Richie--you are probably thinking of the restaurant on the 3rd floor of the Mallers building. The building is still there but I haven't gone up to the restaurant in many years. It was there as early as the 1950's, maybe even earlier.
The Loop family owned restaurants are sadly fading away. I remember Mayor Daley about 10 years ago didn't want chain restaurants in the Loop because they started popping up and he could forecast the future of the Loop. I stopped for lunch not long ago at Beef N Brandy at 127 S. State Street. I spoke to a gentleman who has been at the restaurant for a long time. I asked him about family owned Loop restaurants and the reason you don't see them much anymore. He told me that most places had their lease expired and when the restaurant tries to renew the lease the building forces them out by skyrocketing the rent. So the only places that can afford the rent are popular chain restaurants, coffee shops etc.