 "Photo: Liz Narro")
Two major events have happened to change the way Pauly's Pockets owner Paul Eja does business. The first is the successful move of his store from the Durham Laundromat to 51 Main Street, where Pauly's Pockets now resides. The other, less encouraging incident, happened two years ago with the completion of the University of New Hampshire's most expansive and elaborate dining hall to date, Holloway Commons.
Eja, like many of the Durham eateries in town, have had trouble keeping up with the progress that UNH has made over the years in food service. Since the year 2000, they have watched the renovation of Stillings Hall, the completion of Holloway Commons and most recently, the renovation of Philbrook Hall, with a wary eye toward what the future will hold for them.
George Scangas, co-owner of JP's Eatery, estimates that in the last two years, since the creation of Holloway, he has seen profits go down 15 to 20 percent.
"We're all in the same boat," he said. "In the late 90s, sales were up. Since Holloway got built, that has changed."
What concerns these businesses most, according to many of the owners, is that the school seems to be more concerned with making money than it is with the future of the downtown area.
Beyond the expansion and upgrading of the dining halls, said Durham Business Association President Dick Houghton, some owners have also taken issue with the little strategies that the University has been using to develop a competitive edge.
This includes allowing all their establishments to be open to the public, and creating food establishments inside the MUB that can avoid New Hampshire's eight percent meals and room's tax, which private businesses must pay.
"It s an age-old problem," said Houghton. "The University versus private businesses."
All this has left a bad taste in the mouth of more than a few local business owners, who argue that not only is it affecting their businesses, but the makeup and livelihood of downtown and the local student job market.
"It's like they're trying to build a moat around the school," said Libby's Bar and Grill owner Mike Libby. "They don't want you to come downtown if you don't have to."
According to UNH Executive Director of Hospitality Services David May, the recent completion of Holloway and the renovations that have been done to improve the other two dining halls were more than overdue.
"Philbrook wasn't that different from when I ate there back in 1974-75," he said.
He said their mission was to contemporize UNH's food service, providing students not only with more options, but also with meals cooked right in front of them and in general, a cleaner and more efficient process.
"Our job is to take care of the students," he said.
The end result is three new or improved dining halls for the students to eat at, with the landmark cafeteria Holloway Commons serving more than 40,000 meals a week, according to May.
To look at a menu for Holloway can be an almost overwhelming experience. On any given day it will serve five different kinds of pizza, a variety of stir-fry options, pastas, casseroles, sushi, burgers, chicken nuggets, french fries, onion rings, seafood, quesadillas, desserts, ice cream, soups, a salad bar, a deli, seven different kinds of coffee, four types of cappuccino, fresh fruit and a varied drink selection.
"All of us are proud of what the University has done," said Houghton. "It's the little things that come up that cause us strain."
One of these things is UNH's decision to allow the public use of Holloway Commons for a small fee ($8 for lunch, $10 for dinner). According to Eja and other Durham business owners, dining halls should remain strictly for students because the abundance of bulk food that UNH's Hospitality Services can offer due to its huge budget puts local businesses at a distinct disadvantage.
"For eight dollars a plate, anyone can go in and eat as much as they want," said Libby. "We can't do that because we aren't buying food with other people's money. If I need more food, I can't go to the state."
May explained that although Holloway is open to the public, the University does not advertise it, and uses it more as a tool to display one of the University's strengths to various people of interest to the school.
"Holloway Commons is a showpiece and recruiting tool," explained May. "It contributes to the overall experience that students get, and it helps sell the campus."
Houghton agreed that in some cases it does make sense for the UNH to allow non-university affiliated people into the dining halls for tours, recruitment visits, or even just parents down for the day to see what their child is fed. However, he said that there is no need for the general public to have access to a student cafeteria.
"That's a sore point," he said. "I don't know why it's open to the public. It doesn't make much sense. That disrupts the wound to local businesses."
The problems that the town has with the school eateries do not end with the dining halls. There is also the issue of the MUB and the food establishments run out of its food court, which according to May was reopened in 1995.
The chain businesses that operate in the MUB, despite their names, are all run by the University's Hospitality Services, said May. Because they are run by the University and cater primarily to students, by law they are able to avoid the eight percent meals and rooms tax that the downtown businesses must tack onto their prices. As a result, the meals are cheaper, and because it's the school's property, the University can choose whatever businesses they want to occupy the space.
That space, which is home to among other things, Taco Bell, The Eatery, Biggies! Burgers and Chicken, Godfather's Pizza and the Sandwich Exchange, also offers a salad bar, a variety of fresh fruits, takeout cereal choices and a different home-cooked meal served each week. The MUB food court is also open to the general public and does leave the door open for people to take advantage of the tax exemption if they are not identified as non-university affiliated.
