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Tanner Benson and Jake Rivers sit cross legged on Massachusetts street between 8^th and 9^th streets.  The two wear tattered, dirty clothing and smell like a mixture of cigarettes and body odder. Rivers hums away on his harmonica, while Benson asks people passing by for any change they can spare. Most walk briskly by, not turning towards the two. Others drop a few coins or even a dollar into a military style hat in front of them, to which Benson replies, "God bless you man."

Benson and Rivers are panhandlers and a topic of concern to some downtown Lawrence businesses. Jane Pennington, Director of Downtown Lawrence Incorporated, a membership organization of local downtown businesses, said that panhandling has been an issue for years, but many members and visitors have commented that the problem is getting worse.

"I'm not forcing people to give me money," Benson said. "I just want to buy some smokes."

The city of Lawrence is currently investigating possible ways to regulate panhandling. Mike Dever, mayor of Lawrence, said that the issue will be addressed soon by the city council as many local business owners have voiced their discontent with the problem. However, views about what to do and the severity of the problem are mixed.

Panhandling, as defined in city code 14-418. means "any request for or solicitation of an immediate donation" or "a request or solicitation to purchase an item far exceeding its value, in circumstances where a reasonable person would understand that the purchase is in substance a donation."  The city code also includes what is not panhandling, which includes "standing, sitting, or engaging in musical performance or other street performance with a sign or other indication that donations are being sought, without any verbal request for donation other than in response to an inquiry by another person."

In and of itself, panhandling is not illegal. However, Lawrence has deemed it unlawful to aggressively panhandle. This includes threatening, following a person after they have refused solicitation or walked away, blocking a person's path, or touching the person being solicited without consent. It is also illegal to panhandle at a bus stop, on private property, within 20 feet of a bank or ATM, in a public transport vehicle or facility.

Even with these regulations, some local business owners still think the problem needs to be addressed further. Whin Campbell, owner of Winfields, said panhandling has affected his business.

"Customers come in and tell me they are uncomfortable traveling store to store," said Campbell. "We have a venue that we have worked hard to make. When people become uncomfortable, then it becomes a problem."

 Walt Houk, owner of Travellers Inc., wants to see the city address the problem as well.

 "It's always been a problem. Panhandling is not good for retail merchants," said Houk. "Would you be comfortable having to walk over people asking you for money when you just spent $4000 on a cruise?"

"A majority of members would like to see panhandling banned downtown," said Pennington.

However, panhandling cannot be outlawed city wide. Panhandling has constitutional protection under the first amendment. Albuquerque, N.M, tried banning panhandling city wide in 2004, but was deemed unconstitutional after the American Civil Liberties Union filed a lawsuit against the bill.

There are some other options to regulate panhandling. Scott Miller, a staff attorney for the city of Lawrence, said that city staff is currently studying the problem. Miller outlined ways the city is considering to deal with the problem.

One solution would be to post collection boxes downtown where people could donate and the money would then be redistributed by social services. Organizations such as the Salvation Army and the Lawrence Community Shelter would give the money to those in need.

Licenses to panhandle would be another way to deal with the problem. The licenses would not cost any money, but would require that the person panhandling wear the license around their neck. This would defer panhandlers from being aggressive. The idea is that if someone has their license around their neck with a picture and name they would be less likely to hassle people on the street and could easily be reported to authorities.

Fraudulent statements could also be outlawed. If a panhandler uses a bogus line about collecting money for an animal shelter, for example, they could then be arrested.

The most likely option is to ban panhandling in certain areas, such as downtown. Cities such as Kansas City have declared places like the Plaza "prohibited locations" which ban street vendors, including panhandlers.

"If I need to eat I can go to a shelter, but sometimes it's nice to have some little things you know," said Benson.

Kimberly Bedient, a Lawrence panhandler, said she only makes around five dollars a day and is her only source of income. Bedient said that if she was required to get a license she would take the oppurtunity.

Still there are those shop owners downtown that worry about whether the new laws will really solve the problem.

"I don't like the idea of police being able to harass people downtown because they don't have permits," said Rod Smith, owner of White Chocolate. "Homelessness is the real issue. It's not going to vanish from the city because they pass a law."

Smith said that he is not bothered by the average panhandler, but some can be out of hand. "One day a guy actually came inside and started bothering customers," said Smith. "I knew exactly what he was going to do when I saw him, but I was busy helping other customers, so I didn't have a chance to say anything."

