Restaurants are one of the most difficult types of businesses to open, with approximately one in four closing within their first year, according to an Ohio State University study. Since 2011, Signal Mountain has had six restaurants open, one of which is now closed, and others are on the verge.
Nancy Adams, owner of Southern Star Take-away, stands in the former Seventeen Ninety, her more upscale Signal Mountain restaurant that closed in February after just 14 months.Even national fast food chain Taco Bell decided to shutter the doors of its Signal Mountain store earlier this year due to low sales. However, location may not be entirely to blame.
Rafael’s, part of a chain with 10 restaurants in the area, moved into the old Taco Bell in February. Manager Ashley Corley said she is pleased with sales thus far.
“[The Signal Mountain store] is doing better than some of the others [Rafael’s locations],” she said. “Business is good, customers are friendly and they come back.”
What causes one restaurant to fail and another to succeed? The following is a look at the unique challenges Signal Mountain poses for restaurant owners, along with how some have been able to overcome these challenges and possible reasons others were not so lucky.