Chicago’s History Includes Black-Owned Businesses Then and Now


Chicago’s History Includes Black-Owned Businesses Then and Now

By Wendell Hutson, Contributing Writer

The local economy has gone up and down since 1980 and historians contend it has contributed to the success and demise of black-owned businesses that are forever cemented in Chicago’s rich history.

During the 1980s, the South Side was home to such thriving black-owned businesses like restaurants Army & Lou’s, Izola’s, Catfish Digby’s, and Glady’s on the South Side; Illinois Service Federal Savings and Loan in Bronzeville; Roberts Motels in Woodlawn; Johnson Publishing Company in the South Loop; and Chatham Food Market, Seaway Bank and Trust Co., Independence Bank, and the Chatham Pancake House, all in Chatham.

Today though, many black-owned businesses have either closed or are struggling financially to stay open, said historian Nathaniel Burton, who added this pace would continue until the mindset of black business owners change.

“You have a lot of black-owned businesses that are gone and in large part it is due to what I call ‘old school’ management style,” explained Burton. “You had businesses started by individuals with little to no college education or business experience. Just a dream and a passion to open their own business and not really zero in on how to successfully run a business.”

He added the founders for many black-owned businesses that are now closed did not have a succession plan either.

“There was no long-term thinking with the founders of these companies. It was mostly assumed that in the event of their death, their children or spouse would carry on the business even though they were never trained to do so,” he contends. “Poor planning has hurt black businesses in the past and to a certain degree it has hurt black businesses today too.”

Izola’s, 522 E. 79th St., is an example of a black-owned business that faltered due to poor management, according to its late owner Izola White.

White, who founded the restaurant in 1940 and died April 2018, said she trusted too many people to run her business when she fell ill and left management in the hands of “incompetent people,” she said in an August 2013 interview with DNAinfo Chicago. “I have no money, no family and no bank account. God knows my heart, and he knows I would do more to help myself if I could, but I can't, and I need help getting back on my feet.”

And despite efforts to raise monies through a series of fundraisers organized by White’s then legal guardian, DeWayne Mason, the restaurant closed in March 2011.

“It hurts my heart to know she died broke and alone. She had many so-called ‘friends’ during the restaurant’s heydays like a few politicians who only came to the restaurant when they wanted a free meal. But in the end, all she had was a few, close friends (like myself) and Jesus as she made her transition to the next life,” Mason said.

But it wasn’t just black restaurants that closed.

There were also multi-million dollar businesses like Seaway Bank that also folded even though Seaway was Chicago’s largest black-owned, bank (based on assets.)

Melinda Kelly, president of the nonprofit Chatham Business Association, said she remembers when Seaway Bank, Izola’s and other local, black-owned businesses thrived.

“These were two very successful businesses that was supported heavily by the black community and I’m not just talking about here in Chicago but on a national level too,” recalled Kelly. “Prominent blacks would dine at Izola’s because it was known for its soul-food menu. And Seaway met the financial needs of black individuals and businesses especially those that might not have been able to get a loan anywhere else.”

However, she pointed out that without a succession plan it becomes difficult for any business to transition leadership and stay successful.

“Having a succession plan in place is so important for a business and its future. There was no succession plan in place or family when it came to Izola’s,” added Kelly.

Moving forward, Kelly said while she loves working with black businesses, she would advise any black business to “become a part of a group like the Chatham Business Association that has a common mission of advancing your business interest,” she said. “And you must engage in the global economy because that’s when using technology comes into play.”

She added that one of the biggest black-owned businesses to collapse was Johnson Publishing Company, which published the popular Ebony and Jet magazines.

“Johnson Publishing came at a time when ‘we’ had no media companies. It filled a void that existed in the black community,” said Kelly. “But all publications are suffering today because the industry has changed and Johnson Publishing was no exception.”

In June 2014, JPC published the final print version of Jet magazine before it became a digital publication only. And in 2016, it sold Ebony and Jet magazines to Clear Group View, a black-owned, private equity firm in Texas, only to file for bankruptcy in April 2019. Even its historic headquarters building in the South Loop was sold in 2010 to Columbia College Chicago.

Regardless of the local economy, which economists said is now healthy, some black, business owners said it is imperative that black businesses remain open and continue to be as a viable part of the community.

Spencer Leak Sr., president of Leak and Sons Funeral Homes on the South Side, said he is a staunch believer in black-owned businesses especially family-owned businesses.

“It’s important that ‘we’ look out for each other because we are all we have when it’s all said and done,” said Leak. “God founded my business and I try to use it to bless as many people as possible.”

Leak and Sons was founded in 1933 by the late Rev. A.R. Leak, and after originally being located at 4448 S. State St., it moved to its current location at 7838 S. Cottage Grove Ave. It also has a second location in south suburban Country Club Hills and plans to open a third location on the West Side in the near future.

Nowadays though, in order for small, black-owned business to stay afloat, it must have access to capital and be open to changes including with its leadership, said Buritt Bulloch, founder and president of the Old Fashioned Donuts shop in Roseland.

“You can’t just sit back and wait on someone to make things happen for your business. The person making things happen should be you,” said Bulloch, who opened his donut shop at 11248 S. Michigan Ave. in 1972. “Money makes the world goes round. It’s impossible to expand, grow and improve your business if you do not have the funds for it and I’m not talking about daily receipts from your business. I’m talking about long-term capital saved up or money you can borrow from a bank.”

At 80-years-old, Bulloch still works 40 plus hours a week at the shop but said he plans to scale back his work schedule soon and let his children and grandchildren take the lead.

“I don’t want to call it retirement but I’m getting too old for this and it’s time to hand it off to the next generation,” said Bulloch. “My daughters and granddaughter work here with me and they will be the ones who carry on the family business after me.”

Besides Leak and Sons, there are several black-owned businesses that have withstood economic challenges and that are still operating today. Those longtime businesses include Reggio’s Pizza Inc. in West Chatham; East Lake Management Group Inc., Parker House Sausage Co. and the Chicago Defender in Bronzeville; Old Fashioned Donuts in Roseland; Calahan Funeral Home in Englewood; 50 Yard Line in Park Manor; Wesley’s Shoes in Hyde Park; and WVON AM in the South Loop.

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