Focusing on the sweet side of things

Tucked neatly within Owatonna’s downtown is one of the most iconic shops within the region, a historic candy store and restaurant, the cozy Costas’ Candies.
The shop celebrated its 100th anniversary last fall, and now, with the current situation presenting them a unique opportunity, the owners have decided to focus solely on the candy side of their business. This means that their restaurant, which has become a lunch and breakfast staple for downtown Owatonna, will be retired.
“It’s something that has been in the discussion for the past five years,” explained co-owner Julie Schultz, who runs the business with her husband Grant. “We were at capacity and couldn’t make enough candy to keep up with demand.”
Since purchasing the business in 2009, the candy has slowly become the focal point. “When we started here the restaurant was the majority of the business, but over the last 10 years either what we’ve done or the way things have gone, the candy side has been the vast majority of our business and our customers,” Grant Schultz explained.
“We knew we needed to expand the candy side of it and the current situation gave us a unique opportunity,” Julie said. “This is something that has been a long time coming and we’re excited to move forward.”
Costas is currently looking to do a remodel of the entire store to better suit their candy operations. “We are excited to see where this will take us and it will also give us the opportunity to experiment with new flavors,” Julie explained. “We can also start an online store, which will expand our sales.”
Founded in 1919 as George’s Candy Kitchen, the quaint candy store has become an essential part of the local community. “My dad had his office next to the store, and so I remember in the winter we’d come and we’d shovel the sidewalk for Costas and he’d usual give me a milk chocolate turtle for shoveling his sidewalk,” Grant said.
Although both Grant and Julie are looking forward to the next stage, the restaurant will always hold a special place in their hearts. “It’s bitter sweet to say goodbye to our restaurant and our customers,” Julie said. “Many of them started the day with us.”
“Costas has been a tradition in Owatonna and Steele County and part of that is it has a small-town feel and a handmade feel to our products and the time we spend making quality candy and getting to know our customers goes into that,” Julie explained. “So far the support for this transition has been tremendous.”
While the restaurant side might now be a thing of the past, a sweet future lies in store for Costas’ Candies. “We are thankful for all the support of our customers and they have led us to this expansion,” Julie said. “When the time comes, we will be excited to show off our remodel.”
Costas’ Candies is currently serving up sweet treats in downtown Owatonna as they look to remodel their store. The candy shop is located at 112 N. Cedar Ave.