By Kristine Snodgrass, Staff Writer
At the Mediterra restaurant on Princeton’s Hulfish Street, general manager Jeffrey Corelli is seeing fewer customers and those who come are choosing less expensive items from the menu.
While the current financial crisis has increased the anxiety level of local businesses, the economic downturn was already being felt here. Upscale eateries like Mediterra are particularly vulnerable to such trends, Mr. Corelli said.
”I’ve seen check averages come down … for a good six months,” he said, adding that adjustments have been made to the menu as a result. “We have been price-conscious in terms of things we put onto the menu,” he said.
Carlo Pugliese, owner of Aljon’s Pizza and Sub Shop, located on Princeton-Hightstown Road in West Windsor, said that his business is down about 15 to 20 percent recently, he said, with both a reduction in the number of customers and less expensive menu choices by remaining customers. He said he is also seeing more people using cash instead of credit cards.
Mr. Pugliese said he believes that the nature of the Princeton area and its proximity to New York City will insulate local businesses, though he expects the customer base to shift as people seek to spend less money eating out. Noting that his business is positioned between fast food outlets and more formal restaurants, he said, “I may lose two customers that go to a deli, but pick up four more from a restaurant.”
”I’m not nervous,” Mr. Pugliese said.
Kathie Morolda, president of Borough Merchants for Princeton, said, “It’s been tough for small businesses for some time now.” But Ms. Morolda, who owns Cranbury Station Gallery in Palmer Square, said that while she finds herself working harder for her customers she has not seen a decline in her own business. “All I know is things are good for us so far,” she said, knocking on her wooden countertop.
As for Princeton business in general, she said, “Everybody’s cautiously moving forward. I’m optimistic at this point.”
Joanne Farrugia, owner of the toy store Jazams, said it is difficult for her to gauge whether the recent financial crisis has impacted her business because the store just moved to a new, larger location in August — from across the street in Palmer Square.
”I don’t have a real sense,” she said. “No numbers.”
Although she said the national financial situation is “scary,” she said foot traffic has been strong and she is not planning on changing her business plan for the future.
”We’ve increased our space, so we’re planning for an increase in sales,” she said.
Her bank approved her line of credit for the fourth quarter, she added, assuaging her fears of the national credit crisis that has led to frozen lending at some banks. With the holiday season coming, she expects the quarter to be busy, she said.
”As a shopkeeper, you’re always optimistic,” she added.
Tim McNulty, owner of Greendesign at 42 Witherspoon St., said he is optimistic that his store, though only open since May, will maintain a customer base in light of the economy because of the unique nature of his merchandise. His store specializes in “environmentally friendly products,” he said.
”You have a certain level of awareness that’s increasing,” he said. “We’re doing well because of that.”
Though most of his vendors are small, new companies, he is optimistic they will stay in business and the future is bright for the green product market.
”Customers are making a conscious decision of what (the product) is,” he said.