According to the Bureau of Labor Statistics, approximately 20 percent of new business fail in the first two years, 45 percent in the first five years. When talking about a restaurant, that number spikes to 80 percent closure in the first five years.
This can be a negative motivator, preventing others from taking that same risk.
“I think opening up a restaurant, at least in Rapid City, is a really difficult task,” Nathan Dahl, Ugly Graffiti chef. “There’s not a good place to find all the information. It’s almost like opening up a place in Rapid City is like joining a club that no one wants you to find the membership form for.”
Dahl says that the process to apply for things like a liquor license should be more transparent. He believes that potential business owners should know in advance how long it takes to get an application approved.