Café L’Appetito Second Generation Owners Stir the Pot to Keep Things Fresh
Café L’Appetito Second Generation Owners Stir the Pot to Keep Things Fresh
In this season 3 episode of Back of the Napkin, sibling second generation small business owners Licia Accardo and Tony Spatara of Café L’Appetito talk about honoring and evolving the family legacy to achieve greater success in the Chicago restaurant scene. Read More.
Dusty Weis:
Greetings innovators and welcome to Back of the Napkin, where we explore big journeys in the world a small business with the personalities who make it happen. It's brought to you by SurePayroll where small business is their business. I'm Dusty Weis, a small business owner from the Midwest.
Karen Stoychoff:
I'm Karen Stoychoff from the SurePayroll team. Dusty, when you think about this country's most-talked about companies, which come to mind?
Dusty:
Well, I guess if I rattle off the top of my head here, we're looking at Amazon, Netflix, Twitter, Apple. It seems like these are companies that command a tremendous amount of attention since they started all those years ago.
Karen:
Right. Good choices. I'll add Google, Facebook, Uber, and Microsoft. Out of that list of eight or so ubiquitous companies, each which started as a humble small business, only two have been in business longer than the restaurant owned and operated by today's brother-sister team guests.
Dusty:
Wait, those big companies have been around for... I mean, seems like forever.
Karen:
Right. It feels that way. But Cafe L'Appetito, a second-generation family business, celebrates its 40th anniversary this year. Only Apple and Microsoft predate restaurant started by Anthony Spatara, a small grocery store in 1981 in Chicago's vibrant Italian enclave on the city's Northwest Side.
Dusty:
According to the Bureau of Labor Statistics, only 21% of small businesses make it to the 20-year mark. When it comes to second-generation businesses, more than 60% fail. Restaurants are historically among the toughest small businesses to own and operate.
Karen:
Longevity is just part of what makes Cafe L'Appetito story fascinating. Siblings Licia Accardo and Tony Spatara have honored their father's vision and expanded well beyond simply serving as caretakers of his legacy. They've creatively diversified the business and invested in opportunities that keep L'Appetito a vibrant and must-visit establishment for Chicagoans and visitors to the Windy City.
Dusty:
Before we dive into today's episode, if you appreciate hearing stories from small business owners across the country, please take a moment to share your favorite Back of the Napkin episodes on social media and subscribe to Back of the Napkin wherever you listen to podcasts. New episodes drop every couple of weeks so hit that subscribe button, and you'll never miss an episode. You can also rate and review us on Apple Podcasts.
Dusty:
You know, Karen, I know several second-generation business owners, and it seems like the mantra of so many of them is, "Just don't mess up a good thing." There seems to be this overwhelming need to sustain as if doing something new or different might be perceived as disrespectful. I look forward to learning more about how Licia and Tony honored their father's vision by embracing his legacy and ushering in change and growth.
Karen:
Licia and Tony, welcome to Back of the Napkin.
Licia Accardo:
Thank you so much, Karen.
Tony Spatara:
Thank you.
Dusty:
Licia, this grocery store started by your dad and grandfather. They started this grocery and liquor store where they sold fresh pasta and your dad's special Italian sausage. How did that little Italian grocery store move from the comfort familiarity of Chicago's historic Italian neighborhood to the heart of the city?
Licia:
Well, it was always my dad's dream to get out of that comfort zone basically, get out of that Italian neighborhood and really bring his recipes and show case all these Italian imported goods and bring them to the city where there was nothing like that downtown. He just took a leap of faith and really, I mean that's all I can say. He took a leap of faith and it worked. I think it worked because of his and his passion.
Licia:
We still had the store on Harlem Avenue, it was basically in the Norridge area, which is very Italian, and we still had that location for a while, while he moved to the city. Eventually, everything just moved in that direction like, "Let's focus more on this and being in the city. This is where there's more people and it's fresh and it's something that people wanted." There was a lot of competition too, I should say, on Harlem Avenue where his other location was. There were a lot of different people opening up shops similar to his and not to say that we weren't successful. He did very well in that spot. I know that his dream was just to make it a bigger thing.
