In early 1981 Phyllis Takeuchi was a school teacher turned full time mom looking for a way to finance her four children's college educations. She looked into going back into teaching, but the income she would have earned would have barely put a dent into tuition costs. Later that year, Phyllis started Town Square Furniture as a barstool and dinette specialty store in Palo Alto California.

Over the years Town Square Furniture has evolved into a full line store. In 2002 they moved into its current larger, beautifully remodeled location in Campbell California. Today Town Square Furniture is The South Bay's premier furniture store featuring over a hundred manufacturers.