January 19, 2019, is approaching fast.
Unfortunately, we are just days away from the iconic Branding Iron of Preston, Minn., closing its doors.
KAAL6 News recently broadcast a feature highlighting the dilemma of Baby Boomers wanting to retire from owning their business, but not able to do so because they can’t find a buyer.
Our Preston Area Chamber of Commerce/Preston Area Tourism Director Gabby Kinneberg was interviewed, since she works with Preston area businesses in numerous capacities. And, the Branding Iron owner Steve Bahl was interviewed, as well. In the interviews, they both touched on the challenge we face in our small communities with keeping our businesses in business.
I don’t blame Steve. He’s been working there since he was 15 years old, and he deserves to retire. And, the price tag they have on the business is ridiculously low. Nobody could build the Branding Iron for the price they are asking — just $395,500. I’ve heard estimates of well beyond $1 million dollars based on today’s construction costs. So, it’s a bargain.
If the Branding Iron doesn’t get purchased and stay open under new ownership, I fear the fate of the restaurant at the top of the hill. The Branding Iron, alone, is a tourism destination. We have people come to Preston, Minn., from great distances for a special dining experience with a view made for a postcard.
There are only a few restaurants held in the same regard as the Branding Iron. The Hubbell House in Mantorville is one. The other one was Michael’s Restaurant in Rochester, which closed in 2015 after 63 years in business, due to a new downtown development project.
Will someone step up? Do we have generations coming up in the ranks who want to take on the challenge of owning a business? I hope so, or there will be a ripple effect.
There are three important things that a person needs in order to buy a business.
First, they need the money. Banks don’t lend money for blue sky. So, hard assets such as buildings and equipment are the only things a bank will consider. And, sellers may need to consider financing options to make that work. But, that requires a tremendous amount of trust between buyers and sellers.
Second, the person needs experience and knowledge. Going into business takes a person who understands multiple facets: accounting, marketing, customer relations, human resources, and the list goes on.
Third, they need to have the courage. A business owner will weather many storms, and they need to be in it for the long haul.
I hope we have someone who is excited about taking on the challenge of owning and operating their own restaurant. And, I hope they discover the gem known as the Branding Iron in Preston, Minn.
There are rumors that different groups may pool their money to purchase the Branding Iron and keep it going. I hope it’s true.
I would love nothing more than to publish a front page story about the new owners of the Branding Iron.
John says
The price is very low. If this would have been for sale 15 years ago I may have considered it. I spent twice that on a business back then that has consumed my soul and almost every penny I have. Being a baby boomer myself I know what they are going through trying to sell, Someone will come along. The place looks great and the view alone should sell it. The food is very good quality. I was raised on dining out in the Twin Cites so I know where the best restaurants are.