Store owners: Loss of beer sales would hurt; Applebee’s says outcome 'doesn't matter'

By Kelly Kazek
kelly@athensnews-courier.com

August 04, 2007 11:25 pm

At lunchtime Wednesday, a couple driving from Tennessee to Birmingham left Interstate 65 at exit 351 and drove five miles to visit downtown Athens.
“They heard about us and pulled off,” said James Foster, general manager at Giovanni’s Italian Bistro, a newly opened restaurant on Limestone County Courthouse Square. “We had them coming from everywhere today — Huntsville, Cullman, Tennessee.”
Proponents of legalized alcohol sales in the city of Athens point to these visitors and the growth since the first beer was sold in January 2004 as reasons to vote for keeping sales in a special election Aug. 14 to decide the issue.
Giovanni’s, which serves alcohol, opened in July, but even after just two weeks, the impact of an upscale restaurant on the once-flagging downtown area has shop owners buzzing.
Businesses that existed before legal sale of alcohol — whether or not they sell alcohol — are benefiting from the growth since 2004, most owners say.
“I can just say the spirit downtown is very energetic and exciting because of the increased traffic,” said artist Carol Forét, whose gallery and photography studio are located next door to Giovanni’s.
Those owners are now faced with the possibility of losing that customer draw, if city residents vote to repeal the legalized sale of alcohol.
Since legal alcohol sales began in 2004, Athens has seen an influx of restaurants — those selling alcohol and those that do not — as well as other retail businesses. Where previously downtown Athens drew only home-cooking-style restaurants and delis that served only lunch, it will have three new restaurants this year — including Giovanni’s, Oasis and LuVici’s.
“It’s doing for our economy exactly what we ought to be doing,” Forét said. A group was formed last year called Spirit of Athens to help determine ways to draw more people downtown. While the non-profit group does not take a stance on political issues, members have said drawing quality restaurants to add nighttime traffic benefits downtown merchants.
Hubert Crow, who owns Pablo’s on Market with his wife Carolyn, said the book and gift shop and deli-style eatery has increased its hours to accommodate the after 5 p.m. traffic flow since Giovanni’s opened.
“We’ve had some increased traffic,” Hubert said. “They come in when they’re waiting at the restaurant.”
People waiting for a table at the popular restaurant receive a buzzer that will work up to two miles from the restaurant, so they can browse in shops while they wait to be notified a table is available.
Pablo’s stayed open until 8 p.m. nightly the first two weeks after Giovanni’s opened, and will begin this week opening Monday through Thursday until 6 p.m. and Fridays and Saturdays until 8 p.m., he said.
Forét and Hubert Crow said some people wandering the Limestone County Courthouse Square at night might be first-time visitors to downtown, perhaps because they work in neighboring cities and could not come downtown for lunch and shopping before retailers closed.
Nita Stephens of Athens has been downtown three times in the past two weeks — for two dinners and a lunch at Giovanni’s — increasing her typical trips to the courthouse square. On a lunchtime visit with her daughter, she said she visited several shops, such as Pimento’s, Pablo’s on Market and Grayson Scott Interiors.

