Jan 14, 2025
SIOUX FALLS, S.D. (KELO) - Last year, Sioux Falls saw the closure of more than a dozen restaurants and breweries. The two most recent closures, Papa Woody's and McNally's Irish Pub, happened right in the middle of the holiday season. In Tuesday night's Eye on KELOLAND, we talk with small restaurant owners about the current economic climate in downtown Sioux Falls. Roots of Brasil is coming up on three years of serving authentic Brazilian dishes in the Eastbank area of downtown Sioux Falls. Running a small business during the slower months "We've really honed in on our skills, our abilities and we're excited for the years to come while also creating awareness for the fact that we are here," Courtney Hardie, front of house manager for Roots of Brasil, said. "We're just right over the railroad tracks." Raising awareness is an important part of running a small business. "You know, it's always difficult being a family-owned business because that means we have less budget for marketing, for campaigning," Hardie said. "So where a lot of people will turn to chains, it's really advantageous for people to actually eat at local restaurants and also just support local." Sometimes support doesn't come in as strongly as they'd like, though. "The struggle we are seeing is, you know, less patrons," Hardie said. "There's a few reasons for that and one of them is with the economic stability right now. People have less of a discretionary income. So they decide, you know, it's groceries or eating out." Small businesses aren't immune to rising costs either. "So not only are your groceries increasing but rent is increasing, everything else," Hardie said. "So the food that we purchase is increasing and especially downtown because it's a sought after spot in location. That just amplifies that increase in cost." Those struggles make marketing campaigns like the Burger Battle that much more important for downtown Sioux Falls. "We didn't do Burger Battle the first year in business and we definitely saw the advantages of being in it," Hardie said. "Burger Battle has been awesome for restaurants and I think for Downtown Sioux Falls and the community," Michael Haskett, owner of MB Haskett, said. "It's been great for retail businesses that are next to restaurants and it's also great for the community. Before Burger Battle, it was very sleepy. It was hard to make rent. It was hard if you were an employee to make money to make rent." Michael Haskett and his restaurant, MB Haskett, have been a part of downtown Sioux Falls for almost 13 years now. So he's seen the ebbs and flows of being a business owner. "I would say that the climate in downtown Sioux Falls is similar to what it's been in years past. It doesn't seem necessarily better or worse than other times of year," Haskett said. "I do feel that customers might be more cautious right now." Business owners just hope that when you do have extra money available, you choose to spend it locally. "We are the places that help, you know, make the culture of our town. Places like Chef Lance and Perch and Swamp Daddy's – all these locally-owned restaurants are what give us the flavor of our community," Haskett said. "If we don't want to have boring, cookie cutter, nothing-but-boring franchise restaurants in our city, we really got to get out and support your favorite locally-owned restaurants." "We're your neighbors. We are people that want to see Sioux Falls thrive and want to keep it thriving," Hardie said. "We've created these businesses and we've invested in these businesses in the hopes that people want that same idea of building our community."
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