Karen:
Born in Italy. Made in Chicago. What's the importance of those six words to the heritage of Cafe L'Appetito?
Tony:
My father being born in Italy, coming to the United States as a teenager and only having a fourth grade education and making just something out of nothing says it all with that born in Italy made in Chicago and that's our small motto that we've just stuck with and now we have it. We try to plaster it everywhere. It's a reminder to my sister and where we come from, what we stand for, and what we're about.
Karen:
Even though, Tony, there were other markets similar as Licia described and competition was really everywhere, many still considered your dad a pioneer when he opened Cafe L'Appetito in 1981. Why was that?
Tony:
In that area, on Huron and Wabash, there was really nothing around there. I feel like there were maybe even two other delis in the city. To be right in that spot, right close to Michigan Avenue, I think it was just the right time. People really wanted that. They were searching for something and I think that's what they wanted and he gave it. First, it started out just as a grocery store. We didn't really make sandwiches. We had grocery items, packaged pasta, all types of different Italian jarred products that were very hard to find. Then one day, it just turned into someone wanted a sandwich and then it just thrived from there. One sandwich led to people talking about it, more people came, and then just the business totally flipped into this sandwich place. It was crazy.
Dusty:
Licia, a lot of kids who grew up with entrepreneurial parents, you swore off small business ownership. You planned a career in finance and didn't really want anything to do with running the family business, yet here you are second-generation business owner now. Tony, your path was a little bit different. You always planned to join your dad in the restaurant business. How did your separate paths ultimately converge? We'll start with you, Licia.
Licia:
I went to Loyola University. I majored in finance. Growing up, I worked at L'Appetito all the time, even though I didn't want to sometimes. I actually had a job at a bank during high school and college and I really enjoyed it. My father, even when I was working at the bank, any day off I had, if I had a Saturday off, he'd say, "Okay, you're coming to work with me today." He would say to me, "Why are you going to work somewhere else because you can work here. We could work together. This is a family business." Of course, being a teenager and I'm thinking, "I don't want to do this."
Licia:
I was just about to graduate from Loyola. I happened to be walking with a friend down Michigan Avenue and my dad had made it to the city in 1981. This was a big move. Then, he always kind of wanted more. He wanted to be on Michigan Avenue, which is the best exposure. Right? Well, so I'm walking down the street, I'm walking in front of the Hancock Center with a friend and I see a sign for lease at the Hancock. I told my dad, and I said, "You won't believe it, but they're remodeling the bottom of the Hancock Building and there's a sign there."
Licia:
It turns out that the woman who was the leasing agent at the time was a huge fan of L'Appetito and she was a customer for a long time. I called her and she was like, "Oh, my God. Yes. Oh, my God. Let's talk." I had a couple interviews set up after I graduated. Then, my dad said, "Let's do this." And I said, "Okay." That's how it happened. Then, we opened at the Hancock and we were there 21 years. It was a really good run.
Tony:
I feel like my parents created me for this job. He made me specifically for, to be in this type of work. I been doing it my whole life. Licia knows as a kid. I used to bag, I used to go there sometimes on the weekends as a kid to help out, mop, wash dishes. I just grew up in the business and I feel like I'm just wired for this job, for this type of job. I was good at it. Customer relations, just preparing food. I was quick. I feel like I was just made for this type of work.
Karen:
I grew up in a restaurant too, and when I hear you talk, I just think of what it was like for me growing up. Every holiday at the restaurant, I folded napkins. It becomes part of you and unlike your dad, my dad was always like, "Get out of the restaurant business. You don't want to be in the restaurant business." But it always draws you back. I feel like once you're part of the restaurant industry, it never truly leaves you, especially if you grew up in it. Licia, you said your dad had a knack for evolving his vision and he originated the specialty store in more concept in Chicago.