A drink with dinner?
Alcohol proponents have long argued that legalizing alcohol sales would draw more fine-dining establishments to Athens. Opponents argue that Applebee’s Neighborhood Grill was established here before legalized sales and operated a “dry” bar successfully.
Applebee’s bar, along with convenience and grocery stores in the city, went “wet” in 2004. But a Birmingham franchise company that owns the local Applebee’s said losing alcohol revenue would not mean the restaurant would close.
“If consumers were to vote alcohol out, it wouldn’t affect our day-to-day operations one bit,” said Wade Crawford, director of marketing for Quality Restaurant Concepts. “We’re in the business of making people happy in our restaurant.”
Hugh Ball, president of Greater Limestone County Chamber of Commerce, said alcohol sales do have an impact on which restaurants and retailers choose to locate in Athens.
“If we terminate legal sales, the main effect will be reducing our market share for a wide assortment of retail businesses and probably some service businesses,” he said.
He pointed out that when people travel to neighboring cities to visit a restaurant such as Logan’s Roadhouse or Rosie’s Cantina in Huntsville, both just six miles from the Limestone County line, either to have a beer with dinner or because they like having the wider choice of eateries, they will likely do some convenience shopping. While in Huntsville or Decatur, a couple or family might also go to a movie or buy gas.
“Consumers cherish convenience,” Ball said. “What all this adds up to is lost revenue to our businesses and lost tax revenue.”
Ball said Limestone County has long struggled with losing business to neighboring counties. Fewer Limestone County residents shop locally than do those in Huntsville and Madison County, he said.
The trend is reversing as new strip malls are built with chain and local retail stores and popular restaurant chains opening. Ruby Tuesday opened in 2005, Guthrie’s opened in 206, Chick-fil-A opened in July and Zaxby’s is scheduled to open this month.
“Where were all these people eating before we had all these restaurants? They were eating in Huntsville and Decatur,” Ball said
Although not all growth can be traced to legalized sale of alcohol, Ball said progress does depend on being able to draw these types of businesses and lure people from Interstate 65.
“We have a front door on the interstate that nobody else has,” he said, adding Athens is the best exit for travelers between Nashville and Birmingham and perhaps all the way to the Gulf coast.
“Every time we fill up our hotels, which we’ve done pretty often lately, that’s $400,000 economic impact per night,” he said. “While they’re here, they’re buying gas, food and doing some shopping.”
A repeal would hurt that growth, Ball said.
“We’d be telling people, ‘If you consume alcoholic beverages, you’re not really welcome here, so travel on down the road and spend your money,’” he said.
It is not realistic, Ball said, to say sacrificing progress for moral beliefs would help keep Athens’ small-town charm, as some alcohol opponents have said.
“Towns that stay small, you visit them today and you see a lot of empty buildings. If you don’t grow, you lose your young people,” he said. “Several local people have put quite a bit of money in investments here over the years. Some jobs could be at risk. Even a 5-percent reduction in some cases could mean the difference between success and failure for a business.”

Matter of convenience
When customers walk in the door of Bud’s Chevron on Hobbs Street, they are greeted by a chest-high stack of beer 12-packs.
More packs are stacked in nearby coolers. A rack of Arbor Mist wine stands near the counter.
Owner Abubaker Ramadan has a quick response to members of Athens-Limestone Quality of Life, the group that wants to repeal legalized alcohol sales: “If they promise to make up the money, I’ll quit selling beer tomorrow.”
The issue of alcohol sales is not about values but about his right to compete with businesses in surrounding counties, he said.
“We’re not talking about morals or religion,” Ramadan said. “This is straight business. We’re living in America.”
He is also frustrated, he said, that a group wants to remove his choice to sell when they already have a choice not to imbibe.
“Those who are opposing beer sales, nobody’s pointing a gun to their heads and making them buy beer,” he said.
Ramadan said taxes from alcohol sales benefit the city, schools and families.
“Why do we have to send them to Madison and Decatur to buy?” he said. If alcohol sales are repealed, he will likely stay in business, but he will scrape by as he did before. “We’re going to be here, but we’ll have difficulty,” he said. “This city is going to be a ghost city like before.”
Like Ramadan’s, Brad McCorkle’s business has increased since alcohol sales began.
McCorkle was the first to sell alcohol in Athens in January 2004, when he stocked beer at Brad’s Market at Lucas Ferry and Browns Ferry roads.
Sitting in a booth in his store, McCorkle said not only has his business increased from sale of beer but from other items people buy when they come to buy a six-pack.
“We sell more gas, food, candy,” he said.
In addition, people who once bypassed the store now stop.
“We’ve got people who live near here who’d never been in here before,” he said, theorizing that when shoppers stopped for beer at stores in neighboring cities, they also purchased their gas and other items there.
He pointed to some customers he said work in construction. “See those guys over there? They’re from Rogersville. They come in every morning on the way to work and they stop on the way back,” McCorkle said. “I can’t imagine losing the business.”
That business is double what it was prior to January 2004, he estimated.
“Only about half (the increase) has been from alcohol,” he said.
McCorkle said he has not seenthe problems that were predicted, such as increased crime, litter and alcohol abuse.
“We haven’t had any problems that we didn’t have before,” he said. “I can’t think of a negative thing about it. I just don’t get any complaints out of anybody.”
The only negative issue, he said, will come if alcohol sales are repealed. Business owners generally don’t place increased revenues in reserve in case they are suddenly taken away. Instead, they add inventory, space and employees.
“We wouldn’t need as many people,” he said. “It all goes hand-in-hand, really. The more business you do, the more people you need.”
McCorkle said he hopes those in favor of keeping legalized alcohol sales will go to the polls.
“I’m voting wet,” McCorkle said. “The more people who vote, the better chance we have.”

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