Local businesses close due to added Ann Arbor expenses

Date:

Correction 09/26: The article has been updated to clarify a previously mentioned business is not part of a chain restaurant.

While students were away from campus this summer, Ann Arbor saw the closures of recognizable local businesses as rising rents, post-pandemic expenses and shifting consumer patterns pushed many owners to shut their doors. 

Downtown restaurants including Red Hawk Bar & Grill, Tea Ninja and Samba Bowls were among those to close this summer. Kilwins, the popular ice cream and fudge shop on Main Street, and Downtown Home & Garden, a century-old gardening store, have announced their closures at the end of the year.

In an interview with The Michigan Daily, LSA senior Manruchi Padda said along with openings of fast food chains like Raising Cane’s, she feels disappointed about the recent closures and emphasized the increased rent prices due to high rise developments in Ann Arbor.

“With many business closures, there is also a huge increase in high rises, which I know a lot of students are not pleased with,” Padda said. “Every year you see a new high rise being made and it is tiring; they keep increasing the prices and it is not affordable. You are paying major city costs to live in Ann Arbor.”

In an interview with The Daily, Ashley Schafer, executive director of the Main Street Area Association, said high rents and increasing foot traffic since the COVID pandemic are straining businesses already stretched thin by pandemic losses. 

“Although we have reached our pre-COVID numbers, the foot traffic and pattern has changed,” Schafer said. “We’re not seeing as much from 8 A.M. to 6 P.M., but more from 6 P.M. to midnight Thursday through Sunday. You have to look at businesses and see if they are shifting their hours to meet those changing traffic patterns.”

Schafer said business closers will alter the city itself and its demographics, especially with businesses that have been around for many years. 

“It will change Ann Arbor slightly,” Schafer said. “The demographic might change as far as age because some of these businesses have been around for 40-plus years.”

Kelly Vore, owner of Downtown Home & Garden, said the pandemic left damage that never fully healed. 

“The fact of the matter is, if you ask any small business owner, and even large business owners, they’ll say ‘if COVID was an earthquake then we are still having reverb,’” Vore said. “Finding a rhythm is a really huge part of your predictions and plans. Since COVID, it has been very difficult to find a predictable rhythm.”

Still, Vore said she has been most proud of community relationships she created through her time at Downtown Home & Garden. She emphasized the support she has received since announcing the closure of her store and believes Ann Arbor felt the impact. 

“The customer response and support for what we do and how we do it has just been extraordinary,” Vore said. “We have been humbled by how sweet, sincere and sad everyone has been. We have served the community to the best of our ability. I think the response about our absence proves that we are appreciated. People trust us, they depend on us and they are going to miss us.”

Despite the losses, some city leaders are optimistic about the future. In an email to The Daily, Nick Lemmer, a member of the State Street District’s executive board, wrote that turnover creates opportunities for new businesses if the community continues to support them.

“We look forward to welcoming and supporting the new businesses that come into these spaces, and we hope they thrive in serving the community for years to come,” Lemmer wrote. “Most importantly, we encourage your readers to continue supporting our downtown by shopping, dining, and engaging locally. The businesses that are here today are the heart of our neighborhood, and their success depends on the ongoing support of the Ann Arbor community.”

Daily Staff Reporter Maddyn Shapiro can be reached at maddyns@umich.edu

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