In the middle of an economic downturn, what did Tony Iacampo learn in the six months since he opened Sweet Lela's market cafe in Towson?

"That quality prevails over everything," he said. "And maybe I should have searched for a larger space."

He named the restaurant after his 2-year-old daughter, he said. Lela is short for Lilliana said Iacampo, noting he and his wife, Aleesha, live in Loch Raven Village.

His eatery not only features a sleek new facade, it offers soups, salads, panini, gelato and sorbet and other authentic Italian food -- as well as breads and pastries straight from the Bronx.

Iacampo spent years living in New York City after growing up in Syracuse and became an aficionado of places like Lela's, "where you can go have a coffee and a sandwich and sit and talk," he said. "It's the type of place that's always packed."

New York is known for its true Italian bread, he said, "crusty on the outside and soft in the middle ... and New York cheesecake was named that for a reason."

Located at 3 Allegheny Ave., just west of the roundabout, Lela's might be sweet but it's tiny by most standards.

The 600-square-foot restaurant, which Iacampo has dubbed "Towson NASCAR" because it overlooks the roundabout, can seat only 15 diners inside and needs accommodating weather to seat an additional 25 diners outside at tables under umbrellas.

But Lela's is developing a rapidly expanding carry-out and office catering and delivery business as well, he said.

Iacampo would like to expand to the second floor someday but it's just not feasible now because of the economy, he said.

Meanwhile, the small footprint serves the place well. As the saying goes, "the good wine is in a small barrel," said operations manager Vincenzo DiFerrante.

An intimate dining room fosters a friendly atmosphere "where people remember your family and your name -- like we do back in Italy," he said. It lends itself to their idea to form a base clientele and really take care of them.

All the food has to be fresh because there is little room to store it.

"When we run specials it's not what's left over, it's what we were able to get fresh at the market that day," Iacampo said.

"That's our mission," said DiFerrante, noting entrees are all homemade and that Daniele Useli, the chef, is the former executive chef of Sotto Sopra, the restaurant on Charles Street in Baltimore City that offers fine Italian cuisine.

"We change the menu every weekend and try new ideas," he said. "People can call ahead and suggest things."

Jeweler Phil Grillo, the owner of Grillo & Co. just up the street, is a Lela's regular.

"It's a great plus for Allegheny Avenue," he said. "It has this European flair."

Nancy Hafford, executive director of the Towson Chamber of Commerce, agrees. "It's wonderful how Lela's changed the appearance of this gateway to Towson," she said, "and the pastries are fabulous."

Iacampo is confident about Lela's future. "People will pay as long as you're using fresh foods and great products," he said. "There's an education process involved.

"When you open up the menu, you may be shell-shocked to see a $10 sandwich, but when you taste it, you'll see it's a $12 sandwich."

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