 Ernie Cummings, owner of Kizer Cummings Jewelry, said the problem is that it depends on the type of panhandler.

"It's hard to tell who is the problem. You can't just tell by looks," said Cummings.

Cummings agrees that panhandling does not help the ambiance of downtown, but feels that efforts should be made to help those in need. After the state has closed mental hospitals, Cummings thinks the community should do something more constructive.

"It's what the community is willing to do, they should be helping people," said Cummings.

Cummings points out that Massachusetts street is located between the Salvation Army and the Lawrence Community Shelter and that is why it is a popular hangout for vagrants. Cummings has doubts whether the new law will really change anything.

In a time of severe economic strain, food prices are soaring everywhere from the neighborhood market to the menu at your favorite restaurant. One place where prices aren't as high? Right here on campus.

U.S. Foodservice, the prime vendor for KU Dining Services, is feeling the pinch of higher gas prices and food inflation. While KU Dining Services may have increased its prices, students will find the increases on campus are far less noticeable than in the commercial market.

"This year we raised prices 2.5 to 3 percent," Director of KU Dining Services Nona Golledge said. "That's minimal compared to other places."

Students dining at The Market, The Underground or any of KU Dining Services' campus locations won't find increases as high as in, say, a restaurant. A five-year contract with U.S. Foodservice is protecting the University from soaring food prices for students.

Two main factors within its contract with U.S. Foodservice are keeping prices for KU Dining Services, and KU students, down. Committed Manufacturer Agreements saves KU Dining Services money on certain foods, which has helped control its spending when food prices increase. Also, U.S. Foodservice utilizes a gas surcharge within many of their contracts; KU Dining Services isn't one.

"If we get a big spike in gas prices, it can't impact us," Golledge said.

KU Dining Services is in the midst of creating a proposal for next year's residential dining center meal-plan prices. This involves extensive research and predictions for the economy's condition a year from now. Predicting can be difficult, Golledge said, but administrators rely on information from colleagues, analysts and graphs like the one pictured to prepare the best they can.

"It's been estimated that food prices are going to rise anywhere from 7 to 12 percent in the next five years," Golledge said. "A lot of things are just out of our control, obviously. Biofuels, flooding, all factor into why food prices are increasing. And the stock market isn't helping."

While the safety of a contract saved KU Dining Services this year, other campus food venues weren't so lucky. Chi Omega cook John Marshall is adjusting to higher prices from his vendor, Sysco.

"Sysco's prices went up 8 percent," Marshall said. "And it's all tied to fuel."

Marshall had to cut down on deliveries-per-week because of the recent $7.50 delivery charge Sysco implemented to cover fuel costs.

"We're spending twice as much on fuel per-week than a year ago," said John Douglas, Sysco Sales Representative. "It's a very tough market."

Sysco delivers food products to Greek housing, Naismith Hall and Hilltop Development. Douglas said flooding in Houston will only increase food inflation from its already high percentages. And he says it has mostly to do with fuel costs.

U.S. Foodservice Head of Transportation Rob Krakenberg agreed.

"The price of food has changed drastically over the last year," Krakenberg said. Homegrown foods such as wheat, corn and rice are increasing in price with gas prices.

"Our prices go up too," he said.

Because of the safety of its contract, KU Dining Services isn't experiencing the effect of today's economy, like most in the food industry. But this isn't stopping Golledge from preparing for continuing increases in the future.

"Everybody sees it when they eat at restaurants or purchase groceries," Golledge said. "We're not exempt from that."

Heath is in the barn again mixing up the medicine. The sun's steadily setting: he's got the Bunsens burning.

He goes and adjusts the levels and releases a steady stream of wort.

In the backyard of a normal looking home just east of downtown Lawrence something is brewing--beer.

The craft beer industry has grown 12% the first half of 2008 and grew the same percentage the year prior, from 2006 to 2007, according to the Brewers Association. The increase from 2006 to 2007 was just short of one million barrels of beer--jumping from just over seven million barrels to a little over eight million.

"Since 2004, dollar sales by craft brewers have increased 58 percent," Paul Gatza, Director of the Brewers Association, said in a Brewers Association press release. "The strength of this correlates with the American trend of buying local products and a preference for more flavorful foods and beers."

