COLUMBIA, S.C. — Another locally owned restaurant in the Midlands announced they are closing their doors in a matter of days. On social media, Poogan's Southern Kitchen in Forest Acres says they will close after brunch on Sunday. News19 checked in to see what challenges other businesses in the area are facing.
“The higher my knowledge base goes up in the business, the more I realize all the things I don’t know,” Kristian Niemi said.
Niemi is the owner of Bourbon, Dragon Room and Black Rooster restaurants in Columbia.
“One of the restaurants that I had definitely suffered from rent rates. A super high rent, triple net, and it was just unfeasible to continue it. There was no profit left in the restaurant after I paid all of those," he said.
After 29 years in the business, Niemi says it's challenging to be an independent restaurant owner instead of a chain.
“I would say to anybody that's starting out in the restaurant business is to first consult with somebody already in the business, who is experienced with leases of this nature. You know, talk to a restaurant owner who has a lease, go over it with him. Go over leasing. Go over it with the leasing agent not in involved in the place that you're looking at and get an honest opinion on what's in the lease,” he said.
But rental rates aren’t the only struggles food and beverage businesses are facing. Kellan Monroe, the owner of Craft & Draft, with locations in Columbia and Irmo, says the future is uncertain for bars.
“Insurance which we're required to be able to purchase an alcohol license to be able to sell alcohol to the public, that insurance has pretty much quadrupled for us. We've paid a bunch off our Irmo location and it's independent. So now, in both of our locations, it's our third largest expense that goes payroll, rent, then insurance -- and that's solely to be able to operate,” he said.
Not only is the insurance high, but Monroe says it’s also difficult to find companies that will insure these establishments.
“We’re actually, today, writing a new policy for this store at our Devine Street location and there's about three companies that do it total right now. It had gone down to two, it went back up at three and then it went back down to two and that's it. It's not like you can really shop in an open market. You really just are forced to buy with what they will sell you,” he said.
Current state law requires restaurants that serve alcohol to have a $1 million liability policy, making it difficult to stay afloat.
“When you drink in an establishment, they're now responsible for you. And if you leave that establishment and you cause an accident that causes some either life or bodily, like personal injury, we're all like liable for it,” Monroe said. “I think you're in for a tough road. I think that you know, people that can operate their restaurants pretty thin will be able to survive this. I think that you're probably looking at a lot of people choosing not to sell alcohol at all. just because of the expense will be not worth not worth it. It's not worth it to sell alcohol.”
