LOUISVILLE (WAVE) - The sluggish economy has many big chain stores taking big hits as consumers spend less. The nation's retailers posted their worst sales record in 13 years in March. But Louisville has a couple of local chains that seem to be expanding and thriving - and they're not exactly "necessity-based" - unless you consider cupcakes and coffee necessities. WAVE 3 Investigator Connie Leonard explains.

With some big stores filing bankruptcy and some restaurants reporting a decline in sales, we wanted to know how two local businesses continue to open more and more stores here in the Kentuckiana area.

Whether it's a hand crafted cup of espresso or a sweet treat, they're not exactly the basic staples in a down economy. But, business is, in a word, "Phenomenal!" said Adam Burckle, owner of the Homemade Ice Cream and Pie Kitchen.

Times are tough, but at the original Homemade Ice Cream and Pie Kitchen on Bardstown Road, sales are up 22 percent from this time last year.

Burckle told WAVE 3 they've been so busy it's hard to keep up. "It's like the lady that wrote me about the new Bardstown Road location last night and said 20 people were in line, and she's sitting there waiting."

Burckle doesn't mind complaints about long lines - because that's good news. His ninth pie kitchen is getting ready to open this week in Middletown.

From southern Indiana to Fern Creek, we wondered how is such a business explosion possible?

Burckle says personal service is key, and so are neighborhood locations. That means less gas is necessary when people need premium ice cream. "History repeats itself," he said, "because we are in an era where boutique stores and neighborhood service is very critical and important to people, and that's what you're seeing now."

Meanwhile, on Frankfort Avenue, Heine Brothers' Coffee co-owner Mike Mays recites their chain expansion motto: "Clean stores, friendly service, consistently excellent product quality and we are watching cash flow like a hawk."

In 14 years, Heine Brothers' Coffee has moved from one tiny store to 7 locations, and now employs 109 people and has a local warehouse where they roast their own coffee. Despite the success, they know their customers are feeling the pressure from the economy.

Mays described a recent conversation with a customer. "He said: 'I'm coming in every day, but I'm not getting the mochas every day; I'm getting an ice coffee because they are $1.35 less.'"

Mays is concerned about tight economic times and opening too many stores too quickly, but he believes his coffee business is thriving by being different from chains like Starbucks: Heine Brothers' offers 100 percent organic and fair trade coffee and they believe building loyalty in the community means everything.

"We try to give back when we're asked, and we try to be a vital, vibrant part of the neighborhoods where we're operating, and I think our customer base really appreciates that."

Heine Brothers' owners tell us being local and sustainable is what keeps them in business, although they did add drive-through windows at some new locations in the hopes of pleasing more customers. Eventually, they'd like to branch out into eastern Jefferson County and southern Indiana. 

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