The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Sunday, February 9, 1997              TAG: 9702080590
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 
SOURCE: BY DEBBIE MESSINA, STAFF WRITER 
DATELINE: VIRGINIA BEACH                    LENGTH:  125 lines

MORE BUSINESSES STAY OPEN IN OFF-SEASON, BUT NOT BECAUSE BUSINESS IS GOOD.

``The Pretzel Man'' wanders over to one of the few open restaurants from his darkened, dead-bolted soft pretzel shop on Atlantic Avenue on a balmy, but wet afternoon.

The once-bustling resort strip is wind-whipped, rain-slicked and barren. It's not a good day for selling pretzels. Or T-shirts, or seafood platters or Oceanfront hotel rooms.

``Most days, I could stay there all day and do $2 of business,'' said Ted Pletcher, owner of Auntie Anne's on 14th Street and Atlantic Avenue, pulling his coat collar snug around his neck. ``It's not worth it.''

Each year, Pletcher joins about half the resort shops that shut down for the winter.

``You have to make your money in the summer at the beach,'' he said.

As ``The Pretzel Man'' disappears into the restaurant, the 1400 block is empty once again.

The gray stillness of the wintery resort landscape is shattered by the occasional roller blader, dog walker or neon vacancy sign. Forbes Candies shop clerks pass time watching sea gulls crack oysters in the middle of Atlantic Avenue.

While the strip appears fairly desolate, merchants say more businesses are remaining open now in the winter than 10 years ago.

They estimate that three-quarters of the hotels keep their doors open, as well as more than half of the restaurants and less than half of the stores. City statistics show 60 percent of hotels, mostly the larger ones, stay open.

But it's not because the money is good.

In fact, on many winter days, resort businesses and hotels that stay open don't take in enough money to cover expenses.

``By all means, we don't come close to breaking even,'' said Verne Burlage, who owns the Hilton Inn and manages four other resort area hotels.

Bill Dillon, owner of Abbey Road restaurant said: ``We lose money year after year. It sounds crazy, huh? But I think we'd lose more money if we closed down.''

Still, they tough it out. But why?

They offer a variety of reasons - to hold onto good employees, for continuity in business, and to prepare for the summer season.

Greg Andrassy, who runs the Budget Lodge at 34th Street with his father, calls it ``a lose, lose situation.''

If he closed his 78-room Oceanfront hotel for the winter, he would lose some longtime, trusted staff who need to work year round. Then in the spring, he'd have to hire and train new workers who probably would bring in only half the business because of their lack of experience.

By staying open, though, Andrassy finds himself running to the bank to pay the bills. Plus, the guest rooms suffer extra wear and tear.

``Every few years, we sit down and talk about whether it's worth staying open,'' Andrassy said. ``It's worth it.''

Some hotel managers say shuttering a large hotel for the winter can take its toll on the building and its mechanical equipment. The cost of those repairs is often as much or more than the cost of keeping the hotel open.

So they whittle their staffs to less than half of their summer rolls, slash their prices and click on the vacancy sign.

The bargain-basement rates prove to be a bonus to the cold-weather traveler. Oceanfront hotel rooms start at $25, while most hover around $30.

Deals also abound at souvenir shops. Sunglasses are half price. T-shirts are a couple of bucks.

With minimal traffic through their lobbies, the hotels keep their employees busy preparing for the summer season: planning, marketing and taking reservations.

Winter is also the ideal time to renovate and redecorate. Cruising along Atlantic Avenue, it's common to see scaffolding and construction trucks.

At C.P. Shuckers Cafe and Raw Bar at 15th Street, workers are erecting a canopy for an outdoor dining area, and building planters and bench seats on the front deck.

Several hotels are now installing sprinkler systems.

At the Oceanfront Inn at 29th Street, it's not unusual to find desk clerks painting guest rooms. ``We do what we can to find them some hours,'' Andrew. W. Vakos, general manager, said on a day when 26 of the hotel's 152 rooms were occupied.

Most of the weekday traffic this time of year is from business travelers and professionals attending meetings. About 10 resort hotels have meeting space and rely on booking winter gatherings to carry them through January, February and March.

However, there is minimal spin-off to shops and restaurants as these visitors rarely venture outside their hotels. Even marketing geniuses McDonalds and Dairy Queen close their boardwalk franchises.

Weekends, on the other hand, see visitors from Washington, Richmond and even from within Hampton Roads for brief get-aways, especially when the weather is favorable.

Some hotels fill their rooms with monthly renters, usually retirees from the north longing to escape the ice and snow and take advantage of the low rates. Other monthly renters are transients who can't afford to pay utilities and deposits that apartments require. Monthly rates begin at $350.

``The beach is not an easy sell in the winter,'' said Richard P. Anoia, chairman of the Resort Leadership Council who closes the Windjammer and Golden Sands motels each winter. ``We do a little better by not being open.''

But while some businesses struggle, others do OK.

``It's not a very productive time, but it's worth it to stay open,'' said Bennett Strickland, New Castle Motel owner. ``A lot of people are surprised at how busy we can be, especially on weekends.''

The New Castle, however, has taken a different tact. It offers luxury rooms, with fireplaces and hot tubs, at slightly higher prices, $50-$200 in the off-season.

While business owners don't agree on the benefits of opening all winter, they do agree that more year-round attractions will bring more year-round tourists.

``To look at us, people would think we roll up our sidewalks after October,'' Anoia said.

``We need to continue to market Virginia Beach as a year-round destination. But first we need to have the infrastructure to market.''

So merchants engage in making chicken-before-the-egg arguments.

``Is nothing open because there's no people or is there no people because nothing's open?'' wondered Teresa Fasy, of the Curiosities Rock Shop, which does stay open. ``It's a vicious circle.''

Back to the Pretzel Man. He plays both ends.

Pletcher, sometimes opens his pretzel stand on nice weekend afternoons. Running a small business, he has the luxury of being able to open on a moments notice, or rather, on a weather report's notice.

``With no one open, on pleasant weekends, those that are open get some business,'' Pletcher said. ILLUSTRATION: Color photos by Tamara Voninski/The Virginian-Pilot

[TOP: Vacancy signs, such as the one outside the Oceanfront Inn at

Atlantic Avenue...

ABOVE: The view from the fishing pier...

BELOW: A neon open sign in the Beach Pier Gift Shop...]

[For complete copy of photo cutlines, see microfilm]

KEYWORDS: TOURISM VIRGINIA BEACH


by CNB