With summer in full swing, Northeast Minneapolis’ restaurant patios are once again filled with regulars, newcomers, and perhaps people from outside of the metro finally crossing off a restaurant to try on their list.
Despite this, several recently published hospitality and leisure market reports shed light on the highs and lows facing the food scene.
On June 2, North Star Policy Action, the Minnesota-based independent research and communications institute, published The Impact of Operation Metro Surge on Minnesota’s Leisure and Hospitality Sector, which comes just months after the height of the increased presence of federal immigration enforcement in the Twin Cities metro area.
According to the report, in the first three months of 2026, Minnesota’s leisure and hospitality sector were projected to lose approximately 4,600 jobs, and 3% of weekly hours among employees who kept their jobs. Together, the report says, it implies that $71 million in wages were lost across January, February and March. The report concludes in determining that leisure and hospitality was the most deeply impacted industry by Operation Metro Surge.
Separately, Hospitality Minnesota, the statewide trade association representing Minnesota’s restaurant and hotel industries, released its annual report this past spring. Among other findings, Minneapolis saw a 6.6% drop in employees and a nearly 5% drop in establishments year-over-year.
“While top-line indicators show a stable hospitality industry, the bottom line shows a bleak future for our industry. There is a clear disconnect between high-level stability and bottom-line health,” the report read in part, citing federal tariffs that have increased wholesale prices as well as state and local regulations negatively impacting businesses’ ability to create jobs. “For long-term recovery and survival, our industry needs major reform with business-friendly policies that encourage a thriving hospitality industry instead of hindering it.”
Wages across the state have continued to rise amongst hospitality workers, with a 3% growth. However, the report notes, “When wages rise faster than revenue can follow, operators are forced to make painful decisions — reduced hours, smaller staffs and closed doors.”
A similar sentiment can be seen around Northeast Minneapolis.
On one hand, there have been positive developments.
Momo Sushi, which suffered a fire that resulted in the closing of its Central Avenue location, recently announced that it has official plans to reopen at the former Beast Barbecue location, 825 E. Hennepin Ave. Meanwhile, Indeed Brewing Company recently expanded its outdoor seating area to accommodate around 100 more visitors.
On the other hand, it’s been hard to ignore recent closures — including Fair State Brewing Cooperative’s taproom on Central, and Bauhaus Brew Labs closing at the end of June.
Minari, 323 13th Ave. NE. (Morissa Young)
Last fall, Minari, 323 13th Ave. NE, added Pikok Lounge to its building and food offerings. Ownership described it as a positive development. The addition, which features an affordable happy hour, was in part an effort to reach new customer segments.
“Northeast has its own personality. We wanted to match that and create something to liven up our bar space, rather than just having it be the bartop at Minari,” said Arrik Lentz, General Manager at Minari. “The menu’s lower price point aims to capture the potential for an everyday or every-week favorite bite for someone coming home from work in the neighborhood.”
He added that making the space more casual while remaining intentional — seen through its red lighting and midcentury modern furniture, was their way of joining the local food scene while adding something different. Still, Lentz acknowledged that the early success of both Minari and Pikok Lounge haven’t come without the challenges laid out in the recent hospitality reports.
“It’s been a challenging start, to say the least,” Lentz said. “From the tariffs to getting our footing as a new restaurant to the ICE occupation, we faced many new challenges to navigate. Our restaurant group is lucky to have a talented in-house corporate team with deep restaurant knowledge who work across all our locations to handle the larger-picture strategies.”
As patio season reaches its peak, the months ahead may offer a clearer picture of whether the industry’s recent challenges represent a temporary headwind or a more lasting shift for one of Minneapolis’ most recognizable economic and cultural sectors.
Lentz says the community can still support the restaurant sector’s growth if they’re unable to make it to their physical locations.
“It’s not feasible for everyone to go out to eat every week, regardless of the price point,” Lentz said. “If you’re unable to join us, talk about us. Tell your family what you liked about us. Tell your coworker where your leftovers are from.”