MN Restaurateur 8 Months Into Pandemic: 'We Are Not Surviving'

WEST. ST PAUL, MN — Ann and Robert Ulrich opened their second local restaurant, FoodSmith Gastro-Pub, in early March. West St. Paul's newest pub was forced to close just nine days after opening as the coronavirus began spreading in Minnesota.

"I won't sugarcoat things, this has been the most difficult time financially, mentally and emotionally ever in the 20 years my husband and I have worked in the restaurant business," Ann Ulrich told Patch back in April.

"Nothing compares to this."

More than eight months later, things have only gotten worse for Ann and the thousands of other restaurant owners in the state. Congress has failed to pass additional financial relief measures for restaurants and bars forced to shut their doors, even as the rate of COVID-19 cases, hospitalizations, and deaths have surged across the nation.

State lawmakers waited until mid-December to pass a relief package.

"We are exasperated wondering if and when those who are responsible for mandated closures will also bear some level of responsibility for the financial fall-out they have mandated," Ann told Patch in an email Thursday.

"We are ever grateful for the dedication and support of our local neighborhood customers who have rallied around us in support. But honestly, it is not their responsibility to sustain this level of fall-out."

Shutdowns stymie revenue

From March 27 through June 10, restaurants were not allowed to serve customers inside their buildings. Limited indoor dining was allowed from June 10 until Gov. Tim Walz issued a "four-week pause" on in-person dining and other activities from Nov. 20 through Dec. 18. It's not yet clear if Walz will extend that order.

Unlike fast-food chains like McDonald's — or even fast-casual places like Panera Bread or Jimmy Johns — the two restaurants the couple own, Foodsmith and mendoberri, aren't in a position to profit when takeout is the only legal option.

The amount of time, preparation, and specialized labor that goes into making the menu items from Ann and Robert's restaurants means they can't produce their food cheaply or at high volumes.

As a result, they've been operating at a 70 percent loss in revenue since March.

"The only way we have been able to survive at FoodSmith is a direct result of our banking partner deferring our mortgage payments (we own our building), coupled with laying off or reducing hours for all of our staff," Ann said.

"Robert and I have been working around the clock to avoid incurring the same level of labor costs as prior to the pandemic. We are eeking it out doing takeout, but still operating at a loss."

The financial situation is much worse the couple's Mendota Heights restaurant they've run for a decade. "We are not surviving at mendoberri," Ann said.

Immediate relief necessary

Ann is grateful to the local community for patronizing their restaurants' takeout options during the various statewide shutdown orders. But given how long the pandemic has drawn out, the financial problems facing her and other restaurants are far too big to be solved by eager customers alone.

"This is not a 'takeout-sized problem.' This is not a 'GoFund Me'-sized problem. This is not a problem of restaurant owners just needing to 'pivot' or 'get creative' or 'do more marketing to get more takeout orders,'" she noted Thursday.

"This is a massive issue that requires structural relief from the state and federal levels."

On Monday, state lawmakers passed a $216 million economic relief package for small businesses in Minnesota. The bipartisan bill passed both chambers Monday night and is headed for the governor's desk to be signed.

The bill provides direct support for small businesses:

• $88 million in direct payments to restaurants, bars, and gyms
• $14 million for convention centers and movie theaters
• $114.8 million for "local economically significant businesses and organizations" including non-profits
  • These funds will be distributed by counties

The legislation also extends unemployment benefits for an additional 13 weeks.

"This will help not only our laid-off employees who were concerned about the imminent end to unemployment [insurance] but to us as well," Ann said. "We have laid ourselves off as employees of both businesses and have been filing for unemployment since July."

Ann and Robert Ulrich also expect to receive some of the funds allocated for "direct payments."

The governor himself has said Congress needs to act, because state budgets are too small to provide all of the necessary relief.

"It's the immediate relief that is what's needed right now," Ann concluded. "Other things can be addressed as part of a broader "stimulus" package. Relief first...then stimulus. One is emergency. The other is long-term."

Also read: MN Gov. Tim Walz To Extend Ban On In-Person Dining