The Woodlands Edition | September 2024

Eateries strategize to overcome economic challenges in The Woodlands area From the cover

The overview

Business closures since January

1 Baker Street Pub 2 Cajun Street- Kuykendahl 3 Che Tano Argentine Cuisine 4 Crave Cupcakes 5 El Tiempo Cantina, Spring 6 El Tiempo Cantina, The Woodlands 7 Genghis Grill 8 Hebrews Coee Woodlands 9 JAX Burgers 10 Kokomos Mexican Cantina and Restaurant 11 Local Pour 12 Lovebeans Coeehouse 13 Red Phoenix Hunan Restaurant 14 Tapped Drafthouse 15 Taco Inn & Churrería PorŠrio 16 Uli's Kitchen

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HeBrews Coeehouse owner Marsha Wood said business was brisk at its Oak Ridge Drive location, but she closed the location this summer after a dispute regarding the lease. Before closing, she said the business saw the pressure of rising prices. “Even though we were growing outwardly, … we saw the cost of everything go up,” she said. She said she has some mobile events booked into the fall, and the coee shop’s former location in Magnolia was taken over by a former manager as Sycamore Coee in July. Patrick Jankowski, senior vice president of research at the Greater Houston Partnership, said he believes the restaurant industry may continue to struggle with many of the same issues because prices for goods are unlikely to come down. The rate of year-over-year in‡ation was at 2.9% as of the most recent information available in July—well below its peak of 9% in 2022—but menu prices had grown year over year 4.1% compared to the grocery rate of 1.1%, Jankowski said. “When people’s budgets are tight, they look for ways to scale back,” he said. “Meaning they are likely to spend less or visit less.”

1488

242

16

13

45

LAKE WOODLANDS DR.

RESEARCH FOREST DR.

5

7

4

11

CREEKSIDE FOREST DR.

6

1

10

12

8

15

SAWDUST RD.

9

3 2

99 TOLL

N

NOTE: THIS LISTING IS NOT COMPREHENSIVE.

SOURCES: VARIOUS BUSINESSES™COMMUNITY IMPACT

The conditions

What they’re saying

Ashley Reina, who owns the home-based bookkeeping business Blue Skies Bookkeeping in The Woodlands area, said many of her clients have struggled with ination in the past year, and two of her former restaurant clients in the Rayford Road and Sawdust Road corridor have closed amid economic pressures. “It’s just insane how much [food costs] have gone up,” Reina said. “You are trying to tread water [with prices], saying, ‘How much can I raise it without losing [customers]?” Price increases on items such as eggs and meat have consistently trended upward since 2020, according to data from the U.S. Bureau of Labor Statistics. However, ination also a‹ects less well-known ingredients that are essential for many restaurants. Orasinee Ratanaarporn, who owns ZapVor by Thai Spice on Sawdust Road, said Thai cuisine requires specialty ingredients that cannot take substitutes, and ination means there is no exi- bility on some items such as galangal, a avorful root in Thai cooking. “My hands are tied; I have to buy it,” she said.

Cost of food staples nationwide While food prices have declined in recent months, basic staples are more expensive than four years ago.

“When people’s budgets are tight, they look for ways to scale

back, and they may cut back on one less meal eating out.” PATRICK JANKOWSKI, SENIOR VICE PRESIDENT OF RESEARCH, GREATER HOUSTON PARTNERSHIP

July 2019 July 2020

July 2021 July 2022

July 2023 July 2024

+$1.84

Dozen eggs

Pound of ground beef

+$1.70

“When you go out to eat, you have to be thinking … how much is it going to cost me?” ORASINEE

Loaf of white bread

+$0.70

RATANAARPORN, OWNER, ZAPVOR BY THAI SPICE

Gallon of milk

+$0.95

SOURCE: U.S. BUREAU OF LABOR STATISTICS”COMMUNITY IMPACT $0 $1 $2 $3 $4 $5 $6

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