Sept. 27, 2005

Mel's Family Man

The career of Chris Karakosta, president and CEO of southwest Florida's popular Mel's Diner chain, has encountered countless ups and downs, but remains rooted in family values.

Bonita Springs, FL -- Restaurants have been in Chris Karakosta's blood from the beginning. Born in Chicago in 1953 and raised in nearby Elmhurst, Ill., Karakosta spend a majority of his childhood and high school years surrounded by the food industry, primarily in the kitchens and dining rooms of the two eateries his parents owned and operated in the city, one an upscale establishment, and the other a family-style diner called Dimitri's.

"All through high school, I worked in those restaurants," says Karakosta.  "I never did prom or homecoming.  I worked instead, because it was a passion."

He graduated from York High School in Elmhurst, Ill. and soon after headed off to college in Durango, Colorado.  However, he came back after only a week and a half and transferred to Northern Illinois University, where he stayed a mere six months.  "I just didn't have an interest in school," he admits.

In place of a formal education, Karakosta's father made him manager of Dimitri's.  This was in 1972, and Karakosta took the position as a means to gain practical experience in the restaurant industry.  He was just 19 years old at the time and had a total of 25 employees under his wing.

"My father pretty much gave me the keys to the family restaurant and said 'Run it,'" says Karakosta.  "He never questioned any of the decisions I made at that restaurant.  I made a lot of mistakes there, but my father let me make those mistakes to teach me what to do and what not to do.  This was my schooling."

Soon after, Karakosta was given an opportunity to do a joint venture, opening in a shopping center in the Chicago suburb of Norridge.  He jumped on the idea and ended up opening a restaurant called On Stage, a family style eatery with a Hollywood theme.

"That was the first real restaurant I created from the start," says Karakosta.  "It was a Planet Hollywood before it's time.  We did a lot of renderings of movie stars, named entrees after actors and actresses - it was a huge success."

In 1980, soon after On Stage opened a second location, Karakosta broke his partnership with that restaurant, applied for and received an S.P.A. loan, and opened the restaurant Reel People, another Hollywood-themed establishment in Skokie, Ill.  Like its predecessor, it became wildly successful. However, overspending and poor budgetary planning forced Karakosta to close the restaurant in 1982.

"That's where not going to college really hurt me," said Karakosta. "There were a million ways to come out of that and do well, but all I knew how to do was run a restaurant and cook. It was heartbreaking, and I was devastated.  It was a very tough time for me."

Around the same time, Karakosta learned that a friend of his from Chicago was opening a family themed restaurant in Naples, Fla.  In March 1983, he moved his family (wife and three children) southward to become a part of it.  Karakosta's original plan was to stay in the Sunshine State for only one year.  However, he quickly fell in love with the community and decided to stay permanently.

In the coming years, Karakosta made additional partnerships, including ones with South Florida restaurant equipment supplier H.J. Fox and Landmark Bank president Bill Seifert.  Together, they opened The Green Onion, a successful high-end steak and seafood establishment that catered mostly to the area's seasonal residents, and then with his son, Stephen, he opened Stevie Tomato's Sports Page, one of the area's first true sports bars.

"We were crushing in the season and dying in the summer," says Karakosta. "In those days, Naples was very, very seasonal. We decided to close the restaurant in the summer and started looking for something that was going to carry us through the off-season."

That search led him to buying a restaurant in nearby San Carlos, which ended up becoming the first Mel's Diner.  This was in 1989.

The name was chosen more for its familiarity than for its tie-in to the popular TV-show, Alice. "We never put any of the character names on the menu or did anything related to the show," says Karakosta.  

The staff at the time consisted primarily of Karakosta and his family, and the atmosphere was low-key, friendly and very customer-based.

"My father was in the kitchen," he said, "and my mother was out front. We really went back to basics, and it worked.  Within a couple of months, we had a great response from both the community and the media.  I think the theatrical name was part of its initial success, but it was also a great price for a great meal, and everything was made from scratch.  When you look back to 1989, anyone who walked into our diner was treated like they were visiting our home."

That success continued in the coming years. In 1992, Karakosta opened a second Mel's Diner in Ft. Myers and then a third in Rochester, N.Y. (The latter remains open today but is unaffiliated with the other Mel's Diner locations in Florida.)  By 2004, Karakosta oversaw operations at 10 stores throughout southwest Florida.

In addition, Karakosta and his son, Stephen, returned to the sports-themed restaurant concept and opened Big Al's Sports Grill in 2003.  While this restaurant still catered to sports fans like Stevie Tomato's, it also took on a more sophisticated approach, so that customers are encouraged to come for a quality meal, not just to see the big game. Big Al's menu boasts a playful mix of traditional American sports bar favorites, like burgers and wings, as well as more elegant fare, like filet mignon and freshly made salads, and international specialties, such as enchiladas and gyros.

Despite these successes, however, an overall lack of systemwide structure has caused Karakosta to seek leadership help with his corporation.  As a result, he brought aboard several talented managers from some of the nation's most respected restaurant chains. In addition, he began to share ownership of select locations ("partnership" as he calls it), to ensure his vision remains focused throughout.

"The expansion took a couple of years to get control of, so I decided to surround myself with people who have the knowledge and corporate experience to help," says Karakosta.  "It's sometimes difficult to accept major changes within a company that has always been family-run, but it was something that needed to be done to take us to the next level."

However, he will also be careful to stay true to his roots and maintain the values that have built the successful reputation of his restaurant company: its family friendly atmosphere, quality home-style cooking and unbeatable value.

"Our biggest concern is to not lose the culture," says Karakosta. "The thing for us is to write the right script. That's the key. We've got a $25M-a-year company here. We've got a great base. We've got tremendous opportunities to explore."

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Media Contact:
Ashley H. Hallmark
Quantified Marketing Group
407.936.1010
321.663.1209 c.
ahallmark@quantifiedmarketing.com


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