PAUL'S--
>>>
>>> TONIGHT IT IS SAFE TO SAY PEOPLE ARE NOT HAPPY ABOUT THE
CLOSING OF ST. PAUL'S HAPPY
GNOME.
GNOME.
GNOME. THE BELOVED BEAR HAUNT, AND
EATERY ANNOUNCED ON FACEBOOK,
IT WOULD SHUT DOWN, COME
SUNDAY, AND FOLKS DON'T LIKE TO
LOSE THEIR FAVORITE HANGOUT,
BUT IT SEEMS IT KEEPS
HAPPENING.
HAPPENING. LOOK AT THE RESTAURANTS THAT
CLOSED IN 2019 ALONE.
PLACES LIKE CORNER TABLE, IT'S
GREEK TO ME, THE SALTY TART,
AND THERE ARE MANY, MANY MORE.
IN THE HAPPY GNOME'S CASE,
WE'RE TOLD TODAY IT WAS A
VARIETY OF REASONS THAT LED TO
THEIR CLOSING, AFTER 14 YEARS.
THE OPERATIONS MANAGER TOLD OUR
REPORTER, THIS WAS NOT AN EASY
DECISION, AND THAT THEY HAVE A
GREAT CUSTOMER BASE.
>> PARTLY JUST BECAUSE, THE
LEASE WAS UP FOR RENEWAL.
IT SEEMED LIKE A GOOD TIME TO
CLOSE, AND ALSO OUR OWNER, TONY
HAS, HE WAS DIAGNOSED WITH
CANCER ALMOST EXACTLY A YEAR
AGO.
AGO.
AGO. SO
AGO. SO HE'S BEEN DEALING WITH THE
CANCER.
CANCER.
CANCER. HE'S HAD SURGERY, RADIATION,
AND SO THAT DEFINITELY PLAYED
INTO OUR DECISION NOT TO RENEW
OUR LEASE.
OUR LEASE. >> THAT MUST HAVE BEEN A TOUGH
DECISION.
DECISION.
DECISION. THE CLOSURE WILL AFFECT SOME 60
PEOPLE THAT WORK AT THE HAPPY
GNOME, OBVIOUSLY RIGHT BEFORE
THE HOLIDAYS.
THE HOLIDAYS. THEIR LAST DAY WILL BE THIS
SUNDAY.
SUNDAY.
SUNDAY. THEY WERE ALWAYS KNOWN FOR KIND
OF BEING A PIONEER IN THE BEER
BUSINESS, WAY BACK WHEN, 14
YEARS AGO, WHEN THEY PUT 90
BEERS ON TAP.
THE HAPPY GNOME, FOR THAT WON
LOCAL AND NATIONAL AWARDS, AND
THEIR FOOD WAS REALLY, REALLY
GOOD AS WELL.
BUT HERE'S THE CASE.
NO MATTER HOW WELL KNOWN, HOW
MUCH A PLACE IS LOVED, KEEPING
A RESTAURANT AFLOAT IS FLAT OUT
HARD.
HARD.
HARD. I
HARD. I SAT DOWN TODAY WITH TIM
NIEVEER.
NIEVEER.
NIEVEER. TIM HAS OPENED AND CLOSED
SEVERAL POPULAR RESTAURANTS
AROUND HERE OVER THE YEARS, AND
HE WAS KIND ENOUGH TO CHAT WITH
ME ABOUT THE UPS AND DOWNS OF
THE BUSINESS.
THE BUSINESS. >> ONE, TWO, THREE, FOUR, FIVE?
>> Reporter: THAT'S HOW MANY
RESTAURANTS TIM HAS HAD A HAND
IN OPENING OVER THE LAST 15
YEARS.
YEARS.
YEARS. OF
YEARS. OF THOSE FIVE --
>> HOW MANY HAVE YOU CLOSED?
>> ALL BUT THREE.
>> Reporter: SO 40% CLOSED UP.
60% SURVIVED.
60% SURVIVED. AND IN THE RESTAURANT BUSINESS,
THAT'S A SUCCESS.
>> WHAT DO WE NOT KNOW ABOUT
THE RESTAURANT INDUSTRY?
THOSE OF US ON THE OUTSIDE OF
IT.
IT.
IT. >>
IT. >> I
IT. >> I THINK EVERYBODY DOES KNOW.
I THINK IT'S A COMMON THING
THAT EVERYBODY KNOWS THAT THIS
BUSINESS IS RISKY.
I'M SURPRISED WHEN PEOPLE ARE
SURPRISED WHEN RESTAURANTS
CLOSE.
