Just 10 months after it reopened, Callahan's Siskiyou Lodge will cut expenses by closing two days a week.

Just 10 months after it reopened, Callahan's Siskiyou Lodge will cut expenses by closing two days a week.

The lodge, located just north of the Siskiyou Summit on Interstate 5, will be closed on Tuesdays and Wednesdays and serve only dinner on Thursdays.

Callahan's has faced an uphill climb to financial stability since its resurrection last August, said owner Donna Bergquist, who runs the lodge and restaurant with her husband, Ron. In 2006, a propane tank sparked a fire in the kitchen and the lodge burned to the ground.

The Bergquists built it back — at twice the size — and threw open the lodge's new doors in the Siskiyou Mountains just as the economy began careening downhill. Now, the Bergquists are pruning expenses to try to avoid being burned again — this time by the recession.

"It's better to use a scalpel than an ax," Donna Bergquist said. "We have to make decisions like these in order to be smart about the future of a business that has 62 years under its belt."

The lodge has seen revenues drop since it reopened, Bergquist said. She said she couldn't provide specific numbers, since Callahan's only recently reopened.

The reduction in operating hours hasn't resulted in employee layoffs, but the Bergquists have opted to not fill a few open positions and have trimmed some workers' hours, Donna Bergquist said. More than 30 people work at the lodge.

Closing on Tuesdays and Wednesdays makes sense because employment costs far exceeded revenues on those days, when few guests visited the lodge.

"Employment expense is absolutely the single biggest expense that we have," Bergquist said.

If business improves, it's possible that the lodge will be open every day again, she said.

"I think that this move on our part should be viewed not as a signal that we are struggling, because I think any business with any sense right now is looking to minimize expenses," she said.

Hannah Guzik is a reporter for the Ashland Daily Tidings. She can be reached at 482-3456 ext. 226, or hguzik@dailytidings.com.