Karen:
It seems the two of you share your dad's quest for expansion. After 21 years in the Hancock Center, Café L'Appetito has expanded to multiple locations, including Northwestern Memorial Hospital, Soldier Field, which is home of the Chicago Bears. I find very exciting. The recently announced United Center and a unique licensing agreement with Midway Airport plus a booming catering operation. What drives your for expansion?
Licia:
Well, I think, you're always looking for something new to do and keeping it fresh and expanding your customer base obviously, reaching as many people as you can. I think my brother and I both understand that there's more out there that we could be doing. Today, a restaurant, it's not like a conventional restaurant anymore. You have ghost kitchens, you have all these third party, delivery services that you really need to be a part of if you want to be successful. I'm not a huge fan of it, but if you don't do it, you're not getting your name out there, so it's really important.
Licia:
Yeah. I just think there's definitely room for expansion. We would love to be at O'Hare. Midway was a huge thing for us. That sort of, I think led us to explore more options and that actually did open the door for other options, which was great. I think you don't want to get stuck in the day to day all the time and just doing the same thing. It's always good to expand your horizons and see what else is out there. You might be surprised.
Dusty:
Licia, you made mention of it, but it has been in the news a whole lot lately. I wanted to ask you about these food delivery and alternate services that, at first they were a new thing and now it seems like they're here to stay. What impact have they had on your business?
Licia:
Well, like I said, I think it's a good marketing tool. They do marketing for you. They get your name out there. I think every restaurant is on those platforms. If we're not going to have a presence, I don't think it's a great idea. I think it's important to get a name out as much as you can. Unfortunately, they do take a good cut. They take their percentage. I think overall it's positive. I don't think it's... I don't look at it as a negative thing. As long as you're doing the volume, I think it works out. If one person see us on there and says, "Hey, I should go check this out." And maybe they come in person, I think it's worth it. I have no problem with it.
Licia:
I'm sure you've seen in the news lately, like you mentioned that they were taking a lot more than just their percentage that you signed a contract. You signed a contract, they say, "Okay. We're going to take 20% or whatever." But then, they were tacking on marketing fees and these fees and that and then it got to be outrageous, but the city actually stepped in, which was nice and they put a limit on the amount that they could actually take from a sale, which was great. That all happened during COVID. I think it's still in effect.
Karen:
Tony, among the core operating principles for Cafe L'Appetito, is to share your passion for Italian food and never sacrifice quality. It's a common practice for purveyors to offer substitutions when an ingredient isn't available. Do you accept purveyor substitutions that Cafe L'Appetito?
Tony:
We do not accept substitutions. If you came into our restaurant in 1981 and order a sandwich and you came into our restaurant today, it will taste exactly the same because we've been using the same ingredients for the past 40 years. Sure brands have changed, but we tirelessly try different samples, but still remain to that same great integrity of the sandwich. That's, what's very important. That's I think what many people like about us is that people move away, but when they come back and they have our sandwich again, they're like, "Yeah. Okay. Tastes exactly the same." That's what they want. I think that's a huge part of my dad's lesson is he's like, "Don't change anything." And we don't.
Licia:
I think that is super important. We haven't changed much at all, we've added, but we don't change our core sandwiches and offerings because that's what people do like. They do like the quality. I don't think there's any other sandwich place in Chicago that offers the same quality. I truly don't. I don't want to sound conceded or something. For example, the genoa salami, we use on our sandwiches. Yeah. Well, what's changed with that is the price has gone up significantly over the years. Yeah. We have to change our pricing, obviously. It's just so important to have the quality there because I think that's the one thing that really makes us stay hand out. You can go to chain sandwich places. I think their main goal always is, "Okay. How can I get this Turkey to taste exactly the same, but be half the price?"
