Celebrating one year Pat Brichacek (left) and her daughter-in-law, Susie Brichacek, are co-owners (along with their husbands, Brad and Joe) of BRICKS Travel Center in Motley, which includes a restaurant, gas station/convenience store and gift shop. They After a long Minnesota winter, signs of spring are slowly starting to emerge. Brown lawns are being replaced with splashes of green, the robins have returned home; and rivers, once covered with solid ice, are flowing freely once again.

With the nation-wide recession, many local business owners have faced a financial winter of sorts. Reports of tight budgets, employee layoffs and limited help from local banks seem to be in abundance, while profits remain deep in hibernation.

Is there a financial spring in sight?

The Staples World spoke with a few business owners in the communities of Motley, Pillager and Leader to learn how the current economic situation has affected folks here in Central Minnesota.

BRICKS BRICKS Travel Center, Motley, celebrated their first anniversary April 14; and will hold a Customer Appreciation Days Open House April 30 - May 7.

Eating out Mike Stevens, owner of Mr. Ed At a time when businesses seem to be closing left and right, the owners of BRICKS say they are grateful to still be afloat one year after opening.

“We take things one day at a time and try to do the best job we can with what we know,” said Susie Brichacek, who owns the business along with her husband, Joe; and in-laws, Brad and Pat Brichacek.

“We weren’t in this line of work before the recession. This (current economic

situation) is all

we’ve known,” Susie added. “Our bank has been really

helpful along the way.”

There are 27 employees who work for the Brichacek families, about half the amount of those hired at the beginning. “We really over-staffed at first. We weren’t sure what to expect and thought it would be better to have too many employees than not enough. We’re getting it all worked out now, though.”

Business partners Anna Hunstad (left) and Suzy Tholen own and operate The Shante in Pillager. They will have been in business for three years this May and report that (in spite of tough economic times) they are continuing to be self-supporting. (Staples World photo by Dawn Timbs) Joe and Susie are in charge of the gas station, convenience store and bait shop at BRICKS; Susie takes care of all paperwork; and Brad and Pat run the restaurant and gift shop.

It’s been a learning

process, Susie said as she

reflected on the past year. “We’ve had to change, readjust

and go forward when necessary. Nothing has been too traumatic. We’ve got great customers.”

They have heard rumors that BRICKS is closing, Susie commented. “I know that there are people who are watching to see if we can make it past the two year mark. The last people who owned this had it two years; that seems to be the test.”

Brad said he feels that they are doing pretty well, especially in light of the current economic situation. “We’re not going anywhere, I’ll say that,” he added.

Still smiling Gary and Glenda Dauer, owners of the Bear Mr. Ed’s

Mike Stevens has owned Mr. Ed’s in Motley for the past 10 years. As far as business goes, this has been the hardest year he’s ever encountered at his restaurant/gas station.

“The economy has really taken its toll on us,” he said recently. “It’s been tough, but we’ve managed to make it this far.”

He hasn’t had to let anyone go, but Mike has had to

cut at least 100 hours per

week to make ends meet. “I’m trying hard to keep my

employees. We’ve got good employees,” he said.

They’re doing their best to survive, he added. “The banks are really tightening up on lending...they just don’t want to loan anything right now.”

Mike said he’s been with the same bank for 30-some years. Although he’s always been told that banks want to help the smaller, locally-owned businesses, Mike is not seeing evidence of that lately.

He’s been working with a small business advisor from Brainerd, Mike said, which has been helpful. “They have some good advice, but without the money to be able to follow through with their suggestions, I’m really stuck in a hard place.”

He works a lot more hours than he used to, Mike said. “I’m not making any more money for my time, but at least we’re making it.”

Winters have always been hard, the restaurant owner said, but by this time things are usually beginning to pick up. Not this year. “But, we’ve made it so far...we’ll keep plugging away,” he added.

Although it was a tough year, they did some re-modeling at Mr. Ed’s. “We freshened it up a bit...added a coffee and soda bar; and a new burger menu...fresh burgers, we make our own buns.”

They’re also ‘going green,’ Mike said. “We’re encouraging people to bring in their own coffee mugs...trying a few different things to bring folks in.”

He appreciates the support of his customers, Mike said, adding. “Without them, we wouldn’t be here. You can’t lose sight of your customers.”

In his line of work, Mike

has learned that you have

to put the customers first. “I think the banks have lost

sight of that,” he said.

“I think they’ve been putting themselves first, instead of the customers,” Mike said. “When the customer loses trust in their bank, it’s devastating. You feel abandoned,” he added.

He’s been told by his bank that the value of his business is down. “I’m sure, with the economy the way it is, gas stations and

restaurants aren’t high on

a bank’s list,” Mike said. “But, I really feel that if

there’s a will, there’s a way. If they really wanted to help the small businesses, they would.”

The Shante

Anna Hunstad and Suzy Tholen have owned The Shante in Pillager for nearly three years. They attribute hard work, a prime location along Hwy 210; and a supportive customer base for their still being in business during an economic recession.

The economy was probably at its worst when they first opened their doors, but every year things have gotten a little better, Anna said. “Our banker said we opened at the worst possible time,” she added. “But, that’s all we’ve known, so we don’t have much to compare it to.”

The Shante offers food, coffee and a variety of retail items. They are also in the catering business.

“At the beginning, people were coming mostly to buy decorations,” Anna said. “But that’s changed. Now it’s our menu that seems to bring in the customers. We’re also fortunate that there are two clinics and a dental office nearby. They’ve been very supportive.”

Suzy said she feels that The Shante offers a pricerange people can afford and that she and Anna are always looking for new ways to increase sales. “We added pizza to try to get more evening sales...and catering has helped, too. We’re open to the needs of the area.”

