As the fourth-generation owner of the 92-year-old Tip Top Motel & Cafe on Kaua'i, Jonathan Ota lives by the old saying that if it ain't broken, don't fix it.

Ota, 46, has been running the Lihu'e landmark since 1990 and has held onto what has made Tip Top famous, such as the restaurant's banana pancakes and oxtail soup. The motel continues to be a convenient and affordable place to stay for travelers on a tight budget, and the bakery's macadamia nut cookies remain an omiyage favorite.

But Ota also knows that to survive as a mom-and-pop business on an island often faced with economic challenges, he needs to do a little fine-tuning to stay competitive. Over the years, he has made many behind-the-scenes changes to his family business that may have gone unnoticed by many people.

Ota has leased the bakery to two Oregon men, who put out their own line of baked goods as well as Tip Top's popular macadamia nut cookies. On the restaurant side, Tip Top serves breakfast and lunch daily, but the eatery is leased to Sushi Katsu Japanese Restaurant for dinner service.

Ota also has leased a space in the Tip Top building to a woman who runs a salon, and he rents warehouse space to a flooring company. These changes may seem drastic for a business that was started in 1916, but Ota believes they haven't altered the flavor of the Tip Top.

"You have to make adjustments because the business environment is so different and has changed so many times over the last 90-something years," Ota said. "We have made some good changes, yet we try to keep it the same feeling as a family business. We don't want to make this a fine-dining or Asia-Pacific cuisine. That's not what Tip Top is all about."

Ota's efforts haven't gone unnoticed by his peers. He recently was named the state's 2008 "family oriented small business of the year" by the U.S. Small Business Administration.

HUMBLE BEGINNINGS

Tip Top began on a very small scale. Ota's great-grandfather, Denjiro, was a cook for the plantation manager on Kaua'i and was asked by the manager of the Lihu'e Store to open a coffee shop so people could have breakfast and coffee in the mornings.

But Denjiro Ota declined because he did not have any money. The store's manager offered to bankroll the venture and Ota agreed to open the cafe and bakery in what was then called the Tip Top building.

In 1925, Ota's son, Mitchell, took over the business and it was under his leadership that the Tip Top flourished, Jonathan Ota said. Mitch-ell Ota expanded the bakery's menu to include the macadamia nut cookies and he also developed the recipe for the pancakes.

In 1965, Mitchell Ota moved the business a half-mile away to its current location and opened the 34-room motel and a bar. Jonathan Ota's father helped to run the business with Mitchell Ota, although he never took control.

While the family continued to run Tip Top, Jonathan Ota was working on his own career as a controller with two Sheraton hotels on O'ahu. Ota had no plans on running Tip Top until 1989, when his grandfather died.

"My grandmother told me that he wanted me to come home and take over," he said. "I was very close to my grandfather so whatever his wishes were, I was going to honor him."

LOWER RENTS

When he took over, Ota knew he would have to upgrade the Tip Top property, but also wanted to keep the family feeling of the business. He said he came up with the idea to lease the bakery and other spaces to generate extra revenue, but also to help his tenants, who also operate small businesses.

"We're trying to help people to succeed in their businesses. We're not charging the highest rent for the place or the going rate," Ota said. "We're trying to give people chances to start a business at a reasonable price. We're happy to see these businesses flourish."

In the last 26 years, Kaua'i has been hit with two hurricanes and has struggled along with the rest of the state with the ups and downs of the tourism industry. Unlike many tourist-oriented businesses, the Tip Top has managed to survive the tough economic times and Ota believes it is because of the strong customer base.

"We still have a good base of local people who come to eat there, so we're thankful for that," he said. "That's why we want to keep our business for the local people because that's our main segment."

As for the future of Tip Top, Ota has no children and said he has yet to come up with a succession plan.

He said his main objective is to keep the company profitable and provide a service to the community by keeping his 30 workers employed.

"We have a really good staff of employees and keeping them employed and providing them with steady employment is one of our goals here," Ota said. "It's not just about us. It's about other families that we help by employing one of their members."