Barnyard Brewing, operated by Mike Hummell and Heath Hoadley, started late July as a home brewing project planning to go full-blown microbrewery. A microbrewery makes less then 15,000 barrels a year, and can legally sell the beer it produces, something a home brewer cannot legally do. Hoadley, an experienced brewmaster, brews 47-gallon batches of beer in a barn in the backyard of Mike's home. The two are looking for investors.

"I think we're making something that will be known nation wide in 10 years. I really believe that," Hummell said.

Many microbreweries are known for their often-zany beer flavors but Barnyard doesn't want to start out that way.

"It isn't about what we like. It's about making sure that we have an accessible product," Hummell said. "If it was about that we'd be on our third batch of IPA," Hoadley said.

Their plan involves making a golden ale, a wheat beer, and an Irish red. From there they're planning to expand to other varieties of beers.

"Any microbrewery can offer any amount of beers. Our plan is to have the first three be very accessible beers that won't shock or scare people away. Three beers that are good high quality beers and then we can hit them over the head with some heavy-duty beers," Hummell said.

But the road to starting this microbrewery has not been the easiest.

"The SBA will not give us their stamp of approval because we're going to sell alcohol," Hummell said.

SBA, or Small Business Administration, places its stamp of approval on business plans. Banks then look upon the plan more favorably when it is used to try to attain a loan. The SBA gives business plans credibility.

"To do the full blown brewery, microbrewery and bottling operation for Barnyard beer we're looking for $300,000," Hummell said.

Even without the SBA or a significant bank loan the two continue on experimenting with flavors and batches.

"I like to work backwards. Get the flavor in my head. This is what I want. Well, how would I get this flavor?" Hoadley said. "I've done it three different times now with three different recipes."

With all the experimenting in the backyard some neighbors showed concern.

"Sometimes I'd be out here 1:30 in the morning; burners would be on; I'd be clanking around," Hoadley said. "They see the barrels and the burners and think you're cooking meth."

It's a reasonable assumption. With huge gleaming stainless steel barrels, a set gigantic Bunsen burners, a huge walk in freezer and the repugnant smell of old yeast coming out of the red barn it could be easy to confuse what was going on with the drug trade. Hummell eventually spoke to all his neighbors and eased their worries.

"I can see where over the course of a couple of weeks they had seen things happening out here where they could think something weird was going on," Hummell said. "It's not a still. We're not going to blow up the neighborhood. It soaks grain and boils."

Hoadley studied to become a brewmaster at several places including the Sieble Institute of Technology in Chicago and Doemens Academy in Munich.            

 "I love working with my hands. Crafting something sharing something that puts smiles on the faces of others," Hoadley said. "There's nothing better than handing somebody a beer and having their eyes light up a little after they're tasting it saying 'woo damn'."

For a few days in August, the employees at Mr. Goodcents wake up early to prepare the feast for the football camp. They come in, bake the bread, make 670 whole sandwiches, and deliver it to the Anderson Family Football Complex by noon for the football players to enjoy.

After dealing with the sale doldrums of the summer season, August is an important month to make money for this restaurant and the football camp provides a hefty amount.

"We really appreciate the support they give us using a local vendor," said Dean Drennan, owner of the local Mr. Goodcents.

Sporting events are numerous here at the University of Kansas and the Athletics Department has to provide food for the staff, athletes and volunteers. Using local vendors, the department in turn supports the community of Lawrence and the impact leaves dollar signs.

Associate Athletics Director of External Affairs Jim Marchiony said that just out of a few selected restaurants, the department had spent an estimated $72,000 last year. He included that he would estimate the total amount spent on local restaurants for events or just feeding the teams ranged from $75,000 to $100,000. Some of the restaurants used were Chipotle, First Watch, Subway and 23^rd St. Brewery.

Matt Llewellyn, managing partner at 23^rd St. Brewery said he loves the relationship the restaurant has with the Athletics Department. He said the restaurant is a site for athletics department staff and coaches, recruits, and that the department often has meetings there. Llewellyn said that with all the events and casual dine-ins, the department represents 1-2 percent of their business throughout the year.

Residing in a college town helps local businesses. Having sporting events is just an extra and sometimes-needed boost for that lagging local vendor.

For the month of August, the football camp provided 8.5 percent of Mr. Goodcents sales. And that's only the football camp.

Denver senior Alex Reinhard, who is majoring in Journalism on the Strategic Communications side had the opportunity to intern with Kroenke Sports Enterprises after his freshman year, and then with Genesco Sports Enterprises this past summer.  Reinhard completed a large project with each company and worked out deals with different corporations, coming up with proposals to give to clients. 

