With summer in full bloom, just how are La Jolla businesses doing when much of the nation and state are facing tough economic times?
Calls to several local businesses find that, for the most part, business is a little off from past years but not to the point where layoffs and other cuts are needed. Some, in fact, have seen a jump in business.
George Hauer is the owner of George’s at the Cove, a La Jolla staple since the summer of 1984. He points out that times have been more challenging as of late.
“Business has been soft since January,” Hauer said. “Our more casual restaurants are doing well. The higher-end concepts suffer the most.”
Asked if city and local officials have done anything in general to encourage more foot traffic in the Village, Hauer said that San Diego is broke and effectively is not even in the game.
“ConVis (Convention and Visitors Bureau) does an excellent job promoting the region, given the decreasing resources at its disposal,” Hauer said.
Asked what George’s can do to stay above the competition, he noted, “We have constantly challenged ourselves to be a leader in our industry, not just locally but nationally. We measure ourselves against the best competitors in the U.S. We do not always succeed, but we are continuously evolving.”
Terrence Underwood, general manager for the Grande Colonial Hotel, reports that business for the last six months is up from 2007.
“Although short of our initial expectations, we are pleased to see our revenues continue to grow in spite of a softening economy,” Underwood said. “Much may have to do with our $8 million renovation, which was just completed this past spring.”
Despite a challenging economy, Underwood believes there has been minimal impact on the business traveler.
“For the leisure traveler, it is sort of a split decision: The affluent leisure traveler as well as the international traveler who are choosing our hotel appear to be little fazed by the tight economy,” Underwood said. “We have seen and continue to see an impact with regards to the more cost-conscious segment of the leisure traveler ” those driving from the Los Angeles basin and Arizona.”
Underwood added that the Grande Colonial expects the summer business to be OK.
“Certainly not as strong as previous summers, but it isn’t doom and gloom, either,” Underwood noted.
Dennis Wills, owner of D.G. Wills Books, believes that in the antiquarian and scholarly book business, upsurges in business are sometimes a reflection of the season. He notes, for example, each summer, when not only a number of Arizonans are in town to escape the heat there but tourists from all over the world come to see La Jolla.
“Other factors which bring people into bookstores would include conventions of any sort: medical, legal or any other association, like Comic-Con, for example (July 24-27), which draws people from around the world to San Diego,” Wills said. “Naturally, many of those attendees wish to see La Jolla as well. Thus business is about the same this summer.”
Wills said that the store’s customers are always a mix of locals and visitors.
“To encourage business this summer, we continue to host author appearances, which always draws new customers to the store,” Wills noted, adding that repeat customers become old friends. “We see their children grow up and go off to college, get married and have children of their own. Many businesses come to know several generations of the same family.”
One local business that looks to draw repeated traffic is Jack’s La Jolla. Newer to the local scene than some of the regulars in town, Jack’s has drawn large crowds and favorable reviews since it opened.
Owner Bill Berkley said Jack’s May and June sales were up compared with those of last year, thanks to the U.S. Open and Restaurant Week.
“So far, July is down compared to last year,” Berkley commented. “Jack’s food sales are flat to slightly down, while beverage sales are up. July 3rd was one of the best days we have ever had, but it was followed by a slow July 4th, which we expected.”
Berkley said the majority of Jack’s food sales are tourist, and beverage sales are locals.
Asked how the current economic times impact business, Berkley noted, “There is no doubt that consumer confidence is low due to the subprime debacle, high gas prices, inflation and a slumping stock market. In an attempt to increase sales, Jack’s has started a Half-Price Bottle Wine Night on Wednesdays and a pre-theater menu in our new Italian restaurant, Viaggio. Pre-theater diners get a half-price appetizer when they order an entree and are seated prior to 6:30 p.m.”
In addition, Jack’s has happy-hour prices every day from 3:30 to 6:30 p.m. with half-priced appetizers.
Still, with all the opportunities to enjoy a fine dining experience at Jack’s La Jolla, Berkley said he does think about when the calendar changes several weeks from now.
“I am very concerned with what is going to happen in September when the tourists go home,” Berkley added.
According to Tiffany Sherer, executive director for Promote La Jolla Inc., there are 1,200 business license holders in the Village area.
Sherer noted that while no particular industry dominates in town, there are definitely two different types of customers.
“La Jolla is an eclectic mix of tourism-based businesses that serve our visitor populations and resident-serving businesses that serve our residential population (Meanley’s Hardware, ATT store, Verizon, the butcher shop, Jonathan’s),” Sherer said.
Sherer noted that Promote La Jolla champions the destination of La Jolla to outside markets to encourage customers to come to town.
“We also market La Jolla to the regional visitors/locals, reminding them that La Jolla is a great place to shop, dine and play,” Sherer said.
Sherer said the business owners that she has talked to just say that it has become more of a challenge to do business with the recent economic setbacks.
“Suppliers are increasing minimums or adding fuel surcharges, delivery services are coordinating delivery trips once or twice a week,” Sherer said. “Therefore, business owners are getting creative and adapting to the changes.”
With challenging economic times, how local businesses adapt could spell success or failure.