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the streets closest to campus. And, as Univer-
sity alum Nick Lemmer, the owner of Iorio's
Gelateria, observed, my purchasing habits as a
student reflect the breakdown of his clientele.
"I would say that almost 70 percent of our
customers are just Ann Arborites," he said.
"The student market is a very hard one to hit
because it's changing every year."
In areas farther away from Central Campus,
students make up an even smaller portion of
businesses' regular customer base.
"If you talk to any business owner on Main
Street," said Maura Thomson, executive direc-
tor of the Main Street Area Association, "they
would say they would like to capitalize more on
the studentpopulation. On a day-to-day basis, I
would say the Main Street area is more looked
at by students as the place where you take your
parents when they come into town."
The success of Ann Arbor's independent
businesses, then, isn't driven primarily by stu-
dents, but by resident Ann Arborites.
But why don't students shop at local stores
more often? Why do stu-
dents express such raven-
ousloyaltytocertain local
brandslike Blimpy Burger
E or Cottage Inn, while
spending the majority of
their cash at generic chain
stores?
Part of the answer to
those questions may be
found, as Assistant Pro-
fessor of Marketing Scott
Rick explained, in con-
sumer psychology.
"People do tend to be risk averse on aver-
age," Rick said. "It's like 'a bird in the hand
versus two in the bush.' Like'I know what Fi re
Guys can give me, but Red Hawk? That sounds
weird.'"
Breakingwith habit and tryinganew store or
restaurant can be difficult, and often requires
that the potential customer be faced with an
unusual circumstance.
"Often you have to be in some kind of unusu-
al state, you want to impress someone or you're
in a particularly good mood, and when people
are in a good mood they explore more," Rick
said.
Part of the answer may also be a market-
ing problem, as Iorio's owner Nick Lemmer
explained.
"Every year, you have a whole new group of
people who don't know you're here, and every
four years that group of however many thou-
sands of people is gone," he said. "It can be
expensive and you have to be sure that you're
spending your marketing money in the right
way to get that captive audience."
Combine inherent consumer risk aversion,
the difficulty of developing brand loyalty with
a rapidly changing student population, and
the proximity of State Street and South Uni-
versity to student housing, and the realization
that students spend most of their money at the
chain stores lining those streets doesn't come
as much of a surprise.
Ataleoftwocities
What is surprising is the rate at which the

business landscape in Ann Arbor is changing to
reflect the competing demands of convenience-
focused students clustered around central
campus.
John Kerr, an Ann Arbor native and owner
of Wazoo Records on State Street,hasseenpro-
found changes in the areas closest to central
campus since growing up in the city in the '50s
and '60s.
"I remember going over (to South Univer-
sity) Christmas Eve because I had some des-
perate last minute gift to get and was shocked
to find -this was in the last few years - that
everything was closed. When the students
leave town, they just have no reason to stay
open. It was like a ghost
town, this was noon-ish on
Christmas Eve," Kerr said.
"And I remember shopping
Christmas Eve (on South ,,
University) as a child, there It went
were a lot oftcool stores there .
where you could get gifts for that cat(
your mom or whatever, there
were all sorts of nice places." .-
Kerr attributes those U niverst
changes to a shift in consum-
erfocus. theysta
"It went from businesses ste
that catered to the entire i
University community, be tobush
they staff, students, etc., to
businesses that cater exclu- excluSi V
sively to students."
For the most part, the
businesses catering to stu-
dent demand are not unique -JO
to Ann Arbor. There are
certainly a few Ann Arbor
originals, like South U Pizza,
Lucky Kitchen or BTB Can-
tina that have succeeded in
carving out a niche in the
student market. Generally,
they offer late hours, cheap prices and fast ser-
vice, all of which attracted Iorio's owner Nick
Lemmer during his time as a student.
"For me, it was always finding something
cheap," Lemmer said. "You know, 'Where are
the coupons at?' When I'm ready to splurge on
something, maybe I'd go to a more expensive
place. I never really put that much thought into
where I was eating, I was just happy to be eat-
ing."
But, more often than not, that desire for
cheap products and fast service leads students
away from unique local stores and, increas-
ingly, drives local stores away from students.
The vast majority of independent businesses in
Ann Arbor now cluster in areas with less stu-
dent-heavy populations, like Kerrytown and
Main Steet, where there seems to be a greater
demand for unique business experiences.
LSA senior and Ann Arbor native Adam
DesJardins, who currently lives in Kerrytown,
prefers shopping at local businesses as a way
to support the community and preserve the
uniqueness of the city.
"I would say I favor the local places, just
because I think that my money goes further,
honestly.-I feel my money goes further because
I'm supporting a place I love ... I just think that
when you have a community and a town, you

