Tunnel Lake Trading Post was started sometime in the 1950's by Howard and Margaret Tapp. Howard had been a logger before he and his wife began the business, which was then called Gould Lunch as it was in Gould Township. Howard used skids to bring the original part of the building from Coburn Island over during the winter. When Howard died, Margaret and her son Keith ran it until they sold it to Norma and Jack Johnson in 1970.

In 1971, Norma and Jack obtained a take-out liquor license, added stock, and built the 10-unit motel which is there today. As the business had gone down in the past few years, these additions helped to increase the interest in the store once again.

Pat and Len Dosman bought Tunnel Lake Trading Post in 1977. They began a 7-day work week, as the owners before them had not worked Sundays. They added a larger section to the store, put in propane, started selling live bait, and tore down a wall in the store to put in a souvenir shop. Attached to the store was a small coffee shop where they sold toast, coffee, tea, soup, and other similar foods. On the other side of the coffee shop were their living quarters.

In 1984 Keith Dosman bought the store from his parents. He transformed the living quarters into a restaurant, and lived behind the store in a small house with his family, until his new house was built. Keith now caters mainly to campers and tourists, as well as many locals.