Restaurant closings are still piling up in Minneapolis, and things could get worse

The Star Tribune reported the following today:

Chino Latino, the global street food restaurant near the corner of Lake and Hennepin for 20 years, closed Sunday.

“The decline was in place three to four years ago,” said Phil Roberts, co-founder of Parasole Restaurant Holdings in Edina, which owns and operates Manny’s Steakhouse, Pittsburgh Blue, Field Day, Good Earth and Burger Jones. “It began gradually and then COVID and the protests and rioting hit.”

Chino Latino is not the the first restaurant/business to close permanently citing an unfriendly business environment in Minneapolis. Unfortunately, if current conditions persist, more closings could follow.

Restaurants have already expressed worry about the growing crime situation in Minneapolis. On top of that, they face overly restrictive capacity limits that have made business highly unprofitable. The cold weather could exacerbate issues.

Capacity limits are a big hindrance, especially in the winter

To date, more than 50 restaurants have closed in Minneapolis since the pandemic lockdown. Other cities, like Duluth, are also facing closures due to Covid-19-related restrictions. Survey data predicts that this trend could worsen.

Quite recently, a survey by the Minneapolis Federal Reserve and Hospitality Minnesota has projected that as much as 52% of restaurants would close if capacity limits continue in the next 4-6 months as the winter would make it impossible for restaurants to seat customers outside. While restaurants have been creative and are trying to extend the patio season by investing in heating systems, these measures are costly. It’s unlikely they can be employed long-term.

If extended, COVID-19 restrictions could, therefore,  prove even more disastrous, forcing many more businesses to close.