Santa Fe businesses have been holding their own this summer, but sales are weak at many stores and anxiety prevails as we head into the fall and winter.

Some firms have hired additional workers, but many are reluctant to take that step.

"We're cautiously optimistic for the fourth quarter and beyond," said Scott Hutton of Hutton Broadcasting, which has six radio stations serving the Santa Fe area.

"We did have a good summer," Hutton added. "We're up about 20 percent for the year. The travel industry seems to have made a comeback."

Hutton Broadcasting, which got a morale boost earlier in the year when it was chosen Small Business of the Year by the Santa Fe Chamber of Commerce, "added a few staff" earlier this year, Hutton said.

"Many businesses trimmed their labor costs enough in the last year to see the same kind of profitability they had back in 2007," Hutton added. "They're running with a smaller staff, but they're just as profitable as before."

At Valdes Paint and Glass, an old Santa Fe company run by founder Joe Valdes and his son John, "Thank God we still have customers coming in," the younger Valdes said. "With all the bad news on the news talk shows, it doesn't help us."

But it's not all bad news on the local level. "At least it's better than last year," John said, "But it could be better. Our (art) classes are doing well. They're an outlet for people."

John Valdes added: "Amazingly, a lot of professionals are looking at doing something different (with their careers). They're looking to diversify and find a new niche, and painting is one them. We have retired people and some younger professionals who want to do something different."

With the slowdown in business activity, "We've lost a few employees," he said. "We even had to lay a few people off. But most of our employees have been with us five years, if not longer."

At Sunflower Farmers Market, with two stores in Santa Fe and four in Albuquerque, "sales are up a little bit," said company founder Mike Gilliland. "Our business is growing but not nearly at the rate it was a couple of years ago. It's now a single digit, while it was double digits a couple of years ago."

Sunflower may open another Albuquerque store or two, and "I would love to open something in Taos or Las Cruces, but no more in Santa Fe," he said.

Gilliland added that the stores' staffing levels in Santa Fe and elsewhere are "pretty stable" since the openings.

Across town and up Canyon Road, El Farol restaurant owner David Salazar said, "It's slow" when asked about his business. "It's not too bad, and it's not that far down from last year, but we're having to do a lot of promotions."

The first took place Labor Day and is called Poetica, with people reciting their poems on stage. Famed New Mexico author Rudolfo Anaya, author of the novel Bless Me Ultima, was to be among them.

"We have to work hard just to stay even," Salazar said. "Thank God we haven't had to lay anybody off, with the exception of the school kids going back to school."

Salazar added: "We're working harder. We're already developing plans for the holiday season."

For tourism operator Clarice Coffey, this month and October "are the best part of the year. And, so far, our business has been better this year than last."

Helping Santa Fe along in the fall is the fact that "lots of people who want to come to the Balloon Fiesta stay in Santa Fe and then go down to Albuquerque," Coffey said.

Coffey has strengthened her business this year by concentrating the advertising she does on her website. "It's really paid off," she said. "Our tram business is up quite a bit."

Coffey hired a new employee, tram driver Ken Hawkins. "He's doing great for us," she said.

In DeVargas Center, an artisan gelateria by the name of O-Gelato has received a warm welcome from customers, said David Maple, who owns and operates the business with his wife, Shelby Fonley.

"We're pulling a lot of people to this side of the mall," he said. "Other businesses have noticed an increase in sales."

The store has been "super busy," he said, especially on Friday and Saturday.

Maple said he had received more than 80 applications from people interested in working in the store and now has five employees. "They get the idea of what we're trying to do," he said.

Maple expects "a little bit of a drop-off" in gelato sales as winter arrives, but he and his wife plan to offer pastries, tiramisu and other items in the colder weather.

Debbie Funfer has her business, Heart of the Lotus, which is on Montezuma Street, up for sale. It features Oriental furniture and various sacred items.

"There have been some inquiries, but no real solid hits yet," she said. "We're keeping our fingers crossed. We would love to have someone take it over."

Funfer said the reason the store is being sold is that she is moving back to Canada to be close to her son. "I need to spend more time with him."

As for the store's potential, "It's like any business — you have to work hard to make it work. We do a lot of sales."

In addition, "our competitors are gradually leaving Santa Fe, one after the other."

Contact Bob Quick at 986-3011 or bobquick@sfnewmexican.com.