Ernie's has been owned and operated by the Bruso family since January 1981. From 1981 until December 2003, Ernie's operated from a 1700 square-foot building located at 1146 Emerald Bay Road in South lake Tahoe. In 2002, the Bruso family purchased the Frank's Restaurant property at 1207 Emerald Bay Road (across the street form Ernie's) when the owners of Frank's retired.

The Frank's Restaurant building was 50 years old, so the Bruso family decided to demolish the old building and build a brand new 3200 square-foot building on the property. Construction was completed December 3, 2003. The old Ernie's location was sold to new owners and reopened as Bert's Cafe.

Ernie's has a strong reputation for delicious food and great service, due largely to a terrific staff who has remained dedicated to Ernie's for many years. The 17 caricatures hanging along the north wall inside are of Ernie's employees who have worked for Ernie's anywhere from two to twenty-seven years.

Ernie's has been voted "Best Breakfast" every year since the locals started voting in 1995 and prides itself in offering a wide variety of foods to meet almost all customers' needs.