Borgatti’s, a Bronx pasta shop operating on East 187th Street since 1935, has successfully transitioned through four generations of family ownership. According to company records, the business maintains its longevity by utilizing explicit succession planning and inherited shares rather than relying on chance. New data from Chase indicates that while 40% of small business owners nationwide plan to retire within the next decade, only 8% have established formal succession plans, creating a significant gap between retirement goals and operational readiness.
Did You Know? Borgatti’s traces its roots to 1935, and the business continues to produce pasta using many of the same recipes cofounder Maria Borgatti originally brought from Bologna, Italy.
How the business evolved across generations
The transition of the business from cofounders Lindo and Maria Borgatti to their son, Mario, established a model for future growth. According to the company, Mario chose to structure the business with inherited shares to ensure continuity. This foundation allowed subsequent generations to modernize operations, including the introduction of specialty pasta varieties like spinach, tomato, and carrot, as well as the expansion into wholesale and online shipping.
Chris Sr., who learned the craft from Mario, noted that the generational transfer of knowledge occurs through daily work rather than formal meetings. Today, the family continues this tradition as Chris Jr. learns the trade directly from his father. Members of the family, including Joan and Elizabeth, have further modernized the business by managing online shipping and social media marketing.
Why succession planning matters for small businesses
For many local businesses, succession is not merely a transfer of assets but a strategy for community preservation. Data suggests that 70% of small business owners in New York City prioritize maintaining their role within the community. When businesses fail to plan for leadership transitions, they risk losing the connection to the neighborhoods they serve.
Expert Insight: The disparity between the 40% of owners planning to retire and the mere 8% who have a succession plan suggests that many legacy businesses may face operational instability. By choosing to formalize roles and communication early, the Borgatti family has mitigated the risks that often cause family-owned enterprises to dissolve after a single transition.
What happens next for the business
As Chris Jr. takes on increased responsibility, the business is expected to continue its focus on balancing traditional hand-rolled production with modernized digital sales. The family currently utilizes banking services from Chase to consolidate business operations, which Chris Jr. noted helps him manage the enterprise on his laptop rather than relying on historical physical records.
Areeize Bonner, a business banker with Chase, stated that the institution remains committed to supporting the family’s efforts to grow online sales and expand wholesale reach. Future growth for the shop will likely depend on the continued integration of these digital tools while preserving the core identity of the long-standing Bronx storefront.
Frequently Asked Questions
What is the primary challenge facing small business owners regarding retirement?
According to Chase data, the primary challenge is a gap between intention and execution; 40% of owners expect to retire in the next decade, but only 8% are prepared to act on succession.
How has Borgatti’s managed to survive for four generations?
The family has relied on deliberate planning, including the use of inherited shares, open communication, and the intentional transfer of knowledge through daily work, rather than leaving the future to chance.
What role does community play in the succession plans of New York City business owners?
For 70% of small business owners in New York City, preserving their role in the community is a top priority, making succession planning a vital step in protecting the neighborhood identity of their businesses.
How might your own business or community organization benefit from formalizing a long-term succession strategy?
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