Licia:
I know because I had actually had a friend who worked in a lab. He was a working with a food scientist. He was doing an internship and that's what they did all day long. While this chain has this pasta salad, how can we make this cheaper but stay the same? To me, it's revolting. That's not what food's about. Food is such an important part of Italian culture and it's such an important part of just the way I grew up and how Tony grew up. We would never sacrifice quality, never.
Dusty:
Licia, in that same vein of sticking to the integrity of recipes that have been around for a long time. I understand you've described your grandmother as an amazing cook and that you're still using her recipes today to honor that family heritage.
Licia:
Yes. My brother and I were so fortunate to grow up with our grandparents. They lived with us actually until we were in high school and my grandmother was the most amazing cook, just unbelievable. I learned from just watching her. I don't have any written recipes. I don't have anything down on paper, unfortunately, but I just watched her and I know Tony did too. He was exposed to it every day. My mom obviously learned a lot from my grandmother. My mom is an amazing cook too. We took some of the recipes and incorporated them in the restaurants, like our tomato sauce, our marinara sauce, our meat sauce, when they were making fresh pasta. Those were recipes that my mom and my grandmother took from our house. These are all family recipes and it can't get better than that.
Dusty:
Well, I want to continue to dive in on some more of the specifics of the business and particularly how you've navigated the pandemic to date. We're going to continue this conversation with siblings, Lica Accardo, and Tony Spatara, owners of Cafe L'Appetito in just a minute. First, let's check in with Holly Wade, executive director of the National Federation of Independent Business with the SurePayroll Mainstreet Minute.
Karen:
Holly, thanks for joining us again. When you're a business owner, it's never too soon to talk about taxes and some of us might need to start preparing for more paperwork than usual. Is that right?
Holly:
Absolutely. Navigating through the pandemic has been incredibly difficult for many small business owners and for some the grant program, the tax credits that were so helpful over the last year and a half. Well, unfortunately complicate the tax filing process. The tax code is complicated enough, takes a lot of time and effort in regards to paperwork requirements and compliance. The next few years could be more challenging than normal on this front. To help all business owners answer confusing or difficult tax related questions, there is free help available.
Holly:
The taxpayer advocate service is an independent organization within the IRS. That's a helpful resource for small business owners to answer tax questions, to help you understand owners’ rights as a taxpayer and offers free help to guide owners through the often very confusing process of resolving tax problems. The service is available to help small business owners facing an immediate threat of adverse actions, or if owners are unable to get in contact with anybody at the IRS for help. Every state has local tax advocate office that is independent of the local IRS office and reports directly to the national taxpayer advocate. To find out more information about this program, visit www.irs.gov/taxpayer-advocate.
Dusty:
Well, Holly, as someone who lives in constant fear of tax time, hopefully this will ease the process come next year when we do have to dig in on taxes, but that's Holly Wade, executive director of the National Federation of Independent Business with the SurePayroll Mainstreet Minute.
Karen:
This is the SurePayroll Back of the Napkin podcast where entrepreneurs share the stories of their big journeys and small business. I'm Karen Stoychoff.
Dusty:
I'm Dusty Weis. We're talking to Licia Accardo and Tony Spatara, owners of Cafe L'Appetito, a family-owned restaurant that has defied the odds and celebrates its 40th anniversary this year. Guys, one of the challenges that many second-generation business owners face is the need to modernize and mechanize processes. Licia, was that something that you experienced and how did you deal with it?
Licia:
Definitely going back to what you said I think earlier about when the second generation takes over and there's all these comments about, "Don't change a thing." Well, there're things that needed to be changed. My dad did not... He didn't do well with technology. Let's face it. He was an immigrant, never really had an experience with technology. My brother and I were able to come in and modernize some processes obviously. One of the biggest things we did was move out of the... I'm not even joking, like the old-fashioned cash register with the tape that if God forbid there was any kind of discrepancy. We had to go through all these rolls of tape, it was ridiculous. I kept asking my dad, "Can we change this? This is unbelievable."
