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It's been a year since we've been to College Station,
Texas. And although there are changes, they are subtle and within the context
of a small city that, despite a troubled economy, continues to hold up.
On the way into town, on Old San Antonio Road, off of I-45 South, we saw several
oil derricks moving at a good clip. We hadn't seen those oil fields working in
three years, even when oil was at $150 per barrel. That's interesting in and
of itself, as it signals that there is an increasingly tight supply, or perhaps
demand that is not being reported. That could be a sign that some shift in the
economy, either strength or weakness lies ahead.
As we drove into town on Thursday evening, it was clear that little had changed
on the main drag, University Avenue, which starts to get busy starting at the
exit from Texas Highway 5. That's where the Scott & White Hospital clinics
stand on one side of the street, and the restaurants and hotels start on both
sides of the street for several miles until you hit Texas A & M University,
home of the George H.W. Bush library.
The usual mix of casual dining names and hotels dot the landscape, starting with
Texas Roadhouse (Nasdaq: TXRH), Starbucks (Nasdaq: SBUX), and Darden Inc.'s (NYSE:
DRI) Red Lobster and including local and regional names such as Fish Daddy's
Grill, and Mc Allister's Deli. A personal favorite, Abuelo's Mexican Food Embassy
also makes an appearance as does TGI Friday's.
The parking lots were all full in the evening, on a Thursday, and our Friday
night drive-by showed the same for Texas Roadhouse and Red Lobster as well as
good showings at meal times for most of the names. We actually dined at TGI Friday's,
Abuelo's, and Fish Daddy's and Mc Allister's as of this writing and found that
although prime hours, lunch and dinner times were fairly well attended, there
was little follow through in the off hours. The pattern was all similar in all
the places. That's different than last year.
Hotels showed fairly good occupancy over the weekend, as several junior sport
events: basketball, tennis, and baseball tournaments all hit the city simultaneously.
Our conversation with the shift supervisor of the Hilton on University Avenue
confirmed most of what we observed. Business, at least in this strip of the town
is "always good" with "A & M" bringing in "research money" and convention
business to the city. The Hilton is well positioned, being the only "full service" hotel
in town. It hosts more conventions, and has revolving business with the local "fireman's
school" holding classes here. It's also a fairly good upscale restaurant, bringing
in that kind of business at night.
The supervisor told us that this part of town has been little hit by the recession,
but didn't really know why the strip mall accross the street was empty except
for the liquor store and an upscale eatery accross the street called "The Republic." Our
drive bys "The Republic" confirmed the supervisor's notion, as the place was
busy every night.
As we looked through the local news, we noted that a big deal is being made of
the University president's first year in office. R. Bowen Loftin has been in
office for a year and has been cutting costs and jobs. Apparently, he's done
a good job of it, by being up front with people and taking their concerns into
account as he goes about his business. Mr. Loftin, according to the local news
came into office facing a $25 million cut in state funding and is facing another
significant cut (10%) starting in 2011.
On the political front, this area seems to be moving right as is a fair amount
of the country, especially in the South and Southwest. According to The Eagle.com: "Texas
A&M is implementing reforms pitched by a conservative think tank that advocates
holding tenured professors more accountable, viewing students like customers
and universities like businesses, and reining in spending to become more efficient. "
This is an interesting list of recommendations that we thought would be worth
having our readers peruse:
"1. Measure teaching efficiency and effectiveness and publicly recognize extraordinary
teachúers
2. Implement a voluntary program that gives cash bonuses to instructors based
on student evaluations.
3. Split teaching and research budgets.
4. Require evidence of teaching skill for tenure.
5. Use "results-based" contracts with students to measure quality.
6. Put state funding directly into the hands of students.
7. Create results-based accrediting alternatives."
To be sure, it's a conservative agenda, as it was put together by "The Texas
Public Policy Foundation -- whose 14 board members have collectively given more
than $1.4 million to Gov. Rick Perry's campaign fund." Yet, it's tangible, and
seems to be a sign of what we're seeing in this small town, little growth, but
little attrition. Instead the aura of little change is somewhat comforting in
this day and age.
Conclusion
The city of College Station seems to be in a time warp. Small businesses, especially
restaurant francises, mostly of the low risk type, seem to be holding up through
this economy. And they are doing better here than the same brands in places we've
visited over the last twelve months.
The university's president is firing people, cutting fat, and implementing what
seems to be a no-nonsense approach to dealing with tenured faculties, and people
seem to like him.
The one big hotel in town makes money by being a hub, and by executing its well
honed business model and by capitalizing on its name Hilton. What is startling
is how no one here seems to care about Hilton's debt issues or even Paris Hilton.
And the same number of people that we saw last year coming to the city for junior
sporting events seems to be here again this year, doing the same stuff they did
last year, eating at restaurants, staying at hotels, and going about their business.
It's mind boggling for now. But maybe it's a sign that maybe other places in
America who stick to basics could gain back some of their luster, or even some
of what they've lost lately. Small remains a good business model, for cities,
for businesses, and maybe for families too.
Interesting times we live in.
We'll be on Twitter
some time today before the market closes with some updated comments.
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