After 13 years downtown, Café 4 has been sold. What will change under the new ownership?
A 13-year staple of Market Square has changed hands.
Developer HD Patel and restaurant operator Chad Kennedy have purchased Café 4 and its branding for an undisclosed amount from Jim and Lori Klonaris.
The sale, which was finalized this week, is part of a changing business model for the Klonaris family, Jim Klonaris told Knox News.
The new owners plan to make only minor changes. They closed the restaurant Thursday for cleaning and some repairs in time to open up again for the weekend crowds.
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The new owners also met with Café 4’s 65 employees, who were invited to remain in their roles under new ownership. The restaurant is looking to hire more servers, Kennedy said.
Business hours will remain the same.
Jim Klonaris called Café 4 “the spark and the starting place” that led to his family's downtown investments over the years.
"It was an opportunity to be part of something bigger than just us,” he told Knox News. “We poured our hearts into it, and it was successful since day one."
The new owners plan to keep staple items on the menu while enhancing the food and drink quality.
Kennedy, who previously worked for Klonaris at Kalamata Kitchen in Farragut, owns multiple restaurants and bars in Gatlinburg, including Puckers Sports Grill and Loco Burro.
Kennedy is bringing the latter concept to Knoxville's West Town Mall in January, while Patel is in the process of developing two Gay Street hotels.
When it comes to Café 4, Kennedy said, "it was just the opportunity to own and operate a landmark in Knoxville."
His company, Kennedy Concepts, will operate the business.
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A new business mindset leads to deal
Moving forward, Klonaris said, the family seeks to only operate businesses in buildings they own.
Klonaris said he tried since 2015 to purchase the Café 4 property to no avail.
If they were successful in purchasing the building from 4MS LLC, he said, they would not have considered selling the business.
When Klonaris was first approached about selling Café 4, he was hesitant to hand over a brand so attached to his family's name and reputation.
But when Kennedy and Patel showed interest in the name, logo, recipes and employees, they adjusted the purchase price and worked months to strike a deal.
"It was a really great sale for us," Klonaris said. "The restaurant is a high-volume restaurant. ... And it's a very profitable business. And it's literally the best location downtown."
Café 4 experienced its best year on record for customer quantity and revenue in 2021, he said, despite COVID-19 and his heated and unsuccessful campaign for Knoxville City Council.
What's next for Café 4 and Klonaris?
Kennedy and Patel plan to implement a special menu for Café 4's mezzanine, which has 25 seats and a private bar. They also are adding a TV at the main bar and multiple on the mezzanine level for watching football or hosting private parties.
The Klonaris family will retain The Square Room, their event business behind Café 4.
The Klonaris family currently owns and operates Vida, The Vault and Kefi in downtown Knoxville, with plans to bring Jim's on Jackson steakhouse to the Old City.
Klonaris said they have been asked to bring a new restaurant concept to downtown Maryville, similar to how they were recruited to downtown Knoxville 13 years ago.
Their new Italian-American concept, Bella, is expected to open in downtown Maryville in January. They plan to open a separate concept just next door.
Klonaris said he likely will eat at Café 4 more than ever, no longer having to worry about the business during his meals.
"It was a little bittersweet to let your first-born, if you will, go and leave your household, which is the way I'm looking at it," Klonaris said.
Ryan Wilusz: Knoxville's downtown explorer and urban reporter
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This article originally appeared on Knoxville News Sentinel: Café 4 restaurant in downtown Knoxville has sold. What's changing?