The Steady Drip Drip Drip

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Downtown Minneapolis mainstay Ike’s is shutting its doors.

The owner doesn’t chalk it up to any single cause. Rather, it’s the slow drip drip drip of urban decay:

According to Winstead, the negotiations were meant to “address restaurant and market conditions” impacting Ike’s bottom line, including “labor costs, operational costs, maintenance costs and taxes.”
“There are so many issues, not any one of them a restaurant killer on its own, but taken altogether it adds up,” [owner Gene] Winstead said.

And, naturally, the elephant in the room, the bit of blight whose name Minneapolis DFLers dare not speak:

Winstead “also cited a perception of downtown Minneapolis as unsafe for evening diners. ‘There is a little truth to it, but it’s mostly perception,’ he said.”

And it is – there are a lot of suburbans, by no means all conservatives much less Trump voters, who get hysterical about downtown crime.

But it’s not all hype. Unlike Saint Paul, which has its own perception problems, violent crime in general was up sharply in Minneapolis last year, along with a hike in homicide that is lower than Saint Paul’s, but started from a 2018 figure that was already higher.

But let’s back up to economics. When you point out that establishments in MInneapolis and Saint Paul are closing, they’ll respond “There’s always attrition in the hospitality industry”.

It’s not inaccurate.

It’s just that Ike’s other locations are booming right along.

As are suburban branches of other establishments that’ve packed it in in Minneapolis and Saint Paul.

This entry was posted in Business, The Economy and The Markets, Minneapolis by Mitch Berg. Bookmark the permalink.