,
C
1
f'
h

think of your three favorite places, they're not
necessarily like CVS and Walgreens. You don't
say 'I love Ann Arbor because the Chili's there
is awesome.'"
Thomson saw that same love for the authen-
tic Ann Arbor experience during the Great
Recession of 2008.
"We weathered ita lot better than I thought
we would," Thomson said. "And I think that's
a testament to the longtime business owners
we had down there. I think itspeaks a lot to the
support of the community. There were a lot of
people that made an effort ... redoubled their
efforts to support the community. And around
that time I think we also became more aware of
supporting
local, you
know, the
whole mes-
sage start-
from businesses ed getting
out there
ered to the entire more."
The
drive to
ty community, be supportt
local stores
ff, students, etc., has cre-
ated what
Thomson
iesses that cater descmbes
as a thriv-
'ely to students." ing "expe-
rience
economy"
in areas
in Kerr, Wazoo like Main
Street and
Records Kerry-
town, with
customers
willing to
spend more
for the
unique products and services offered by inde-
pendentbusinesses.
The cost of development
The increasingly sharp divide between the
convenience-focused businesses around Cen-
tral Campus and the "experience economy" of
areas like Main Street and Kerrytown is part of
a larger process of growth and development in
Ann Arbor that has perhaps done the most to
alter the appearance of the city in recent years.
A number of high-rise apartments and office
spaces have supplanted smaller buildings and
now dominate the skyline in the areas around
South University and the Michigan Union as
well as along Huron Street on the North Side
of town. Kelly Cobb, a University alum who
recently returned to Ann Arbor to open Hunt-
er House Hamburgers on East William, was
stunned when he first saw the rate and scale of
the change.
"When my wife and I first pulled up not hav-
ing been here in eight years, Ann Arbor was
very unrecognizable," Cobb said. "The number
of high-rises that came in was shocking, I had
friends' apartments that were just gone and
replaced with 15-story buildings."
That development has been partially driven

by an influx of high-tech firms, which have
provided high-paying jobs and increase Ann
Arbor's recognition beyond its association with
the University. As Kerr, the owner of Wazoo
records, has seen in recent years, Ann Arbor is
becoming an increasingly popular tourist des-
tination.
"I've noticed that the trend over the last few
summers that kind of fascinates me is that it
seems like it's almost more of a tourist crowd in
town. I get the impression that Ann Arbor has
become a little better known nationwide as a
good place to visit, even if you're not on Univer-
sity business, you know, with the restaurants
and the things to do culturally."
Yet, Ann Arbor's recent growth may actu-
ally be providing the greatest challenge for the
city's independent local businesses.
Seva restaurant was forced to relocate out-
side of the downtown area when faced with
a massive rent increase, and in nearly every
interview I conducted while doing research
for this piece, members of the Ann Arbor busi-
ness community expressed concern about the
effects of rapidly rising rents on local busi-
nesses.
"In a way we're a victim of our own success,"
saidThomson."We areaverysuccessfuldown-
town which means rents are a certain amount.
A property owner is the only one that has the
abilityto dictate who is coming into a space, so
it comes down to rent and who can afford the
rents that are being charged."
As the changing business climate in recent
years has shown, both national and Michigan-
based regional chains seem slightly better
equipped to cope with those rising costs than
many unique Ann Arbor businesses.
Ann Arbor in the balance
Ann Arbor faces a dilemma that continues to
grow in scope and seriousness with each pass-
ing year. As a city, how does it strike a balance
between progress and preservation?
For Cobb, owner of Hunter House, the two
aren't necessarily at odds.
"There's a lot of discussion about whether
(Ann Arbor) should growout more or stay what
it is, but I don't see them as mutually exclusive.
I think you can draw more people in, but still
have the unique Ann Arbor feel that is so Ann
Arbor."
For Thomson, executive director ofthe Main
Street Area Association, preserving the unique
Ann Arbor experience is equally important.
"I think that's really what sets us apart and,
for me, that's the message that I'm always try-
ing to put out there. We have to be careful that
we don't become 'Everywhere, U.S.A."'
And for DesJardins, a University student,
Ann Arbor's originality seems to be ebbing
away.
"To me, to seeall of these new places coming
in is a little sad. I mean it's fair game because
they're still businesses, but I definitely prefer
local businesses when it comes to that."
But if one thing is certain, it's that students
play an important role in shaping Ann Arbor's
business landscape. If Ann Arbor is going to
succeed in maintaining its unique character,
we might need to do a better job of getting out
and exploring the town.