Pasquale Presa, owner of Pasquale's Neighborhood Pizzeria in Rochester, was stressed in early 2020 even before the pandemic forced many restaurants to close or shift to takeout and deliveries.
A little over three years earlier, Presa raised $525,000 from three local investors as part of the $1.25 million it took to start the restaurant.
But differences over the management of the business began to appear. Presa felt like he was working again for corporate managers. So Presa secured an SBA-insured loan with Home Federal Savings Bank to buy out the partners. Marty Mixell, the loan officer, liked Presa's plan and operating results.
"I bought [the partners] out and they made a 20% profit," Presa said. "More importantly, my fear and anxiety about making it for my family and community lifted. I was able to make decisions myself. We pandemic-proofed the business last year."
Before starting Pasquale's, Presa, 48, spent years as a corporate chef, building a career that required nine moves and took him from hotels in New York to Los Angeles, Hawaii and Rochester. He worked for Kahler Hospitality before taking a job as executive chef at the Kalahari Resort in the Wisconsin Dells, making $120,000. However, the time away from his family wasn't worth it.
He modeled Pasquale's somewhat after Posa Posa, a pizza joint run by Italian immigrants near Spring Valley, N.Y., where Presa, also an Italian immigrant, got a job at age 11.
Pasquale's popular pizzas and Presa's warm personality helped the business quickly build sales, which hit $2.5 million in 2019. As the pandemic unfolded, Presa hurried to make a deal to sell premium $10 Pasquale's frozen pizzas through a Rochester Hy-Vee supermarket.
A relationship with a co-packer who uses Pasquale's recipes later enabled him to profitably expand to seven Hy-Vees in the Rochester area.