At the peak of Operation Metro Surge in January, Md Ikbal Hossain faced two pressure points at his Lake Street restaurant, India Kutir.
Customers were staying home. Latino employees were afraid to come into work. He had to call in family members to cover shifts.
“People were scared and not going out to eat,” the Bangladeshi-born chef and owner said. Business dropped 50% in January.
Despite those setbacks, Hossain is proud that his restaurant was only closed for one extra day during that window, for the “ICE Out” economic boycott on Jan. 23.
The challenges faced by Hossain — and other Indian restaurant owners — are a microcosm of the upheaval local restaurants faced as several thousand federal agents flooded the state.
The heavy Immigration and Customs Enforcement (ICE) presence largely shut down immigrant corridors such as Lake Street. Other parts of the Twin Cities were not exempt. The closure of Curry Corner in northeast Minneapolis drew international attention. At least two other Indian restaurant chains with suburban locations closed for part of January.
Owners say they are slowly recovering now, hoping for a boost from iftar dinners as diners slowly trickle back.
Videos of Curry Corner distributing samosas to protesters during the surge went viral and helped boost an online fundraiser. The restaurant reopened in late January.
Customers, workers stay home
Restaurant owners who spoke to Sahan Journal estimated their sales were down 20 to 50% in January and February. This includes some days when the restaurants had to close their doors.
The fear was palpable. Even immigrants who came to the United States decades ago, who are naturalized citizens, were staying indoors. When venturing outside, they carried their passports in case they needed to show proof that they were U.S. citizens.
Namaste India Grill and Brewhouse in Arden Hills closed from Jan. 20 to 28, owner Jatin Sharma said. But orders were still coming in.
“We shut down our online ordering system. But somehow the system still accepted payment for the first couple of days. Then our customers would call the restaurant. When we explained that we were closed they understood. They did not want their money back. They wanted us to survive,” said Sharma, who also has a stake in the Namaste India restaurants in the Twin Cities as well as the India Palace Uptown Grill.
Sriram Sitaraman, co-owner of Fresh India, a grocery store and eatery in Woodbury, said his store didn’t close but he saw a noticeable drop in walk-in traffic.
“Some employees were impacted too. “We owners started spending more time in the store and handled any threats.”
According to Hossain, business for India Kutir was down by 50% in January. December was also slow. “In January people were scared and not going out to eat. It was super quiet. But February is better with regular customers returning.”
In an industry that runs largely on immigrant labor, one of the biggest challenges restaurant owners faced was retaining employees.
“Many restaurant workers have left the state and don’t want to return to Minnesota,” said Diljit Singh Khosla, partner and co-owner of India Palace Roseville as well as several other Indian restaurants in the Twin Cities. “[Employees] are still staying at home. There is no manpower.”
India Palace in Woodbury saw staff leave for other states or not show up for work. This led them to close their doors for a week from Jan. 20 to 26.
At India Kutir, Hossain said his employees all have work authorization. However, some staff stayed home for their own safety.
A cautious recovery
With ICE agents leaving Minnesota, albeit slowly, restaurants are looking to recover sales. Currently, the Muslim holy month, Ramadan, is in progress. Many restaurants have catering orders for iftar parties — where friends and family gather to break their daily fast after sunset. Owners and managers are hopeful that business will improve with catering orders for some large iftar parties and things returning to normal.
Depending on the location of the restaurant, the Ramadan festival is not bringing a lot of customers into restaurants. “Ramadan is very slow. Nothing like last year,” Khosla said. “Somalis are not coming and we are not getting as much catering business for Ramadan either.”
However, there are many community iftar parties. At these events, local officials from the city, school districts and other organizations are invited. It becomes a 100 people plus event. Many affluent individuals hold an iftar event for friends and family. Catering orders for such parties help Indian restaurants.
Fresh India, in Woodbury, has Ramadan specials like mutton haleem, a savory porridge made with meat, wheat and lentils. Since last year, Fresh India has been offering Iftar boxes a “cost-effective” way to feed a family, Sitaraman said.
State, local efforts to help small businesses
Locally and at the Legislature, efforts are underway to provide relief for businesses affected by Operation Metro Surge.
In Minnesota, one in seven entrepreneurs are immigrants, according to North Star Policy Action, an independent research group. The group estimated that Minnesota saw $106 million in lost wages between early January and mid-February, due to workers and customers staying home.
The city of Minneapolis survey found that restaurants and small businesses lost as much as $81 million in January due to Operation Metro Surge. A separate small business survey estimated that 750 restaurants, bars, cafes, etc., lost an average of $20,000 per week.
Indian restaurateurs in the Twin Cities do not yet have a coalition put together to seek economic relief, however, there are some industrywide efforts, such as the Salt Cure Restaurant Recovery Fund, set up by the Minneapolis Foundation. The fund was accepting applications for grants in mid-February, but according to the foundation’s website, it will be offering support on a rolling basis as long as funds are left and restaurants are in need.
At the state level, Gov. Tim Walz announced a proposal for $10 million in emergency relief aimed at Minnesota businesses impacted by Operation Metro Surge.
Under the proposal, one-time funding would be distributed in forgivable loans ranging from $2,500 to $25,000. Eligible businesses must be able to demonstrate substantial revenue loss during specified dates tied to the surge.
Budget negotiations at the Legislature wrap up in mid-May.