The internships helped Reinhard to realize that Sports Marketing is something he truly wants to do, showing him what life would be like after graduation.          

"School can't give you all the knowledge you need before you go into the workplace," Reinhard said.

Companies are putting more time and interest into internships, which gives college students a taste of what is to come in their field of interest.  Additionally, students can see the value of taking internships and strengthening their résumés before applying for full-time jobs.  Various companies turn to their intern pool first when hiring for full-time positions.

Dr. Bernie Kish, Director of Facilities and Sports Management Lecturer, worked at the College Football Hall of Fame for 10 years supervising interns and now sends Sports Management majors to do internships.  Kish has noticed a significant change in internships in the past decade.

"The biggest thing that has changed is that there are more demands being placed on interns," Kish said.  "They're expected to perform from day one, but they're still considered part of the work force so people automatically look for them to know what they're doing."

Honeywell, a technology and manufacturing company, expects a student fresh out of college to have had an internship or prior experience.  Honeywell Lab Manager Eugene Kheyfets said the three months of an internship are essential for both the employer and the student.  The employer looks to see if the interns have enough experience and are ready to take on a full-time position.  The student takes away the experience that comes out of the internship.

"Our company, as well as other companies, is moving to where we won't hire people fresh out of college unless they've had an internship before," Kheyfets said.

The experience that students get out of internships cannot be taught in the classroom out of a book.  It is the real world experience that employers seek when hiring.  Ryan Arnold, Regional Internship Coordinator for College Pro Painters,  experienced the  internship aspect as a summer intern and now works with interns, so he's seen both sides as a student and employer.

"Something I always tell students is on your résumé, your grade point average is one line, and that is important," Arnold said.  "But your experience is going to be the rest of the résumé and the more experience going into a full-time position, the better."

Another aspect of internships that companies are investing their time in is networking.  Kristy Baumgarn, Leadership Programming Advisor for First National Bank said helping the interns with networking skills was important.

"We do a lot of networking events with our interns and give them a lot of professional development opportunities that I don't think a lot of companies do," Baumgarn said.

A major reason students take internships is to make sure that they are cut out for that particular line of work.  Journalism Career Development Coordinator Patty Noland said there are two reasons why internships are important for students:  First to strengthen the resume so that there is something relevant to the interest area to put on the résumé, and the second reason to allow the student to see what the field is like.

"I have students who intern over the summer come back and say Patty, I've done this internship, and I realize that's not the environment I want to be in," Noland said.  "Or conversely, I have students come back and say, I did this internship and I absolutely love it and that's what I want to do when I graduate."

The day-to-day work and the culture of the workplace shows a relationship with what the students look for when searching for full-time positions.  Lindsborg senior Elena Larson, who currently holds an internship with the Kansas City Brigade arena football team, sees internships as an essential part of the academic experience.

"The more experience you can get the better," Larson said.  "Not only do you get to learn from people who have already made it in the business, but the internship looks great on a résumé too."

After completing two summer internships already, Reinhard thinks that his need for practical experience outweighs what the classroom has to offer.  Reinhard said that classes are there to give you a few pointers before heading into an internship, but most of the work done in an internship is more helpful than lessons taught in class.

"When it boils down to it, internships are way more important than actually going to school," Reinhard said.  "In a way, school is just there to help prepare you for an internship."

Both Larson and Reinhard have a better chance of landing a job right out of school with internships under their belts.  When looking to hire recent graduates for full-time work, companies sometimes select from within the group of interns.  Baumgarn of First National Bank said her company takes this approach when hiring for full-time positions.

"We look to our internship pool first when we hire for our management training and executive development associate program," Baumgarn said.  "It's the best way to get an entry level role into First National."

Another company that uses internships as its primary means of hiring for full-time positions is Allstate Insurance Co.  Allstate holds close to a 90% acceptance rate in full-time offers of their interns.  Allstate feels confident that its company is better than any other program in the industry in giving students a taste of internship right before they graduate.

The job opportunities after graduation become available more often than not with successful internships and more experience in the field.  Kish reiterated that internships open so many doors for the future.


"If you do a good job on your internship, number one, you may get hired by that organization and they may create a position for you within the staff," Kish said.  "Number two, if they don't hire, quite often, you do so much networking while interning that it will lead you to a position."

