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Summer: the season of survival for many businesses
For these small enterprises, the weeks between Memorial Day and Labor Day are crucial to success
Sunday, May 30, 2010

Todd DiFiore typically gets home from work around 11 p.m.

The owner of DiFiore's Ice Cream Delite on Mount Washington sometimes will wind down watching mindless entertainment like "Celebrity Rehab with Dr. Drew," where millionaires struggle to overcome their addictions.

After 1,300 days without a day off, and seemingly no end to that streak, Mr. DiFiore is not ashamed to say he's addicted to work.

He is just one of many small business owners in the greater Pittsburgh area gearing up for the summer season -- the weeks between the Memorial and Labor Day holidays that for their particular types of businesses are crucial to survival.

About 80 percent of Mr. DiFiore's business comes during the summer months. In his case, that doesn't mean hiring more help. It's strictly a family-operated place, with Mr. DiFiore working alongside his wife, his 83-year-old mother-in-law and his daughter.

According to him, there's an advantage to that arrangement because little workplace squabbles can never break the bonds of a family.

Of course, there are some disadvantages, too.

"The disadvantage is that you see each other a bit much sometimes," he said. "It's like watching the same scenery every day."

Since not every seasonal business can get through the summer on family power, typically the warmer months mean job opportunities for high school and college students. Still, the chilly economy of the past year or more has seen some seasonal employers trying to make do with fewer workers while others have filled the positions they do have with returning employees.

Stefani Pashman, CEO of the Three Rivers Workforce Investment Board, said that compared to last year, there has been a 2 percent increase of employment this summer in Allegheny County in jobs like landscaping, grounds keeping, umpiring, coffee house employees and highway workers.

There's also been an increase in job postings the Allegheny County Career Link site, now at 180, up from 112 last April and May.

"We have seen a bit of a relief, but it hasn't been overwhelming," she said. "It's been more gradual."

Pittsburgh hasn't been hit as hard by the recession as some other parts of the country, so the rebound effect won't be as significant, she said. Currently, the unemployment rate here, at 8.9 percent, is lower than both the statewide and national numbers.

The downturn has had a mixed effect on seasonal businesses. While customers may be spending less overall, there's also an opportunity for those places that offer summer fun at a good value close to home.

Carl Knoblock, district director for the Small Business Administration for Western Pennsylvania, said businesses are still struggling, and not seeing the numbers they were pre-recession, but small mom and pop businesses may actually see increased traffic because families are cutting back on expensive vacations, and instead are staying local.

Families looking at the cost of going to Disney World may be turned off by the price and instead might invest in a season pass at Kennywood amusement park. This March, Kennywood introduced a season pass plan for $89.99 during the regular summer season. The cost of an annual admissions package to Disney World is $439. That does not include hotel or airfare.

Kennywood spokesperson Jeff Filicko said guests had been asking for season passes for years. The pass allows visitors to take advantage of new attractions or make short visits, but it's also a way for Kennywood to try to keep business flowing during tough economic times.

This summer, the West Mifflin park plans on hiring around 1,500 seasonal employees. Sandcastle will hire 350 and Idlewild 700.

Of the Kennywood hires, 83 percent this year are returning workers, Mr. Filicko said. That's the highest rate of returning employees ever, he added. Seventy-seven percent of those employed at the park are between 16-21, an age group that's been hit hard by the recession as job options for young workers are at a low.

Operations like the Twin Hi-Way Drive-in movie theater in Robinson are keeping hiring to a minimum.

For the past 40 years, Jerry K. Salnoris hasn't been to an indoor theater as a patron. A few years ago Mr. Salnoris became one of the three owners of the Twin Hi-Way.

From an economic standpoint, he said, it makes more sense to see a movie at a drive-in. Instead of paying $8 or $9 per movie, the Twin Hi-Way charges $6.50 for two.

"The only thing we share with indoor theaters is movies," he said. "You can bring your car, blanket, lawn chair and can eat a burger, can talk -- you can't really do that at an indoor without offending someone."

Typically the drive-in operates on a weekend schedule for the first few weeks of the season. After Memorial Day, it shifts to a week-long schedule.

Like other outdoor seasonal businesses, Mr. Salnoris relies heavily on good weather. So far this year, it's been hit or miss, but in the almost four years since he's held the lease, he's been pleased with traffic overall.

"Actually, business has been phenomenal," he said. "I couldn't ask for more."

He plans to make a few more hires this summer but not many. Most of his staff never seems to leave. He starts with 10 to 15 employees and is hoping to bump it up to about 25 or 30 employees.

"I'm just not that big of a business," he said. "I hope we can grow and hire a lot of people ... that would be ideal for me and job seekers."

Businesses are encouraged by signs that there could be some improvement in business this summer.

Kennywood doesn't make attendance records public, but Mr. Filicko said people who in the past would normally come two or three times a year, only budgeted for one visit last summer.

"We were down compared to years past, but it was by no means a bad summer," he said. "The economy as a whole is hurting and Kennywood is no exception."

This season, the theme park is focusing on school and business group trips, as well as adding more programs and new rides, like the Sky Rocket roller coaster, to attract customers.

Mr. DiFiore, too, has noticed that ice cream sales have not been what they once were, and with his location on Mount Washington overlooking the city, he's noticed a change in tourism as well.

"I've probably seen everyone from every part of the world," he said. "Anywhere you want to name on the map, they've been here in the past 17 years."

Now he just doesn't see that many people from different countries as fewer people are taking vacations to distant locations.

One summer-season sector that has done well, or at least not lost ground, is camping. There's a saying among campground owners that during the recession, "Flat is the new up."

Statewide, the more than 450 privately-owned campgrounds saw a tenth of a percent increase in reservations last year. This year, the trend seems to be continuing, said Beverly Gruber, the executive director of the New Tripoli-based Pennsylvania Campground Owners Association.

Tracy Czambel, manager of Yogi Bear's Jellystone Park-Camp Resort in Mill Run, said this season that camp has seen a 17 percent increase in reservations.

During the off season, the campground has a base staff of five or six people. It finished hiring an additional 45 staffers to accommodate the needs during Memorial Day and Labor Day. About 15-20 of the seasonal workers are rehires.

One thing the campground has done this summer to attract more customers was to add snowless snowboarding activities. To rent a campsite during the summer and on a Friday or Saturday, it would cost $63 a night. New this year, the cost includes mini golf and access to the water slides.

Adding activities or special programs to businesses is something owners should pursue to boost their business image and traffic, Mr. Knoblock said.

For Mr. DiFiore, who has a 12-foot neon ice cream cone sign on the side of his ice cream parlor on Mount Washington, the marketing is right out there.

"I look like a beacon, an oasis here," he said. "I did it smart. This way the parents read it and the kids see it."

Jon Offredo: joffredo@post-gazette.com or 412-263-1410
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First published on May 30, 2010 at 12:00 am