Tag: business

Why Businesses Fail on The Drag

By Faith Ann Ruszkowski, Samantha Grasso and Ellen Gonzalez

Video by Faith Ann Ruszkowski and Samantha Grasso

Why Businesses on “The Drag” Fail: An Investigation

Story by Faith Ann Ruszkowski

When Noodles & Company closed its location on the corner of Guadalupe and 24th Streets last fall, its departure was abrupt. On Nov. 4 the restaurant was serving pasta, and by Nov. 5 its doors were locked and a note hung on the window thanking customers for their patronage.

Estephanie Gomez, a journalism senior at the University of Texas at Austin, was working for Noodles & Company when it closed. She was shocked when the restaurant went out of business.

“I literally got a text at 10 p.m. the night before that said, ‘Hey, yeah, don’t come to work tomorrow but come and pick up your severance package at 8 a.m.,” Gomez said. “I didn’t catch on—oh, Noodles is doing badly—because we were pretty busy everyday at the same times. I never knew, until the night before.”

While the swiftness of Noodles & Company’s exit might have been shocking, another business deciding to leave the strip of Guadalupe Street, known as “the Drag,” is a relatively a common occurrence.

After Noodles & Company closed in November, The Coffee Bean & Tea Leaf, which was located next door, called it quits. Pita Pit, also located on Guadalupe, closed its doors this spring. Earlier in 2015, Manju’s, Mellow Mushroom, and Jack in the Box, all located on Guadalupe, closed up shop.

Out of the 53 establishments currently on the Drag, 13 have been there for five years or less, according to data gathered from in-person interviews and business’ websites. Additionally six storefronts along the stretch of Guadalupe from 21st to 27th Streets are vacant.

Students like Ilda Arroyo have become accustomed to the high turnover of businesses on the Drag. Arroyo, who graduated from UT in December with a degree in Human Development and Family Sciences, said she noticed the constant change during her five years as a student.

“I remember as a freshman it consisted mostly of food places, but the food places have changed to businesses like the expanding Urban Outfitters, a real estate office, and a small convenience store,” Arroyo said.

So although the high turnover has become commonplace, it raises the question: why are so many businesses unable to succeed on the Drag?

Why Businesses Leave the Drag

This semester, Melissa’s Custom Gifts vacated its location on the Drag next to the long-standing Goodall Wooten dormitory and moved shop to the corner of 24th Street and Rio Grande. The store’s owner, Ken Jones, said that he made the decision to move for many reasons, one of which was that he wanted to discontinue ATX Books, which he also owned and operated from that location.

“One of the biggest things was I had been planning to end the bookstore for a very long time,” Jones said. “I didn’t need as much space, although they didn’t want me to leave because it is really hard to keep tenants on the drag period. But, it was a little bit too much space, a little bit more than what I wanted for what I was doing here, and, of course, the rent on the Drag—anywhere in this area—is very high per square foot.”

However, during his 5 years on the Drag, Ken Jones did concoct some theories about why so many businesses were failing based on personal experience and observation. For many rent is an issue like it was for him, but one of his main observations is that students do not support local businesses.

“The kids do not connect with the businesses that are there, they just don’t,” Jones said. “I ask kids and none of them know a business owner’s name. They don’t have any allegiance of any kind to anything on there. And guess what? Those businesses go out of business…They do not support the businesses that support them. Bottom line. Why doesn’t it work? It’s the students fault.”

He has also observed that business do not understand the UT campus environment.

“They come in with great intentions thinking we’ve got this concentrated amount of 39,000 [undergraduate] students we’re going to make a killing,” Jones said. “They do not do their research.”

Jennifer Hillhouse, the owner of Jenn’s copies which has two locations on the Drag and has been in business since 1982, also said that many stores open on Guadalupe without realizing how dependent their business will be on the students’ schedules. She has had 12 different neighbors since she opened her second location on the Drag near Dean Keeton.

“This is a nine-month business cycle,” Hillhouse said. “It dies in December, a horrible death, and if you have to sell at least 500 hamburgers a day to make your rent that is not going to happen in December and in June and July and halfway through August… It’s a whole town for nine month out of the year and it is a ghost town for the other three and businesses get blindsided by that.”

Matyear pointed to Terra Burger, a now closed business, as a classic example of a business that was not able to anticipate the campus cycle.

