Latino-owned businesses in Minnesota keep struggling amid immigration crackdown

St. Paul’s popular El Burrito Mercado grocery and restaurant is a family business now run by the second and third generations. The owners worry their fourth generation may not succeed them.

The 46-year-old business is financially squeezed by soaring inflation and anxiety among its Latino customers about immigration crackdowns.

“Even managing during the pandemic was easier than navigating through this,” said co-owner Milissa Silva, whose parents founded the West Side business in 1979. “We are impacted by the fact that Latinos aren’t coming and shopping as frequently in the market. There’s that fear of being in the streets.”

Last year business was “great.” This year, revenue is flat and grocery sales plunged 8%, while expenses soared 10% to 20%, Silva said.

Several other Latino business owners across the Twin Cities tell the same story: Sales are down and they need more customers to survive.

They are among the Latino-owned businesses in Minnesota that pay more than $300 million in annual payroll taxes, according to the Minnesota Department of Employment and Economic Development (DEED) and the nonprofit Empowering Strategies.

To survive, El Burrito has tightened its budget. It also joined a raft of nonprofits and businesses across the Twin Cities hosting festivals, launching social media campaigns and adding new menu options to try to increase customers.

El Burrito kicked off Hispanic Heritage Month earlier this month with a new social media campaign and a community festival complete with drink specials, new menu items and a mariachi band.

Across the river, the Lake Street Council joined the Latino Economic Development Center, city of Minneapolis and other sponsors to host a mile-long “Taco Tour” that started at Lake Street and 27th Avenue and stretched west.

Hundreds of neighbors listened to Latin bands, dined at food trucks, competed in hot sauce eating contests and signed up to win gift cards to 30 participating Lake Street restaurants and stores.

All the activity is badly needed, Lake Street Council Executive Director Allison Sharkey said.

Lake Street Latino-owned restaurants, bars and groceries are seeing a notable dip in business. Some told the Lake Street Council that customer traffic dropped as much as 65% since February when immigration crackdowns shifted to high gear, Sharkey said.

Protesters stormed streets outside the restaurant, thinking the raid was to arrest undocumented immigrants. The military-style raid actually was related to a drug trafficking case.

The chaotic scene added to Latinos’ concerns about stepped-up enforcement.

Down the street, taco-maker James Jaime said his business fell 15%, causing him to take on a second job at McDonald’s so he could support his children.

The Taco Tour is one of several events the Lake Street Council is hosting to draw more customers to the corridor’s immigrant-owned shops, many of which are economic linchpins of the neighborhood.

“We want to make sure everybody in the community understands that these businesses you love, if you still want them to be here a year from now, you have to come over and over again to support them,” Sharkey said.

It’s those achievements Silva wants to celebrate as she attempts to inspire neighbors and food fans with her business’ mariachi music, organic blue corn dishes and new drinks such as chili-citrus “Sangrita” and mezcal with cucumbers.

“My message is a reminder to get out there. This is a great time to support local Latino businesses,” Silva said. “We need you to come in and continue supporting.”

On Sunday, city, county and state representatives joined officials from Mexico’s Consulate and the Silva family as they sang with the mariachi band.

Mayor Melvin Carter dropped by Sept. 16 to show support.

”At a time when harmful anti-immigrant rhetoric is spreading fear and mistrust, we stand even more firmly with our immigrant neighbors,” Carter said.

Zach Kaszynski was walking to the farmers market when he heard Latin music, saw food trucks and stopped to grab some fun and food. He did not know how much the businesses were hurting.

“I’ll support them even more now that I know what this is all about,” he said. “I might even have to make a couple more stops today.”

Wearing a “Tacos! Not Tanks” shirt, Ingrid Rasmussen, the pastor at Holy Trinity Lutheran Church in Minneapolis, said she encouraged her congregation to show up and spend their dollars and time in the community.