As the federal immigration enforcement action in Minnesota drags into another month, ripple effects are being felt in business. The industry most affected seems to be restaurants, where a broad-based cross section is reporting revenues off 50% compared to a typical January. (Restaurants also have struggled with labor shortages due to the loss of workers. Twin Cities restaurant kitchens are predominantly staffed by Latino workers, many of whom have felt unsafe leaving home.)
Restaurants typically lack deep cash reserves or lines of credit. Most pay rent every month and have a mix of salaried and hourly workers. Though restaurants adjust staffing to expected business, they cannot sustainably staff for a night with 12 customers.
TCB spoke with a group of prominent Twin Cities restaurateurs—household names—who shared details of their financial distress. They are among the most sophisticated local operators with the greatest access to resources. They said if business does not improve in the coming weeks, the industry is facing an extinction event in the Twin Cities…