When chef Joseph Rainey and his wife Eliza Berard opened Skogen Kitchen, a chef-driven fine dining restaurant in May 2017 in the town of 1,900 people in Custer, South Dakota, they knew they were taking a risk. I was aware that Nevertheless, they all pitched in, borrowing $30,000 from his mother and using credit cards to finance the opening.
But seven years later, Skogen Kitchen has become a hit. In fact, Rainey was a semifinalist for James Beard's Best Chef in the Midwest in 2023. Prior to that, he studied at the Hollywood Kitchen Academy and cooked at Napa Rose and Marche Moderne in California.
location, location, location
Like many restaurants, location, location, location plays a huge role in success, as Custer is within driving distance of Mount Rushmore, the historic Crazy Horse Monument, and the scenic Black Hills. According to a report by the Landscape Architecture Foundation, Mount Rushmore attracts approximately 2 million visitors annually.
They named it Skogen, which means forest in Norwegian. Seems appropriate for a restaurant located not far from the Black Hills.
Why did the couple choose Custer? Berard wanted to return to small-town life, but Rainey says she didn't even know tourism was so important. “We didn't know anything. Nobody knew and we didn't know what was going to happen,” he says.
Skogen Kitchen, a fine-dining restaurant located in a small town in South Dakota, has found its niche, attracting tourists and locals alike.
But the average price for a dinner at Skogen Kitchen is $75 per person and includes entrees like filet mignon for $55, buffalo short rib for $50, halibut for $49, and a steamed lobster bun appetizer. But it is also known. Rainey said the lobster appetizer was inspired by a meal at the famous Clam Shack in downtown Kennebuckport, Maine.
it's all about celebration
How do the town's farmers, ranchers and hunters frequent restaurants that cost $75 per person? Rainey says celebrations make up more than half of the company's business, including anniversaries, birthdays, and more. He explains that it is comparable to New York City steakhouses, covering events such as bachelorette parties, bachelorette parties, graduations, proposals, and company retreats.
Customers need a break from Dairy Queen
As Rainey says, the people who settle in Custer often come from a variety of places and are “tired of Dairy Queen, gas station hot dogs, and buffalo jerky. They want authentic food. “It's what you get in the city,” he says.
Laney is also observant. He realized early on that although hunting was a major activity in South Dakota, most hunters did not want to eat deer meat. Venison stews were often overcooked and the smell could be unpleasant, so it was taken off the menu.
Skogen Kitchen can accommodate up to 50 people in the winter and 70 people in the warmer months, with patio seating and is open Tuesday through Saturday nights from 5 to 8:30 p.m. I used to serve brunch, but eventually I found running the kitchen for hours too tiring and now I have more balance in my life.
Unlike most eateries in larger cities, Custer, South Dakota, does not offer third-party delivery services, with to-go orders accounting for about 1% of its revenue.
He also acknowledges that restaurants thrive in the summer thanks to tourists. However, autumn and winter are much more difficult to attract customers. Nevertheless, he refers to these colder months as “local season,” which draws people from not only his home state but also surrounding states such as Nebraska, Wyoming, and Colorado.
We also have an extensive drinks list with approximately 50 wines from around the world and a selection of local South Dakota craft beers.
Joseph Rainey is the chef, and Eliza Berard, who previously worked at Cannery Restaurant in Newport Beach, is the general manager and oversees all in-store operations. The total number of employees is 20.
Have they considered expanding with a second Skogen kitchen? Rainey said he's been contacted by landowners across South Dakota, but “I'm not considering it.” “He likes the idea of concentrating all the firepower in one place.”
And another secret to their success is that because they own the building it's in, they don't have a landlord or have to face rent increases and can control costs. They bought it in December 2020 for $200,000, half from profits and half from donations from backers, and are currently debt-free.
“This has been extremely helpful during the pandemic. It helps us make better, calmer, smarter decisions. We're not going anywhere anytime soon,” he concluded. Ta.