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The 15 Biggest Failed Restaurant Chains

Howard Johnson’s

Howard Johnson’s is synonymous with the 1950s and ’60s dining. It was launched by Howard Johnson himself in the 1920s as a soda fountain and lunch counter, and by 1954 there were 400 outposts in 32 states.

One of the first major restaurant chains, it went public in 1961 with 605 restaurants and 88 motor lodges, both of which were major fixtures dotting the new American highway system that experienced monumental growth during this time.

The company peaked in in the mid-1970s, but business fell off after that. The business model of serving pre-made high-quality food in traditional dining rooms lost popularity amid the boom in fast food chains like McDonald’s, and after many changes in ownership over the years, only two Howard Johnson’s restaurants remain, in Lake Placid, New York and Bangor, Maine.

 

Sambo’s

When Sam Battistone and Newell F. Bohnett decided to open a restaurant in Santa Barbara in 1957, they just combined Sam’s first name with Bohnett’s last name, and Sambo’s it was.

Little did they realize just how many people would take offense at the presumed connection to the politically incorrect children’s book Little Black Sambo, especially after the restaurants were decorated with scenes from the book.

Regardless of the association, the restaurant was a huge success, and there were 1,117 locations in operation at its peak in the early 1980s.

The company’s finances began to crumble just as it became a lightning rod for its insensitive name, and its collapse was epic.

In 1983, 618 locations were renamed Season’s Friendly Eating, and soon after some outposts were sold to Denny’s and the rest simply shut down.

 

Burger Chef

In 1958, a technological wonder of a chain restaurant opened, with the capacity to pump out burgers faster than even McDonald’s could: 800 per hour, via a conveyor broiler.

It seemed like the perfect formula for success, and Burger Chef’s optimistic parent company, General Equipment, opened 1,200 outposts by 1972, making it second only to McDonald’s 1,600.

They also pioneered the concept of selling a child-oriented meal of a small burger, fries, drink, dessert, and small toy in 1973 (they called it a “Fun Meal”; McDonald’s called it a “Happy Meal” when they “borrowed” the idea six years later).

But it was overexpansion that eventually did the company in; in 1981, the company was sold to Hardee’s, never to be heard from again.

 

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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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