Missoula, Montana – and Montana in general – is growing daily. Shopping, tourism, dining, and recreational activities are just a few of the ways the Big Sky State has been growing. Developing a city is not easy; it takes a ton of money, a lot of time, effort and, of course, more people. But what happens when that growth causes local businesses to struggle?
Missoula has always been known for having beautiful natural landscapes, local resources, a college town, and for the tight knit community. As Missoula grows more internationally recognized, it gains more traction and tourists, along with new local places to go to. This includes grocery stores, overall tourism, local businesses, and an increase in retail. As a city grows it becomes more populated with people from all sorts of backgrounds. This results in a need for more stores that fit more people’s interests and ethnic backgrounds.
When it comes to rent in Montana it is increasing on the daily. This is due to more people relocating to the city leaving limited housing and increased housing taxes and rent. Many of the people that have been living in the area for their whole lives are now struggling to pay for the land and housing they have been in possession of for years.
In a 2021 study conducted by Montana State University, they spoke about the amount of people moving to Montana and the reasons why. Locals believed it was because of the pandemic. However four percent of people moving stated it was because of the pandemic, and thirty two percent of people stated it was for lower costs in the housing market. The biggest reasons for people moving to Montana was because they could live closer to the outdoors, be in a less congested area, and live a slow paced, calm life.
However, the more people that move to Montana, the higher demand there is for amenities, restaurants, retail stores, and affordable grocery stores. This brings up the struggle to keep a local business in shape with newcomers and inflation. Businesses have so many things to do while they adjust to a bigger, more diverse city that is growing before their eyes.
Businesses are currently struggling to stay up and running as the costs for international shipping, rent, utilities, taxes, etc. Businesses have to pay for all of these big contributions that make a business thrive. When it comes to the businesses that are opening up they range from international food stores, to eclectic boutiques and a wide range of fancy restaurants.
Yuriko Hagen, of downtown Missoula’s local restaurant Sushi Hana, recently had to move locations downtown due to high rent fees. When asked if rising costs are affecting her business she stated, “Yes of course, but every business is facing that problem nowadays”. In this move she rebranded her restaurant to be a bit fancier and renamed it Hana. This move and rebrand was a long time coming and a huge step for her.
Many were upset about the move from the original location, however if she hadn’t moved it would have been worse for her restaurant, which is harsher than moving to a new location. Hana remains the restaurant everyone loves with a new fancy twist. Yuriko continues to serve customer favorites, along with special new items such as new desserts that catch everyone’s eyes. With the new rebrand and more affordable location it should bring in new and returning customers.
Another local business that is being affected by inflation is the Missoula Food Bank. The Missoula Food Bank is a resource for those who are experiencing food insecurity. The Food Bank also provides volunteer opportunities for those who want to help out the community. It is open to people of any age, gender, and background. As inflation worsens in Missoula, the rising prices are constantly affecting the food bank and how it operates on a daily basis.
Bob Pounds, purchasing and warehouse manager of the local food bank states “We have a budget and the way things are goPlPlaneing we could potentially go over budget. If costs do get too high we have reserves and funding that will help if things get rough”. This gives a clear picture of what inflation is doing to certain local businesses.
As inflation rises, stores that have a set budget could eventually fall into trouble with running out of funds. Pounds also mentions, “This isn’t affecting us too badly currently, but food, and other household items are getting more expensive. This might affect our customers in the future. It is even getting harder to purchase items to keep a standard office up and running”. As Pounds states the food bank is not struggling with the current prices, but as time goes on the future could be a different story. This could affect not only the business but also the customers.
The Missoula Food Bank is a center of community help and outreach. So many families in Missoula rely on the Food Bank to get them the resources that they need. If the Food Bank were to shut down the families that all rely on the Food Bank to get the resources they need would no longer have a resource in their lives that can keep them going everyday. The Missoula community is strong and full of fun, kind, lively people. The way that Missoula has been growing is not just negative. The more people that move here, the more diverse it gets. The people who are actively participating in local movements like the farmers market, local restaurants, and retail stores. However as stated previously the more inflation increases over the years the more our local businesses will struggle.
Local businesses and restaurants are no strangers to inflation but that doesn’t mean it doesn’t matter. Go to the local stores and go support the Food Bank and resources around the town. The more support they receive, the more people don’t have to worry about a part of the community being taken away.