“They ran out of buns on Parents’ Day,” said Hillhouse.

What Successful Businesses on the Drag have in Common

Jenn’s Copies is one of the few businesses on Guadalupe that has achieved decades of success. The Co-Op is the longest running business on the Drag, with 99 years of service. The Wooten Barber Shop has been in business for 52 years. These are all businesses that provide services students are always in need of: prints for projects, books and haircuts.

“People have to get their haircut. It’s a destination shop,” Jones said, of his former neighbor.

Don Stafford has been working at the Wooten Barber Shop on the Drag for 23 years aggregating loyal customers all the while. He characterizes the establishment as plain, but reliable and comfortable.

“They come here because they need haircuts, but they also come here because they feel comfortable in the shop,” said Stafford. “It’s not a place where we serve wine and cheese, but come in and tell us how bad your day was or how good your day was.”

The barber shop is remarkably small, but manages to fit three stations into a space the size of the average public restroom. Jenn’s Copies also operates on a small number of square footage. Hillhouse believes modest decorations, reliable service and limited space are key to remaining in business when rent is so high and the business cycle is inconsistent throughout the year.

“When they [the shop next to Jenn’s Copies] turned into a restaurant their finish-out cost $250,000, comparison mine cost $20,000,” Hillhouse said. “I went to TOPS, which is Texas Office Products & Supplies, everything is secondhand…I only had one fancy piece of equipment and it was leased. I did not have a color copier and my husband literally painted my name on a shingle, on a piece of ply board and we hung it outside.”

Graphic by Ellen Gonzalez

“The Drag” through the Years

2100 Block Guadalupe St.

thaispiace

2300 Block Guadalupe St.

attstore

2300 Block Guadalupe St. (continued)

austinpizza

2400 Block Guadalupe St.

qdoba

IMG_6022

IMG_6028

2400 Block Guadalupe St. (continued)

mellow

 2500 Block Guadalupe St.

madam
Screenshots from maps.google.com

 

3-D Technology Finally Free For UT Students

By: Jamie Balli, Silvana Di Ravenna, Briana Franklin, and Breanna Luna

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UT’s first 3D printing vending machine is the hot topic of technology accessible for students.
Photo Credit: Breanna Luna

AUSTIN – With all the talk about 3-D printing, a few questions still remain. What is in it for the consumer? How does 3-D printing work? Is it costly?

Since early September, 3-D printing has been available at no cost for all students at the University of Texas at Austin. The printer is located in the “T-Room” inside the Mechanical Engineering Building on campus.

Third-year aerospace engineer Kenzie Snell heard about the 3-D printer in the Longhorn Rocketry Association where students had to use it for their rockets. Students in other engineering courses are also using the printer for class projects.

“For my engineering design graphics course I had to recreate a water valve pipe that we took the dimensions of, created 3-D images of them, and then printed them for a final project,” Snell said.

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This rabbit was designed and printed using free 3-D technology
Photo Credit: Silvana Di Ravenna

A software development group at the university’s school of engineering created an online portal for students to upload their own designs to the 3-D printer. And here is how the process of 3-D printing works. Each design is reviewed by an engineering student for approval. Students are notified via text message once their design has been approved and is in the process of printing. A second and final text message is sent when the design is finished printing and can be picked up.

“No one has to walk up to the machine and load files which is what typically happens with 3-D printers, and involves students kind of hanging around until it becomes available’’ said Dr. Carolyn Seepersad, associate professor of mechanical engineering at U.T.’s Cockrell School of Engineering.

According to Seepersad, students are customizing parts for themselves, including cuff links, initialed designs, and longhorns for the graduating class. Lately, Seepersad has noticed a significant amount of Pokemon figurines being printed.

“If they can draw it up on their computer, then they can print it out and have it pretty quickly, which is easier than going to the machine shop and trying to make it out of wood, steel, or metal,” said Seepersad.

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Students can pick up their creations at the Innovation Station once they are completed
Photo Credit: Silvana Di Ravenna

3-D printing is also being used to make complex shapes in low volume that are not made with other manufacturing techniques used for high volume. According to Seepersad, 3-D printing “is not going to replace other forms of manufacturing,” but it’s going to “supplement manufacturing in very viable ways.”

