In 1939, Rick and Margie Segel founded National Mom and Pop Business Owners Day in honor of their parents’ small hat shop outside Boston, which eventually grew into a $2 million business.
Every year on March 29, we continue to honor the dedication of family-owned businesses and the valuable contributions they make to America.
The mom and pop store market has grown rapidly and is forecasted to go from $149 billion in 2024 to $175 billion this year. Today, the more than 32 million family-owned businesses in the United States are the largest private employers in the country, accounting for 83 million American jobs.
Community Mainstays
Mom and pop businesses serve as the backbones of their communities. They sponsor local sports teams and events, create jobs in the community and reinvest their earnings into the local economy. Many mom and pop shops – from bookstores to cafes and boutiques – also serve as social hubs where people connect.
These businesses are diverse. R.A. Fountain General Store in North Carolina, for example, snagged the top spot on Entrepreneur’s 2024 list of the country’s favorite mom and pop shops. The store hosts local musical events, sells the works of local artists and serves fresh-squeezed juices and homemade ice cream. Others on the list include a glassblowing shop in Newport, Rhode Island; a vinyl record shop in California; a bookstore in Oklahoma; and an antique store in Bloomington, Indiana.
They also receive strong support from individuals in their communities. In early March, for example, robbers targeted a 20-year-old shop called Expert Alterations and Embroidery in Kansas City. Customers in the neighborhood rallied to support them, purchasing goods and services to counteract the financial losses. Similarly, customers showed strong support for mom and pop burrito restaurants in Ohio City after news that Chipotle was coming to town.
The Changing Landscape of Family Businesses
Traditionally, mom and pop shops have thrived through word-of-mouth and foot traffic. Today, the digital revolution has transformed the ways in which they can serve their customers. Many family-owned businesses have successfully expanded their reach beyond their local communities by launching websites, leveraging social media (98% of consumers use the internet to find information about local businesses) and utilizing e-commerce companies like Etsy and Amazon Handmade.
Husband-and-wife team Tom and Joanne Sullivan began their careers as artists in street festivals, with Joanne selling hand-painting clothing and Tom selling woodwork. They started a joint business called Totally Bamboo, selling handmade cutting boards, and have since expanded into a range of housewares that they sell on Amazon.
Angela Stephens found similar success when she started RE-Focus, the Creative Office, to help her son, who struggled with ADHD. The business creates products like color-coded folders, anxiety journals and to-do pads that help make work, school and life easier for those with ADHD.
Family businesses like these provide an important personal touch that is difficult to replicate. Customers appreciate this; an October 2024 survey found that 71% of consumers look for a personalized customer experience, and 78% will repurchase from a brand that provides it.
Brick-and-Mortar, Online, or Both?
Despite the digital boom, brick-and-mortar stores still account for the majority of retail sales in the U.S., with more than 83% of sales happening in physical stores.
Many mom-and-pop businesses continue to thrive in their physical locations, while others have transitioned to hybrid models, combining in-store sales with an online presence. The National Retail Federation predicts that physical retail stores will see growth in 2025, especially those that “create trust and loyalty through authentic interactions, foster personal connections and create a community around the brand.” Mom and pop shops particularly fit the bill.
Blending physical and digital strategies ensures businesses stay accessible to a broader audience while maintaining their local roots. These strategies can help mom and pop shops see significant growth. AARP recently featured a list of household-name companies that started out as small family businesses, including Wegmans, Aldi and Chick-fil-A. The current CEO of Chick-fil-A, for example, is the grandson of the founder.
Bridging Generations: The Blend of Traditional and Modern Skills
One of the most remarkable aspects of family-run businesses is the interplay of skills across generations. Older generations bring experience and deep-rooted customer relationships. They understand the importance of face-to-face interactions, the value of a handshake and the art of personalized service.
Meanwhile, younger generations bring technological savvy and a new perspective to retail. They recognize the power of tools like artificial intelligence integrations, social media and data-driven marketing. This intergenerational fusion enables family businesses to remain relevant while staying true to their core values.
When Rustin Yasavolian became CEO of Messina Diamonds, he embraced the balance of respecting his father’s 40 years of experience and customer trust while implementing new strategies in inventory management and a focus on custom jewelry, inspired by market research.
Founded in 1981, Pizza My Heart is a family-owned pizza chain known for its surfer-themed branding and commitment to quality. Today, you can text a number and chat with an AI chatbot to place your order. The chatbot’s name is Jimmy the Surfer, a nod to a character from the company’s old TV commercials.
A Tribute to the Resilience of Family-Owned Businesses
National Mom and Pop Business Owners Day is a reminder of the resilience, passion and hard work that family-owned businesses embody. Whether through a cozy brick-and-mortar store, a beautifully curated Etsy shop or a mix of both, these enterprises remain pillars of our communities and loved by their customers. They continue to evolve while staying true to their foundational values that include personalized service, high-quality products and a commitment to the people they serve.
As consumers, we can show our appreciation today by shopping these businesses (in person or online), buying gift cards, leaving positive reviews and spreading the word on social media. Every small act of support makes a difference in keeping mom and pop businesses thriving for future generations to enjoy.