TRAVERSE CITY -- Times are tough, but not rough enough to stop some area shoppers from spending $17 on a bottle of flavored extra virgin olive oil or a one-gallon tin of gourmet popcorn.
Call it a financial Great Divide: Some cost-conscious consumers are flocking to budget stores to pinch pennies on generic edibles, while others aren't deterred by the sour economy and happily snap up pricey items offered by downtown specialty food shops.
Amy Gembis called 2008 her best summer in the five years she's operated Pop-Kies, a gourmet popcorn store at 147 E. Front St.
The sluggish economy might force people to forego an art item or piece of jewelry, but they still have to eat, she said.
"A lot of people still like locally made products. There's always going to be some demand for that," Gembis said. "It's a unique type of item, so it's not like we have a ton of competition in this area."
The shop's wide range of prices provides opportunities for a variety of customers, she said.
Pop-Kies' customers can shell out $125 for a 6-pound tin of Northern Nut Crunch popcorn, or spend as little as $3.24 for a four-ounce bag of Parmesan garlic popcorn. Most one-gallon tins go for about $17.
"It works in a lot of different budgets, depending on how much you can spend," she said.
Gembis has noted that more customers opt to save cash and buy one gift per family, such as a popcorn tin, instead of individual presents for each family member.
Grand Traverse Pie Co. president Mike Busley called it a "fortunate" year for his business.
Sales are up nearly 10 percent from last year, and the trend remains positive industry-wide, Busley said.
"Everybody is concerned about first quarter. With all the uncertainty we have in the state and the country, the first quarter is typically our slowest," he said. "How slow is it going to be is the question. The indications are we haven't been affected so harshly as other sectors of the economy."
The pie company has been in business since 1996, and now has 16 stores throughout Michigan and Indiana. Traverse City has a location at 525 W. Front St.
Customers might purchase fewer pies or smaller pies, but they're still buying, Busley said. A basic cherry pie goes for about $14.
"People are still going to be social," he said. "Our business is based on comfort food, traditions, and I don't think people want to give those up."
Fustini's Oils & Vinegars owner Jim Milligan credits some of his success to more people dining and entertaining at home instead of going out to restaurants.
Milligan opened his store at 141 E. Front St. about six months ago. Most 13-ounce bottles of specialty oil and vinegar go for about $14 or $15, and a 7-ounce bottle of white truffle oil costs $34.95.
"The type of customers (at Fustini's) are typically quite affluent and value flavor," he said.
Fustini's had a busy summer; now Milligan is more concerned about making it through the winter than he is about the overall economy hurting his business.
And while much of the economy may be going to the dogs, many pet owners aren't about to do away with gourmet treats for their furry companions.
Business has grown nearly every year for D.O.G. Bakery, a five-year-old store at 531 W. Front St., said owner Chris Barolo.
A one-pound sampler bag of treats goes for $7.25, and a green and red-frosted Christmas tree-shaped treat costs 75 cents.
"Even in a tight economy, people still want to give their dog something special," Barolo said. "We're fairly inexpensive, so it's a nice little outing. People can bring their dogs in."
It's been more of a struggle for Phil Murray's specialty shop. He opened Chocolate Exotica at 525 W. Front St. about a year ago, and sells gourmet chocolates, ice cream, pastries and other treats. He also offers a full catering menu. Artisan hot chocolate gift packages range from $15 to $75, and a quart of ice cream goes for about $16.
He's visited area business offices with free samples to attract new customers, and said he's keeping a positive attitude despite the "fickle market."
"It's a very tough economic climate," Murray said. "But I think it also provides opportunities for creativity, passion and ingenuity and American spirit to face the huge hurricane winds of adversity to move on and go forth."
