Jul 29, 2008 10:54 pm US/Central
Minnesotans' Belt-Tightening Hits Restaurants Hard
(WCCO)
People headed out for dinner Tuesday night had fewer options in the Twin Cities after Bennigans restaurants nationwide and a Steak & Ale are closed for good.
One restaurant still open is Murrays in downtown Minneapolis, which has been home of the 64 ounce porterhouse for more than 60 years.
"I would say it's as challenging a time as I've ever seen in 25 years," said Tim Murray, the owner and president of the Minnesota Restaurant Owner's Association.
Among the many other closings in recent weeks: Applebees near Lake Calhoun, Baker's Square in Burnsville and Fhima's in downtown St. Paul.
The Minnesota Restaurant Association points to a perfect storm of factors.
"Commodity prices, high gas prices, just a general down surge in the economy right now," said Murray.
The restaurant association also blames higher labor costs in Minnesota: the minimum wage for workers receiving tips here is $6.55.
Surrounding states pay their restaurant workers less, but in this tough climate some restaurants are making it.
"We offer a really good price point," said restaurant owner Clark Knutson.
Knutson will be opening his second modestly priced Pop restaurant at the sight of the old Fhima's in St. Paul. He is stunned by the response to his recent help wanted ad.
"We put an ad on Craigslist and we received over 300 applications and they were very qualified people," said Knutson.
As displaced workers hope to find jobs, the higher end restaurants like Murrays plan to wait out the bad times.
"It will get better. We have seen these times come and go," said Murray.
And in just five weeks owner Murray said it will be Super Bowl Time -- he is not talking about football but the Republican National Convention. At Murrays, two of the four days at lunch are already booked solid during the convention.
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