Against the odds, several hopeful entrepreneurs launched small businesses in Winnipeg's core last year

Numerous iconic Winnipeg businesses shut their doors forever in 2022, but it was also a year aspiring entrepreneurs filled the void by launching longed dreamed of ventures of their own in the city's core.

Mohamad Barafi says ever since he and his two business partners opened Les Saj Middle Eastern restaurant in St. James in 2012, they've wanted to open a spot downtown.

"When you go to downtown in any city, not only in Winnipeg, it's like it's a dream for any business to open in downtown," he said. "It's the heart of the city." 

They saw the opportunity to realize their goal and seized it in spring 2022, despite the country's inflation reaching a 31-year high at that point. 

Barafi and his colleagues opened their second store at 480 Portage Ave. in May, taking over the location from a Greek restaurant that opened just months before the pandemic struck and was forced to close. 

"We believe in ourselves, we believe in our product," he said. "I believe the people ... love our food." 

'Massive opportunity'

Just a block or so to the south of Les Saj, another business recently entered the downtown market.

At 288 Colony St., a steady stream of young adults check out the racks of clothing in Hobby•ism, which opened on Boxing Day.

General manager Daniel Basanes said when Chris Watchorn, co-owner of the store, got in touch with him almost nine months ago, the idea struck him as a "massive opportunity" they simply couldn't pass up.

"Rarely do you get an opportunity to kind of push the needle forward for the city in terms of opening up a concept like this," said Basanes. "So, we were undeterred. Call it brave or a little crazy."

Hobby•ism is a menswear store aiming to provide a curated wardrobe for men in Winnipeg, according to Basanes. 

"I've worked retail for a long time and throughout my years I've been able to kind of ... identify some niche and some gaps in the city," he said. 

"We wanted to bring a lot of menswear brands in the city from other parts of the world, whether that's New York or L.A. or Europe." 

'Cautious' optimism in West End

Joseph Kornelsen, executive director of West End Business Improvement Zone (West End BIZ), said up to the middle of last year — the latest period for which they have already analyzed data — the number of new businesses in that area eclipsed closures.

"We saw a lot of closures in our neighborhood over the over the pandemic, and you know, with uncertainty going into the future we continue to be cautious," said Kornelsen. "However, 2022 was a year where we began to see a turnaround in growth in the West End."

There were 862 businesses in the West End BIZ coverage area at the start of 2022, Kornelsen said, and by the middle of the year that number had jumped by 10 businesses to 872 in total.

Kornelsen said as a result of the numbers he's "cautiously optimistic" about the prospects for businesses in his zone in 2023.  

The caution comes from inflation, which financial experts forecast will continue to put pressure on Canadians. That could also create a climate of uncertainty for businesses, Kornelsen said.

Triumphing over challenges 

Though he remains optimistic, Barafi says there were serious challenges last year at Les Saj.

He says the foot traffic is lower than expected and they've had to funnel catering jobs from the St. James business through the downtown store to keep it going.  

Crime also ate into the business's bottom line. Barafi said there were two break-ins and thefts at the downtown store in two months.

"It was really tough ... the window is still broken over there," Barafi said. "They stole the iPads, they stole some cash, they stole some food."  

Barafi said he's also had to change his staffing arrangements after a man tried to rob them at gun point. 

Still, he said he's "hoping for a better year" in 2023.  

"The love of the community around us, the support of the community always motivates us [to] keep us going," he said. 

Basanes at Hobby•ism shared a similar sentiment. 

One of the store's signature design features is floor-to-ceiling glass walls. It opened in the final days of 2022, and already one of those walls has been completely shattered.

Basanes said while the experience was frustrating, the community support they received was also overwhelming.

"I feel like if we keep our doors open and, you know, we stay working hard, people will come through and they'll see the good thing that we're doing here." 

Triumphing over challenges, hopeful entrepreneurs launch small businesses in Winnipeg's core

2 years ago

Duration 2:20

With high inflation and low foot traffic, 2022 was a tough year for many businesses downtown Winnipeg. But despite the challenges, it was also a year of growth for some.