In later years, Spatz's had a reputation with certain parts of the community to have segregated practices going on in the shop. In 1961, Chauncey Whitaker, who is African American, walked into Spatz's with a group of white students. While Whitaker's friends were served, Whitaker was not. When he asked Edwin Spatz why he wasn't being served, he was told to leave. Whitaker then consulted a lawyer and brought a civil suit against Spatz, stating his civil rights were violated because the color of his skin. Edwin Spatz pleaded guilty to these charges and was fined $100 and costs by Judge John B. Wright. Reverend Kenneth Dobson writes that himself, along with the MacMurray College Wesley Fellowship, were the ones who organized this event by planning an integrated group to be in Spatz's to see if they'd be served. As a result of this case, many businesses around town, like the movie theatre, also stopped certain segregation practices they had been using.
After the case, Edwin Spatz continued to work at Spatz's for a short time before leaving the business to his son James. He opened a second location on Greenwood Avenue in order to work semi-retired for the remainder of his life. Edwin Spatz died at the age of 90.