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Biz climate too cold for comfort

Territorial labour shortage claims another victim

Thorunn Howatt
Northern News Services

Yellowknife (June 26/02) - Yellowknife's Dairy Queen is one more victim of a city-wide labour epidemic. The restaurant will close at the end of the week.

"I lost $1 million here," said Yellowknife Dairy Queen restaurant owner Seamus Henry.

NNSL Photo

Yellowknife Dairy Queen owner Seamus Henry will close the doors of the summertime favourite restaurant at the end of this week. - Thorunn Howatt/NNSL photo



He and his family have been burning the candle at both ends to keep the business' doors open but now they have decided to pack it in. "I thought we could keep it open when we closed Mary Brown's down (six weeks ago)."

About three years ago Henry opened the Dairy Queen franchise store along with an attached Mary Brown's Famous Chicken and Taters restaurant. The businesses were making money but keeping staff was a problem. Yellowknife is in the middle of a territory-wide labour shortage. NWT statistics have shown fewer than 1,500 unemployed people throughout the territory.

Last week a report from the Canadian Federation of Independent Business showed that in Yellowknife labour shortage is the greatest concern to business people.

Henry has been a Yellowknifer for more than 25 years and owns commercial properties in Yellowknife and Fort Simpson.

"I look most forward to going home at noon and having lunch with my wife," said Henry, who wearily explained that before he had the restaurant he rarely missed a day sitting down at the lunch table and talk about the day's events.

"Lately, I have run myself ragged."

Henry surveyed the sparkling clean restaurant. Its counters were lined up with customers and everything was meticulously clean.

"The reason I'm closing -- I can't operate up to my own high standards."

The decision to finally close was sudden but it had been building for some time. Henry closed the Mary Brown's side about six weeks ago and hoped to use its staff to cover Dairy Queen. "But it just got worse."

Last year, Yellowknife's Tim Hortons restaurant was forced to close.

During that time, the owners claimed they couldn't keep up with customer demand and a 24-hour schedule with too few staff. That store has since found new owners.

McDonald's restaurant also closed during some evenings recently.

Job-hunters can find lots of work in Yellowknife for excellent wages.

"The mines are the greatest competition for workers," said Henry. Most of Dairy Queen's employees are teenagers who work part-time. The business is closing right at the busiest time of its year but also at a time when many teens like to take time off to travel with their families.

The Dairy Queen business has been for sale for a few months now and includes the building, furniture fixtures, restaurant equipment and property.

Henry said he will consider leasing the business but warns that new entrepreneurs should be prepared for long days.

"This is hard work here. At other places things are prepared ahead of time. Here you have to make desserts."

Dairy Queen employs as many as 30 people and the whole Henry family works there.

"My closing isn't going to take the pressure off the labour problem," said Henry, who predicted that more business closures are probably in the future.

"I suspect there will be more to follow."