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 North Dakota's oil patch has been one of the faster-growing U.S.
regions. Small businesses employ three-fifths of the state's private
workforce, about 195,000 people, with food service and construction
among the larger employers, according to data from the U.S. Small
Business Administration (SBA).
While big oil companies grab the most headlines out of the state,
much of the local economy still relies on hotel owners, plumbers,
contractors and other small businesses, said Mike Gallagher, manager
of the SBA's North Dakota district.
"There's a note of caution right now around oil prices, but many
know the trends: things go down and things go up," Gallagher said.
"I haven't found anyone that's alarmed."
New coffee shops, restaurants and health food stores have recently
opened or are set to open in Williston, capital of the state's oil
boom. Roughly 78 percent of North Dakota's small businesses that
opened in 2013 were still around in 2014, SBA data show.
"Even if oil prices continue to fall, I think people will still
treat themselves to a good cup of coffee," said Louise Skaare,
manager of Lantern Coffee Company, a niche affair opening Friday
with a menu anchored by ristretto and cortado.
At first blush, organic food store Fresh Palate appears out of place
in hard-scrabble Williston, selling gluten-free biscotti, dairy-free
pepper jack cheese and organic baby powder suffused with probiotics.
"We saw a need for this type of store here," said co-owner Lacey
Dixon, a Williston native who opened Fresh Palate in December. "So
I'm not nervous at all about the oil price."
To be sure, the new businesses open during a difficult time for a
region so linked to oil, with crude prices down about 50 percent
since June. Layoffs are happening at companies both large and small,
though more than 2,000 jobs are still waiting to be filled.
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The number of job openings shows the labor market remains tight.
Skaare plans to close Lantern Coffee at 5:30 p.m. each day because
she cannot find enough staff.
Culvers, a privately held restaurant chain that competes with
McDonald's, held a job fair last month to find 100 employees. It
still has jobs to fill before opening later this month.
"This oil price dip is going to have an impact, but it'll just be
short term," said Rob Woodling, who is franchising the restaurant
with his wife, Casandra. "Williston has developed enough of an
infrastructure to support itself."
Qdoba, a Mexican chain owned by Jack in the Box Inc, is looking for
workers ahead of an early March opening. Red Wing Shoe Co, the
privately held work boot manufacturer, is looking for a manager for
a new Williston store.
"I'm not worried about oil prices at all," said Chris Duell, a
Little Caesars franchisee who plans to open by April if his
contractor can get enough staff to finish renovations. "Pizza sells,
no matter what."
(Reporting by Ernest Scheyder; Editing by Terry Wade and David
Gregorio)
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