The new year started out on a sad note when McDaids Irish Restaurant & Pub on Hillsborough Street announced that it would be closing its doors for good Jan. 1. The Technician reached out to Tyler Mills, the owner of McDaids, for an interview to discuss what it was like to run McDaids, some of the challenges it faced and why it closed.

Editor’s note: This interview has been edited for length and clarity. 

Q: When did McDaids open, and why did you choose Hillsborough Street?

A: McDaids opened in September of 2013 by the means of two men from Ireland and one American partner. Hillsborough Street initially appeared to be an exciting location for anyone interested in opening a business. As you know, Raleigh and the Triangle area are rapidly growing; being a part of that growth is enticing for anyone who plans on opening a business. Owning a business near a public university with over 20,000 students enrolled, including a large faculty with grounds staff and an abundance of student housing in close proximity gave the owners the confidence needed to invest money on Hillsborough Street. How could they go wrong?

Q: What caused McDaids to close down?

A: It is very difficult to pin point a single “cause” that led to our closure. There are many events and decisions that factor into determining a business’s success or lead to its failure. In the end, for McDaids, we simply made a choice not to continue operating the business, as it would eventually need reinvestment to conduct day-to-day operations. Reinvestment was not part of the owner’s business model. They planned for a 24-month return on their original investment. If we continued to conduct business, we would eventually end up in debt, leading to a situation where we could still operate, but would not make profit for an undetermined amount of time.  After two years of business experience on the street, reinvestment was a gamble that they felt smart enough not to make. That is not to say that Hillsborough Street is a terrible place to conduct business, but it was not fruitful for McDaids ownership. Again, there were many events and decisions that determine a business’s success. All the new development on Hillsborough Street is promising, but ownership did not believe that our business model would be profitable in the near future.  

Q: What were some challenges you faced running McDaids?

A: There was a long list of challenges for me right off the bat. I did not join McDaids’ leadership until January of 2014. The original GM was from Ireland. It was thought that employing a true blood Irish gentleman to operate the business would help create the authentic Irish Pub environment. This Irish gentleman did not have any experience operating a business in the United States. He did not understand our culture, nor did he understand the American tip system. Needless to say, I walked into a situation that one could only describe as business mayhem. On my very first day at the pub, the power was turned off by Duke Energy during business hours because the previous manager did not pay the bill (this is not a normal occurrence in the business world). 

Two weeks after I started, I was told by the health department that our floor in the kitchen was “too porous” and that it needed to be repaired by Feb. 28, or the health department would shut us down. This meant that we needed to remove all of the equipment in the kitchen and install new floors. This included all refrigerators, sinks attached to the walls and the floor in our walk-in cooler needed to be re-done. Keep in mind that we were already in business, and I already had reservations for the entire month of February.

We had to close our kitchen for two weeks while the new floor was being done. I was able to sell food off a limited menu and keep most of our product by having a refrigerated truck park in our parking spaces out back. Wouldn’t you know it, the over-aggressive tow company that the landlord hired decided to tow our refrigerated truck on a Saturday morning while we were trying to operate out of it. Imagine my surprise when I walked out back to pull out some produce only to find that the refrigerated truck had disappeared. The list goes on and on.  Eventually, we did get squared away, and everything was looking up.

Q: Is owning a business on Hillsborough Street different than anywhere else? Are there unique challenges faced specific to Hillsborough Street?

A: There are many challenges on Hillsborough Street day-to-day. We compete with a college that provides its own on-campus merchants who sell to students and faculty … The street closes every other month for a run or hike that neither starts nor finishes on Hillsborough Street. Hillsborough Street is a one-sided business street. There are not enough businesses or parking spaces to entice the “would-be” drive-up clientele to come out of their way to visit the street. 

Q: Do you plan to open up any restaurants in the future?

A: I certainly do! I would not open a restaurant in this state. I would describe the free market as being over controlled and highly taxed. Until state officials change the way they regulate and control hospitality/travel and tourism industry, there is more opportunity for restaurateurs in other states.

Q: What was your favorite memory?

A: I have many mushy, warm, sentimental memories toward the staff and our regulars. We endured through many challenges that not many teams have to face. I am very proud of how hard we worked and how far we pushed ourselves. The “MADD Scientists” from the NC State biochemistry department came in once in a blue moon, they made a mess of things, but always reminded us of who we are and why we do what we do. To all of the friends and family we made down on Hillsborough Street… You will be missed, and thanks for memories.