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The NRN 50: Beating the odds

The NRN 50: Beating the odds

Columbia Restaurant, founded by the Gonz-mart family in Tampa, Fla., in 1905, has survived challenging times that included two world wars, Prohibition and the Great Depression. But today, the ability to thrive as an independent restaurant in an industry increasingly dominated by better-financed chains may be the biggest challenge of all.

Richard Gonzmart, great-grandson of Columbia founder Casimiro Hernandez Sr., presides over the family restaurant empire.

“Every day is an exciting challenge,” he says. “If you’re coasting, you are going downhill. We have to try to be better every day.”

Although the odds are stacked against keeping an independently owned restaurant in business for a century or even a half-century in one of the riskiest industries on the planet, many such restaurants are alive and well.

Operators of those that have survived share many common traits, including dedication, good business sense and a love of serving their customers. They also have changed with the times while preserving those aspects of their businesses that keep generations of customers coming back.

Such restaurants are true examples of the industry’s passion and spirit, says Dawn Sweeney, the National Restaurant Association’s president and chief executive.

“Often hubs for social activities, these restaurants—and their owners and operators—play an important role in the fabric of local communities across the nation,” she says.

“These restaurants reflect the culinary heritage of their region,” says Michael Klauber of Michael’s on East in Sarasota, Fla., and president of Sarasota-Manatee Originals, one of several regional chapters of a national organization promoting independent eateries. “It’s important in every community that we preserve independent restaurants because they speak to the community rather than use a cookie-cutter approach.”

Klauber points to the Gonzmart family as a prime example of an independent that is a survivor. Richard Gonzmart says surviving for 103 years is not an accident and takes a lot of effort.

“We had to change Columbia professionally and operate it as a business and not our personal bank account,” he says of the company, which has grown to nine locations. “We put budgets in place about 15 years ago and focused on hiring professionally.”

Gonzmart upgraded ingredients, created training manuals and began holding regular staff meetings. He also now rewards general managers and their spouses with trips to Spain and other Latin countries, partially to research food and wine.

“You can’t ever stop learning,” he says. “We took off a heavy signature dish and reintroduced it in a lighter version. My mother was very upset. Now, it’s one of the top-four sellers.”

He does follow his father’s advice to stay true to who you are and not get caught up in fads.

“We cook only with Spanish extra-virgin olive oil, and we’ve been doing trans-fat free for years,” he says.

Gonzmart invests profits back into the company every year. The biggest recent capital expense was a new kitchen in 2000 in the 1,600-seat flagship restaurant that cost about $5 million.

“People thought we were crazy,” he says, but he has proved them wrong.

The Italian Village also is a family-owned business, now operated by the third generation of the Capitanini family in Chicago’s downtown Loop. Three restaurants under one roof, the complex consists of The Village, La Cantina and Vivere.

Opened in 1927 by Italian immigrant Alfredo Capitanini, the Italian Village now ranks as Chicago’s oldest restaurant. Like the Columbia, the business has survived economic ups and downs, wars and a changing downtown business environment that has left the area all but abandoned at the end of the business day.

“There were some challenges,” says Gina Capitanini, who now shares management duties with her brother, Al. “You have to tighten your belt and look at labor and food costs. We compete by keeping our standards high and our prices right.”

New residential development nearby and a reviving theater district have helped business.

“The Loop really has turned around,” Capitanini says.

From the beginning, the restaurant catered to the nearby Lyric Opera, and performers and audience members gathered there after the show.

“The Village is open till 12 or 1 a.m., and very few other restaurants are open that late,” Capitanini says.

The operation also has expanded its reach by selling carryout orders, especially to local businesses, and building relationships with hotel concierges to help attract more travelers.

Where escalating rents have caused many other downtown restaurants to close up shop, the Capitanini family bought their building years ago.

“My grandfather wanted to make sure the family had jobs,” Capitanini says.

The third-generation owners of Canlis in Seattle recently acquired the land under their acclaimed restaurant—something co-owner Mark Canlis’ grandfather, Peter, could not afford to do. Later, when the family did have the funds, the owners of the property declined to sell. Canlis, who owns the restaurant with his brother, said the acquisition was a commitment to continue the restaurant that is their heritage.

“We wanted to say the third generation has no intent to move,” Canlis says. “We’ve had a lot of offers to develop it, but we felt that wasn’t why we were given it.”

Mark Canlis and his brother, Brian, took over management from their parents four years ago.

“A generational shift is an enormous challenge,” Canlis says. “There was a lot of staff turnover but a lot of clarifying of values. That’s a hard thing to do.”

Other challenges the restaurant survived were a harsh media review in the mid-1990s and local economic ups and downs related to overdependence on a few businesses, such as Boeing Airlines. Deciding the negative restaurant review was mostly correct, the family set about improving things that Canlis says were “a little dated.”

“It was a huge success,” he says, and many major awards followed. Profitability also improved by 10 percent to 15 percent annually for the last five years. Last year was the most profitable in the restaurant’s history, Canlis says.

“A restaurant is a living, breathing thing. I insist that even if you have been here 20 years, we feel like we are just starting to get the hang of it,” Canlis says.

While fierce competition from both other locals and out-of-town chains is an increasing concern for independents, operators like Murray’s Restaurant in Minneapolis, opened in 1946, are meeting it head-on. Tim Murray, third-generation of the family owners, reports that younger customers have discovered the steakhouse.

“We’ve been attracting more younger people in the last two to three years, especially on Saturday nights,” Murray says. “We also get a lot of prom and homecoming business, which we hope will be our future customers.”

Continuing to put out the best products and soliciting feedback from guests, whom he and other managers routinely visit during meals, give Murray’s an edge over many competitors, Murray says. He also says the nostalgia factor of his style of restaurant has caught on with customers of all ages.

Alex Von Bidder, co-owner with Julian Niccolini of the venerable Four Seasons in New York, opened in 1959, says taking care of people is the most vital key to the restaurant’s success. Hands-on management, including having one of the owners working the front-of-the-house daily, and low staff turnover are other keys.

“People expect to be recognized and that we know what they like,” Von Bidder says. “It’s almost impossible for somebody to walk in who is not remembered by somebody.”

He claims to treat first-time customers, including young people, as courteously as the restaurant’s many regulars.

“It’s always about making new friends,” he says.

He cites an example of a father and 9-year-old son who recently came in for a special occasion. He introduced them to the chef and gave them a book about the restaurant’s history, making a good impression on the boy, who seemed especially interested in fine food.

While the Four Seasons maintains consistently high standards, it constantly introduces new dishes, wines and ideas, Von Bidder says.

“We want the restaurant to remain the same, yet always change,” he says.

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