The lack of snow has left some northern Minnesota businesses struggling

When Theresa Rautio was growing up in northern Minnesota, she remembers snow banks so high she could slide down them from the roof of her garage.

That’s a far cry from the past two winters, with almost no snow. And it’s been a huge blow to the family bar and restaurant she owns outside the small town of Britt, among the lakes and forests north of the Iron Range.

“It’s not just the wooden table. It’s all businesses up here,” she said. “We’re all struggling.”

The Wooden Table Inn is located just off the Taconite Trail, a major snowmobile corridor that stretches 165 miles from Grand Rapids to Ely.

In 2023, Tweetie, as everyone calls her, counted over 1,000 snowmobilers eating and drinking at her restaurant.

“Last year we had 10 sleds, while this year we had 14 sleds. And then it rained on us,” she said. “In 2023, I sold 1,500 gallons of gas. I am the only place on the trail that sells premium gas. And last year I sold 10 liters of gas.”

It’s been so slow that it’s closed on Wednesdays and Thursdays. It cuts staff on Sundays. “I have become a very good dishwasher,” the 64-year-old joked. She worries she may not make it until spring.

“It’s devastating. It’s the difference between keeping the lights on or not in the winter,” she said.

However, Rautio emphasized that she is not giving up smoking, not after facing COVID-19, staff shortages and inflation. She said the business has been a community staple in the area for decades. She took over after her brother, the previous owner, died suddenly in 2019.

“I will fight it to the bloody bitter end,” she said.

The lack of snow has also hurt retailers, resorts and lodges, mechanics and other businesses that cater to motorists.

Kyle Colbert and his wife run Lake Vermilion Houseboats. In the winter they rent out about a dozen snowmobiles, when he usually earns up to a quarter of his income. But he has barely rented any snowmobiles the past two years.

“We had a set coming out the day after Christmas, and then after that we had to cancel everyone else,” he said. “We won’t rent sleds until we get a little more snow.”

Last year he qualified for a federal emergency loan from the Small Business Administration. But he said the money has not yet arrived.

“What we are really asking for is that we need help from the state,” he said. “There was some talk last year with Explore Minnesota that there would be some grants through the state and we really need that if they want to have tourism.”

Despite the lack of snow, some businesses are seeing a big rebound from last year.

Paul Schurke, owner of Wintergreen Dogsled Lodge in Ely, said the rides are fully booked.

“The phone just rings and rings every day,” Schurke said. “There is so much pent-up demand after last year’s dismal snow drought. People are desperate to get out and enjoy some kind of winter.”

Conditions are not optimal, with only about six inches of compacted snow on the ground. But this is enough to safely drive the sled dogs.

Cold temperatures have brought a strong start to the ice fishing season in much of the state. And downhill ski areas have been able to make a lot of artificial snow, including in Duluth, where Ann Glumac manages Spirit Mountain. She said sales have doubled compared to the same time last year, and slightly ahead of the previous winter.

“We’ve had a good start to our season and a good week off. So we are actually doing well,” said Glumac.

But the lack of natural snow still hurts the bottom. It costs several hundred thousand dollars to pump water from the St.

“So it’s a significant expense, but it definitely allows us to open up,” Glumac said.

Across the region, people who rely on winter tourism are worried about the future. Northern Minnesota winters have warmed several degrees over the past few decades. While many winters are still snowy, meltdowns have become more common.

Kim Osterhoudt has owned Pine Beach Resort in Side Lake for 30 years.

“This could really change northern Minnesota,” she said. “I don’t mean this as a statement of fear. I just mean it’s changing.”

Osterhoudt weathered COVID, but she said the past two winters have been the worst she’s seen.

“I had business every month with COVID. I had to do a lot of special things to make it happen. But I can’t make snow and I can’t make ice,” she said.

Osterhoudt and other local business owners gathered this week to brainstorm and share ideas to stimulate business. They plan to produce posters thanking customers for their support.

They also want the Minnesota Department of Natural Resources to allow ATV riders to use frozen snowmobile trails when there is no snow.

“We’re realizing this may be a trend, not a coincidence,” Rautio said at The Wooden Table Inn. “That’s why we have to make changes.”