Business' sagging in Durham

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.

"The first year that Holloway came, it definitely hurt business," said Eja, "It's been more of a struggle ever since."

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.