Growing Riley’s Cafe chain sheds ‘diner’ image

Phil Pankey's plan to slow down his work life by buying a Cedar Rapids diner didn't last long.

Pankey was away from his Cedar Rapids family for months at a time as a troubleshooter for the Marriott Hotel chain's food and beverage operations in June 2004. On his too-infrequent trips home to Cedar Rapids, he'd dined at Willy Woodburn's, 836 First Ave. NE, and he negotiated a deal to buy it from owner Bill Woodburn.

“I wanted out of the long hours, and it closed at 2 p.m.” said Pankey, 34, who changed the name to Diner on First to distinguish it from the remaining Willy Woodburn's on Ellis Boulevard.

Pankey soon decided that the short hours and “diner” tag were limiting the restaurant's potential.

After four months, Pankey changed the name from Diner on First to Riley's Cafe, borrowing the latter name from his son, Riley. He added dinner hours.

Today, Pankey has three restaurants, two of them open 365 days per year, and more on the way.

In early 2009, Pankey opened Riley's Cafe and an adjacent take out pizza restaurant in a long-vacant restaurant space at 515 Williams Blvd., Fairfax. In September 2009, he opened a third Riley's location at the site of the short-lived LoDo's Pizza, 112 Second St. SE., to expand his catering operations.

Customer loyalty is high.

“It's great,” said Kevin Schmidt of Cedar Rapids, a breakfast regular at the First Avenue location. Good food, good service - I've never had a bad meal here.”

The atmosphere is lively, eclectic, and colorful, with a partially open kitchen, and walls cluttered with iconic items and images.

Today, Pankey is renovating a building at 1117 First Ave. SE that will replace the existing First Avenue Riley's that seats 54 with one that seats over 100. He's also scouting sites for a restaurant in the Boyson Road NE area.

Pankey says Riley's has fared well in a down economy by focusing on the basics. He still works long hours, but doesn't mind so much because he can still be with his family and works for himself.

“We stay consistent with the quality and keep the price points where they need to be,” Pankey said.

Riley's offers more than a dozen half-pound burger plates priced between $7 and $9.75, omelets and jumbled three-egg “shipwreck” breakfasts in the $7.50 to $8.75 range, and a country-fried steak breakfast called the Heart Stopper for $6.75. On the lighter side of the menu are wraps, soups and salads.

Richard Pankey, Phil's father, oversees finances. A business development manager for a construction company, he also lends expertise with the restaurant renovations.

The future of the current First Avenue location after it is replaced by the larger restaurant two blocks east this spring is undecided. One possibility, Phil says, is an ice-cream parlor.