Spring - Klein Edition | January 2024

From the cover Economic hardships challenge business owners

In their own words

What’s happening?

“Labor costs have gone up; insurance has gone up; cost of goods sold have gone up. Everything across the board has increased. The problem is that revenue ... is not following with it.”

November, according to a Dec. 12 news release from the National Federation of Independent Business Texas. Twenty-two percent of business owners cited ination as the biggest challenge. Individual businesses in Spring may be closing for a variety of reasons, said Bobby Lieb, president and CEO of the Houston Northwest Chamber of Commerce. Location closures made by large national chains—such as Bed Bath & Beyond and Tuesday Morning, which each closed 10 locations in the Greater Houston area in May— may skew data on the topic since they likely lost customers to online shopping, Lieb said. However, Lieb said he believes small locally owned business closures—in the Spring and Klein area and across the country—may be a “direct function of the ination.” “[Ination] is just lingering, and it’s lingering longer than anybody had hoped,” Lieb said.

Patrick Jankowski, chief economist with the Greater Houston Partnership, said he has noticed a national trend of small businesses closing in the restaurant and retail sectors during the last six to 12 months. He said he believes the phenomenon hasn’t been reected in data yet, since it lags behind, but it can be attributed to higher interest rates and a slowing economy. “When [the economy is] going gangbusters, it’s a lot easier for small businesses to make a prot and to expand,” Jankowski said. “Small businesses are facing that diculty right now: the general slowing of the economy.” A tight labor market has also proven challenging for small businesses, since they cannot compete with pay that larger companies oer, Jankowski said. Twenty-four percent of surveyed business owners nationwide reported “labor quality” as their biggest business problem as of

BOBBY LIEB, PRESIDENT AND CEO, HOUSTON NORTHWEST CHAMBER OF COMMERCE

“I think if we can just pass through this, we’ll be stronger on the other side.” NELIA FHEHAJ, OWNER, LULIET CREAMERY AND BAKE SHOP

1 19

KEITH ST.

Still operating in some capacity Closed

14 8

11 13

HAMPTON POINTE BLVD.

5 7 6

DOVERSHIRE RD.

2920

99 TOLL

“Some businesses [that] were able to thrive during the boom times of the last two, three years are going to have to make

45 Business name 1 Al's Formal Wear Willowbrook 2 Bed Bath & Beyond 3 Buybuy baby 4 Cassandra’s Louisiana Kitchen 5 Cletus T’s Texacajun Grill 6 Glo Worm New & Used Books 7 House of Roux 8 Island Fin Poke Co. 9 Komedy Lounge 10 Local Bake & Toee Cellar 11 Lucky Dog Sports Bar and Grill 12 Paul’s Pizza Shop 13 Spring Do-Nut Shop

adjustments, and those that can make the adjustments will survive. Those that can’t will go by the wayside.” PATRICK JANKOWSKI, CHIEF ECONOMIST, GREATER HOUSTON PARTNERSHIP

7 15

2 18

13 17

“The beautiful thing about our community ... [is] everyone wants to see everyone succeed. It doesn’t

CUTTEN RD.

1960

249

matter if it’s another pizza joint down the street from me. ... Everyone wants

SP E AR S R D. 17 Barbarossa Coee 18 MiMi J’s Kitchen 19 Woodall’s Bar-B-Que 14 Tuesday Morning 15 Tuesday Morning 16 1929 Po-boy Kitchen

to help each other.” MARY ANN MASCORRO, OWNER, JACKPOT PIZZA

WILLOWBROOK MALL

NOTE: BUSINESSES ON THIS LIST MAY HAVE CLOSED FOR DIFFERENT REASONS AND MAY STILL HAVE OTHER LOCATIONS OPEN. THIS LIST IS NOT COMPREHENSIVE. SOURCES: LOCAL BUSINESSESCOMMUNITY IMPACT

COMMUNITYIMPACT.COM