Klondike Kate's sold to Chesapeake Inn owners
NEWARK - Gianmarco and Gilda Martuscellli and two of their three children sat at Klondike Kate's Restaurant & Bar recently and carved their names and initials into one of the dining room tables.
Graffiti is a tradition at the 260-seat eatery popular with University of Delaware students, alumni and Newark locals, and the Martuscellis were among the hundreds of patrons who over the years have made their mark at the historic establishment.
The Martuscelli family, already owners of the Chesapeake Inn in Chesapeake City, Maryland, and the 38-year-old La Casa Pasta near Glasgow, now own the 158 E. Main St. eatery.
The couple this week bought Kate's, a landmark restaurant offering American fare and a long and colorful history with roots tracing back 279 years, for an undisclosed sum from businessman Alan Burkhard.
They have no plans to change the name or the building that was last renovated after a 1992 fire.
"We're coming in as observers," said Gianmarco Martuscelli who respects its place in Newark and Delaware history. "Kate's will be Kate's as long as we own it."
The three-story structure housing Klondike Kate's, built in 1880, has served as a jail – there are still prison cells in the basement – as well as a movie theater, pool hall, skating rink and, at one time, even a gas station.
Developer Carmen Crisconi converted the building into Klondike Kate's from Brown's auto parts store in 1979. Crisconi sold the restaurant to Davis G. Sezna a few years later.
Klondike Kate's, a casual American restaurant known for burgers and nachos. is modeled after a restaurant in Stowe, Vermont, and named for Kathleen Eloise Rockwell. The dancer and vaudeville star and sometimes shady lady performed during the Klondike Gold Rush. Rockwell, nicknamed "Klondike Kate," was known for flirting with and sometimes swindling unsuspecting miners.
Burkhard who also owned Wilmington's Kid Shelleen's restaurant before selling it to current owner Xavier Teixido in 2010, purchased Kate's in 2005 from Sezna.
Sezna's former 1492 Hospitality Group was once a major force in the Delaware restaurant industry. At one time, he operated Shelleen's; the Columbus Inn in Wilmington; Harry’s Savoy Grill in Brandywine Hundred; and Hartefeld National Golf Club in Avondale, Pennsylvania.
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Burkhard, an entrepreneur, isn't really a restaurateur, but said he learned the business over time. The Chesapeake City resident founded and later sold Placers, a temporary staffing agency, and has operated several other businesses and owns local real estate. He also breeds race horses in Kentucky. Burkhard said he initially planned to flip Klondike Kate's after buying it, but then fell in love with the historic establishment and its staff and clientele.
"There's something about it, it's the lure of Kate's," said Burkhard about the restaurant that calls itself "The Heart of Main Street."
"Kate's is iconic. It's historic. People have great memories here," he said, sharing that he recently encountered a table of guests who included a woman who was born in the building. "I said,' All right, anyone who was born in Kate's gets a free meal.' "
This past spring, Burkhard said concerns about his health and advancing age had him thinking about selling the business.
"I am older than most of these kids' grandparents. Honestly, Kate's deserves better than I can give it. I'd rather not sell it, but it's the right thing to do right now."
Gianmarco Martuscelli grew up in his family's Italian restaurant business La Casa Pasta. The popular eatery at 120 Four Seasons Parkway, run by his parents and other family members and known for its homemade pasta, has operated since 1978. Martuscelli and his wife have been running the Chesapeake Inn for 20 years.
When they heard Burkhard was thinking about putting Klondike Kate's on the market, Gianmarco sent him an email expressing his interest in the site. Burkhard was interested. The businessman said he could have chosen between 30 to 40 buyers, but he liked the Martuscellis' style and respect for the restaurant's history.
"I can't boil water and these guys make their own pasta," he joked, before turning serious. "They're not going to turn it into a Dunkin' Donuts or a Buffalo Wild Wings."
Martuscelli said bringing Klondike's into his family's growing restaurant operations makes good business sense.
His family's restaurants are all within 25 minutes of each other, and the busy seasons for each complements the others. Chesapeake Inn, a waterfront restaurant with a thriving catering operation, draws its biggest crowds during the summer months. Klondike's bustles fall through spring when the majority of students from the nearby University of Delaware are attending classes.
The changes to Kate's will be mostly cosmetic, the Martuscellis say. The first order is cleaning and painting. They're unsure if they will keep the tables with the carved initials - the bar also has carvings - and they plan to tweak the menu after Christmas.
Gianmarco said he plans to downsize the offerings and probably add more pasta and some seafood dishes popular at the Chesapeake Inn.
What's not changing? The Monday night burger specials and the nachos. "People have told me: 'Don't change the nachos.' So, we're not touching the nachos."
Still, Martuscelli admits taking over a well-known piece of Delaware history has caused a few sleepless nights. "I'm nervous. We're starting over again."
Burkhard, however, isn't. He feels comfortable handing over the keys to the Martuscellis and moving on. "It's been a wonderful 12 years. I loved the customers, but now is the right time."
NOTE: This article has been updated from an earlier version.
Contact Patricia Talorico at (302) 324-2861 or ptalorico@delawareonline.com and on Twitter @pattytalorico