January 21, 2004     Los Gatos, California Since 1881
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Photograph by George Sakkestad
Bars like C.B.Hannegan's are slowly starting to see more customers like (from left) Roseanne Brobst, Beth Cintas and Toni Scurti return to the area.
Customers return to local bars, eateries
By Nisha Ramachandran
For the suburban hipster—that is, the dressed-in-black, twenty- to thirtysomething with disposable income—Santana Row is the place to be on a Friday night. Located in the middle of an otherwise uneventful San Jose, it is an enclave of urban cool. Upscale shops like Burberry and Gucci keep the shopping trendy, and, when stores close, restaurants and bars in the complex keep their doors open, the conversations going and, most importantly, the food and drinks coming late into the night.

A year ago, all that was just more worrisome news for downtown Los Gatos. Already facing reduced sales and a slumping economy, many retailers and restaurants were concerned not just about the bottom line, but some for their very existence. With a similar feel and design to a downtown area, Santana Row seemed to aim not only to the heart of consumers' wallets but to what distinguished Los Gatos from its sprawling mall competitors.

But while Santana Row continues to draw large crowds just a couple of months past its first anniversary, many Los Gatos businesses are finding that for their customers, there's just no place like home.

Over the past few months, many Los Gatos bars and restaurants have experienced a sudden increase of old and new customers. Some see this as a sign that Santana Row's novelty is finally wearing off.

"I think Santana Row has affected us because people are excited about new projects and it became a new scene to visit," said John Hannegan, co-owner of C.B. Hannegan's, a bar and restaurant on Bachman Avenue. After Santana Row opened in November 2002, Hannegan was among several restaurateurs who saw their clientele base shrink.

Mark Achilli, owner of Mountain Charley's on Santa Cruz Avenue, was also part of that group. During the summer, Achilli's bar contended with construction on the streets, which according to Achilli, drove customers to other places like the newly opened Santana Row.

"People are very curious and they have to go see something new," he said. But last October, Achilli started to see familiar faces coming back into his restaurant.

The expense of dining and shopping in Santana Row may have also pushed customers back to Los Gatos. Achilli, who admits he visits Santana Row from time to time and likes the shopping and dining complex, noted that price is one of the reason he stays local.

"I certainly like Santana Row, and I like San Francisco and I like Las Vegas, but I couldn't afford to go to these places all the time," he said.

But while many restaurants and bars have simply weathered out the Santana Row affair, some have just packed up and left. Lisa's Tea Treasures, a tea and china store, followed its customers from Los Gatos, opening a new store in Santana Row. The store had previously occupied its Santa Cruz Avenue location for 10 years.

Store manager Lisa Nelson pointed to a lack of business in Los Gatos as the motivating factor behind the move. Business had tapered off to the point at which the store was no longer seeing enough customers to operate.

"The options were between making more money or just being stuck there," she said.

The move was worth it. Since opening last September, the store "has seen an increase in business more than we have imagined," said Nelson.

Despite the success of the store's new location, Nelson said she feels the store has lost something by moving out of Los Gatos.

"Here, it's not as friendly," she said. "We were very close-knit in Los Gatos and we knew everyone in town. It's not that same small-town feel and I miss that."

In the end—even for the suburban hipster—that may be the most pressing reason to return home.

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