While politicians in Washington tinkered with the final compromise version of the $787-billion economic stimulus bill Thursday night, Alonso Arellano was working late in his office, putting the final touches on his own economic stimulus package.
His bid to boost consumer spending was to launch the next day, when lunch customers at his La Adelita restaurant in Sun Valley could pay just $4.99 for a scaled-down serving of chili rellenos, chicken mole, chili verde, beef stew or other popular dishes.
The first-ever lunch specials at the 11-year-old eatery, where regular entrees cost $9 to $17, are meant to capture consumers who are seeking lower prices, Arellano said.
Sales have plunged 50% compared with early 2008 at his businesses, which include a small tortilla-making operation and a retail bakery. As a result, he has laid off half his 16-person staff. Taking steps to restore consumer confidence is the best way out of the recession for small businesses such as his family firm, he said.
"If I had a magic wand, I would help the consumers around my community," said Arellano, who also sits on the board of the Latin Business Assn., based in Los Angeles. "Then that will help me because they will come back and start eating out again."
He's hoping spending and tax-cut provisions in the stimulus bill and the $50-billion foreclosure prevention plan the Obama administration is working on will boost consumer spending by improving access to credit and creating jobs.
Arellano said he wouldn't be helped by provisions to loosen lending backed by the Small Business Administration and to allow businesses with sales of $15 million or less to use current losses to get tax refunds for up to five previous years.
He didn't need a loan to fund the $125,000 launch last year of a new version of the handmade corn tortillas his workers produce. The Nopaltilla, made with nopal cactus powder touted for its healthful properties, is flying off the shelves at one of four test markets, he said, but lingering in more traditional Latino areas.
For Arellano, who is a part owner in two other restaurants, and many other small-business operators, consumers are the bottom line. If customers have money and the confidence to spend it, small firms will survive the lengthy recession. If not, tough times will continue.
At G&C Equipment Corp. in Gardena, owner Gene Hale also isn't hanging his hopes on tax cuts or SBA lending provisions in the stimulus bill.
