What does the closure of beloved restaurants and music stores mean for small business in Minnesota?

A number of beloved Twin Cities businesses have announced plans to close their doors this year, from neighborhood joints that served burgers and malts for decades to fine dining destinations and longtime music outposts.

The reasons are varied. Some owners have cited rising rents, while others are ready to step into retirement. Business growth remains robust in Minnesota, however, according to the Minnesota Department of Employment and Economic Development (DEED), with more than 50% of businesses formed in 2019 surviving until 2024. More than 67,000 new businesses opened in 2024 in Minnesota, according to DEED, about a 50% increase from 2019.

Here’s a list of Twin Cities establishments that have closed or plan to in the coming months.

Annie’s Parlour closed July 1, after decades serving Dinkytown and the greater University of Minnesota community. The business owners revealed in a social media post that myriad issues led to the closure, saying, “To put it simply, we are losing too much money.”

Aside from a four-year hiatus beginning with the pandemic in 2020 , Annie’s Parlour served scores of people with original malt and burger recipes.

Hymie’s Records, a vinyl store that opened in Minneapolis more than three decades ago, closed in June.

Owner Adam Taylor said in a Facebook post that the store didn’t make enough money, forcing him to close. The store grew to become a staple in Minnesota’s music scene, earning a 2010 nod in Rolling Stone as one of “The 25 Best Record Stores in the U.S.”

Homestead Pickin’ Parlor, a music store offering instruments, repairs and music lessons will close on July 31 after 46 years in business.

The business, which served as the heart of the Twin Cities acoustic and bluegrass music scene, said a recent rent hike was behind the decision. But Homestead founder and co-owner Marv Menzel said that, at 82, he would close the shop “without regrets.”

Café & Bar Lurcat, an Old Hollywood-esque restaurant, celebrity magnet and top-chef training ground in Loring Park, will close after 23 years.

The restaurant’s last day will be Sept. 5, when its lease runs out. This most recent closure comes after D’Amico & Partners shuttered Campiello in Eden Prairie in 2023 to focus on catering events, but the company still operates three D’Amico & Sons delis in the Twin Cities.

Young Joni, a popular northeast Minneapolis restaurant helmed by chef Ann Kim, announced it will close Sept. 14.

The restaurant earned praise for its wood-fired pizzas and global fare, helping Kim earn a James Beard Award for Best Chef: Midwest in 2019. Since opening, other nationally renowned restaurants have filled out the block where Young Joni resides. But disputes over Young Joni’s lease terms ultimately led to the decision to close.

After serving Columbia Heights residents for more than seven decades, Heights Bakery announced it will close Aug. 1. The bakery launched in 1953 under management by the DeShaw and Doty family, but owners Dave and Debbie explained on social media that it’s time to hang up their aprons.

“Running a small business is a special kind of challenge, and like any business, while there are good days and bad days, good months and bad months, a bakery is a particular type of physical challenge,” the post read. “We understand that this may shock and sadden many of our fans, but we also know that we have been blessed with an incredibly supportive, caring customer base who will recognize the people behind the treats, and for that, and so much more, we enter these final weeks with immense gratitude.”

The owners of Palmer’s, a Minneapolis dive bar that was hailed as one of the best in America, said a national trend in declining alcohol sales led to the “incredibly difficult but necessary decision” to shutter the 119-year-old business on Sept. 14.

Those declining sales and challenges from losing nearby businesses drained between $10,000 and $30,000 a month from the bar’s coffers, according to the owners, but a neighbor plans to buy the the building for a community space.

The Minnesota Department of Employment and Economic Development (DEED) reports that small businesses, which are defined as companies that employ fewer than 500 people, make up 99.5% of all businesses in the state.

But between March 2023 and March 2024, at least 16,029 businesses opened as 21,448 closed, according to the U.S. Small Business Administration.

Still, Mary Haugen with DEED said small businesses tend to survive in Minnesota, citing state data which shows more than half of the businesses formed in 2019 remained open in 2024. But rising costs can prompt landlords to increase their lease and force businesses to close up shop.

John Stavig, managing director of the Holmes Center for Entrepreneurship at the University of Minnesota, said business closures in the Twin Cities are part of a national trend affecting companies with high labor costs, such as bars and restaurants. Many businesses survive in Minnesota by avoiding risks and conserving costs, but Stavig said that they must adapt to survive.

“If they’ve got high cost inputs, whether that’s labor or materials that are coming in, they’ve got to look at doing things differently,” Stavig said. “If they’re stuck in the middle and continuing to operate in the old mode, they’re exposed [to closing] if they become expensive and not as high-value. That’s not a good place to be.”

Nancy Ngo of the Minnesota Star Tribune contributed to this article.