Categories: Featured Post

The 15 Biggest Failed Restaurant Chains

Beefsteak Charlie’s

A classic New York city chain, the first Beefsteak Charlie’s opened in 1910, and its flagship location on 50th Street between Broadway and Eighth Avenue was a huge hit, serving its specialty steak sandwich to generations of sports enthusiasts (it had a horse racing theme).

In 1976, restaurateur Larry Ellman renamed his Steak & Brew chain Beefsteak Charlie’s, apparently after realizing that the name had never been trademarked, and by 1984 there were more than 60 locations all along the East Coast, buoyed by an all-you-could-eat salad bar and unlimited beer, wine, and sangria.

In 1987, the chain was acquired by Bombay Palace Restaurants, and when that group filed for bankruptcy in 1989, only 35 locations were still open, and over the next 15 years the remaining restaurants dwindled down to zero.

 

VIP’s

This Salem, Oregon chain was once the largest Oregon-based restaurant chain, with more than 50 locations in the western United States at its peak in the early 1980s.

With most units located near freeways, this chain was similar to Denny’s, open 24 hours and taking a “coffee shop” approach.

Starting in 1984, however, the chain began selling off its locations (more than half to Denny’s), and by 1989 the last of the restaurants had been sold.

 

Steak and Ale

This brainchild of Norman Brinker, who also gave us Jack in the Box and Chili’s, didn’t do quite as well as his other inventions.

Launched in Dallas in 1966, it introduced America to the self-service salad bar and did gangbusters in its first years (selling an 8-ounce filet for $1.95 didn’t hurt), and by 1976, when he sold the chain to Pillsbury, there were 109 restaurants in 24 states.

This was the beginning of a major boom in fast-casual dining, however, and the chain just couldn’t keep up.

Metromedia eventually purchased the brand, and shut down the last 50 locations in 2009.

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    • We still have a Howard Johnson's here in Arlington Texas as well. Right next door to Six Flags over Texas. The best burger you ever ate at Griff's. One name i was surprised to not see was Kip's Big Boy Restaurant. But they are still in Ky. and Ca. As of this writing.

  • Used to eat lunch there a lot. Also, dinner was great. Loved those Chicken Croquet s. They had great ice cream for after the ball games.

  • Too bad, so many folks put their hearts and souls into these restaurants, Then others opened with copy=cat deals and therefore lots of them couldn't stand the heat in the kitchen and simply gave up, sold out etc. Many dreams, hopes and cash flow was lost along with the broken hearts. Alas that's life in the business world, you gotta be strong and hard as nails to make it, make deals that break the bank , know when to hold em and know when to fold up your tent and go home, if you still have one. josie

  • no, burger chef lost out to mcdonalds becaue of freemason, mk ultra and mkdelta...your highly successful and stay highly successful because of who is "connected" and who follows the "nwo" agenda....

    • The Freemasons? MK Ultra? Why not the Illuminati? Does RB NG mean you are "ribbing" us or do you really believe what you wrote? About 50 years or so ago, I would've asked what you were on and could I have some. Well, if that was supposed to be funny, I got a little laugh out of it. Thanks for that.

  • Very nostalgic memories of going to Howard Johnson restaurants with my mother as a child. I loved the fried clam plate with a dessert. Very pleasant and easy going atmosphere. I really miss those days! Their Inn is still a favorite - would rather stay there than the up scale hotels and motels I've used, with it's contemporary, "Jetson"-like, orange, grey and white decor/furnishings and friendly, laid back staff.

    • Met my future wife at a Burger Chef in Dothan, Al in 1970. Fortunately, our franchise lasted longer than theirs. 49 years in April.

  • I worked for my uncle and aunt in their franchise Howard Johnson's Restaurant in New Hampshire in the spring and Summer's of the late 1950's and early 1960's during my high school summer vacations . Great memories and times at the HoJo providing food and ice cream to our customers. When you think of Howard Johnson's it is like apple pie and baseball true American fare. Unfortunately a time that has passed.

  • There was a Sambo’s near me in 1975 and we loved to go there with a quarter in our pocket and it would pay for 2 coffees with a 25% tip.

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