Weak Dollar Drives Away Imports
by Adam Schoof

When Mark Swanson flew to New York City to negotiate with European vendors for his clothing and accessory business, he couldn't buy half of what he had the previous year.

"It was cool stuff, but it was way too expensive," Swanson said.


Since the value of the U.S. dollar has decreased, the price of importing goods has increased. This has affected many local businesses that import products like Swanson's store, Hobbs. Swanson said he imports 60 to 70 percent of his inventory, and that European lines have increased by about 30 percent in price over the past year.

"There's no way we're buying like we did," he said.


Geri Riekhof, owner of the kitchen accessory store The Bay Leaf, said she has also had to cut back on her imports.


"[The value of the dollar has] really impacted us from bringing in beautiful pieces," she said. "For the past two buying seasons, I haven't bought any Italian ceramics."


Her brother is an importer in Chicago, so she can buy directly from the manufacturer instead of depending on a wholesale distributor. However, even with this advantage "the Euro is out of reach."


She said she believes that customers wouldn't pay for the more expensive products while the economy is at its lowest. This is detrimental because it gives customers fewer choices and less competition to lower prices.


Riekhof said she has looked for products made in America and Canada first since prices have risen so that she can make the most of her money.


Perhaps the most affected business would be the European food market Au Marché, owned by Lora Wiley.


"Ninety-nine percent of what we sell is imported," she said. Prices have gone up for her across the board, and she has had to raise her mark-up. She said has reservations about rising her prices and bruising her customers' wallets, but she is worried about the future of her business.

"I can't keep the prices we had a year ago and pay our bills," she said. "This could be a long run. I don't know when this economic crisis will end."


Regular customers at Au Marché have been affected, and are feeling the crunch.


"I come in every month or so just to look at prices," Jessie Johnson, a customer of Au Marché, said. "I've been buying less foreign stuff because it's so expensive. You have to be choosy now, and think, 'Do I really need this?'"


Johnson said the chief concern of her recent purchases has been price.


"The more specialized the good, the more the mark-up," Associate Professor of Economics John Keating said. He said that people will continue to buy imported goods as long as they have the money because there is no alternative.


Keating said that there are signs the market is turning that could make the dollar rise. He cited Warren Buffett's $5 billion purchase of Goldman Sachs as a sign that confidence in the market is turning. This would bring the value of the dollar back to past levels and make imported goods more affordable.


Keating also said that having a wholesale distributor could help keep prices from fluctuating rapidly. Essentially, this means using a middleman that can absorb some of the price change. Research suggests that the closer a purchase is to the original manufacturer, the more turbulent the price will be, Keating said.


Wiley uses a distributor to get her imported goods and agrees with Keating that it is better to have a middleman in the mix.


"The problem with trying to work with the manufacturer is the shipping," she said. She mentioned the cost and the fact that some of her past shipments have gone mysteriously missing.

   Two restaurants in Lawrence are no longer offering their customers Bud Light on tap. Josh Mochel, owner of Jo Shmo's, 724 Massachusetts St., replaced the popular beverage with Old Style, a Pabst Brewing Company beer. At Vermont Street BBQ, 728 Massachusetts St., bar manager, Megan Carle, said the owner wanted only American beer on draft -- InBev's purchase of Anheuser-Busch has since changed that, and made Bud Light a Belgian brew.

   On July 7, InBev announced its plans to buy Anheuser-Busch for $52 billion. On Sept. 29, the required support of shareholders representing at least 75 percent of InBev's total equity backed the bid, according to the Association of Financial Professionals. Also according to the AFP, the combined company, Anheuser-Busch InBev, will have net sales of about 36 billion dollars a year, offering customers some 300 brands, including Anheuser's Budweiser and Bud Light.

   Both Jo Shmo's and Vermont Street BBQ have full bars and are open late into the night. With many college students as both of the establishments' main demographic, the purchase of Anheuser-Busch by InBev has impacted Lawrence locally, and many students' wallets.

   Mochel said that InBev increased the price of Bud Light kegs. In total, including the delivery charges, safety deposit, and the actual beer, the price is now $110. Mochel was charging customers $3.50 for a Bud Light pint and $5 for a pitcher of the beer. 

   Now that he has switched to Old Style, he pays $54 total for each keg, and he has dropped the price for a pint of the replacement to $2.50, albeit the price of an Old Style pitcher has remained the same at $5. Mochel said his bar goes through three kegs of Old Style a week, which is a big contrast to the only one keg of Bud Light he went through a week previously.