They’ve had to put in some long hours; but Anna said that she and Suzy are grateful that they haven’t had to lay off any employees. “We’ve been self-supporting since the beginning.”

Motley Motel

Just east of BRICKS sits the Motley Motel, owned by Gene and Diana Eisel.

“Every month we’re a little nervous, but so far we’ve made it,” Diana said recently.

The Eisels, who have owned the motel for three years, said they were very busy at first. “Well, the pipeline workers were here when we first opened. When that project ended, we slowed up a bit. It’s starting to pick up with the warmer weather, and some of the boys who work for Mastec in Pillager have been staying with us,” Diana said.

Morey’s Seafood

Even large corporations like Morey’s Seafood International in Motley have felt the economic pinch.

Lynn Girouard, President of Morey’s Specialty Products at the Motley location, said that sales are down somewhat.

“Consumers have cut back across the board and that has certainly affected us. But, we’re faring it well,” Lynn said recently.

There are well over 100 employees at Morey’s in Motley, Lynn said. “We operate three shifts around the clock, Monday through Friday.”

Unfortunately, cuts have had to be made this year, Lynn said. “Not as many as some other companies, but you hate to have to make any cuts. It affects not only the person, but their family as well.”

Since Ed Morey first started the business in 1937, it has continued to grow and has established a solid customer base over the years. “We’ve weathered difficulties in the past and we’re confident that we will get through this economic situation as well,” Lynn said.

64-Stop/Bear’s Den

Gary and Glenda Dauer of Leader have been in business for the past 20 years. They’ve owned the Bear’s Den bar and restaurant for that entire time; and the 64-Stop gas station/ convenience store for the past ten years.

Located off of Hwy 64 in Leader, the restaurant and gas station are landmarks for both area residents and travelers.

“Winters are always hard for us, but this was one of the worst,” Gary said. “We’ll still be catching up with winter bills once summer gets here,” he added.

A number of factors have contributed to the Dauers’ financial situation, Gary said.

For starters, people have not been traveling as often as they used to; and when they do, they often bring

their own food from home,

stopping only for gas. “These shelves are usually

empty on a Monday morning,” Gary said at the store, pointing to a shelf still full of snacks, candy and soft drinks. “We really don’t make a lot of money on gas. We make our money from what we sell in the store.”

It’s hard across the board, Gary said. “I know there are so many people who have been laid off. They don’t have money to spend like they used to.”

Neither do the Dauers.

“We haven’t been able to get operating capital from our local bank, which has been really difficult,” said Glenda.

It was a blow, Gary said, when they were turned down for a loan from a bank they have done business with for 25 years.

“We actually heard it from a customer first, that our loan had been turned down,” Gary said. “The banker called the next day to say he was sorry they couldn’t help us.”

Glenda said she wishes the bank had been up-front with them from the beginning. “Almost eight weeks went by before they gave us a definite answer. We put off paying some bills because we thought maybe they could help us. Had we known, we would have made other arrangements at Christmas. We felt like they led us on.”

The Dauers later applied

for a loan at a second bank. “They turned us down, too,

but at least they were upfront from the start,” Gary said.

Following the advice of the second bank, the Dauers

have been looking into

other options of financing. “We’re selling some things

we own, doing what we can to get through this hard crunch,” Gary said.

Glenda said she could understand the banks’ reservations had she and Gary been just starting up their business. “But we are not brand new. We have a solid foundation. The banks should see that. Yes, it’s been a tough year, but we’ve gotten through it before and we will again.”

They’ve had to cut hours

with their staff, Gary said. “It’s been tough on them.

This affects everyone.”

Rumors that their businesses are closing haven’t

helped any, Glenda said. “People hear that we’ve

closed, so they don’t make the trip to Leader. We are still open.”

The federal government is making it hard for small businesses as well, Gary said. “We have to update our credit card till systems by July 1, or we’ll have to close. It will cost $22,000 to make this happen. I don’t know where the money will come from.”

Speaking of credit cards, Gary said he would like people to understand that it costs businesses money to process credit card transactions. “I had someone come in today to buy a can of pop with her credit card. It would have been cheaper for me to just give her the pop. That’s why a lot of people won’t accept credit cards for purchases less than five dollars. We lose a lot of money in situations like that.”

He sees some light at the end of the tunnel, Gary said. There’s more traffic on the highway; and the Dauers will soon be starting

their pig races, which

brings business to town. “We’re still smiling, even

after all of this hardship,” Gary said. “They haven’t whipped us yet.”

Banks

o Ric LaCoursiere, Vice President at Unity Bank in Staples, said he is well aware of the problems facing small-town business owners today.

“Everything is a chain

reaction,” he said recently. “If I’m a manufacturing

company and people are slow to pay me, then I’m slow to pay the next party, etc. etc.”

Banks are in a difficult position these days, Ric said. “We are under the office of the FDIC (Federal Deposit Insurance Corporation). We have to play by the rules and appease them, while still working to meet the needs of our customers.”

It’s a challenge, Ric said. “We’re a small-town bank and we exist to take care of our customers. But banks are scrutinized carefully by the regulators and we’ve had to tighten up and rethink how we can make loans to people.”

We want to see people succeed, Ric said. “It’s a challenge,” he repeated.

o Mary Kobliska, Branch Manager/Vice President at Mid-Central Federal Savings Bank in Staples, said that they are definitely lending money, as long as the qualifications are met.

“We want to see our local businesses stay open,” Mary said. “That helps everyone.”

Mary believes that the economy will turn around at some point. “I keep telling people that it will take some time, but if they can keep their jobs and spend within their means, they will have a much better chance at getting a loan down the line.”