By Clyde Noel

The days when martini lunches, corporate dinners and venture capitalists kept local restaurants overflowing ended with the sour economy and war with Iraq. Most restaurant owners say they are scurrying for customers just to “hang in there.”

Dinner crowds have dwindled the most in Los Altos, while lunch still draws in diners, owners said. They attribute part of the decline to office vacancies and fewer people working in downtown retail shops.

Making price and menu changes

Ismail Jan Unlu, owner of Silan restaurant on First Street in downtown Los Altos, said business is down about 20 percent compared to last year. He called the slump in sales manageable.

“It will come back, I’m not worried,” he said. “No one is doing the same numbers as they did two years ago.”

Until the economy bounces back, Unlu has made adjustments to reflect the area’s changing eating habits. He dropped prices at Silan and plans this week to change his Palo Alto restaurant, Caf/ Maremonti, into California Crepe Place.

“The food is affordable,” he said.

Jamie Carpenter, owner of Jocco’s in downtown Los Altos, said since the war started, his clientele has changed.

“The war has brought out the ‘gabbers,’” Carpenter said. “These are the people who sit at home to watch the war on TV and then come in and talk about it.”

Carpenter has lowered his prices about 15 percent to attract more clientele.

The war has had the opposite impact up the street at i Fratelli. Assistant manager Scott Silva said his clientele is staying at home to watch television. “Some days our lunches are busy. We try to serve 50 lunches a day. Today, we have 37,” Silva said.

Adding entertainment

Good ratings were enough to boost the clientele at St. Stephen’s Green, which has entertainment as well as food on the menu.

Des Whelan, general manager for both the Mountain View and Los Altos operations, said the Mountain View location jumps. “That’s because the Mountain View Voice rated St. Stephen’s Green the best singles bar in the Mountain View area.”

Whelan is making changes in the Los Altos site’s entertainment schedule by upgrading it and working on special events.

“Our Mountain View location on Castro Street has a younger crowd and a disc jockey, with people walking the street constantly and dropping in. That makes it different than the older crowd that frequents us here in Los Altos,” Whelan said.

Finding a niche

Finding a niche helps, too. Mukhtiar Singh, owner of Satkar on State Street, said his lunch crowd is loyal to the authentic Indian cuisine that the restaurant features.

One of the busiest restaurants in Los Altos is Maltby’s on Fourth Street. Owner James Maltby attributes his business to the restaurant’s continued good food at a fair price.

Others say variety is key. At La Gondola Ristorante, owner Aida Khachatrian is promoting a new $9 lunch menu with rotating items to lure the lunch crowd, he said.

“Downtown is dying. Something has to change with some kind of events to keep people eating in Los Altos,” Khachatrian said. “Our food is just as good as Mountain View restaurants, but people still prefer to go there. We need help from the city to promote our downtown.”

Main Street Cafe & Books manager Jamie Tomaselli said business has increased since the owners put in books and expanded the menu. “Our mornings are busy with late breakfast customers,” she said.

The economic environment is poor, but no restaurants have closed in Los Altos since the economic downturn, according to city records. Palo Alto can’t boast the same: Numerous eateries have closed there, including Ben Bo’s, Circadia, Good Earth, Left at Albuquerque, Moe’s and Perry’s.