The terrorist attacks are putting a serious damper on people’s desire to eat, drink and be merry, and that’s causing headaches for local catering outfits.

Cancellations, postponements and smaller-than-planned functions are affecting a local catering industry already challenged by a slowing economy.

Besides the understandably less-than-festive mood, another factor contributing to the downturn is the reduced ability or willingness of people to travel.

“There were very concerned, frustrated and upset brides for family members that couldn’t get in,” said Melissa Flanery, spokeswoman for Truly Yours Gourmet Foods and Catering in North Hollywood. Flanery said that wedding parties scheduled for the weekend following the tragedies generally reduced their guest counts by 10 to 20 percent, with one bride fearing that her father would not be able to make the trip from Sweden. (He eventually did.)

The immediate effect was worse for caterers serving the corporate sector. David Merrell, president of Hollywood-based An Original Occasion, said that about 50 percent of his scheduled events were cancelled during the week of the attack. Merrell, who estimated that 70 percent of his business is from corporate functions, said the cancellation rate last week was about 20 percent.

The reductions have forced caterers to deal with the sticky issue of charging clients for no-show guests. Flanery said that Truly Yours, which handles about 250 parties a month, is addressing each party on a case-by-case basis. “We’re trying to have a heart, but we’re eating it too, so there has to be a happy medium,” Flanery said. “It’s tough.”

At Santa Ana-based The Discerning Palate, the challenge is getting the necessary food items. “Last weekend, we had Mahi Mahi on the menu, but we couldn’t get more than 20 pounds because it comes from Fiji,” said co-owner Joan Hutchinson. “We had to fill in with shark.”

Even the delivery of domestic items was affected. “A lot of the specialty linens which come from Chicago came to a halt,” said Merrill. “But everyone was canceling anyhow.”

While shipments from overseas have resumed, increased regulations are driving up the cost of produce, like mangos and pineapple from Mexico and berries from Chile. “We’re getting the product, we just have to pay a lot more,” said Hutchinson, who estimates that her costs for international produce has doubled over the past couple weeks.

Flanery said lower guest counts was more of a short-term problem, and besides, wedding activity, which makes up about 70 percent of the business, tends to slow down in November and December.

Other factors are coming into play for caterers of corporate functions. The slowing economy may force many companies to take a more conservative approach to catered functions. “If there’s any slowdown, it has to do with the uncertainty of the stock market,” said Merrell.

And while he has yet to see a substantial reduction in charity-related event planning, Merrell is concerned about it. “Charities other than anything having to do with the bombing are very nervous,” said Merrell, who said that charitable functions make up a “sizeable” portion of An Original Occasion’s business. “Pediatrics, AIDS, breast cancer (-related organizations) are concerned about people stopping giving to their charities.”

In spite of the bleak times, Hutchinson is trying to take an optimistic view. “There are two trains of thought,” he said. “The first is that people are putting things off because of the tragedy. The second is people are saying, ‘Let’s live life to the fullest. I’m hoping for the latter.”