Downtown Durham merchants feel pinch from drop in business

While many local downtown areas are thriving, some businesses in Durham say they've seen a big dip in business.

Business owners are rattled by the drop-off and the impact it's having on their livelihood.

A lot of the businesses in downtown Durham are locally-owned. That's a big point of pride. For example, Copa is a Latin bistro and bar run by a husband and wife team.

The restaurant is how they support their family. The numbers are scary.

Downtown Durham gets a lot of credit for driving the city's popularity with local shops and restaurants that give it unique character.

"The downtown of any city is the heart of that city," said Elizabeth Turnbull, co-owner of Copa.

Turnbull says that heartbeat is growing weaker. Her business is down 20 percent from this time last year.

"When talking to my colleagues here in downtown, we are noticing a concerning dip," Turnbull said. "It's terrifying, to be honest."

Turnbull believes a few factors are driving the decline. About a year ago, parking rates in Durham went up for street and garage spaces, anywhere from 66 to 80 percent.

"And so the cost of entry is higher for people," Turnbull said.

She also points to a lack of clarity on outdoor dining. In October 2021, city council voted to permanently allow restaurants to use parking spaces for additional tables.

Nearly two years later, the guidance still has not been finalized.

Turnbull believes clarity on rules, allowing them to build elaborate outdoor spaces would improve the ambiance and attract visitors.

"It expands the walkability of downtown Durham," Turnbull said. "It is much more pleasing for people to walk by and see other people eating and drinking, having a nice time."

Turnbull ultimately said she just decided to build this outdoor dining platform for Copa, not knowing if it will meet requirements. She's taking a gamble on that because she says she couldn't wait any longer.

Nicole Thompson, President & CEO of Downtown Durham, Inc. (DDI), said she's gotten assorted feedback about recent success of Durham businesses.

"We're hearing a mix," Thompson said. "We know that there are some businesses that are seeing a decrease year over year, but we're hearing from others who say they are doing quite well."

Thompson added DDI has heard about parking concerns for customers. There's also been an increase in viable businesses, like restaurants, in the downtown area.

"We're also hearing from a few that it's just an increase in the cost of doing business," Thompson said.

The city said its rules for outdoor dining spaces should be finalized by the end of 2023.