Lois Margolet grew up in Wilmington, Delaware, in a neighborhood known as Little Italy. Lois had a dream to open her own sandwich shop, but she knew she needed to have something unique because there was plenty of strong competition out there. Little Italy had at least seven sandwich shops within a three block radius. In 1976, Lois quit her full-time job, borrowed money and purchased a boarded-up building on North Union Street in Wilmington, where the original Capriotti's Sandwich Shop still stands. Lois, along with her brother Alan Margolet, decided to open a sandwich shop on the first floor, while she lived on the second floor. She and Alan would name the sandwich shop after their grandfather, Philip Capriotti, who loved to cook for them.