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Category >> michigan economy

Jul 28
2008

High Gas Prices Could Be Good for the Economy...

Posted by Tammy Stone in michigan economyhigh gas pricesgrand rapids presseconomy

All one has to do nowadays is take a look at the headlines in the paper and "see" what the Michigan people are thinking.  Front page of the Grand Rapids Press, Sunday July 27th edition's headline is "Tipping Point Tough Times Shortchange Workers on Gratuities".  The article shows a picture of two waitresses counting their money from tips at the Bull's Head Tavern in downtown Grand Rapids.

The Business section of the Grand Rapids Press reads "School Shopping Dropping... Many Families, Feeling Pinch of Economic Slowdown, Plan to Scale Back This Year".

 I now take a look at the Travel Section of the Grand Rapids Press which shows two gals enjoying themselves on a boat, the title of this one is "Knots and Bolt".  Now this one doesn't have anything to do with cutting back per say but I do have a friend that owns a marina and what he's noticed is that he still has business it just happens that most people are more local and are not taking their boats up to Traverse City and other places.

In the real estate world, my clients are making moves that are closer to their job and therefore less on gas.  More talk is going on about gas efficiency and hydrogen/electricity as fuel savers.

Obviously, the cost of gas has made some impacts on the economy.  In general terms, the people I talk with are very concerned about the rising prices (right now, we finally went under $4.00/gallon... by my house it's $3.93).  A bunch of comments have been a long the line of "When is the gas prices going to stop?"  I don't know.  Wish I did.  I do know this... I've even changed some of my habits. 

  1. For the most part, I know drive the 4 door car instead of the minivan (I'm saving at least $50.00/wk in gas). 
  2. I'm looking around my house and wondering what I can REUSE instead of throw or give away.
  3. I'm not running to the store every day.  In fact, I tend to lump all the errands into one time.

I have to ask myself and you... "Could these gas prices being so high be a good thing?" 

 

 

  • Do you think we will finally become more cost conscience and start  being more of a Dave Ramsey person (you know, NO DEBT, AND SAVING MONEY).

Do you think we might be start re-using our stuff?

 

  •  If we were better budgeters with our money, would we have so many foreclosures on the market as we do today?

 

  • Jokingly, maybe America as a society might be healthy and not  overweight... You know, we may have to walk, ride a bike and do some of those things instead of hopping in the car?

 

May 15
2008

Some Retailers Still See Opportunity in the Michigan Economy

Posted by Tammy Stone in michigan economyjohnnys lunchdowntown grand rapids

Michigan's economic struggles always seem to be in the forefront of the media and on people's minds.  And rightly so, all business sectors have struggled and many people have had to make moves that would be right for their family.  Interestingly enough, as others have moved out of state, Johnny's Lunch has decided to Move Into Michigan. ; Can you believe it?


Johnny's Lunch sees Michigan and Grand Rapids in particular as an opportunity.  Johnny's Lunch is a Ohio franchise with quick-serve hotdogs and burgers with "extremely low" prices (Beeke).  Johnny's Lunch is a 72 year old company with national expansion plans with Livonia, Michigan being their first stop.  Closer to home in Downtown Grand Rapids in the Monroe Center is our first Johnny's Lunch.  Three more franchises are planned to open up in other areas of Grand Rapids as well.


Why did Johnny's Lunch decide to come to Michigan when others have been leaving?  Here's what the president George Goulson had to say, "We knew all that stuff going in.  We also knew in Michigan there's a lot of opportunity to get in on the ground floor." (Beeke).


HMMMM!  Aren't Enterpreneurs looking for the ground floor opportunities?  Noodles & Co. franchises have also benefited from the low cost products as people may be trading down from the upscale restaurants to more "casual dining".  Did you know, that the Michigan market for Noodles & Co. has outpaced any of their other markets?  Interesting.


Good things are happening in Michigan and in Grand Rapids.  It depends on how you want to look at the cup... is it half full or half empty?  Johnny's Lunch believes its over half full!


References: Beeke, Candace. "Retailers debate coming to Michigan." Business Review Western Michigan. May 15-21, 2008.