Pizza shop owner accepts gift cards from failed restaurant

KAUKAUNA, Wisconsin — According to the U.S. Bureau of Labor Statistics, 45 percent of all new small businesses fail in their first five years of business.

After three years in business, a steakhouse in northeast Wisconsin went out of business, leaving dozens of customers with unused gift cards.

So another small business owner stepped in and helped.

Ernesto Morales owns Pagoni’s Pizza in Kaukauna and has been in the restaurant business since he was 14.

He said success in the industry can be as varied as perfecting the dough for his famous Chicago-style deep-dish pizza.

“In the first five years, 80% of businesses fail. But we still need to support each other, just like the community needs to support each other. So when people have problems, we need to help each other,” Morales said.

Helping others is exactly what Morales did when Salt Fine Dining Steakhouse in Kaukauna unexpectedly closed, leaving dozens of people stuck with unused gift cards. Morales decided to honor the Salt restaurant’s gift cards.

“I felt a little bit sorry for the community because they had worked so hard to spend the money on something they thought they would use in the future. At the time, when the money was already spent, I wanted it to stay local anyway,” Morales said.

Pagoni’s manager Abigail Bovey said when news of Morales’ offer spread, the community reciprocated his kindness.

“I’ve noticed a huge increase in orders. First of all, so many people are expressing their gratitude. What Ernesto offers means a lot to people because they can use their hard-earned money in a way that benefits everyone here,” Bovey said.

According to the U.S. Bureau of Labor Statistics, one in four businesses survives for 15 years or more. Pagoni’s is one of them. This pizzeria opened in 2008. Morales said hard work and his experience as a small business owner helped him.

“All three of my older brothers and my dad are entrepreneurs, and I just wanted to continue with that,” Morales said.

Morales said he hopes his daughters, Kinsley and Eliana, will one day carry on the family legacy. He hopes his offering teaches his daughters that small businesses must stick together, even when the odds are against them.

“The community must be there for each other. When people are in trouble, we must help each other,” Morales said.