Old-school restaurants bank on nostalgia to keep holiday diners coming back

When you step into Monte Carlo Italian Deli in Burbank, California, you’ll see wooden Pinocchio statues everywhere — a nod to the attached cafeteria-style restaurant that’s named after the character. It’s no frills, big portions, and you can get a glass of red wine for just $4.25.

Cathy Hampel stood in line at the deli. She visited Monte Carlo to stock up for the holidays.

“I love their sausage. It tastes like ours,” said Hampel, who has been coming there since the 1970s. She said it’s like a second home. “It’s just a good feeling because I see Italian people talking Italian, which I haven’t heard for years.”

It’s cozy and familiar, and that’s a big reason people come to restaurants like Monte Carlo during the holidays. At this time of year, people dine out more, either for convenience — because they’re too busy to cook — or to get together with friends and family.

Many people are drawn to the familiarity of old-school, multigenerational restaurants that build up a unique atmosphere over decades. That’s one difference from sit-down chains, many of which have struggled this year. More than a dozen high-profile names, like Red Lobster and TGI Friday’s, filed for bankruptcy this year. Others have been rolling out value deals to get people in the door.

For a couple of years now, restaurants have been facing intense pressures from shortages, inflation and rising labor costs. But amid all these issues, restaurants like Monte Carlo have stayed afloat.

Anthony Scuticchio, who took over Monte Carlo from his father-in-law, said Christmas Eve week gets a little hectic. The catering business is flooded with hundreds of pickup orders for lasagna and eggplant Parmesan, and the deli’s business triples.

“People come in here on the 22nd of December and they pull a number and have to wait maybe an hour and a half for the number to get called. But they have a good time with it,” he said.

Scuticchio said his customers are willing to wait for a traditional meal. Plus, occasionally celebrities make appearances. Jay Leno sometimes comes by and tells jokes in line, which keeps the mood light.

But Monte Carlo, like a lot of restaurants, has been struggling with inflation. Scuticchio has had to raise prices — that cheap glass of red wine costs 30 cents more than it did last year.

“If a piece of cheese goes up, so you raise the price,” he said. “But what do you do when your gas bill goes from, doubles. What do you do when your electricity bill goes up? Those are the things that are hard to calculate.”

But he’s hoping his customers will stick with him in part because of nostalgia.

Hudson Riehle, senior vice president of research at the National Restaurant Association, said when people do go out, they want a unique experience. Younger generations are leaning into the restaurant model from the 1950s to 1970s, he added.

“You know, there’s a saying in the industry that what’s old is new again,” he said.

Riehle said restaurants can count on a healthy sales boost between Thanksgiving and New Year’s. Last year, holiday spending at restaurants was up almost 8% compared to the year before, according to Mastercard’s SpendingPulse indicator.

Part of that is thanks to holiday get-togethers, which keep business chugging along at 62-year-old Mexican restaurant Casita del Campo in Los Angeles’ Silver Lake neighborhood.

“So many celebrations are happening,” said owner Robert del Campo. “Thank God.”

He took over the restaurant from his parents. Over the years, it became a safe haven for the queer community, and that welcoming atmosphere is still at the heart of the business.

“When they walk in that door at Casita del Campo, that’s it,” he said. “You’re loved, you’re embraced, you’re treated with dignity.”

People also come for the fresh food, like the chiles en nogada. They make it special for the holidays because of its festive red, white and green colors, which also represent the Mexican flag.

“It’s a chile poblano that’s stuffed with different kinds of meat and spices, and on top of the walnut sauce is fresh pomegranate seeds,” he said.

Del Campo has had a tough time keeping the restaurant going for the last few years. Revenue is down. Competing restaurants are popping up in the neighborhood. He’s had to cut back on overtime hours and dip into savings.

But he’s grateful that his late father had the foresight to buy the land, so at least there’s no mortgage on the business. It also helps that he takes the long view of a restaurant that’s weathered decades of change. Del Campo still leans on advice from his dad.

“You can’t do anything about what’s going on over here or over there,” he said. “You just gotta focus on your space.”

In an industry that’s always looking for the next big thing, restaurants might be better off playing up what they already have.