Nuijens said. "The main fallout was in food service sales, but that was offset by consumer demand through retailers."
As people eat in more, Nuijens said, they are learning how to cook and learning about flavors and condiments. As someone who loves to cook, Nuijens hopes that even after the economy picks up again, people will continue to learn to cook for themselves.
Al Hamza, a chef at Milano's at the Beach, has seen a significant slowdown at the restaurant, which his brother, Irfan Hamza, owns. About five months ago, Hamza said, they moved north to their location near Fletcher Middle School, because a large pizza chain, the Mellow Mushroom, was moving near their former spot. However, the move may have not been far enough to compete with the larger restaurant.
"It's like a big fish and a little fish in one pond," Hamza said.
He said business has been "so-so," and that they are just making enough to pay their bills. He said he has no idea if the business will succeed at the new location. The restaurant was at the previous location for about three years and his brother owns another location at Beach and Kernan boulevards, where business has also been slow.
Meanwhile, at the Mellow Mushroom, General Manager Jason Smith said the business is doing well. It opened in Jacksonville Beach in late June. Smith, who has been with other Mellow Mushroom locations in Jacksonville and Fleming Island for 10 years, said sales at the Beach outpace the other locations. He said the Mellow Mushroom has about 100 franchise operations throughout the country and that his restaurant has the second-highest sales of any location.
Smith credits their success to being less expensive than mid-level restaurants, such as Outback Steakhouse, while still providing quality food.
"People still want to get out and have a good meal while spending a little less money. It's kind of an escape," Smith said.
Kathy Cole, owner of the Sea Horse Oceanfront Inn, finds that those people who want an escape are filling the rooms at her hotel. Business has dropped off over the last couple of years, but Cole said they rely on a lot of repeat guests from places like Georgia, even Jacksonville residents who want a chance to stay out at the Beach. She said special event weekends and festivals at the Beach attract a lot of guests from Jacksonville who don't want to drive home after the festivities.
She said they can compete with larger hotels like the recently remodeled One Ocean Resort across the street because they attract a different clientele than those types of hotels.
"We're not a full-service hotel, we don't have a restaurant or banquet rooms ... we are a quiet little Beach oceanfront hotel," Cole said. The hotel also has The Lemon Bar, which Cole said attracts a lot of locals in the summer. But even though the bar is closed for the season and hotel stays drop off as winter approaches, Cole said they are still booked on most weekends.
Sonny Bhikha, president of the Quality Suites Oceanfront in Jacksonville Beach, said business has slowed down a lot at his hotel.
"Business is down as far as occupancy and there is more value available than ever before," Bhikha said.
He said he is doing everything he can to sustain the current staff, but has had to let two people go in recent months.
"The forecast is very scary. There is not that much future booking on the books where I could say I can see a light at the end of the tunnel," Bhikha said. He said 2010 will be a difficult year for the hotel industry and Atlantic Beach vacation homes because even though the economy will start to bounce back, the hotel industry tends to lag behind.
Since they have available rooms, Bhikha is trying some unique promotions, such as giving away 500 nights at any of the Quality Suites properties, which are part of Choice Hotels International. He said he finds Beaches-area people every day, mainly in the service industry, who are doing a good job, and he gives them a card redeemable for one free night at any Quality Suites property.
One business that relies on local shoppers, and has thrived in the past few months, is Bali Cargo Co., which imports furniture, crafts and goods from Bali. Kim Rogers, one of three owners, decided to move the business from Jacksonville Beach to Neptune Beach in May. Since then, she said, business has been up 30 to 40 percent.
The only thing that kept her business going during the three years she was in Jacksonville Beach were the locals, the people who would make it a point to stop in, even though her store was not in a major shopping center.
Rogers said she moved the store because retail business success is all about location. She said she looked at many locations and talked to many people who offered cheap rent and incentives, but she wanted a location with similar shops. She said part of her rent goes toward a group pot of money that is used on advertising events in the shopping center and that all of the businesses work together to make the shopping center an attraction.
"Your money goes further. The advertising makes this place a destination," Rogers said. Being close to the One Ocean Resort and the Sea Horse Oceanfront Inn also brings in lots of tourists.
"The tourists are so important; they kept me busy all summer," Rogers said.
Rogers said the business, which has been open about 31/2 years, has been increasing sales every year.
But she's also aware of the current economic climate, and shops for products in Bali accordingly. Last year around the holidays, she noticed that while people were buying the same amount of gifts as the year before, they were spending less money per gift. Rather than $40 per gift, they were spending $20. This year, as Rogers was shopping in Bali, she made sure to stock up on items that she could price in her store at $20 and $30.
Jill Sprowell, executive director of the Beaches Chamber of Commerce, said businesses that have found a way to adapt to the new economic climate by offering sales, specials or finding a new niche have done well. She said more local business owners are joining the chamber because they want to get ideas on how to market their goods and services locally.