“Essentially, what you would make in five pieces and glue them together in an assembly shop, a 3-D printer can do it in a single step,” said Dr. Vikram Devarajan, University of Texas alumnus and 3-D printing expert.

According to Devarajan, 3-D printing was invented about 20 to 25 years ago, and because all of the original patents have already expired, the cost of printing has since decreased. This has made 3-D printing much more affordable for the consumer.

The 3-D printer available for the students uses materials that are relatively inexpensive. The mechanical engineering department has offered to help pay for materials, but donations are also being accepted.

“We can print parts almost continuously and only have a couple thousand dollars of material costs at the end of the year,” said Seepersad. “The labor of keeping the machine updated and maintained is probably the biggest expense.”

According to Devarajan, U.T. owns several printers that employ two main types of additive manufacturing processes.The 3-D printer available for all students is based on a process called FDM [Fused Deposition Modeling] and is more reasonable in material costs. The other process, SLS [Selective Laser Sintering], is more expensive but can print more complex designs and is widely used in the medical and the aerospace industry.

“We couldn’t afford to open up [the SLS] process to students because of the material costs,” said Seepersad. “The parts printed from the 3-D printer downstairs rarely print anything that has more than a dollar’s worth of material.”

3-D printers range in price depending on the complexity of the printer itself. Printers using the SLS modeling process can print complex designs such as organs and complex flow field geometries. At U.T., a human heart modeled from a CT scan was printed, according to Devarajan.

“You can go buy an FDM 3-D printer for $1,000,” said Devarajan. “The SLS printers I have operated at U.T. are about half a million dollars each.”


3D Printing from Briana Franklin on Vimeo.

UT student uses sweet tooth to create business

 

Sam hard at work in the kitchen. Photo by Joanie Ferguson.

By Chelsea Bass, Joanie Ferguson, Rachel Hill and Britini Shaw


There’s a star on the rise. Young entrepreneurial UT sophomore, Sam Cade, has managed to bake and sell hundreds of cakes out of her high-rise apartment, filling a niche many would not expect from a busy college student.

“I started off making them for my friends and then I was doing it for a bunch of people,” Cade said.

The 20-year-old Business Management major says that she could “live off dessert and breakfast food,” and has had a sweet tooth ever since she could remember, which is what sparked her love of making cakes.

Her love of baking was further solidified when she started working at Tart Bakery in Dallas at 16. During her time at the bakery, she performed small cake decorating tasks and took orders, and from there eventually started making cakes for her friends.

“When I got to college, I never expected it to take off as much as it did,” she said of her business, Cade’s Cakes.

Once she started posting pictures of her homemade cakes on Instagram, her popularity skyrocketed. She went from 400 followers to a little over 2,600 in a matter of a year.

Her prices have gradually increased as well. She went from charging $20 per cake, which didn’t turn a profit, to charging anywhere from $50 to $70 per cake.

She says it’s hard balancing school and baking, and admits that her grades have suffered a bit, but, “It’s what I love to do,” Cade said.

Her daily schedule includes waking up at 7 a.m. and baking cakes until her class at noon. When she gets out of class, she goes back to her apartment to decorate the cakes. Then she uses the little time she has left to study.

“I bake a dozen cakes a week, but I also turn down a dozen,” she said.

She manages to squeeze in a healthy social life, but says she often doesn’t sleep after she comes home from a party and bakes until the morning. She uses her own recipes that she cultivated three years prior while in high school.

“My friends surprised me with a Netflix-themed cake for my birthday,” Kathryn Hanson, UT sophomore said. “I was so surprised that it actually tasted good. It looked too good to eat.”

She has business cards, personalized stickers for her cake boxes, and her own website where customers submit cake orders. She also has a food handler’s permit for legal purposes.

A day in the life of Sam Cade

She says she can pretty much make anything, and does, from cakes shaped like liquor bottles for 21st birthdays to fairy castles for a child’s birthday party.

When she graduates, from UT, she plans on attending a 10-month pastry school program at the International Culinary Institute in New York and then opening her own bakery in Dallas. But in the meantime, she seems excited to have expanded her word-of-mouth business.

Though Cade is busier than she might like, those who have seen her cakes probably wouldn’t be surprised to see her with her own show on the Food Network in the coming years.

A sample from Sam Cade’s Instagram

For more information on Cade’s Cakes click the image below to check out her website.

http://www.cadescakes.com/