Economy has mixed effects on businesses

When the Dow began to sink like a stone a few weeks ago, the sales of pricey ribeye and New York strip steaks came to a standstill.

That's when Robert Magruder, co-owner of Sammy's Organics Natural Food Store in Colorado Springs, knew his customers had decided to cut out some luxury items.

"We're seeing people spending less. We're seeing fewer people coming in," Magruder said. "The ribeye steaks are not selling as briskly as they used to, and the snack food is not moving like it used to. But our basic food items are selling like they always did."

As the stock market continues to dive, the cost of food and other essentials remains high, and pessimism surrounds the prospects of a quick economic turnaround, local residents say they are tightening their belts. Surprisingly, though, the effects on local businesses are mixed. Some business owners who deal in nonessential goods or entertainment say they're feeling the pinch of more frugal times, but a few vendors of luxury goods, as well as those who peddle stress relief, say they're doing fine. Even better than fine, in a few cases.

Customers aren't passing up their double-shot-extra-frou-frou-with-whipped-cream-on-top lattes at Dogtooth Coffee Company, said manager Michelle Stone. But she has noticed lower tips.

And business is choppy on the downtown strip, said Luke Travins, co-owner of Concept Restaurants, which owns MacKenzie's Chop House, Ritz Grill, Southside Johnny's and Jose Muldoon's. Weekends are still good, but the slow times are even slower. Lunches are down a bit, Travins said, there are more empty parking spots on Tejon Street, and the luxury of Sunday brunch has apparently become more expendable.

It's not a major decline, Travins said, just more unpredictable. And he thinks that thus far, fear is more damaging than reality.

"Everybody is coming in and asking us, ‘Is this affecting you guys?' It's on the tip of everyone's tongue," Travins said. "We've joked about putting cartoons on in the restaurants instead of the stock channel."

Despite the gloomy news from Wall Street, however, some portfolios still have some get-up-and-go.

Lookie-loos are not thronging the showroom at Porsche of Colorado Springs. But a dealer of high-end cars in Motor City did get three orders in the past four days for cars ranging from $58,000 to $118,000. That tells general manager Lance Dickson that luxury still spells relief during stressful economic times, a form of shopping therapy for the wealthy.

"It's been very unpredictable, but last month we sold three cars in excess of $120,000," he said. "For some, it's not need, but want."

Dickson, who has been selling top-of-the-line vehicles for 22 years, says he's seen the market swing before - and survived.

"We'll ultimately get through this," he said. "You have to be in it for the long haul."
People apparently aren't scrimping on their luxury health and wellness needs either, because some of those businesses aren't even feeling the pain.

Business hasn't flagged whatsoever at CorePower Yoga, assistant manager Emily Kennedy said.

And Mateo's Salon and Day Spa is in the midst of its best year ever, with revenue on track to be up 15 percent from last year, said owner Cindy Bershinsky. She even hired more employees this week.

"Every month, for months now, we just keep thinking the slowdown is going to come, and it just hasn't happened," Bershinsky said. "I'm still shocked. You would think that this is something people would have to cut out, but they haven't."

Her theory is that the stress of the plummeting stock market and other failing businesses might be driving people to pamper themselves with massages and facials.