BETTING BIG ON ASPEN

What to do when times are tough? For these businesses, it’s simple: Be aggressive

It’s hard to blame anyone for retrenching during the current recession, but for a bold few, it’s been the perfect time to expand a business or start a new one. All over town in the past year, that boldness was expressed in the sound of table saws and nail guns.
This summer saw corporate chains such as Ruth’s Chris Steakhouse and Lush Cosmetics shutter their doors. At the same time, longstanding Aspen businesses like Kenichi and Explore expanded and renovated, and new ventures—the tapas-themed Hunter Bar and Dena Marino’s Ellina—filled up vacant spaces.
“I had not been thinking about expanding, but this was a good opportunity that came at a downtime,” says Michael Tullio, owner of Salon Tullio on Main Street, who opened a spa in Basalt when Tezaal hair salon announced it was closing. “Even though it’s crazy to do something like this in this economy, if I had passed on it I don’t think I would get the chance again.”
Low construction costs, relatively low rents, and the availability of prime real estate certainly make things easier. However, the future is far from certain: The city’s most recent sales-tax report shows August returns at 16 percent lower from the year prior, and projections for 2009 are down the same amount. But for all of these businesses, lower costs and a strong belief in Aspen’s long-term viability were sufficient motivation.
In the best case, the dedicated group of new and longstanding business owners will help the town weather the downturn, however long it may be. Yet, as bold as they are, those betting big on Aspen these days remain a minority.
“We’re not seeing as many loan requests as in previous years,” says Scott Gordon, president of Alpine Bank’s Aspen branch. “If you look at the current economic environment, people are asking, ‘Is now the right time to start my business? Is the consumer ready to spend that sort of money?’”
In other cases, entrepreneurs are finding backing from private investors. When the investors behind D19 pulled
out, Dena Marino looked elsewhere for her new restaurant, Ellina: “My new investor is a local family, and we created an amazing relationship. She wanted us
to succeed and further our business,” she says. “It allows you to have a better working relationship, because the one-on-one relationship makes them more a part of your business than an investment group.”
Aspen Skiing Company is making its own push to get consumers to open their wallets. “A lot of times during a recession or economic downturn, businesses will retract marketing dollars, but we want to increase that,” says Meredith McKee, a spokesperson for Aspen Skiing Co. “Those who have a stronger voice in hard times come out stronger.”
Perhaps the most aggressive investors in Aspen in the past several years are boutique restaurateurs Craig and Samantha Cordts-Pearce. Craig arrived in Aspen 14 years ago with $40 in his pocket. He and Samantha—whom he met shortly after the move and later married—have created a mini-empire in gourmet cuisine. Following the openings of The Wild Fig in 2003 and LuLu Wilson in 2006, the couple opened Brexi Brasserie last February, arguably among the recession’s darkest days. Nearby the, restaurateur Walt Harris redeveloped the former La Cocina to house Syzygy along with another, more moderately priced, restaurant, Ute City, and Cache Cache owners Jodi Lerner and Chris Lanter updated their bar area in 2008.
When the Aspen Athletic Club was unable to renew its lease in August, Jean-Robert Barbette, owner of competitor Jean-Robert’s Gym, saw his opportunity to expand. In addition to the 5,000-square-foot center he’s successfully run for 20 years, he’s assumed control of the 12,000-square-foot, two-story fitness space and renamed it JR’s Gym. Barbette says his expansion is filling a void in Aspen fitness, offering a more casual club for locals but also providing them with the option to upgrade.
Like Barbette, Kenichi’s co-owners, Scott Brasington and Billy Rieger, have increased their investment in town. In October, they opened Noodles by Kenichi in the Fat City Plaza. They also recently completed a $1.3 million renovation of Kenichi, a restaurant staple since 1991, adding 50 more seats between the expanded patio and new indoor seating. 
The opening of Noodles represents a broader trend. “There’s been a substantive change in the economy, and people are looking for different types of businesses in Aspen,” says Chris Bendon, the city’s community-development director. “In the core, we’ve seen a change in the profile of businesses — they’re real small and appeal to locals. It’s a different type of energy and a refreshing addition to the downtown.”
Still, Aspen remains an international shopping destination, hosting major global brands such as Gucci, Prada, Fendi, Dior, Ermenegildo Zegna, Malo, and Ralph Lauren. Even Italian luxury brand Loro Piana expanded last winter, opting to spread out into a neighboring retail space. And locally owned businesses such as Gorsuch, Meridian Jewelers, Nuages, Boogie’s, and Pitkin County Dry Goods have weathered the storm.
So as “For Rent” signs pop up in windows covered with sheets of brown paper—Aspen’s equivalent of the boarded-up storefront—don’t forget that there’s still a lot of life in this little mountain town. Aspen’s resilience is something people have been betting on—with impressive results—for decades.