KAUKAUNA, Wis. — Forty-five percent of new small businesses fail during the first five years of business, according to the U.S. Bureau of Labor Statistics.

After three years in business, a northeastern Wisconsin steakhouse went out of business. It left dozens of customers with unspent gift cards.

So a fellow small business owner stepped in to help.

What You Need To Know

  • Pagoni's Pizza owner Ernesto Morales is honoring gift cards of Salt restuarant after it closed, leaving customers stuck with unspent gift cards

  • Morales has been in the restaurant business since he was 14

  • 45% of new small businesses fail during the first five years of business, according to the U.S. Bureau of Labor Statistics

  • Pagoni's Pizza opened in 2008. Morales said hard work and a legacy of small business ownership have helped him out

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

He said succeeding in the industry can be as multifaceted as perfecting dough for his signature Chicago-style deep-dish pizza.

“In the first five years, 80% of businesses do fail and with that being said, we still have to support each other, like the community has to be there for each other. So when people are struggling, we need to help each other out,” Morales said.

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

“I kind of felt bad for the community, because they worked so hard to spend that money on something that they felt that they were going to use in the future. So at that time, with that money already being spent, I wanted them to still keep it local,” Morales said.

Pagoni’s manager Abigail Bovey said when the word got out about Morales’ offer, the community returned his kindness.

“I have seen a huge increase in orders. First of all, so many people are expressing their gratitude. Ernesto’s offer means a lot to people that they’re able to use their hard-earned money in a way that, you know, benefits everybody here,” Bovey said.

According to the U.S. Bureau of Labor Statistics, roughly one in five businesses make it 15 years or more. Pagoni’s is one of them. This pizzeria opened in 2008. Morales said hard work and a legacy of small business ownership have helped him out.

“All three of my older brothers, my father, they’re all entrepreneurs, and I just wanted to continue that,” Morales said.

Morales said he hopes his daughters Kinsley and Eliana will one day continue the family legacy. He said he hopes his offer teaches his girls that even though the odds may be against them, small businesses need to stick together.

“The community has to be there for each other. So when people are struggling, we need to help each other out,” Morales said.

Correction: A previous version of this story used an incorrect statistic for the number of businesses that survive 15 years or more. This error has been corrected. (Aug. 19, 2024)

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