Best Business Comeback, Version 2011

Things looked bleak on Spencer Street last year as an iconic Syracuse diner teetered toward becoming a unique but depressing eyesore. The silver bullet that was once the popular Little Gem Diner had been closed since 2009 as the previous owner, beset by financing woes, abandoned ship. Even the neon roadside sign fell into disrepair, holes punched through the face.

But summer brought rebirth for the kitschy café as new owner Doug LaLone, part of the family that owns the neighboring truck stop joint Mama Nancy’s, spearheaded the revitalization and reopening, polishing the old dining car’s image while preserving its traditional character. Now called simply the Gem, the 832 Spencer St. diner was expanded with the addition of a second dining room, a covered deck, a walk-up ice cream window and improved parking.

A snazzy, retro interior, an energetic staff and ambitious five-page menu with everything from chicken wings and potato pancakes to filet mignon and pizza are keeping diners happy three meals a day. “We’re doing great,” LaLone raves. “We’re still out the door on weekends. The numbers keep coming in the door. We’ve got some people who come in two or three times a week.”

That old sign, refurbished with LED lighting, is again shining, illuminating the whole corner and brightening the spirits of customers and friends, old and new. “People stop me in the dining room every day with a story about how they used to come here years ago with their family or their friends,” LaLone says. “{Former owner} Mario {Biasi} and his wife came up from Florida and my wife and I gave them the tour. They couldn’t believe it. They practically had tears in their eyes.”