Downtown Erie fixture Dominick's diner up for sale as it turns 66

It's happened before.

Six years ago, Tony and Tina Ferraro bought the landmark restaurant Dominick's, 123 E. 12th. St., and saved it from closure. Now they need it to save themselves.

At this point, the business is mortgaged, the land it sits on is mortgaged, as is the Erie house they live in, Tina Ferraro said in March.

"We've been so far behind, we've owed everybody everything," Tina Ferraro said then, when she and her husband were considering closing due to lack of staff and business. "Even our house is wrapped up in this."

Four months ago:Is Dominick's closing? Downtown Erie fixture's owners can't make ends meet

Despite a marked increase in sales and solid staffing, they have decided to put the restaurant up for sale this week, asking $375,000 for the turn-key operation, including the business, the building, which includes a large apartment, and the land it sits on. Find the listing at bit.ly/dominickslisting.

Health problems and debt are the reason

"I'm having some health issues and Tony has a full-time business outside of the restaurant," which is Ferraro Stump Grinding & Skid Steer Services, Tina Ferraro said Tuesday. "It's just time for us."

"We're OK with the decision," she said.

She said that revenue problems that plagued them after COVID restrictions have abated and the business, started in 1956, is solid. Now their problem is debt.

"The sales are better," Tina Ferraro said. "We are just having a difficult time catching up."

In March, Tina left her job as a case manager to work at the restaurant full-time.

"I’ve been at the restaurant full-time a couple of months," she said. "And I've been able to make positive changes, but I can't make money magically appear."

Restaurant news:Dominick's Diner in Erie reduces hours because of restaurant staff shortage

A turn-key operation

She said a new owner wouldn't have that baggage.

"If somebody’s coming in, they'll have a fresh start and not all this muddy water to tread through," Tina Ferraro said.

"In fact, if we were starting now we would be in a pretty good place and would have more longevity. But the last two-and-a-half years have not been kind," Tina Ferraro said.

She said she hopes the buyer decides to keep the Dominick's name, menu and recipes, but it's not a condition of sale.

"They can do whatever they want, obviously," she said. "And we'll be their biggest cheerleader."

Realtor Courtney Thieman with Coldwell Banker Select Realtor is representing the commercial property, which was officially listed Friday. Things were quiet over the weekend, she said, but after the Ferraros put it on Dominick's Facebook page Monday, "it kind of blew up."

"I have seen some interest in the past 24 hours," Thieman said. "One person I talked with would be keeping it Dominick's, so that's good."

The Ferraros say they were able to keep the restaurant open this long due to COVID-era measures called "PPP loans" totaling $72,000, designed to help cover payroll, according to Small Business Administration records. The diner was among almost 3,000 county businesses that received loans in amounts from $300 to more than $5 million, all meant to protect jobs. The Ferraros applied and were granted forgiveness for both loans, Tina Ferarro said.

Thieman said a lot of people have thought the property is only the restaurant, but it's more.

"I think that it has a lot to offer that people don’t realize, including an upstairs apartment that could be income," she said. "And more than that, the fact that it's a historical landmark, almost 70 years old. I remember going there as a kid. And they were on that (Discovery Channel) show and did a lot of updates. It's so nice looking inside."

Thieman said she doesn't think it will take long to sell the property.

"We just need to find the right person, but I think there is someone out there."

Contact Jennie Geisler at jgeisler@timesnews.com or at 814-870-1885.