But Tyler Risinger—the great grandson of Ed Dozier, the original owner—has reclaimed the space after former co-owners Steve Baur and Jim Cummins closed the business, citing decreased revenues and loss of staff in a news release.
“I want to continue his legacy,” Risinger said. “He did something great here in this community.”
Local chambers of commerce, business experts and regional economists said rising costs of labor and goods, and a shifting workforce have impacted small businesses in the area, causing permanent closures or restructuring of operations.
However, Patrick Jankowski, chief economist for the Greater Houston Partnership, said the tide is turning as inflation trends downwards, and job growth is on track to add 58,000 jobs to the Houston area in 2024.
What's happening
At least 13 businesses have closed in Katy and Fulshear since the start of 2023, according to previous Community Impact reporting.
Risinger, who also owns 2-M’s Malt N Burger Mart in Richmond, said some hurdles small businesses are facing include:
- Food costs
- Hiring and labor after the pandemic
- Price of real estate
- Cost of insurance and utilities such as electricity
With home prices in the $500,000 range and median income around $170,000 per household, McCoy said it may be harder for workers in the service industry to stay in Fulshear.
"We're looking at something called workforce housing," McCoy said. "A lot of communities that have a higher net worth, like Fulshear ... we want a good quality workforce here. So let's see if we can't help them live here, too."
Matthew Ferraro, president of the Katy Area Chamber of Commerce, agreed that inflation, the cost of goods and the available workforce are obstacles that businesses seem to cite most for their operational challenges.
“If organizations aren’t prepared to shift their mindset and culture to welcome a new demographic of consumers, ... it could be difficult for [that business to stay open],” Ferraro said.
Fulshear’s economic development team and local chambers are working together to create resources for business owners, said Annel Guadalupe, director of Fulshear economic development.
Fulshear Fast Track was created in April. It is meant to be an incubator for entrepreneurs and small businesses by providing education for finances, permitting and networking opportunities, Guadalupe and Program Director Mat Yelvington said.
Zooming out
The Greater Houston area’s consumer price index—the average change of goods’ prices over time—for restaurant meals, electricity and insurance saw the greatest year-over-year price increases for July, according to the U.S. Bureau of Labor Statistics.
This, along with the higher prices of staple food items such as eggs, beef and milk, is affecting many restaurants’ bottom lines, Jankowski said.
In their own words
Proud Pie closed its brick-and-mortar bakery in June, but many of its staff and recipes were adopted under restaurant Dish Society’s dessert program the next month, per a July news release.
Owner Scott Chapman said the closure was due to reduced revenue and increased food costs.
Despite funding online marketing and increasing his advertising budget, the business was still losing money, Chapman said. Even then, he did not want to reduce staff.
"Specifically, the [rise in] food cost was just phenomenal," he said. "Our cases of butter for the first five years was only $75-$80 a case. Now, it’s $142 a case.”
Chapman, now a culinary arts teacher, said the Dish Society partnership will allow him to pay his debt and replenish his retirement fund.
A closer look
Ongoing transportation projects along major thoroughfares have limited visibility and decreased traffic in some commercial areas, local experts and business owners said.
Ziggi’s Coffee owner David King said construction along FM 1463 limited access to the shop for six weeks in January. This caused customer loss and a 25% drop in revenue.
“We had just reached the point the prior fall where we were finally doing well financially after spending two years working to build our business,” King said.
The Texas Department of Transportation project is widening 6.7 miles along FM 1463, and construction is expected to continue until early 2027.
Meanwhile, two other major roadways—the Grand Parkway and FM 1093—are also in various phases of construction.
Going forward
The city of Fulshear is partnering with a new retail recruitment provider to attract higher-end retail, fine dining experiences and family-centered businesses, Guadalupe said. With ongoing construction along FM 1463, she said there’s a push to drive traffic toward Fulshear’s downtown.
Guadalupe said she foresees the $3.75 million Harris Street reconstruction project—meant to make downtown more walkable from FM 1093 to Fifth Street—as a catalyst for commercial development.
The economic development department also plans to hire a communications specialist in the next fiscal year who will work directly with owners to establish their business but also learn about their hardships sooner—before they have to close their doors, Guadalupe said.
Meanwhile, the Katy Area Chamber of Commerce has partnered with Katy ISD, Lamar CISD, the University of Houston and state legislators to host educational events and build grassroots advocacy networks for Katy businesses to prepare for the city’s growth, Ferraro said.
He said he hopes to continue these efforts as well as the organization’s leadership program, which grants access to economic development, infrastructure planning and relationship building with local stakeholders.
“Katy has a very strong entrepreneurial heart,” Ferraro said. “There’s energy, there’s technology, there’s financial services, there’s legal services, and that’s just from the chamber’s makeup of membership itself.”
Rachel Leland and Vanessa Holt contributed to this report.
