A unique new business named Pel-Meni will open at 505 State St. within the next two weeks.

“We’re gonna sell dumplings,” said Paul Schwoere, future owner and operator of Pel-Meni, which takes its name from a tradition Russian dumpling.

Schwoerer, a native of Madison, developed the idea for this restaurant with a partner while he lived in Alaska for the past six years.

Pel-Meni’s menu will include both vegetarian and meat-stuffed dumplings. A plate of around 15 dumplings will sell for $5.

Schwoerer said he thinks he may have an edge compared to other new restaurants on State Street.

“I’m not opening something to compete with a pizza or burger place,” Schwoerer said. “I’m going for a different approach.”

His restaurant will include a relaxed atmosphere where he said students will be allowed to come and study. A turntable with 300 records will also be available for use in his establishment.

Despite Schwoerer’s high hopes, restaurants on State Street face many challenges, including higher operating costs and higher taxes than other areas, other business owners said.

Kabul Restaurant has been in business for 20 years and has been located on State Street for 14 years. Ghafoor Zafari, owner and operator of Kabul, said operating costs have skyrocketed over the years.

“Everything has doubled since we opened,” Zafari said, referring to the price of operation.

Zafari estimated that his taxes alone rose 40 percent last year.

“That makes a big problem for us,” Zafari said.

Another difficulty Zafari mentioned was the per-capita concentration of restaurants Madison has.

Despite all the challenges he must face, Zafari said he likes to see new restaurants.

“I’m totally for new restaurants,” Zafari said. “It makes you better and [makes] you work a little harder.”

According to Zafari, other assets that help his restaurant include his diverse menu, the outdoor café and his frequent customers.

“Without our regular customers, we would never be able to make it,” Zafari explained.

Dino Crist, owner and operator of Nick’s Restaurant, said he knows what it takes to survive as a restaurant on State Street.

“It has a lot to do with consistency,” Crist said.

He added that good food, good help, good pricing and a little bit of luck are all key to staying afloat.

His advice for a new restaurant is to keep costs low and more importantly, employ “as little labor as possible.”

“Your payroll takes quite a bit of your profit,” Crist said.

Schwoerer said he plans to open his new eatery around Halloween, a time when State Street business owners get a little nervous because of mass student gatherings, such as the riots that occurred Nov. 2, 2002.

“It kind of worries me, but I’ll deal with it,” Schwoerer said.