How Arepalicious Grew a Family Recipe into a Queens, NY Favorite

Arepalicious Columbian Restaurant

Passion for food and finances propels a Queens Night Market Colombian restaurant’s growth

by Citizens Staff

Key takeaways

  • Focus on cash flow. Plan for unpredictable costs by watching cash flow, saving, securing financing and using vendors with flexible payment options.
  • Double down on market demand. Listen to the market and adjust to boost business appeal. Take advice from experienced staff to build efficient operations.
  • Staff for today and tomorrow. Prioritize staff with a can-do attitude and involve family members who can help now and eventually take the reins.

Colombian restaurant Arepalicious is a kitchen table startup in the truest sense. Danny and Shirley Atehortua began making arepas — cornmeal cakes filled with cheese and meat — at home for friends and family as a hobby. The arepas became so popular that the couple decided to sell them at local markets, and in 2018 they opened a successful restaurant and bakery in Queens, New York.

Today, Arepalicious is a longtime popular fixture at Queens Night Market (QNM), an open-air, family-friendly market in Queens, New York. QNM showcases over 100 independent vendors each week to celebrate the cultural diversity of New York City and Queens.

“We do everything from scratch — we even take the time to boil and grind our own corn,” says Danny Atehortua, who moved to New York from Medellín, Colombia, in 1992 at the age of 12. “It’s a long process, but it makes everything taste so much better and customers appreciate it.”

Arepalicious’ growth reflects a national wave of Latino-owned business success. The number of Latino-owned businesses in the U.S. increased by 44% between 2018 and 2023.1 Today there are 5 million. Together, they generate more than $800 billion in annual revenue.2

Atehortua recently spoke about what has driven his success, including a focus on the business side of his passion, the importance of listening to the market and how his family is central to his current and future success.

Latino-owned businesses: Snapshot of success

  • Rapid growth. Number of businesses has increased 44% in the U.S. between 2018 and 2023.1
  • Substantial revenue. The 5 million Latino-owned businesses in the U.S. bring in more than $800 billion annually.2
  • Commitment to staff. Latino-owned businesses are more likely than other companies to provide benefits, training and career development, and advancement opportunities.1
  • Focus on expert financial business advice. Sixty-five percent have sought out external business financial guidance.1

Tip: Focus on cash flow.

A passion for creating high-quality, homemade food helped launch Arepalicious; a commitment to healthy finances helped it to thrive. Atehortua says he has focused on financial planning, close supplier relationships and careful cash flow monitoring.

“You never know what to expect,” says Atehortua, who financed the opening of the restaurant with a partner, whom he later bought out. “I always try to plan by keeping money in savings, because business can go up and down. Business credit cards and a line of credit can help us manage cash flow to cover regular expenses like ingredients, and unexpected expenses like repairs or replacement equipment.”

Atehortua’s focus on finances is helping him manage current cost increases. For example, a significant percentage of the restaurant’s sales comes through apps like DoorDash and Uber Eats, and many of the containers used for those takeout orders come from China. The cost for the items has risen by almost three times, while a case of eggs that once cost $40 is now $240.

He also keeps in close communication with his suppliers so that he can take advantage of payment plans when he needs to spread his bill payments out over time. This is a good option for vendors who offer flexible payments, but he notes that this is not possible for utilities, taxes and other costs.

When necessary, Atehortua has had to raise prices, but he tries to avoid that step.

“Sometimes raising prices is inevitable, but we can’t do that constantly, because when we change prices, we need to reprint our menus,” he says. “Sometimes, we can adjust recipes and swap in new ingredients, so we don’t always have to pass along price increases to our customers.”

Minimizing price increases is important to Atehortua, because he knows times are difficult for his customers. “People are clearly afraid to spend money,” he says. “We’ve seen the difference. On Mother’s Day weekend, for example, sales were 30% lower than other years. Other restaurants have told me they are experiencing the same thing.”

Even in the best of times, the restaurant business can lack consistent revenue. While the summer is busy thanks to Queens Night Market, and November-December is filled with orders for parties, business can be slow after the holidays.

These fluctuations are the reason Atehortua focuses on sustaining cash flow. To keep building on his financial skills, he has taken small business classes through Queens Night Market to learn more about financing, and he networks with other food vendors to learn what works for them.

Research shows that seeking support during economic challenges could help Latino-owned businesses thrive. In a recent survey, 65% of Latino business owners said they had sought external advice on finance or accounting. Eighty-three percent expressed interest in programs offering financial guidance for their businesses.1

Bottom line: Prepare for all potential financial developments by building up savings when you can and securing financing before you need it. Keep a close eye on cash flow to identify and take steps to address potential dry spells before they hit. Seek out suppliers that offer flexible payment terms. For example, net-60 vendors allow businesses to pay bills within 60 days of when they are due without a penalty.

Tip: Double down on market demand.