The University and the town do have an agreed means of currency, known as Cat's Cache, which can be used in eateries and businesses both in town and the school.
While Cat's Cache is not offered with any of UNH's meal plans, it is a simple procedure to start an account and put money in an account. For many students living off-campus, it is their main source of food money because parents are ensured that it will be used as intended and not on items such as alcohol or tobacco, which cannot be purchased with Cat's Cache.
Nearly all the businesses in town accept Cat's Cache, and pay a five percent surcharge to the University every time they use it. According to May, this generates revenue for the local businesses that accept Cat's Cache (there are currently 29) in excess of $900,000 per year, of which around $45,000 goes back to the University.
For some business owners, such as Maria Asprogiannis, who owns Wildcat Pizza, the addition of Cat's Cache as currency is a necessary requirement.
"It [the surcharge] is high, though," she added.
Asprogiannis explained that credit card companies comparatively charge businesses two to three percent to use their cards, but with such a large student base, Cat's Cache was an obvious choice for her.
Other businesses, such as Libby's and the recently-opened U-Village Pizza, have so far resisted the addition of Cat's Cache to their accepted methods of payment.
"There's a substantial charge in the beginning to start using it," said Libby. "Besides, between state and federal taxes, I get taxed enough."
Tony Morfopulous and Spiro Filiogiannis, co-owners of U-Village Pizza, agree that the five percent tax is too much for them to afford right now. Business has been slow to pick up and they say they must concentrate on the taxes they have to pay.
"There are 12,000 students in this area, but where are you?" asked Morfopulous gesturing out the window. "I think people like us, but I don't know. They have to get to know you first."
May also pointed out that the University is in the process of upgrading its Cat's Cache system to the tune of $250,000 that the school is paying for on its own.
UNH also has its own currency, Dining Dollars, which can only be used at food establishments owned and operated by the school. Unlike Cat's Cache, Dining Dollars do come with some of the university's meal plans that are required for all on-campus residents, and they gives students an upfront bonus of 20 percent. The more Dining Dollars a student buys, the bigger the additional bonus, from five percent at $250, all the way up to ten percent if you spend $1,000.
One of the major drawbacks created by the lack of business downtown is that many of the local eateries, which have historically hired a large number of UNH students, have had to cut back on employees.
"I have already cut many peoples' hours, and I can't give out nearly as many jobs," said Asprogiannis of Wildcat. "There are so many people looking for jobs, but I just can't hire them because I am not as busy."
Eja, too, said that he has had to make sacrifices in jobs. He has had to cut hours from his employees while increasing his own to save money.
"I don't like to lay off," he explained, "but when someone graduates, I don't hire someone new now."
On top of all this, many owners feel that Durham is also losing its bustling small town charm. Nearly all of them remarked that the downtown traffic has become sparse.
"There just doesn't seem to be as many people on Main Street anymore," said Asprogiannis.
Eja agreed that many things have changed since he first opened his doors eight years ago.
"There used to be a nice little café [referring to the now defunct Licker Store] across the street," he said. "Now it's a cell phone store."
May said that the University is concerned about the downtown businesses and it strives to support them whenever they can.
However, people such as Franz Guest, owner of Franz's Food, who has said that he has not been affected by all the recent University developments, remain skeptical.
"I don't want to hear anymore monkey squeak about them [UNH] caring about downtown," said Franz. "We're paying taxes that support them and they undercut us and that's not right. They say they care but they are in the retail business as a nonprofit."
Despite the many problems some downtown business owners have with some of the University's decisions, all the owners who have seen the dining halls admit that UNH has created some spectacular facilities, and they are not waiting around for the school to change some of its policies toward them.
"I just have to do a better job than Holloway, and that's what I am going to try and do," said Eja. "Even if it means losing some money."
Scangas agreed. Since Holloway came on the scene he has increased his meal specials to five nights a week. He does admit that while he hopes it will bring in more people, it doesn't do much to increase revenues.
"Businesses play a critical role in creating the atmosphere within the total community," said Houghton. "Durham is a little unique because there aren't many communities where the University is bigger than the town; students are the town. I just think that everyone has a lot to learn about the dynamics of the downtown community."
In the meantime, both the school and the downtown businesses will do everything they can to appease their student customers, but for many of the downtown owners, it is an uphill climb.
The biggest change that Eja has noticed is his dinner crowd.
"It's supper time," he said looking around his nearly empty store. "Where are all the people?"
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