Licia:
He refused. One of the things we did was change that whole thing. It's such an amazing tool to have as a business owner. I can log in on my phone. I can log in on my computer at any given time and just see what is going on. how many items we sell. I can look at all my customers. We have a loyalty program. That's another thing we added. That was a huge thing. We're creating a great database of customers and we have all their or email addresses, and if we ever need to do any kind of marketing, everything is accessible to us now. It was just something that had to be done basically. I think in a way my dad needed us to do that and take it to the next level.
Licia:
This is what we're here for. We're the ones that are going to do it. He wasn't going to do it. Tony and I took over and we knew that this was a really important part of our job. Even the way we do business day to day, the way we place orders with our vendors, we do everything online. It's wonderful. It takes so much less time. Back in the day when my dad, he would have to wait for so and so to show up on Thursday, to come through and walk the aisles and take the order by hand and write it down. We don't do this, we need something I get on my computer and I just order it and it shows up the next morning. Time has gone by, it's just we keep modernizing pretty much everything.
Dusty:
Tony, you've been doing this for a while and there's an allure out there. Some might say a mythology that equates freedom with being your own boss. In fact, a recent survey notes that 32% of respondents who quit their jobs in the last six months did so to start their own business. Of those 62% said that their top motivation was to be their own boss. You think that's a misperception, the fact that you get all of a sudden be your own boss and set your own schedule and do what you want when you want it.
Tony:
Oh, yeah. The grass is always greener, right? Being your own boss, it does have its perks, but man, it's not easy. It is not easy because there's no one else to fall back on. You're the last guy. If someone doesn't show up, if there's an order that has to be delivered, you're going to be the guy because there's no one left. You have to put in the most out of everyone and you have to constantly worry about everything. Having, let's say a 95 to five job. You go in, you do your work, you leave, but you don't have to worry about pay role. You don't have to worry about so and so's not going to show up or someone's out on vacation. It's just a constant cloud of worry that hangs over you, that you always have to be mindful of.
Tony:
Being in this business, you're definitely built from a different cloth than most people. I've had many friends say, "Oh, I want to do what you do, Tony. I want to open a restaurant. I think it'd be a lot of fun." I'd be like, "Don't do it." I'd be like, "Just don't do it, man. If you want to try it, go work at a restaurant, see if you like it."
Dusty:
Don't do it because you think it's going to be fun do it because you have a burning passion to it.
Tony:
Exactly. I think people, they think that they'll just walk in and they'll talk to people. There's just so much more to it. That's just the surface stuff. It's so deep and it's tough. It was easier before, but now, I feel like every year it just gets a little bit more difficult, a little bit more difficult. My sister and I, we can handle it. We're used to it and we've dealt with it. There's always these new obstacles that get thrown at us. We can't get super stressed. We just shrug it off and just, "Okay. We got do this. Okay, let's do this." We know how to deal with it in a calm manner.
Licia:
Like my brother said, it's changed a lot over the years. Tony and I've seen how it's changed. It is definitely not easy to do business in the city of Chicago, let alone run a restaurant in the city of Chicago. My dad started L'Appetito back in the day here. He was so fortunate. He had the best employees. He had all these young Italian guys that were so devoted to working. They loved him. They looked up to him because their dream was to do what my dad was doing. They were both... All these kids were either immigrants or they were second generation like me and Tony and they wanted to do exactly what my dad did. A lot of them actually did.
Licia:
Some of them live in like the Western suburbs and they went and opened like a grocery store or a Deli. It was just amazing to think that my dad had that kind of influence on them.
Karen:
Licia, you employed as many as 35 people and you currently have 25. You've said that the labor force has changed over the years, but you still have many long-term employees. What is your secret to employee retention?