CLOSE.
CLOSE. >>
CLOSE. >> SO WHILE WE MAY BE SURPRISED
IF A RESTAURANT THAT'S BEEN
AROUND FOR A LONG TIME CLOSES,
YOU'RE NOT.
YOU'RE NOT. >> NOT AT ALL.
IN FACT, THE LONGER IT'S BEEN
AROUND, THE BETTER CHANCE IS
PROBABLY HAS OF CLOSING IN A
LOT OF WAYS.
>> Reporter: THE REASONS WHY
ARE PLENTIFUL.
ARE PLENTIFUL. FOOD COSTS RISE, LABOR COSTS UP
SIGNIFICANTLY.
SIGNIFICANTLY. RENTS IN SOME NEIGHBORHOODS
HAVE BEEN SKY ROCKETS YEAR
AFTER YEAR, AND ALL THE WHILE,
MORE OPTIONS KEEP POPPING UP.
CLUEINGBITE SQUAD, FOOD DASH,
UBER EATS, ALL OF THEM BRING
MEALS TO YOUR HOUSE.
WHILE ALL OF THAT IS GOING ON,
IN ADDITION TO INCREASED COSTS
--
--
-- >>
-- >> THE
-- >> THE MARGINS ARE THIN, AND
YOU KNOW, THERE'S TRENDS.
>> WE ALWAYS HEAR THE MARGINS
ARE THIN, BUT HOW THIN?
>> IF YOU GET TO A 10% MARGIN
IN FINE DINING, YOU'RE LUCKY.
I WOULD SAY THERE'S OTHER
HIGHER VOLUME TAKEAWAY PLACES
THAT CAN MAYBE PUSH, YOU KNOW,
INTO THAT 15% RANGE.
>> Reporter: MARGINS MEAN WHAT
THE RESTAURANT PROFITS.
TIM WAS TALKING GENERALLY,
RIGHT THEN, ABOUT RESTAURANTS
AND THEIR TYPES, AND HOW THEY
DO.
DO.
DO. SO
DO. SO WHEN I ASKED HIM ABOUT HIS
RESTAURANTS, MOOCHYS, AND ST.
DINETT.
DINETT.
DINETT. >> IT CAN GO FROM 2 TO 12%.
IT REALLY HAS BEEN ALONG THOSE
LINES, DEPENDING ON WHERE WE
ARE, WHAT YEAR IT WAS.
>> Reporter: AND ONE MORE
THING.
THING.
THING. THAT IS PRETTY UNIQUE,
UNFORTUNATELY, TO THE MINNESOTA
FOOD SCENE.
FOOD SCENE. >> THIS YEAR'S BEEN PARTICULARY
HARD.
HARD.
HARD. WE
HARD. WE SAW IN ALL OF MY
RESTAURANTS, 20 TO 30% DECLINE
IN SALES DURING THAT 60 DAY
WINTER SCENARIO.
WINTER SCENARIO. >> THAT FOR SOME RESTAURANTS
COULD MAKE OR BREAK.
>> THAT'S IT.
AND WE'RE LUCKY TO GET THROUGH.
>> Reporter: THIN MARGINS,
THICK BANDS OF SNOW, A
SATURATED MARKET, RISING WAGES
AND COSTS.
AND COSTS. DANG, THIS IS DEPRESSING.
BUT TIM IS AN OPTIMIST.
IT'S WHY HE KEEPS OPENING
RESTAURANTS AFTER TOUGH
CLOSURES.
CLOSURES.
CLOSURES. >> I THINK THIS IS A GREAT,
GREAT SUPPORTIVE SET OF CITIES.
SUBURBS INCLUDED.
SUBURBS INCLUDED. IT'S A GREAT SUPPORT STAFF.
WE DO HAVE A GREAT FOOD SCENE.
WE DO.
WE DO.
WE DO. WE'RE JUST MAYBE DISTRACTED BY
THE GOODNESS.
THE GOODNESS. >> HAD TO BRING THAT UP A
LITTLE BIT.
LITTLE BIT. IN CASE YOU WERE WONDERING WHAT
PLACES TIM HAD THAT AREN'T
AROUND ANYMORE, HE SOLD TOM
TUCK DINER YEARS AGO, AND
CLOSED THE VERY POPULAR STRIP
CLUB.
CLUB.
CLUB. STOP, STRIP CLUB'S A
RESTAURANT.
RESTAURANT. IT WAS IN ST. PAUL.
SO I'M