WHIDBEY ISLAND, Washington (STPNS) -- Thanks to the global economic recession, securing a table at your favorite Whidbey Island restaurant or coffee house is easier than ever.

In fact, ask any local business owner in the food and beverage industry and they will tell you the same story: Business is down, customers are spending less and it's hard to predict when things will get better.

"We've definitely noticed a slowdown," said Andreas Wurzrainer, owner of Christopher's on Whidbey in Coupeville.

"Our customer count has definitely dropped," said Michael Meyer, general manager for Miriam's Espresso Café on South Main Street in Coupeville.



While local restaurant owners are quick to say things aren't so bad they will have to shut their doors, many are beginning to offer some pretty tempting incentives to get customers in the door.

For example, Miriam's is offering a holiday special, with a 12-ounce latte for just $1 - a big discount off the regular price of $3.20. The popular coffee shop also has begun offering a discount on gift cards and a "customer of the month" reward program. The lucky winner gets their usual order free, one time.

"Customers really like that," Meyer said.

A decline in coffee sales is part of the reason for the specials, Meyer said. Although Miriam's has a large and dedicated core group of regulars, he surmised that luxury items, such as lattes and flavored coffee drinks, are the first thing people trim from their budgets during tough times.

"Look at Starbucks - they're feeling it hard," Meyer said.

Starbucks' share prices have dropped from about $20 a share in June to the Dec. 11 closing price of $8.97. Heidi Monroe, owner of Heidi's Coffee House in Coupeville, agrees with Meyer's assessment. Television news interviews on how people are cutting back on their spending seem to repeat the same refrain, she said.

"The first thing they say is, "cut out that latte,'" Monroe said. "Thanks a lot."

Monroe's café, on North Main Street in Coupeville, has been somewhat insulated from the financial storm by providing for a niche market: the dozens of coffee-hungry Island County employees who work just across the street.

"They are still drinking coffee, but not as much, and in smaller amounts," Monroe said.

Monroe has not gotten to the point where she has reduced prices or offered sales. Her prices are already the lowest in town, she said. However, she did guarantee she would beat anyone's price, holiday sales included.

The food industry seems not to have been hit as hard, especially well-established restaurants such as Christopher's. Like Miriam's, Wurzrainer said a solid group of regulars has really helped. There are less people eating out, he said, but more noticeable is that customers are spending less.

An annual holiday special for couples - a four-course meal for $40 - is having one of its best years, and many customers are deciding against having a second glass of wine, he said.

Keystone Café, across the street from the Keystone ferry landing, also is seeing a slowdown. The restaurant, which opened last winter, saw brisk business during the height of the summer tourist season. But as cold weather set in, sales also have cooled.

Owner Christy Kellison said it's hard to tell if the thinning business is due to the economy, the single-vessel service on the Keystone-Port Townsend route or just a natural reduction in sales during the winter months. Or maybe a mix of all three. Whatever the cause, the slowdown is a big problem.

"This isn't our main source of income," Kellison said. "If it was, I don't know if we'd be making it."

At Anna's, a lunch spot and traditional tea house, business dropped as news of the Wall Street financial crisis hit.

"I had the best summer ever," said owner Kris Schricker, who thinks Whidbey Island tourism was helped by high gas prices that encouraged Canadians and Washingtonians to take their vacations closer to home. But since September, there's been a big drop in traffic, she said.

Schricker said she plans to put the restaurant up for sale in January. In operation for about 10 years, Anna's has a loyal customer base that helps it weather economic downturns, according to Schricker. She said she hopes she'll be able to find a buyer who will be able to build on the restaurant's past success.

"Maybe someone who has more restaurant experience than I do," she said.

Central Whidbey Chamber of Commerce President-elect Sue Cunningham, owner of the Blue Goose Inn, said there is no doubt the economy is hurting everyone. Factors such as lower gas prices are helping put a little extra cash into consumers' pockets, but it has never been more important to "shop local," she said.

According to Cunningham, for every $100 spent on the island, $68 stays here in the local economy.

Spending money locally is so critical to the health of the local economy that the Chamber is planning on launching a "shop local" campaign in 2009. Details of the program are still being worked out, but the idea is to reward Whidbey Island residents for keeping their cash in the community.

"We have to think of our merchants first, because it affects us all if they go out of business," she said.

Editor Kasia Pierzga contributed to this report.