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Every morning, Lary and Elena Waldman fire up the ovens of their bakery in the retirement community of Qualicum Beach on Vancouver Island.

Within an hour, the scent of freshly baked bread, cinnamon buns and brownies makes its way down Second Avenue West, while the couple waits for their regular customers to drop in for their first coffee of the day.

Life is slow here. In fact, almost 40 per cent of the town's 8,500 residents are over the age of 65.

The seaside locale has long been an attractive destination spot as well, particularly during the summer when both the locals and vacationers flock to the sandy beaches to swim, surf and sail.

Lary and Elena have been watching the Georgia Strait tides - and their customers - come and go for almost five years.

The couple, who are now both in their fifties, opened Elena's Bakery in 2004 with the intention of pleasing the palates of both the region's aging demographic population and its seasonal traffic.

"We pretty much run at full capacity from early June until October," Mr. Waldman says. "Then, aside from select holiday orders, things just drop right off."

Like other Canadian businesses that rise and fall with a transient client base, the 18-seat eatery is bracing itself for what might be a challenging summer.

The high dollar, along with the soaring price of gasoline, could have a major impact on the establishment's bottom line.

"Not only are our costs going up," he says, "but our numbers are likely to go down."

Elena's is also struggling with staffing issues.

"We have anywhere from four to six full-time employees at any given time," Mr. Waldman says.

"However, it has been almost impossible to keep anybody for longer than a few months as most people see the gig as a stepping stone to other things, or else they head back to school after the summer, he added."

What the experts say

Hudson Shotwell and his wife, Janet, opened the Trident Café in downtown Halifax in 1992, later moving to their current waterfront location in the city's trendy South End. A year-round mainstay for the local coffee crowd, business is steady for the couple, and they remain confident even with another sagging tourism season forecast for the Maritime hub.

"We never thought of ourselves as a one-trick pony," Mr. Shotwell says. "It might still be our core business, but sitting down for coffee is only one part of the experience that we offer here."

To that end, he recommends that his cross-country counterparts consider expanding or diversifying their products and services. "To complement the menu, they might look at using wall space to possibly sell new and used books, local artwork, music or even tourist-type fare," he says. "And it never hurts to leave lots of free goodies lying around either; newspapers, magazines, throwaway paperbacks, playing cards, chess, backgammon and cribbage boards often keep people glued to their chairs for another round."

Wireless Internet access is a must. "Your competition has it," Mr. Shotwell says. "So you better have it, too."

The Waldmans can put their prime location to good use as well. "If they have the space, then hosting different events is definitely good for business," he adds. "Live music, poetry readings, comedians, art exhibits, book clubs and even political debates will help to bring in more non-regulars."

Along with creating in-store options, there is room for Elena's to raise its off-site profile as well. "The profit potential for catering in both the commercial and residential marketplace is extremely high," he continues. "If the Waldmans can put together a variety of healthy, cost-effective menus to serve everything from small gatherings to major corporate events, then they can ensure a strong off-season performance."

Expanding the bakery will mean nothing, however, without greater market visibility. "Along with word-of-mouth advertising, fliers, posters, business cards, postcards, regular e-mail newsletters and online contests are all efficient and cost-effective methods of driving traffic to an updated website," Mr. Shotwell says. "And networking with local business associations or tourism bureaus is a great way to get the word out."

Lynn Palmer is CEO of the Canada Council of Human Resources. She believes there are a number of staffing solutions available for the bakery. "Ideally, what they want is a core group of year-round, full-time employees, and to bring people in for the peak summer season, special events and holidays," she says.

The Waldmans need only look to their own backyard for an able-bodied pool of talent.

"In a smaller retirement community such as this, there are most likely many older folks who are looking to keep active in the community," Ms. Palmer says. "They are a great asset to any hospitality-based business, and a full- or part-time position at the bakery or catering will give them the chance to stay involved."

The question then becomes one of scheduling. "Because bakeries must open quite early in the morning, they will want the younger employees to get the place up and running," she says. "Then, perhaps after the lunchtime rush, the older workers can come in for the afternoon and evening crowd, when things are a little more relaxed."

Having an on-call list will help during busier times. "Retirees, students, single parents ... there are lots of people looking for occasional work."

In a nutshell

Diversify Products

Selling books, music, artwork and tourist-type fare will generate more income. Free wireless Internet access, reading materials and board games will entice clients to stay longer.

Use of Retail Space

Regular events will help bring in more non-regular customers.

Advertising

Posters, fliers, newsletters, online contests and networking will drive traffic to both the bakery and its website.

Staff Structure

Hire older, full-time employees, adding seasonal staff when necessary.