"There has been an uptick in chamber members because they are using grassroots marketing," Sprowell said. "At the Beaches, we've got such a unique and fairly tight-knit community that people here support their local businesses as much as possible."
Linda Nottingham, spokeswoman for the Jacksonville chapter of SCORE, an organization that counsels America's small businesses, said savvy business owners are using the economic downturn as an opportunity to adapt and collaborate.
Many business owners are using social media, such as Facebook, Twitter and Linkedin, to promote their businesses and grow their client base, said Nottingham, who also does consultation work for the Jacksonville Women's Business Center.
She said using these social networking devices is smart because they are free. She has also seen businesses that would normally be in fierce competition with each other learn to collaborate, often sharing employees with different skill sets to meet payroll.
"Going to competitors to work collaboratively, to share employees, helps all of them make payroll, which in a down economy is tough for small businesses," Nottingham said. "Most of these small businesses have had their lines of credit chopped down or taken away."
She knows of small-business owners who have taken on part-time jobs to make ends meet and keep their small business afloat.
"They have learned how to be productive, not just busy," she said.
Tom Nuijens' business, Half Moon Bay Trading Co. in Atlantic Beach, which distributes pepper sauces and condiments made in Costa Rica, has been affected by the economic downturn. His sales to restaurants have slumped about 30 percent due to people dining out less.
But his sales in specialty food stores have increased by about 5 percent. He attributes that to people eating at home more often and wanting to add something new and exciting to their home-cooked meals.
"Everything took a dive last October; our Christmas sales were affected," Nuijens said. "The main fallout was in food service sales, but that was offset by consumer demand through retailers."
As people eat in more, Nuijens said, they are learning how to cook and learning about flavors and condiments. As someone who loves to cook, Nuijens hopes that even after the economy picks up again, people will continue to learn to cook for themselves.
Al Hamza, a chef at Milano's at the Beach, has seen a significant slowdown at the restaurant, which his brother, Irfan Hamza, owns. About five months ago, Hamza said, they moved north to their location near Fletcher Middle School, because a large pizza chain, the Mellow Mushroom, was moving near their former spot. However, the move may have not been far enough to compete with the larger restaurant.
"It's like a big fish and a little fish in one pond," Hamza said.
He said business has been "so-so," and that they are just making enough to pay their bills. He said he has no idea if the business will succeed at the new location. The restaurant was at the previous location for about three years and his brother owns another location at Beach and Kernan boulevards, where business has also been slow.
Meanwhile, at the Mellow Mushroom, General Manager Jason Smith said the business is doing well. It opened in Jacksonville Beach in late June. Smith, who has been with other Mellow Mushroom locations in Jacksonville and Fleming Island for 10 years, said sales at the Beach outpace the other locations. He said the Mellow Mushroom has about 100 franchise operations throughout the country and that his restaurant has the second-highest sales of any location.
Smith credits their success to being less expensive than mid-level restaurants, such as Outback Steakhouse, while still providing quality food.
"People still want to get out and have a good meal while spending a little less money. It's kind of an escape," Smith said.
Kathy Cole, owner of the Sea Horse Oceanfront Inn, finds that those people who want an escape are filling the rooms at her hotel. Business has dropped off over the last couple of years, but Cole said they rely on a lot of repeat guests from places like Georgia, even Jacksonville residents who want a chance to stay out at the Beach. She said special event weekends and festivals at the Beach attract a lot of guests from Jacksonville who don't want to drive home after the festivities.
She said they can compete with larger hotels like the recently remodeled One Ocean Resort across the street because they attract a different clientele than those types of hotels.
"We're not a full-service hotel, we don't have a restaurant or banquet rooms ... we are a quiet little Beach oceanfront hotel," Cole said. The hotel also has The Lemon Bar, which Cole said attracts a lot of locals in the summer. But even though the bar is closed for the season and hotel stays drop off as winter approaches, Cole said they are still booked on most weekends.
Sonny Bhikha, president of the Quality Suites Oceanfront in Jacksonville Beach, said business has slowed down a lot at his hotel.
"Business is down as far as occupancy and there is more value available than ever before," Bhikha said.
He said he is doing everything he can to sustain the current staff, but has had to let two people go in recent months.
"The forecast is very scary. There is not that much future booking on the books where I could say I can see a light at the end of the tunnel," Bhikha said. He said 2010 will be a difficult year for the hotel industry and Atlantic Beach vacation homes because even though the economy will start to bounce back, the hotel industry tends to lag behind.
Since they have available rooms, Bhikha is trying some unique promotions, such as giving away 500 nights at any of the Quality Suites properties, which are part of Choice Hotels International. He said he finds Beaches-area people every day, mainly in the service industry, who are doing a good job, and he gives them a card redeemable for one free night at any Quality Suites property.
