Starting a business during an economic downturn is not an easy task. However, for David Carles and his wife, Jana Etheridge, who a year ago opened a coffee and wine cafe in Denton, the journey has been rewarding.

With loyal customers, dedicated employees and community support, Cafe Du Luxe will celebrate its one-year anniversary this week.

“The recession has been a challenge for new businesses,” said Etheridge, a director in the financial industry and co-owner of the restaurant, “but we were able to overcome that by truly focusing on the customer experience.”

DRC/David Minton

David Carles, co-owner of Cafe Du Luxe, has events planned to celebrate the one-year anniversary of his business at 3101 Unicorn Lake Blvd. in Denton.

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The owners built on that customer experience by offering more than specialty coffees and wines. Cafe Du Luxe, 3101 Unicorn Lake Blvd., features live music as well as art exhibits, something Carles considers a great addition to the business.

“We are now booked through March of next year; it’s been a huge success,” he said of local artists’ response to the opportunity.

Deb Kreimborg, who specializes in fine art photography, is the cafe’s July artist of the month. She said having her work, “Backroads,” a collection of 20 photographs, on display at the cafe has provided her with great exposure.

“I appreciate Dave and what he is doing for artists,” she said. “He supports his community.”

A year ago, Carles was unsure what his business model would be. He thought at first he would open a franchise coffee shop and later, after meeting with Pam Livingston of the North Central Texas College Small Business Development Center, he decided to develop his own concept.

DRC/David Minton

The interior of Cafe De Luxe offers an eclectic atmosphere.

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Shopping for financing took time.

Carles said he visited as many as 30 banks, and was turned down every single time.

“I had to beg someone to lend us money,” Carles said with a laugh. He said he was grateful when a lender supported his business concept.

“When David came to us, he was enthusiastic about his plan and his business model,” said Matt Lilly, who specializes in small-business loans at American Business Lending in Dallas.

“We are willing to look outside our normal box if the deal makes sense,” Lilly said.

According to CNNMoney.com, in the first nine months of the 2009 fiscal year, the U.S. Small Business Administration approved roughly half as many loans as it did in 2008, making it more difficult for future business owners to achieve their goals.

To support his case for a loan, Lilly said Carles had done his homework and presented a business plan that was thorough and covered every aspect of his business.

Before developing the idea for Cafe Du Luxe, Carles worked for two years at a Starbucks shop and learned how the business operates. Prior to that, he worked for American Express for 15 years before the company eliminated his position.

“I was a financial consultant in corporate America,” he said on the cafe’s website. “And  then, nothing.”

Etheridge spoke of the value of her husband’s perseverance.

“We thought banks would be competing for our business, but we kept on getting ‘no’ after ‘no,’” she said.

“You knock on enough doors, somebody is bound to open up,” Carles said.

The cafe opened July 31, 2009, and now has five full-time and seven part-time employees.

Carles manages to divide his time between business and community work.

“We have been a member of the chamber since before we opened,” he said. “I am a chamber ambassador and now I have an opportunity to help new businesses get opened. That is a lot of fun.”

Alicia Brosey, the Denton Chamber of Commerce’s director of membership and programs, said she sees Carles at least twice a month helping officiate at ribbon cuttings and serving as a mentor to new businesses.

“Even when he was short-staffed, he was still attending our events,” she said.

Carles also is part of the Leadership Denton class of 2010. The program provides training sessions to help residents become more aware of opportunities for community service. Also, his cafe was selected as the best coffeehouse for 2010 by the Denton Record-Chronicle’s annual Best of Denton survey.

Carles said he believes in small business and wants everyone to support them in Denton.

“I want to do business with the independent business owner in Denton. I want to keep my money in Denton and give to those that live, work and spend their money in Denton. You see more of that [here],” he said.

Carles said he plans to continue growing his business and possibly open a second Cafe Du Luxe in another part of town.

“It is important to us to maintain the American dream, and small businesses are the heart of what made America strong and I think is what will make America strong again,” he said.

During this week’s anniversary activities, the cafe plans to reward its customers with special treats such as $1 muffins and free mini-cupcakes on certain days.

Two special events are planned: a Denton chamber event from 7 to 9 p.m. Wednesday, and a friends and family event Saturday. More details are available on the cafe’s Facebook page.

KARINA RAMÍREZ can be reached at 940-566-6878. Her e-mail address is kramirez@dentonrc.com.

CELEBRATION

What: Cafe Du Luxe Birthday Week

When: Monday through Sunday, Aug. 8

Where: 3101 Unicorn Lake Blvd.

Details: Call 940-382-7070.

BUSINESS RESOURCES

•  North Central Texas College Small Business Development Center offers free counseling on planning, financing, marketing and other areas of starting or operating a small business. Visit www.nctc.edu/SBDC/

sbdc.html.

•  U.S. Small Business Administration offers tools and resources necessary to write a business plan. Visit www.sba.gov/smallbusinessplanner/plan/index.html.