Licia:
I think that we're really good to our employees. I think that if you spoke to them, they would tell you that. Because... Listen, I know I'm the boss and no one's going to like me at the end of the day. Sometimes they don't like me and they don't like Tony, but I know that they feel like Tony and I are good to them because we really are and we always have been. We've been very fair and some of our employees have working for us for almost, I don't know, Tony. Like 20 years.
Tony:
Yeah.
Licia:
Probably 20 years. Right? There has to be a reason they're staying, right? They know that we treat them well. I know we're nice people and they know that we are a family. I think a lot of our employees are also family oriented. We actually have some couples that work for us. We've had brothers and sisters work for us. We just have that family feel. I think any of our employees can come to us with any problem and they know that deep down and we'll work through it with them no matter what happens.
Licia:
I think that's really helped a lot over the years. Maybe sometimes we're too soft, but my father was always really sensitive about certain things. One of the things was his employees and he really felt for them and I think he was very respectful of the fact that they're working so hard, he worked so hard. He was always good to them too. He never liked firing anyone. He used to make me fire people, which is awful.
Dusty:
Looking back at the really remarkable 40-year history of the business as you turn and look toward the future, what's on the menu for the future of Cafe L'Appetito?
Tony:
Before COVID hit, we were talking with the Levy group at the United Center, they run all the United Center and we were asked to come in and provide samples of food, and we were set to go before COVID hit and then everything fell apart. Then recently, we reconnected and did more samples and they actually want to use us for inside the stadium, I guess, to provide food to some of their deli stations that they have their. They also have an Amazon Go station and we're just starting, we've only done a few orders thus far, but I think it was a really great move to get into the United Center and work with the respected Levy group and that could possibly open the door to other areas, maybe another arena. I mean they do Wrigley field so that could be a move for the future.
Tony:
I feel like every time we move, I feel like some other door opens. When we got Midway, Midway opened up to Soldier Field and then Soldier Field opened up to United Center. I feel like this pattern of the more stuff we take on, the more doors that possibly might open in another direction. I feel like in the restaurant business, if you're just standing still, it's hard to make it a name for yourself. I feel like you always have to keep reinventing what you're doing or doing something different. My dad back in the day, even before Grubhub or... When we just had one location, he said, "Tony, if you're not evolving and changing with the people, you're not going to make it." That's why we... When my dad passed away, my sister and I looked at each other and said, "What are we going to do? What's our plan? What do we want to be?"
Tony:
Because we were a small mom and pop shop on Michigan Avenue, and we had to make a decision. Do we want to take this to the next level? Do we want to just coast where we're at and just make it easy for ourselves? But I guess we decided to just try to build and build and that's how it's been going.
Dusty:
Well, they say that your legacy lives on as long as your name and I think that you can extend that out to the legacy that you build in business as well. Certainly, your dad's legacy lives on through the two of you. What you've done with his business is laudable and remarkable. We thank you so much for sharing your story with us today. Licia Accardo and Tony Spatara, thank you so much for joining us on this episode of Back of the Napkin.
Karen:
That's all we have for this episode of Back of the Napkin. If you appreciate hearing the stories from small business owners from across the country, please take a moment to share your favorite Back of the Napkin episodes on social media and subscribe to Back of the Napkin wherever you listen to podcast. You can also rate and review us on Apple podcasts.
Dusty:
Back of the Napkin is brought to you by SurePayroll from easy online payroll to 401K support and award-winning customer service. SurePayroll has been serving the payroll and business needs of small businesses for more than 20 years. Thanks to my co-host and our executive producer, Karen Stoychoff.
Karen:
Thanks to the head of SurePayroll marketing, Jenna Shklyar. As well as our production partners, Podcamp Media.
Dusty:
Where we provide branded podcast production services for businesses. Our editor and producer is Larry Kilgore III. Thanks for tuning in to Back of the Napkin. I'm Dusty Weis.
Karen:
I'm Karen Stoychoff.
