Despite economic uncertainty, changes in Fairbanks restaurants, chamber of commerce remains optimistic
FAIRBANKS, Alaska (KTUU/KTVF) - Along with the impending closure of Lavelle’s Bistro — a longtime dining staple of downtown Fairbanks — the Greater Fairbanks Chamber of Commerce said Tuesday that it’s seeing a trend of area restaurants changing ownership in some manner.
Frank Eagle, one of the owners of Lavelle’s Bistro, said the announcement that the restaurant will close its doors has resulted in a surge of business, with people coming from out of town to eat there one last time.
While Eagle works to make sure the crowds at his establishment are well-fed up until the restaurant’s closing, chamber CEO Donald Burgess said the shuttering of Lavelle’s isn’t totally surprising when considering trends in the community, particularly as they relate to the economy.
“On a personal basis, I’m going to miss Lavelle’s,” Burgess said, adding that it’s not too much of a shock to the chamber given the current economic climate. “It’s not unusual for businesses to be sold ... we have heard of other restaurants in the area that are also changing hands.”
While The Crepery and Ivory Jacks are also changing ownership, Burgess said, he also said that he isn’t extraordinarily concerned about the moves, particularly given that the changes appear to be isolated to the spring.
Additionally, the sale of any business takes time, he said.
“It just seems to be a coincidence that so many of them seem to be happening right about now,” Burgess said, “but we think the economy is still strong, especially in the restaurant business, and people still have choices of where they can go to eat.”
On the flip side, the owners of Lavelle’s Bistro attributed the closure of their restaurant, in part, to economic uncertainty.
“The new administration is doing some things that have never been done before and the ramifications of them are being felt worldwide,” Eagle said.
“I’ve heard of some, you know, where they’re saying they can’t absorb all the cost themselves indefinitely,” Burgess explained. “So they’re looking at passing minimal increases on to the consumer.”
Among those uncertainties is the price of eggs, which has been affected by a strain of avian flu circulating around the country.
“When it comes to the price of other inputs, some of which will be affected by tariffs and other uncertainties, you just don’t know, but it doesn’t seem to be affecting Fairbanks as much as the rest of the United States,” Burgess said. “So, what I’m seeing here, from my vantage point is the horizon doesn’t look that bad. There’s some uncertainty, but business is going to continue.”
The expectation of a record cruise season also stands to provide some measure of relief as well.
As locations like Lavelle’s Bistro close or change ownership, Burgess said that the short rise in unemployment that may come from changes in the restaurant industry in Fairbanks should be minimally impactful to the economy due to the smaller size of the industry as an employer.
“There definitely has to be staff changes, so you’re going to have a period where some people will be out of work, but once these businesses get back up and running, they’re going to need employees,” Burgess said.
Burgess added that he believes the economy for Fairbanks as a whole looks promising and the community is “not only resilient, but we’re also creative and we find ways to get around and over whatever challenges come to us.”
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