   Mochel said he goes through 5,000 plastic cups a month because of his beer specials. With his ability to lower the price of his pints (on Wednesday's, the drafts are only a dollar), because of the more cost efficient Old Style, his customers, most of whom are college students, are able to save money when they hit his bar. 

   One-hundred-twenty-four pints can come out of a single keg, so Mochel is also racking in money -- he is now making 100 percent profit off of the Old Style draft versus the 40 percent he was making off of the Bud Light.

   Carle said many of her customers ask why Vermont Street BBQ made the decision to take Bud Light off tap, but she doesn't think it has affected them. Their question can be answered with the fact that the owner only wants American beer on draft to go with the bunch of American Tall Grass from Manhattan, and the Boulevard beer from Kansas City. 

   "We like to think they have the same tastes we do," she said.

   In contrast, Manager of Cork and Barrel, 901 Mississippi St., Larry Johnson said he hadn't seen much of a change in his customers' tastes in Budweiser because of the InBev purchase, but that all the prices had gone up the week before. He said the Bud Light and Coors Light kegs went up from $88.99 to $95.99, and that the Miller Lite kegs had gone up to $99.99. 

   "The prices of beer in general are going up, even wine is going up," he said. "But that's because of gas prices, not because of the InBev price structure."

   Manager of Abe and Jake's Landing, 8 E. 6^th St., Ryan Lantz said the reason his bar didn't serve Bud Light on tap was because it was easier and faster for his bartenders to hand a customer a bottle rather than wait to fill up a cup.

   Every Thursday, The University Daily Kansan publishes an entertainment section called Jayplay, in which bar specials are always available. Lawrence.com has an entire section of its website devoted to nightlife aimed at helping residents find something to do. 

Yolanda Loya paces up and down lines of gleaming new cars. Her husband
points at a green SUV and the two take a look inside. The new car smell
fills their noses and the two nod in agreement. This is the car for
them.

Loya's old Ford Taurus wagon wasn't cutting it anymore. She started
looking online and in newspapers for the best deal. By the time she got
to the dealership she knew what she was looking for and it only took
one evening to choose the vehicle that suited her needs.

"It was time for an upgrade," Loya said, "I just wanted something new."

With an economic recession underway, the auto market has suffered
significantly. Sales have been falling month by month since January to
a 16-year low according to the Chamber of Automotive Manufacturers of
the Philippines. But despite economic hardships there are still those
in Lawrence who invest in a new vehicle.  

Almost all auto makers are down in sales from last year and total
vehicle sales are down 15.5 percent from last year according to
Autodata Corp.



Lawrence car dealerships, on the other hand, remain steadily supplying cars.

Jack Ellena Honda has seen a 20 percent increase in sales since last
year. While Laird Noller Automotive, Dale Willey Automotive, and Jim
Clark Motors all report around the same sales as last year, these car
dealers don't see this as a downfall.

"We see that as a big success," said Anthony Sanders, general sales manager for Jim Clark Motors.

Sanders attributes his sales to his relationships within the community,
"We have a loyal clientele base even in this economic recession."

Laura Carbrey, new car sales manager at Dale Willey Automotive, said
her sales have kept up because of GM employee pricing. Marc Hauser,
Larid Noller Automotive sales manager, thinks his sales have remained
even because of aggressive pricing by the manufactures.

"Manufactures are taking the hit trying to get people in new cars," Hauser said.

Most of the dealerships said their mid-sized cars where what customers
are buying. However, crossover sales have been doing great according to
Carbrey.

"They carry up to seven people and they have fuel economy of a car," said Carbrey.

When qualities new car buyers were looking for where ranked by dealer
representatives, most put dependability, style and value ahead of fuel
efficiency. Loya agreed, citing style as the major factor when she was
looking for a new vehicle.

However, the one dealership that ranked fuel efficiency first was Jack Ellena Honda. Todd Ellington, Jack Ellena's sales representative, said
a majority of his customers are looking to cut back on gas. Hybrids are
his top sellers with a year long waiting list in place already.

Ellington associates his increase in sales to the internet.

"People do their research before they come in. They know exactly what they want when they get here," he said.

The internet allows customers to compare cars, check depreciation rates, estimate fuel cost,
find dealership pricing and read customer reviews all before setting foot in a dealership.

