The Domino Effect

Sunset Park pizza shops may fall like a stack of dominos, if the pizza chains have their way.

(more coming)

No Business For Small Business

Sunset Park small businesses are struggling to compete with chain stores taking over their turf. Stores such as Papa Johns and Walgreens have replaced a number of privately owned businesses in recent years.

Muaffaq Askar who owns Zia 99 Cent Plus says his profits have fallen considerably this year. "The last 6 or 7 months have been really horrible" said Askar. Along with a 20% rise in utility costs, Askar says the price of groceries and household goods which he sells, have risen considerably. "Things that cost me 81 cents now cost me 90 cents, and I still have to at 99 cents." He also blames chain stores for stealing clientele.

"A 50 pound bag of flour cost $12 last year, now costs $29, and Dominos owns it own wheat fields so it can keep prices a little lower," Askar complained. Some of Askar's most loyal customers now shop at chain stores because its cheaper.

Chain stores, which own distribution and production facilities, can still profit with low prices by selling in large volumes. Small businesses however, have to pay their distributors on top the rising cost of goods.

Chain stores also have large credit lines from banks to borrow money if the economy worsens. However, banks are afraid to lend to struggling small businesses like Zia 99 Cent Plus, fearing they will default on loans.

"If by the end of this month, nothing changes, I will have to close the business," says Askar who has owned his store for nearly 3 years. He is pessimistic of small business in Sunset Park and said, "it's going to be a corporate future."

If Askar's business does close, there's a good possibility a chain store will replace it.