ClassifiedsAutosCareersCoastal BendCommunitiesHealthHomesShoppingVisitors
 
NEWS
Local News
Texas/Mexico News
National/World News
Politics
Columnists
Blotter
Crime Map
Paid Obits
News Obits
Police Scanner
AP-Wire News
Specials

Previous Local News
Saturday, Jan 26
Friday, Jan 25
Thursday, Jan 24
Wednesday, Jan 23
Tuesday, Jan 22
Monday, Jan 21
Sunday, Jan 20

Road Conditions Find the latest road closures for the Coastal Bend area.
Go Find Closures »


Week in Photo

Associated Press news week in photo.
View »
Texas Lotto
What were last night's lotto numbers? Check out our lottery page to find out.
Get Lotto Results »
Breaking News Alert
Get major news when it happens.

E-mail Digest
Get the latest local news in our e-mail
Sign Up Free»
Mobile Edition
Access Caller.com from your PDA and get the latest news and information anywhere!
Sign Up Free»
Weather Alerts
Receive all the latest weather warnings in your e-mail
Sign Up Free»
Forums
Sign up today to participate in our growing forums sections.
Sign up for Forums »

Today in History
Find out what happened this day in history.
GO »

Multimedia
POLICE SCANNER
Tune into to learn about road blocks, traffic accidents, emergencies and fires as they happen,
LIVE - 24 hours a day.
Listen »

AP NETWORK NEWS:
A five-minute audio newscast updated twice hourly.
Listen »

Subscribe for newspaper delivery.Click Here

Click here to view a larger image.
George Tuley/Caller-Times

Fred Staggs, a longtime worker in the fast-food industry, says that from his perspective, the Corpus Christi economy hasn't slowed down at all. He recently started a new job at Pizza Hut. Fast food restaurant workers are among the least likely to see a slowdown.

Working through the recession

Commission-based workers hurt; fast food remains strong

By Laura Elder and Naomi Snyder

Few people feel the effects of a sluggish economy as swiftly as those who earn a commission-based income. Just ask Kathleen Root, whose earnings as an account representative for Time Warner Cable slumped enough in recent months to coax her into a second job during the holidays.

Root typifies people, who in small and varied ways, have had to adjust to a recessing economy. Some people are hurt more than others, depending on where they work.

When companies want to cut expenses, advertising often goes first. But other industries, such as fast food, are insulated in large part from cutbacks.

Even in tough times, people continue to eat out where the meals are cheap.

Fred Staggs, 45, lost his job as a manager at Burger King after a chain of restaurants closed in Texas and South Carolina.

He left work on a Thursday, took the weekend off and mowed his lawn.

By the following Saturday, he was in the middle of orientation for his new assistant manager job at a Pizza Hut.

Not bad for a recession.

Not quite so with Root, who saw her income drop during September and October as businesses put advertising on hold.

Like so many people, Root, 29, hardly makes a distinction between what already was a recessing economy and financial hardships directly tied to Sept. 11.

Typically, cable advertising picks up near the holidays, as companies try to move their products. That wasn't the case this holiday season, she said.

Root's paycheck was down about 20 percent in September and October.

"Then, the holidays weren't as good as I hoped," she said.

'Things might be changing'

After graduating in 2000 from Texas A&M; University-Corpus Christi with a bachelor's in marketing, Root had $10,000 in student loans. Single, she relies on her own income to pay the bills.

"Things weren't too bad, but it was enough to go, 'whoa, things might be changing drastically,' " she said.

"Even with a bad economy, I have obligations I have to take care of, and it's not an excuse to renege on any of those responsibilities."

To pay her bills through the holidays, Root took a job at the Dillard's department store as a fragrance model.

"Better safe than sorry," she said.

"It was the prudent thing to do."

In October, she also was named executive secretary to the local chapter of the American Advertising Federation, a position that pays, but not a full salary.

As Root sees it, the tough times are passing. Business is picking up, she said.

"January is taking off, so I feel more confident," she said.

"It's resuming normalcy."

No slowdown in fast food

Those in the fast food industry are unlikely to have seen any slowdown.

Staggs has worked at 15 Pizza Huts, two Wienerschnitzels, four Burger Kings and a steakhouse, and he has weathered three recessions.

He started his career at Pizza Hut as a teen-ager.

He soon realized he could make more money as a fast food manager than his father made as an eighth-grade math teacher with a master's degree in education.

The younger Staggs graduated from high school in 1974 and took up work full-time.

"I said why go back to school if I'm making this much money?'' he said.

He was 19 years old when he was promoted to store manager in Tennessee.

Lately, he hasn't noticed a slowdown.

Eating 99-cent meals

"As the economy gets worse, more people are looking to make a few cents,'' he said.

"People are eating at fast food rather than sit-down restaurants the worse the economy gets.''

As people cut back on their spending, 99-cent meals are more likely to stay in the budget.

"The next thing down is carrying your lunch to work and people have pretty much gotten out of the habit of that,'' said Dee Haven, public affairs director for the Coastal Bend Restaurant Association.

As a manager, life is supposed to get easier when the economy slows.

There are more people willing to work low-wage jobs.

The average wage for a cook in the West South Central United States is $7 per hour, according to the Texas Restaurant Association.

But the typical recession story - that people with graduate degrees end up as servers in places like Pizza Hut - hasn't occurred, Staggs said.

Finding employees

Corpus Christi's unemployment rate hasn't been this low in more than 11 years, which is as far back as the U.S. Labor Department can come up with comparable figures. The unemployment rate for Corpus Christi in November was 5.2 percent.

Staggs said the Corpus Christi economy hasn't suffered enough to help make his job that much easier.

The Ayers Street restaurant where he works as an assistant manager hasn't been able to fill any of the three open slots for delivery drivers because they can't find anyone with car insurance.

"I've never had to deal with that before,'' Staggs said.

The pay for drivers is minimum wage plus $1 for each delivery and tips.

Managers make a little more money, but not a lot.

The average fast food store manager made $27,500 in 1997, according to the Texas Restaurant Association.

Secure industry, city

Another drawback to the job is the respect, or lack of it.

"People look down on the fast food industry,'' Staggs, 45.

"It's a joke, 'Do you want fries with that?' Here you are, working at Wienerschnitzel making good money and people call you the weenie man.''

Still, Staggs is happy to be in what remains a relatively secure industry in a relatively secure city.

"I don't see Corpus Christi as being in that big of a hole yet,'' he said.

That doesn't mean getting laid off didn't shake Staggs' sense of security.

"You always have that funny feeling in the pit of your stomach: You know you've got bills to pay, and how are you going to pay it?''

Contact Laura Elder at 886-3678 or elderl@caller.com. Contact Naomi Snyder at 886-4316 or snydern@caller.com

January 24, 2002


Keyword
Sales/
      Advertisements
Caller.com
Yellow pages
The Web

Previous archives

Site Extras
 
 


©2002 Caller-Times Publishing Co. A Scripps Howard newspaper. All Rights Reserved. Site users are subject to our User Agreement. Read our privacy policy. Questions? Comments? Contact us.