New eateries reflect broader dining trends

As the local economy continues to redevelop, growth is being accompanied by new business opportunities. Over the past year and into the near future, several new eateries are or will give Wrangellites new options for eating out.

By now becoming a familiar sight at the curbsides of cities in the Lower 48, a food cart started by Jillian Privett in June is locally a first. What makes Wrangell Pit Stops unique is its "Alaskan-style grub" specialities like reindeer hot dogs with a variety of toppings and sandwiches made from game like elk and deer.

Running her own business is a first for Privett, who earlier this year purchased the stand through a contact in Ketchikan. She has it parked most of the time outside of the Privco warehouse but is able to relocate it whenever it suits her.

"I've always wanted to own some sort of a food establishment," she said. Privett got the idea for a food cart from seeing a similar stand while on a road trip with a friend in the Kenai Peninsula.

A familiar sit-down establishment will soon be taking on a new feel on Oct. 1 when Jerry's Arcade becomes Michelle's Taste of Asia. The Arcade is already offering different types of sushi and will soon start to offer other menu items as well as delivery service.

Running the restaurant will be a first for Michelle Lopez, a new arrival to the community. Jerry Massin, the proprietor of the Arcade, was introduced to her through his brother. She pitched the idea of a restaurant specializing in Asian cuisine, and Massin was supportive of the transition.

"He's been teaching me about the business," Lopez explained.

While her family is in the restaurant business, Massin has been giving Lopez some pointers on certifications, filing taxes, and generally running a business in Wrangell. On the island, he said the overhead costs of running a business are the biggest concern.

"Balancing is a toughie," he said.

As part of the transition, Massin has been upgrading the kitchen's facilities and is acquiring full food service permitting from the DEC. Afterward, Massin said he will not be retiring, but getting out of the restaurant business will allow him to focus on other projects as an electrician.

Lupe Rogers opened the Little Burro in May 2014. Her stand specializes in homemade Southwestern cuisine.

"It was a good experience. It still is," she said. Her business took shape after Rogers determined there was a market for the burritos she made in the morning. She had previously owned an espresso and book shop in Arizona during the 1990s, but the stand was a new experience.

There have been some challenges, she noted, particularly not having indoor seating and becoming familiar with the ebb and flow of customers. Flexibility has helped.

"I just stay open til I sell out," she explained.

"Restaurants have been taking off in Southeast Alaska," explained Meilani Schijvens, director of Juneau research firm Rain Coast Data. "They are booming; it is really interesting."

In its upcoming Southeast By The Numbers economic report produced for Southeast Conference, Rain Coast has determined 165 jobs in the restaurant sector have been added between 2011-14, a 14-percent increase. It grew by 5 percent between 2013 and 2014, while most other economic sectors remained stagnant.

"In a way it's the fastest growing thing," Schijvens noted. "It represented about a third of all growth in the visitor industry."

Wrangell's new businesses follow broader trends as well, according to Dale Fox, president and CEO of the Alaska Cabaret, Hotel, Restaurant and Retailers Association.

Smaller, specialized restaurants and food trucks benefit from their size, with proprietors saving money on stock from less waste produced than a larger restaurant with a bigger menu might.

"It's a tough business. Lots of businesses come and go," Fox said. "The big issues are cost-most people don't understand that a really good restaurant spends about 30 percent money on food, 30 percent on labor, and 30 percent on building."

A highly profitable restaurant might be taking in 10 percent, though most make from 4 to 6 percent. With such a slim margin, he explained the restaurant industry is vulnerable to changing food and labor costs, as well as the indirect effects of the economy on consumer spending.

"If the economy's good and people have jobs and they're making money, eating out is part of that trend," Fox said.

For Wrangell's new restaurateurs, the risks are worth their own personal rewards.

"I really like sushi a lot, and I really love cooking," Lopez explained. She will be bringing her family along, and when not in school, her children will help with business. "I've trained them to be hard workers."

"I enjoy it," said Rogers. "That's the greatest thing, is talking to people, meeting people."

"This is what I've always wanted to do," Privett explained. "It's nice to be my own boss. Starting a food truck is one of the hardest things to do, but it's worth it."