Pete’s is Sold: Meet the New Owner

New Owner Jake La Grander and Staff, Pete's Diner, 540 Union Avenue, Knoxville, August 2024
New Owner Jake La Grander, Pete’s Diner, 540 Union Avenue, Knoxville, August 2024

There are a few iconic businesses around downtown that would leave a hollow place should they leave us. One is Pete’s, which has had a couple of locations over the years but has served downtown since 1988. Here’s a deep dive I took a few years ago with Pete and Joey talking about the restaurant and Pete and Rita’s amazing story.

This past Friday, Pete’s Facebook Page carried a message that got downtown (and beyond) buzzing:

For 38 years, 2 months and two days we have been part of the Knoxville community. This is where Rita and I started and raised our family. When we started Pete’s, we were kids, and we had our first son on the way. We couldn’t fail, we worked hard, and success followed. The people we met along the way have touched our lives forever. That is why it is bittersweet to announce that a couple of weeks ago we finalized the sale of Pete’s. Many of you who have been in to dine with us know this and we thanked you in person. For those of you who have not… Rita, Joey, Sami, Cameron along with myself would like to thank you. Not for a second was your support and friendship taken for granted, and please know that we love you.

Rita and I are looking forward to our next chapter. Joey was ready to move on which solidified our decision to sell, and we are all excited about his next steps.

Signing off one last time,

Pete, Rita, and Joey

Pete’s Diner, 540 Union Avenue, Knoxville, August 2024
Pete’s Diner, 540 Union Avenue, Knoxville, August 2024

After some initial confusion about whether it was closing (it isn’t), the recognition settled in that we’ll miss this great Knoxville family and what they have done for downtown, including during some of the very lean downtown years in the 80s, 90s, and early 2000s. But what will happen next? I met with new owner Jake La Grander to learn more about him, why he’s doing this, and what we might expect.

The first thing I encountered when I walked into Pete’s on Friday afternoon, was a new face. Jake stood behind the register ringing up customers. Clearly comfortable in the position, he warmly engaged each person as if he’d always been in that spot. While I didn’t see Pete, Rita, and Joey, the same happy hum greeted patrons and the same people who likely most recently dropped off your eggs or sandwiches at your table, busily did just that for those present.

He introduced himself as “A guy who owns a diner. I make cheeseburgers and I’m here to make people smile.” He said he’s lived all over the country, but he moved from Phoenix, Arizona a few weeks ago after living there for thirteen years. “My entire career has been in customer service and hospitality.” He said he’s managed restaurants and hotels, but for the last ten years has worked in insurance in Phoenix. “I made it a mission to make it a people business . . . After ten years it was time for a change. I needed a change in temperature and scenery . . . I was born and raised in Wisconsin. I missed the trees, and the green, and the rivers. I missed the four seasons.”

New Owner Jake La Grander, Pete’s Diner, 540 Union Avenue, Knoxville, August 2024

Knoxville checked the boxes. He loves the Smoky Mountains and thinks Knoxville’s proximity and tourist traffic helps undergird businesses. He loves that the University is here, and the city is growing. “It has a lot of big city advantages without the big city.” He said Phoenix had gotten too large for him. His mother and sister agreed that it was time for a change and moved to Knoxville, as well. He also has other family members in the region.

He wanted to purchase a business of his own and move from Phoenix. He wanted to be back in the food and beverage industry, and he looked at businesses for sale in the region. He approached the broker in December who was hesitant, assuming Jake would be an absentee owner and stay in Phoenix. After realizing that Jake would move here and run the business, he flew to Knoxville in early March and met with Pete and “we hit it off.” They began the process that resulted in the sale a few months later. “It’s his legacy . . . and he didn’t want it to go to just anyone. I’m honored to be in a position to take it and keep it going.”

Pete and Rita have been working alongside Jake for the last two weeks and will do so one more week before taking their leave, though he said they are friends now and he expects they will be customers. He said he does not plan major changes. “I bought it because of what it is and I’m not going to change it. The only thing that changes is who unlocks the door at 5:00 am. The name is not changing. The menu is not changing, though I may add an item or two.” He’s excited to no longer work for a big corporation and he didn’t want a franchise. “I want to know that everything that happens, good or bad, is on my shoulders.”

The familiar photographs lining the walls will remain. There won’t be any major changes in decor. He wants people to have the same experience this month they had last month. One part of the change he was sensitive to was staff. After considering how to tell them of the new ownership, he simply showed up on a Monday morning and started working. They asked if he was a new guy and said he was. Later Pete introduced him as the new owner. It gave them the day of working together and getting to know each other so he could show them the relationship he wanted to build.

New Owner Jake La Grander and Staff, Pete’s Diner, 540 Union Avenue, Knoxville, August 2024

All the employees who wish to do so will remain. “They are a huge part of what makes this place magic.” He will likely add employees as Pete, Rita, and Joey won’t be working. He also does plan to open, once more, on Saturdays. He mentioned people who don’t live or work downtown and have a hard time getting to the place during the week. Many of them, he suspects, would like to visit the spot. He had hoped to open Saturdays by the first game week, but he isn’t sure that will be possible. “I want to make sure that we’re staffed correctly, and that everyone is trained and ready.”

“We’re not going to be perfect, but we are going to do our best.”

The restaurant is open for business and will not close during the switchover. You can wish a happy retirement to Pete and Rita this week and you can introduce yourself to Jake the next time you are in. He’ll be happy to see you.

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