Reprinted with permission.
News, Page 1A
Feb. 27, 2014
Despite Mike’s Smokehouse closing, restaurant insiders
say the market is good for many businesses
By Emily Miels
Leader-Telegram staff
Local restaurant owners and others familiar with the industry remain optimistic about the future of
eateries in Eau Claire, despite the recent closure of Mike’s Smokehouse.
Mike’s Smokehouse closed Monday after being a part of the Eau Claire community for more than
three decades. More than 30 employees lost their jobs.
Joanne Palzkill, co-owner of Draganetti’s Ristorante in Altoona and a member of the Wisconsin
Restaurant Association board of directors, said she was shocked to hear about the closing of the west
side landmark with its Western-themed decor.
“That would’ve been the last restaurant I would’ve expected, based on how long they’ve been in town
and their reputation,” she said.
Eau Claire Area Chamber of Commerce President and CEO Bob McCoy said it always is
disappointing when a local business shuts its doors.
“You always hate to see a business in the community close, but especially a business that’s been
around for a long time and has been locally owned and probably a common name amongst the
citizenry,” McCoy said.
Jon Seybold, co-owner of Houligans Steak & Seafood Pub in downtown Eau Claire, said due to the
ever changing restaurant industry, he was not shocked about Mike’s closing.
“I guess it doesn’t necessarily surprise me,” Seybold said. “It’s a pretty competitive market.”
Adam Kazort, front of house manager for Picanha, The Brazilian Steak House, on Eau Claire’s south
side, echoed Seybold’s thoughts. “Restaurants come and go,” Kazort said. “That’s kinda how it is.”
Dan Pekol, franchise owner of Dickey’s Barbecue Pit in Eau Claire, said it is always sad when a good
place to eat shuts down.
“Whether it’s a barbecue restaurant, or any restaurant, we certainly feel bad for the employees and
owners when they close,” Pekol said.
Dickey’s currently is accepting up to half value on Mike’s Smokehouse gift certificates until March 15
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in an effort to help customers who may have received certificates to Mike’s over the holidays.
Changing market
Phil McGuirk, associate professor in the School of Hospitality Leadership at UW-Stout in
Menomonie, said the restaurant business is not like it used to be.“ Thirty or 40 years ago, if (a
restaurant) made it past the first year, you were good,” McGuirk said.
For many long-lasting restaurants like Mike’s Smokehouse, that is no longer the case.
“The old adage years ago was people would go back again and again to the same restaurant for the
same entree because they really liked it, and that’s what they came for,” McGuirk said. “I think that’s
still around, but nowadays I think people like to get out and try new things.”
Palzkill said the profit margin for restaurants is low, so it’s important for owners and managers to
know their business in order to stay in business.
“You’ve got to keep the sales up and the cost down and find the delicate balance in between,” Palzkill
said.
McGuirk said UW-Stout teaches students about the changing restaurant market in an effort to prepare
them to be successful in their future endeavors.
“They have to keep up with the times and keep up with the trends,” McGuirk said. “There’s more
competition now than ever before.”
Palzkill said the cold temperatures and snowy roads definitely have taken a toll on restaurants
recently. “All of that affects us,” Palzkill said. “Going out to eat is not a necessity, it’s a luxury for the
most part.”
Staying optimistic
Despite the cold weather and fluctuating restaurant industry, both Kazort and Seybold said it does not
seem like their restaurants are on the same path as Mike’s Smokehouse.
“Our last two years, 2012 and 2013, have been our best two years,” Seybold said, noting that he has
owned the business for more than 11 years.
Valentine’s Day and New Year’s were Houligans’ most profitable days ever, Seybold said.
Kazort, of Picanha, also noticed a good turnout for the holidays and said he’s not worried.
“Valentine’s Day was really, really good,” he said. “The whole weekend was good actually.”
Cathy Tepaske, manager at Acoustic Cafe in downtown Eau Claire, said she thinks the restaurant
industry will continue to see growth, especially as the community continues to grow.
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“People are always going to want to eat out and bring something home, so I think that we will
continue to have the restaurant options available, and I think the service industry is one that will have
continued growth in the future,” Tepaske said.
Eau Claire’s economic development administrator, Mike Schatz, said while disappointing, he does not
think Mike’s closing is a sign of the future of the Eau Claire restaurant industry or economy as a
whole.
“The size of our city with people’s preferences to go out to eat, I think we’re in good shape, and we’re
going to have a lot of different options for people,” Schatz said.
Palzkill, of Draganetti’s, said she hopes another restaurant eventually takes the place of Mike’s
Smokehouse and finds a place in the community.
“I think they had a great thing,” she said. “Again, I don’t know what happened in this instance, but I
think it would make the most sense to be a fully functional restaurant again, whether it’s barbecue
again or not.”
The chamber’s McCoy also said he hopes for a positive outcome for the Mike’s Smokehouse location
down the road.
“Hopefully there may be an opportunity for someone to look at the potential of reopening that
business again,” he said.
Miels can be reached at 715-833-9214, 800-236-7077 or [email protected].