The Year of Big Headaches for Small Business : Recovery: Many enterprises continue to struggle after the January quake as customers cut back and many move away.

In the San Fernando Valley, you might call 1994 the Year of the Pizza. Or the Cup of Coffee. Or even the Used Car.

But don’t even think, according to local small business owners, of calling 1994 a great year for business.

No matter whom you talk to, 1994 will be remembered as the Year of the Quake, an event that has shaken the way people do business here--crippling the customer base of many shop owners, literally leveling the establishments of others.

For small businesses in the Valley, success this year depends largely upon what you sell, what service you provide and, as always, where you do business.

Seven months after January’s earthquake, businesses are still feeling the jitters. And so--despite mountains of federal funds and Small Business Administration loans and for all the talk of the local economy’s comeback--many small businesses in the Valley, from dry-cleaning concerns to small restaurants, continue to struggle.

Last week, in an informal survey of 10 small businesses, the assessment of 1994 ranged from it being a good year for auto dealers, coffee sellers and pizza makers to being so bad for others that they may pack up and leave town.

Take United Rent-All of Chatsworth. Ellen and Stuart Friedel have run their rental store on Corbin Avenue for 15 years now, most recently watching their business drop about 10%.

“Each year gets worse and worse,” Stuart said, overlooking rental wares ranging from crutches to industrial popcorn machines to silverware. “And 1994 has been no exception.”

That means party rentals are down because people aren’t springing for the weekend spread for friends and family; they’re saving their money for earthquake repairs. And backhoe and construction rentals have fallen into a hole as new building stagnates.

But one element of the Friedels’ business continues to rage: one-way truck rentals. As in, out of California.

“People are leaving,” Ellen said. “Our one-way rentals have gone up 50% in last two years, 20% in the last year alone.”

Another downer for the Friedels has been government over-regulation, they say.

Los Angeles Department of Building and Safety officials, for example, recently informed the couple of a little-known $120 permit fee for every canopy rented to restaurants and businesses. The new charge, they say, has literally killed off a bright spot as customers refuse to cough up the permit money.

“We mom-and-pop businesses profit by nickels and dimes,” Stuart said. “The government is making it so we can’t afford to do business here. They want $150 here and $200 there. Geez, if it’s not the Earth shaking or the economy faltering, it’s the government. We can’t win.”

Ben Massaban, owner of Fultan Cleaners on Roscoe Boulevard in Northridge, was even more blunt.

“It stinks,” he said. “Business is bad, and the quake is the culprit. I’m hoping to get SBA funds to help rebuild my business, which was closed down for four months. But even if I remodel, my customer base has moved away.”

For many former regulars, tough economic times have made his $3.50 dry-cleaning price too steep.

“Right now, 1993 seems like a dream. I wish I could have it back. This year is 100% worse. But we’re not like the big companies. We’re struggling, but we’re keeping our employees on full time, all two of them.”

Around the corner, at Liquor Mart in Canoga Park, owner Song Kim has more to show for his efforts this year. “It’s OK,” he said. “My business is up 5% this year, and I’m not complaining.”

Like other business owners surveyed, Kim considers himself an expert on customer trends at his business on Topanga Canyon Boulevard. Half his sales are liquor and wine, 30% is beer and 20% grocery items.

“People will always drink,” he said, “through both good times and bad. For me, a better gauge for business is the weather. When it’s hot, business is good. When it’s poor, the cash register doesn’t ring as much.

“Lucky for me, the weather has been hot, hot, hot. And the ring of that register is music to my ears.”

The earthquake has put other businesses on pins and needles.

“My business was down for the longest time,” said Vibeke Clausen, owner of Lace and Needle Art in West Hills on Roscoe Boulevard. “None of my customers could concentrate on anything like needle work. They lost all their passion or their hobbies, they were too busy sweeping up china.”

In the months following the quake, things have returned to normal--sort of.

“(Sales) are probably about the same as last year, but I wish I could tell you we’re up,” said the owner, who posts a sign on her door that reads, “Beware: Pins and needles on floor. No bare feet.”

In her eighth year in business, Clausen is working hard to turn a profit. “I had one girl quit, and I’m trying to do without her,” she said. “I know 1995 will be better. I like to be optimistic. Things are picking up.”

Despite the earthquake, the pizza business remains piping hot.

Just ask the folks at Uncle Ernie’s.

“We’re doing OK,” said Susan Apostolof, who with her husband, Steve, owns two Uncle Ernie’s pizza outlets in Canoga Park and Chatsworth. “But it could always be better.”

For Apostolof, the last year has been a constant war with chains like Pizza Hut and Domino’s, vying for what appears to be a shrinking consumer dollar. After nine years, they have seen business steam up and cool down.

“We’ve got to compete with the big boys with the big dollars. It’s a constant battle. Are we winning? Who knows? Call me at the end of the year.”

In North Hollywood, Charlie Lee doesn’t have to wait until year’s end to answer that question. He can tell you right now where his business is going.

“Down, down, down, down, down,” said the owner of Smokey Joe’s restaurant on Coldwater Canyon Boulevard. “Every day is down. People don’t have jobs. They don’t have money. The economy is in the toilet. It’s killing me.”

His business, Lee said, is down 20% this year. And still, he feels lucky. “Some of my competitors are down 40% and 50%,” he said. “The new no-smoking law in restaurants is doing us in. I’ve been in business for 25 years here now. And this has been one of the worst.”

Over in Sherman Oaks, Dick Healy wakes up each morning to smell the coffee.

At the Coffee Roaster, his gourmet coffee outlet, business is good.

“Right now, it’s the same as last year, but by the end of the year, it’s going to get better, trust me,” he said. “I’m seeing optimism from my customers that they’re willing to spring for that big-ticket espresso machine or grinder.”

Like other business owners, Healy is fighting forces over which he has no control. Coffee prices have skyrocketed. Post-quake flight has robbed him of many regular customers.

But he is making do. After two employees left, he decided not to replace them. Like his competitors and small business peers, Healy is letting optimism carry him through a so-so 1994.

“I like where I am right now,” he said. “But if it weren’t for the quake and the off economy, I’d like it a lot better.”