"The cars sell themselves," said Ellington.

Loya is happy with her new Chrysler Pacifica.

"It's comfortable, roomy, and it rides well," she said.

Breaking bread just might bust your budget these days.

 

Doug White never thought being a bread enthusiast would have an effect on how he budgets for food. Food prices have been on a steep rise the past year, but bakery items such as a loaf of bread have risen even more drastically.

 

"It's not a real big deal, but sometimes I don't let myself buy that cup of coffee on the way to work, or stuff like that," he said.

 

White isn't buying any more bread than he has for the past 15 years, but his favorite food is costing him more. The prices at local bakeries and pizza shops have skyrocketed in the past year and a half by as much as 46 percent. Local businesses in the Lawrence area are finding new ways to adjust to the rising costs of food.

 

Bob Garrett, owner of Great Harvest Bread Co. in Lawrence, said his business has taken a financial hit from high wheat prices. His store produces 6,000 or 7,000 loaves of bread per month at a cost of roughly $1 per loaf. A year ago, a loaf of bread cost about $0.80 to make. That means Garrett spends about $1,400 extra per month on making bread. He said it has become increasingly difficult to make a profit, but they are constantly thinking of new ways to cut costs wherever possible. The store has scheduled labor tighter and started shopping more competitively for the cheapest Hard Red Spring Wheat, the type of wheat almost every type of bread is made with.

 

"One thing we decided months ago is that we would not reduce the quality of our product," Garrett said.

 

The bakery has raised its menu prices three times in the past nine months to keep up with the rising cost of wheat. A $5.50 loaf of honey whole wheat bread only cost $3.75 last December. That 46 percent increase in menu prices has changed the way Garrett operates his bakery.

 

 "Our prices should be higher, but we have continually stayed behind the average price of a loaf of bread," said Garrett.

 

Terry Kastens, professor of agriculture economics at Kansas State University, said wheat prices 15 months ago were under $5 per bushel. This month prices have been floating between $8 and $9. Three months ago one bushel of wheat went for more than $12.

 

Kastens said the price of every crop has risen because of the soaring cost of energy, especially crude oil. The increased production of ethanol in 2006 and a massive world demand on limited supplies have caused wheat prices to rise more than other crops.

 

"The crops are in concert with each other," Kastens said. "When ethanol became more popular, a lot of the acreage for wheat was converted into corn fields and soy bean fields."

 

Although the rise in grain prices has severely affected businesses and consumers who use large amounts of wheat, the agriculture industry has benefited.

 

"Generally, anybody connected to agriculture is making a pretty good profit," Kastens said. "It has really provided an economic boom for all the rural areas."

 

According to the Kansas Wheat Commission, wheat will have a $2 billion economic impact on Kansas in 2008. Farmers, mill operators, and farm implement businesses see the biggest impact. Not everybody has been positively affected, however.

 

At Munchers Bakery, owner Mike Tennyson has been forced to raise the price of every item on the menu by 20 percent. The price change was made in April, but there hasn't been in drop off in business since then. Tennyson said he believes most customers understand that increasing prices was necessary to keep the business open.

 

"It's something you just have to do," he said. "We had no choice. Once red flour went from $8.95 per bag to $29 per bag in one month, we had no option but to raise the prices. It would have devastated us."

Pizza restaurants have also been directly affected by wheat prices. Papa Kenos Pizzeria employee Emma Golden said that Papa Kenos had a staff meeting a month ago about the rising cost of wheat. To save money, employees have been instructed to not put as much toppings on the pizzas.

 

Kastens said that wheat prices have started to go down the past couple weeks, but prices will never return to $5 per bushel. However, he doesn't expect prices to reach $12 per bushel again anytime soon.

 

"It's very tough to predict because the market is extremely volatile right now," he said. "My guess is that the prices will rebound and start to go back up sooner than later."

 

Regardless, White will still buy two to three loaves of fresh baked bread a week, just as he has for the past 15 years. Garrett and Tennyson say they will wait as long as possible to raise their prices again, but think it's just a matter of time.

 

"Since I love the fresh bread, I try to cut out other expenses that aren't necessary," White said.

 

    For two decades, Bruce Gibson has labored.  He has hammered and glued and tinkered with old furniture for 20 years as an employee at Freeman Used Furniture, 1145 Pennsylvania.

