BUSINESS JOURNAL

Schwan: Family builds on Lake Madison restaurant's legacy

Jodi Schwan
jschwan@sfbusinessjournal.com

The great thing about reporting in towns like Madison is that asking one person what’s new there typically leads to a story.

The new owners of the Hillside Resort on Lake Madison have renamed it Hillside Steakhouse and have added a outdoor patio and other features.

That’s what happened a few weeks ago, when I visited Madison to tour one of the first “tiny houses” built in South Dakota. As long as I was venturing out there, I asked the builder what else has been happening in Madison that I should see.

That led me to the Luther family and their new business venture. Or should I say ventures.

“It’s really a family undertaking,” Nick Luther told me after I tracked him down.

He is a firefighter for the city of Sioux Falls. His father, Jeff, is the city’s emergency medical services director. But they both have a history in the restaurant industry — Nick as a restaurant manager and Jeff as a cook — and with the Lake Madison area. It led them and the rest of the family into a new business.

The Luthers have had property at Lake Madison since 1999, when they bought a house there. They since have traded it for a cabin and mostly live in Sioux Falls but still have ties to the area. They were regulars at the Hillside Resort, a well-known restaurant on the southeast side of the lake.

A few years ago, they asked owners Mike and Jody Anderson if they would consider selling.

“We broached the subject if they would ever want to part ways and retire,” Nick Luther said. “The rest is history.”

The new chapter started this season. The Luther family has made several upgrades to the property since buying it, from aesthetic improvements to new lakefront construction.

The newly renamed Hillside Steakhouse now can seat about 300 people on two levels inside and an additional 100 people outside. There are five total levels of seating, including outdoor decks with fantastic views of the lake.

A newly built enclosed lakeside bar is an impressive addition, with a “coastal cabana” feel.

There’s a new dock system, too, with room for about 10 boats and a gas pump.

“It’s been a huge addition to the lake and the city itself,” said Deb Luther, Jeff’s wife. “It’s created a lot more interest in the lake, and we’ve gotten people from different states coming and staying and doing reunions and renting our pontoons because we’re capable of hosting large meetings or functions.”

There have been some tweaks to the menu to give it more of a steakhouse feel — the restaurant now serves only certified Angus beef — but the famed broasted chicken remains. The Luthers’ son-in-law Nefu Mageo, who also has a family-restaurant background, is the manager.

And they aren’t done developing yet.

They also bought property across the street from the Hillside and are turning it into a gas station, convenience store and boutique. The hope is to open that this fall.

They also are putting in 50 seasonal camping spots there.

“The beauty of it when we took it over was it was very self-sufficient,” Nick Luther said of the Hillside. “I don’t think this is anything we could have undertook from the ground up. The original staff stayed on board. They helped out enormously.”

The Luthers’ investment also is a clear boost to the Madison area, which has three lakeside restaurants and two marinas.

“People can have a complete dining experience while they’re overlooking one of the best views in South Dakota,” said Rosie Jamison, executive director of the Madison Chamber of Commerce. “Obviously, we’re very excited. You can listen to music and have the water as your backdrop. That is really fun.”

If you’ve not been to Lake Madison in recent years, you likely will be surprised by the increased activity. There’s a robust housing market and new venues are making the area more of a destination.

“We’ve only got so much shoreline in South Dakota, so when you have it all at your fingertips and can enjoy a good meal or beverage or stop off boating and meet friends, that’s always a plus in every way,” Jamison said.

And while the Hillside is a clear win in the summer months, the new owners are making adjustments to hopefully attract a year-round crowd. Their cabana bar is enclosed and has in-floor heating, and other outdoor heaters will be available on the deck. They plan to invite teams or leagues this fall for pool and darts.

Come winter, the hope is that those coming to the lake to ice fish or snowmobile also will stop off.

“We get business from that also,” Deb Luther said. “And hiking in the fall. It’s just a lot of different activities.”

A ribbon-cutting for the Hillside is scheduled for 4:30 p.m. Friday, followed by live music, games and other entertainment.

For the Luthers, it will be a celebration of carrying on a family legacy — building on a good thing to make it better.

“It’s been a lot of work but a lot of fun,” Deb Luther said. “And we’re looking forward to passing it down to the next generation.”