On The Mark: Food providers adapt during 'stay at home'

I set out to ask small businesses in Carlton County how they are faring under social distancing practices. I found amazing spirit, concerns, and accommodation on the part of employers, suppliers, customers, and workers. Among those deeply challenged are those working with food.

It's not surprising that those engaged with growing, harvesting, processing, distributing, selling and preparing food face formidable challenges at present. Many café and restaurant owners have had to shutter their doors completely. Some continue to sell takeout.

What are the impacts on smaller enterprises in the food chain?

Let's start with farmers. Janaki Fisher-Merritt said the Food Farm in Wrenshall has been hit hard with the closure of organic-minded Duluth restaurants such as the OMC Steakhouse, Duluth Grill and Sarah's Table. Fisher-Merritt's sales to these three businesses amounts to about 20 percent of his business. Greater sales through Food Farm's CSA have helped, and because people are cooking more at home, he's selling more to area grocery stores.

Fisher-Merritt employs full-time and seasonal workers as well as some volunteers, many of whom have worked with him for years.

"We're working to keep our people safe," he said. "We work together most of the time, in the pack shed, greenhouse and on projects. We're used to eating lunch together around a large table. But now each brings his or her own lunch and we dine in front of our garage on lawn chairs."

The restaurant closings have made him nervous.

"These are skilled jobs, dealing with fresh produce," Fisher-Merritt said. He said he may apply for a small business forgivable loan. "If our sales drop by 20 percent, that's really going to hurt."

Retailers who sell food for home use are also making adjustments.

Cloquet Natural Foods (aka the Organic Carrot) has cut back to curbside service only. People call in orders and the staff assemble and carry out the food. They interface with customers via phone, messaging and Facebook, offering new products as well as staples. Food sales have increased because so many people are cooking at home. The store is experiencing high demand for flour and yeast.

Some suppliers are slower to ship than others, but everyone has been very understanding. "It's a different way to work," one employee said. "So much time on the phone. And it's hard to keep social distancing in mind."

At Cloquet's B&B Market, customers have made more than $57,000 in donations to the store, which then distributes boxes of its grocery items to those who need it.

Among retail food companies, impacts and strategies vary. Some, such as Cloquet's Taco John's and Steak Escape, have been able to shift all business to their drive-through.

"We have a loyal clientele," owner Judd Selland said. "They are coming partly to support our business."

The average sale is larger and multiple people can order simultaneously. They've expanded staff to assemble the meals, take orders and make meals more rapidly.

Selland applied for the forgivable Small Business Administration loan. "Our bank was helpful and we're hopeful," Selland said.

Natalie and Chris Swanson's Bearaboo Coffee had to become creative fast.

"March was our grand opening, and then everything quickly came to a screeching halt," Natalie said. They purchased the shop recently and were fixing it up, adding some merchandise and gaining customers. Fortunately, they have a drive-through. The Swansons worked quickly to create specific lunch specials and added call-in ordering and making box lunches for schools, along with a very popular Easter basket offer that included delivery.

When the COVID-19 restrictions were announced, they cut hours of service and reduced staff from 11 to five employees, two shifts per day.

"Technically, we didn't lay off anyone," Natalie said. "Several of them opted out or wanted to be home."

Working with Frandsen Bank, they applied for and received Paycheck Protection Act funding, which allows them to pay staff and those not working if they aren't on unemployment. "If you follow the guidelines, they will forgive the whole loan," Natalie said.

Carlton's Magnolia Café, owned and run by Yvette Maijala, has also had to shift gears. A charming redesigned vintage space with small tables, chairs, artwork and newspapers, Magnolia hosts groups of workers, neighbors and drop-ins daily, including Sundays in the summer.

It's a friendly but tight space that doesn't suit social distancing protocol at all.

Since the COVID-19 restrictions, Maijala and her employees are providing coffee and food to people in cars and through a front service window.

"I still have a nice flow of people coming and good community support," Maijala said. "My regulars come for the morning coffee and go over to someone's house to drink it. Or they buy coffee from me and brew it at home. Many are buying gift cards, leaving tips, and supporting us in other ways."

Magnolia has an active online presence, including a beignet special on Saturdays. "We sold 500 donuts over two days - people want comfort food," Maijala said.

Maijala has applied for every possible support: an Emergency Disaster Loan from the SBA and a payroll protection plan that permits her to borrow to pay for staff for eight weeks, and is forgivable if used promptly. Of her five employees, two opted to stay at home, one lost her other job and went on unemployment, and two are continuing to work.

Next week, I'll share the experiences of a hair stylist with her own shop, a small medical clinic, a small city government, a regional bank and its branches, a bed and breakfast with a performance space, and an insurance agency.