As Arepalicious has grown, Atehortua’s willingness to listen has contributed to the restaurant’s success and staying power. He cites the insight from his experienced employees and a close tracking of market demand as key success factors for him.

For example, neither Danny nor Shirley had any restaurant experience when they opened their doors, and they quickly realized that the experienced kitchen and waitstaff they employed could teach them a lot.

“It was like school for us, and we were happy to learn,” he says. “We listened to their advice on things like how to set up the kitchen for the best workflow, and ideas for running a smooth front of house.”

Over time, they also learned by listening to market demands. At the start, the restaurant was more of a bakery selling delicious Colombian cakes and breads made from Shirley’s recipes. But gradually the couple realized that what the neighborhood craved was a broader selection of food.

“So, everything changed,” Atehortua says. “We shifted to being more of a Colombian and Latin-inspired restaurant — with arepas, of course, because that’s our signature item.”

The arepas have an important role in the business: to attract customers and bring them to the more full-service restaurant. They are so popular that they earned Arepalicious a coveted spot as one of this year’s four “Taste of Queens” winners. Over 100 restaurants entered the competition, run by the New York Mets, to have their food featured at Citi Field for half of the baseball season and highlight local food businesses.

“We’ve learned that people try the arepas at a game, and they taste how delicious they are, and it drives traffic back to our restaurant,” he says. “We’ve seen the same thing with Queens Night Market.”

Bottom line: Listen carefully to your market and adapt your business model approach to deliver what it wants. Many successful businesses evolve based on market input to find the best niche and capitalize on what appeals most to the market. Turn to the people around you, including staff, to build skills and improve operations. Leave your ego out of the running of your business and stay focused on how you can most effectively deliver what the market wants.

Tip: Staff for today and tomorrow.

Arepalicious is a family business, which helps make things run smoothly today, and lays the groundwork for the company’s future. Atehortua works full time for the New York City Department of Transportation, while his wife Shirley oversees the full-time management of the restaurant and its 15-person staff. He says that everyone involved needs to have a “can-do” spirit.

“If your kitchen crew doesn’t show up, you have to prep and cook. If a server calls in sick at the last minute, you’ll be waiting tables. If the driver doesn’t show, you’re delivering takeout,” he says. “You have to be ready to cover.”

This all-hands-on-deck approach is what’s required to build a successful restaurant, he says. While Atehortua praises his entire team for the success of Arepalicious, he says having family involved is important for its current and future potential.

His daughter Michelle and son Brandon currently work in the business. Michelle works part time, but Brandon is full-time and may one day take over the business.

The business today has two locations — the main Ozone Park, Queens restaurant, and Arepalicious Express, a second location in Rockville Centre, Long Island. The family’s future expansion plans may include a food truck, additional locations in New Jersey or Connecticut, and a larger restaurant in Queens with a bar and event space.

Atehortua says his team shares one essential component for Arepalicious’ success: passion for the business. This shared passion among his family and staff has fueled its success and will help with future expansion. “I love the restaurant — I don’t get stressed out there, even when things are chaotic,” he says. “If you have a passion for it, that will keep you motivated and spur you to succeed.”

Many Latino-owned companies share a deep commitment to the people who power their success. These small businesses are more likely than white-owned counterparts to invest in their teams with employee benefits, training and opportunities for growth. Eighty-nine percent provide these employer-paid benefits, compared to 75% of white-owned businesses.1

Bottom line: Build a team with a can-do spirit and encourage them by sharing the passion that prompted you to start the company in the first place. Involving family members may help, since you know their skills and limitations and can put them in the right role. And when family is involved, you are building a plan for handing the company off when you reach the stage that you no longer want to run it.

A passion for food and finances, and a willingness to listen to the market, has helped turn Arepalicious into a thriving business with a bright future. Part of Danny and Shirley Atehortua’s recipe for success has also been to fold family members into the business. They share a passion for meeting market needs today and potentially create a foundation for running the business in the future.

Do you need guidance on your business journey? Citizens’ business bankers are here to help with cash management services, financing options and more.

decorative image

Which type of business loan is right for you?

Learn about what business financing options are best for you at this stage of your business ownership journey.

decorative image

What is cash flow?

Efficient cash flow management is essential for every business. Assess your current cash management practices and take steps to improve them with these tips.

decorative image

How to choose the right business financing option

Business changes. So should your goals. See how different business financing options line up to your goals.

© Citizens Financial Group, Inc. All rights reserved. Citizens is a brand name of Citizens Bank, N.A. Member FDIC

1 Stanford Graduate School of Business, State of Latino Entrepreneurship 2024

2 U.S. Department of Treasury, Treasury Department Report Card: Latino Business Ownership Up, Pandemic Recovery Efforts Helped Grow Latino-owned Businesses

Disclaimer: The information contained herein is for informational purposes only as a service to the public and is not legal advice or a substitute for legal counsel. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.