SIOUX FALLS, S.D. (KELO) — Changes are continuing in the Sioux Falls restaurant-related landscape, including in the downtown.

Covert Artisan Ales announced Thursday it would not be renewing its lease in the East Bank Depot in downtown Sioux Falls. The business in November will consolidate its two locations into the main production building on Watson Avenue in west Sioux Falls.

“Although the downtown is expanding with a lot of great things coming in, we see the west side as a better option to continue growing our business,” Stacey Berry, the co-owner of Covert, said in a KELOLAND News interview.

The downtown location has been successful and the staff is “great,” Berry said. But the need for two different licenses for the selling and brewing of craft beer for the two locations impacted the decision, Berry said.

“There’s not a lot of craft beer on the west side,” Berry said. Covert plans to expand the original location west side with a new taproom in the spring. Downtown was good but now, with growth throughout the city, “we don’t feel it’s necessary,” Berry said.

Covert is one brewery that has recently announced a change in Sioux Falls. Lupulin Brewing said in July it would close its Sioux Falls taproom in July. The business, based in Minnesota, would not be renewing its lease at 2425 S. Shirley Ave.

Keg Chicken recently said in a social media post that is was not renewing its lease at 5216 E Arrowhead Pkwy. It cited staffing issues and “not wanting to burn out the good employees we have.”

Casa Del Ray near the Denny Sanford PREMIER Center announced in July it would close. Earlier in July it announced on social media that it was adjusting its hours because of staffing shortages. In August, Tate, Janet and Kibbi McCormick said they had bought the Casa Del Ray and intended to open it in September.

Urban Chislic said in a social media post it plans to close at 9 p.m. Friday. The post emphasized the restaurant business is tough with many peaks and valleys. The owners said they decided to move on.

Covert’s move is from east to west to what is a more light industry, warehouse area. Berry laughed when asked if some ask where they are located.

“When we first opened there, we came from Austin (Texas), warehouse breweries were the norm,” she said. “It wasn’t a big deal to not be downtown.”

People have found Covert, she said.

Berry said Covert has been building a following in the west side while also increasing its self distribution of craft beer from the main location as it also operated the downtown location.

The owners plan to expand the space with the move from the downtown.

“When we opened in the west, it was a very small space,” Berry said.

New signage is also part of the plan. Berry said customers will be “pleasantly surprised” by the taproom and planned changes for the west side.



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