    Over the years, Gibson has noticed that business at Freeman picks up when the economy takes a bad turn.  Instead of new furniture, penny pinching consumers turn to his store, where a typical sofa costs between $150 and $225.  But this year has been an exception.  The store is full of merchandise--chairs stacked on tables, sofas pushed side to side--but the customers just aren't there.

    "It's been slow," Gibson said with a sigh.
 

    Lawrence furniture stores are attributing a recent decline in sales to a troubled economy.  To cope, older stores like Freeman are banking on an established reputation in the community. Newer stores are counting on advertising and competitive prices to stay in business.
    
    Freeman is a bit of a relic.  The building is nestled into one of those old, quiet  east Lawrence neighborhoods.  This particular block of Pennsylvania Street is lined with brick and populated by victorian homes.  It was a general store before the Freeman family converted it to a showroom in 1969.
    
    Owner Doug Naim marri ed into the family 23 years ago and now runs the store with his wife, Sherry.  They don't advertise much--it's expensive, Naim says.  And with no other businesses in sight, the store receives very little foot traffic.  Instead, it relies on referrals and repeat customers to stay afloat. 
     
    "One guy just loved  maple furniture," Naim said. "So we called him up every time we got any maple in.  He bought desks for his kids and grandkids and everything. But now his house is pretty much full and we can't sell him anything else."
   
    When the economy was stronger, Freeman catered to students looking to furnish their apartments on the cheap.  Now it's selling more to young families in starter homes.  In spite of record enrollment at Kansas University, students are not shopping for used furniture, and Gibson has a theory.
   
    "The middle class students have fallen out," he s aid.  "The really poor bring everything they can from home.  And the other kids are driving expensive cars and living in apartments on the west side of town for $1000 a month.  They don't need used furniture."
   
    Blue Heron Home Furnishings, 921 Massachusetts, is less than a mile from Freeman, in the middle of Lawrence's busy downtown shopping district.  The store sells new furniture, mostly to couples in their mid to late 40s.  But, like Freeman, Blue Heron has seen better days.
   
    Store manager Mark Sandercock said the upscale furniture boutique has begun matching other stores' prices to stay competitive.
    
    "A year ago, we wouldn't have even brought that idea up," Sandercock said.
    
    The store serves its demographic, mostly couples in their 40s and 50s, by expanding its selection. It offers more color and fabric options than before, and special orders are commonplace.  The most important thing, Sandercock said, is a reputation for flexibility and quality.
   
    "We're smaller, so we're more nimble," he said.
   
    And reputation goes a long way.  Susie and Galen Tarman began making furniture in 1982 and opened Blue Heron four years later. Doing business in Lawrence for so many years has allowed the store to survive ma inly on referrals and repeat customers.
   
    "I think if we were just starting out, it would be difficult to keep going," Sandercock said.
  
     Meanwhile, a newcomer is struggling.  Fat Daddy's Furniture Outlet, 708 Connecticut, opened only a year ago.  A lack of established clientèle is a challenge, but manager  David Thompson said it has bigger obstacles.  The location is challenging: like Freeman, Fat Daddy's is in an old residential area.  And doing business in what Thompson calls a "town full of hippies" isn't easy.
    
    "This town likes to shop out of the dumpster," he said.
    
    In fact, Fat Daddy's sells mostly to people living in small towns nearby, like Eudora and Tonganoxie.  These residents seem to be shopping within Fat Daddy's price range.  Sofas start at $299.  Lawrence residents don't seem to be willing to pay as much.
    
    "People want real cheap, but I can't just give it away," Thompson said.  "They want half the quality at half the price ."
   
    Then there's Nebraska Furniture Mart in Kansas City, Kan.  Because a large number of Lawrence residents work in Kansas City, Thompson says people are more likely to look out of town for new furniture.  
   
    Fat Daddy's tries to combat this with catalog orders.  They allow customers to buy higher end items, like a $1300 sofa, with relatively fast delivery.  The store makes smaller truck loads, so the orders come in within two weeks.  Thompson said an order at Nebraska Furniture Mart, which buys in bulk, can take 12 weeks.
   
    For furniture stores around Lawrence, the challenge is to get customers shopping.
   
    "I think everyone's suffering,"  Thompson said.  "If you have to eat or buy a new couch, you'll eat first.  Can't blame 'em there."

    Naim said there isn't much he can do but hold out until the economy improves.
   
    "All you can do is wait for the elections and hope for something better," he said.