Some small businesses thrive in challenging times by adding services or expanding their venues. Nearby, darkened storefronts testify to brutish market forces.

Staff writer Alexander Rich asked five Bay Area entrepreneurs to share their experiences. He heard diverse stories:

* One restaurateur succumbed to rising food costs, while another found creative solutions.

* A coffee vendor emphasized aesthetics, while a candy maker invested in his product.

* Some said local government helped them. Others called it a nuisance.

* All are optimistic for the area’s future.

See their stories here.

Design regulations frustrate expanding candy shop

A room with a view might attract more customers, Clayton Shaw figured.

Cranberry Sweets in Empire has been a great place to make candy, though the retail side of  the business hasn’t been profitable for decades. So when Shaw began seeing a slight increase in sales at the store, and at the same time needed more production space, he saw opportunity:

He would install windows where customers could watch the candy being made.

But while Shaw aimed to open up the kitchen’s inner workings to the public, city officials were focused on the building’s exterior. Cranberry Sweets is located in Empire’s historic district, meaning construction must follow strict rules about exterior design and coloring. Shaw finds the rules frustrating.

“It seems arbitrary that this is going to be a fishing village from the turn of the century,” he said.

Furthermore, Shaw said, focusing on his exterior forced him to alter his plans for the inside. He said he had to eliminate some of his viewing windows and spend less on growing his business.

“Money I’m spending on decorative friezes, I could be using to buy equipment that would require the hiring of an employee to operate,” he wrote in a fax.

Rather than promote the past, Shaw thinks the city really needs to promote the South Coast’s biggest asset.

“We have to show people where the beaches are and let them know how great they are,” he said.

The store is still open for business while construction proceeds. Completion is expected by the end of the summer. He is abiding by the historic district’s mandate, though with some reluctance.

“I’ve got a business to brand,” he said. “Their interest is in branding Empire.”