Challenges of small businesses
During a recent visit to Lotus
I recently met with a group of Ward 7 restaurant owners to hear more about their business challenges, including public safety concerns, access issues during construction, and the reality of tight profit margins. I was told by one owner her goal is a profit margin of 2-3%. Think of the tremendous value it is to have great places to dine in our city and also the tremendous work involved in running a restaurant. The question is: at some point do these small margins drive businesses away?
Earlier an owner told me that, among her many other jobs managing the business, she now picks up serving shifts when her employees are out because her bottom line requires it. I also heard concerns that the entertainment venues in our city pay some of the highest sales tax in the nation.
I could tell these business owners were committed to their employees and our community, but were also frustrated by the lack of responsiveness from the city council. How can the council promote economic vitality and development in Minneapolis without taking the voices of small businesses into account? You can’t… and it’s not just an issue in Ward 7. Business owners in George Floyd Square aren’t being listened to either—they want the mayor’s flexible street design while the council wants a cul-de-sac. The mayor wants to move the project forward for the community and for healing, but the council majority wants to delay. In fact, the council continues to spend taxpayer dollars to study their preferred design, even though it’s out of line with the neighborhood’s preference.
This year, our current council member brought forward a funding request for an additional $500,000 to study pedestrian malls, including George Floyd Square. The total taxpayer price tag spent on community engagement and the study of George Floyd Square designs is now at $3.4 million. Why is the council actively against the voice of small business? When ideology trumps economic revitalization and community preferences, it’s a recipe for stagnation and waste, pure and simple.
A healthy business community supports good jobs, vibrant streets, and tax revenue for our city. I’ll be showing my support for Minneapolis restaurants this Thursday by attending the big Dinner Du Nord event on Nicollet Mall, an outdoor dining event with 2,000 people sitting down together to have a meal! Tickets sales have closed, but I hope to see some of you there.