Unfortunately, history tells us that family-owned businesses have some challenges ahead. According to The Economist, about 70 percent of family-owned businesses in the United States never make it to the second generation. And 90 percent do not survive until the third generation of the family. For the Associated Supermarket in Astoria, Queens, this is not the case. It started off as a “little bodega” back in 1928. The matriarch of the Giuta family decided to open up this store while her husband worked for Con Edison. And now, over 80 years later, they are proud owners of three other Associateds in the Queens area.
Local residents and business owners say that only national retailers such as Zales, Starbucks, Express, McDonalds and the Children’s Place are doing well while many of the smaller family-run businesses are closing. Although Associated is not suffering as much as other stores around them, business is not what it used to be. “People shop more, so they don’t have to go out to eat. What is affecting our business is the fact they go for the store brand foods rather than the brand named ones,” said Gus Katsoudas, general manager of Associated in Astoria, Queens. It makes sense; people must be frugal with their money during these hard timee. So now, people only buy what they need.
Seeking employment at this location is almost impossible. “My mom has been shopping here forever and has been trying to get me a job here for the past year but Gus keeps saying they aren’t hiring,” said Maria Gallosa, 17. “Business has been a roller coaster lately, right now we are not in the position to be hiring new people. With the current employees we have, we are doing good,” said Katsoudas. Although they have not fired anyone recently, their current employees are getting fewer hours.
There will always be customers coming in though. “Besides the sales we have in the weekly circular, we also have had to add a lot of our own sales to keep customers coming back,” said Katsoudas. The majority of the customers may be of Greek descent in this supermarket but the sales help them bring in new customers.
But, the real reason this family-owned business has survived for so long is the way the Giutas have operated it. The trust and communication along family members have helped this business stay afloat. And because they bought the property back in 1928, they no longer have to pay rent or have extra expenses that other stores have now. “I have been coming to this store for over 40 years because they have good sales and the people know me,” said Dennis Matafias, 82.
So what’s that saying, “keep it in the family.”
I agree that “family-owned businesses have some challenges ahead”. A lot of challenges. My father has his own printing company in Manhattan and just like the supermarket, “seeking employment at this location is almost impossible.” My father keeps it in the family by having his wife, two brothers, and cousins working in the company. Although he has been in the printing industry for 17 years, he just opened up his business in 2002. Just like the Giuta family, he has kept his business alive by ensuring trust and good communication among the family members. Hopefully his company will not be in the 30 or 10 percent that does not make it to the second or third generation and that he does well like the Giuta family.
i liked this story because it was unique in that it didn’t tell a tragedy about the death of a local business. it actually told a positive, optimistic story about a local business that is going strong! i also agree that knowing your customers and providing GOOD business is key in creating a successful business. most large chains lack that quality. obviously this family knew that from the beginning.