America's Disappearing Restaurant Chains

24/7 Wall St.: America's Disappearing Restaurant Chains

There is a school of thought that says the restaurant business is always a good business – people need to eat. A glance at the sales of many of America’s largest restaurant chains over the past decade quickly dispels this myth. Using data provided by food industry research firm Technomic, 24/7 Wall St. has looked at restaurant chains with the greatest decline in sales from 2001 to 2010. In every case, sales have fallen 60 percent or more.

Many restaurants on this list are indeed casual, family dining establishments. The majority offer American Style cuisine — e.g., steak and burgers — in a bar or grill setting. These restaurants expanded quickly during the 1990s, but their presence was overshadowed by newer restaurants that consumers found more exciting, according to Tristano. Even now, new “fast-casual” restaurants such as Buffalo Wild Wings and Chipotle are outselling, and in many instances replacing, older restaurants.

(Photo Credit: http://www.flickr.com/photos/saaby/20301939/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

More from this Slideshow

0 of 0

America's Disapp... There is a school of thought that says the restaurant business is always a good business – people need to eat. A glance at the sales of many of America’s largest restaurant chains over the past decade quickly dispels this myth. Using data provided by food industry research firm Technomic, 24/7 Wall St. has looked at restaurant chains with the greatest decline in sales from 2001 to 2010. In every case, sales have fallen 60 percent or more.

Many restaurants on this list are indeed casual, family dining establishments. The majority offer American Style cuisine — e.g., steak and burgers — in a bar or grill setting. These restaurants expanded quickly during the 1990s, but their presence was overshadowed by newer restaurants that consumers found more exciting, according to Tristano. Even now, new “fast-casual” restaurants such as Buffalo Wild Wings and Chipotle are outselling, and in many instances replacing, older restaurants.

(Photo Credit: http://www.flickr.com/photos/saaby/20301939/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Bennigan’s Grill... Change in sales (2001-2010): -87.9 percent
Sales 2001: $565 million
Sales 2010: $68.5 million
Change in units (2001-2010): -87.5 percent

Bennigan’s is an Irish-themed, casual dining restaurant with locations across the United States. In July 2008, the restaurant filed for Chapter 7 bankruptcy protection. The company closed its 160 corporate-owned locations, laying off approximately 10,000 employees in the process. Of the 138 franchised locations that avoided the bankruptcy filing, only 35 remained as of 2010.

(AP Photo/Paul Sancya)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Ground Round Gri... Change in sales (2001-2010): -81.7 percent
Sales 2001: $225.25 million
Sales 2010: $41.25 million
Change in units (2001-2010): -80.9 percent

Ground Round is a casual dining restaurant chain that serves burgers, steaks, Tex-Mex, and more. It has locations in the Midwest and the Northeast. In February 2004, the restaurant’s parent company declared bankruptcy, immediately ceasing operations at 59 company-owned restaurants on a Friday night before the dinner rush. The 72 franchise locations remained open. Ground Round is now owned by Independent Owners Cooperative, LLC, a group of 30 franchise owners. As of 2010, only 25 Ground Rounds remained in business.

(AP Photo/Steven Senne)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Bakers Square Change in sales (2001-2010): -72.2 percent
Sales 2001: $220 million
Sales 2010: $61.2 million
Change in units (2001-2010): -69.6 percent

Bakers Square is a casual dining restaurant that, although serving breakfast, lunch, and dinner, is best known for its pies. The restaurant is primarily located in the Great Lakes region and in California. In April 2008, parent company VICORP, now American Blue Ribbon Holdings, LLC, filed for Chapter 11 bankruptcy due to declining restaurant sales and high lease rates. The company closed 56 stores, including the original Bakers Square in Des Moines, Iowa. Only 45 Bakers Square restaurants remain, compared to the 148 that existed in 2001.

(Photo Credit: http://www.flickr.com/photos/saaby/20301939/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Damon’s Grill & ... Change in sales (2001-2010): -69.8 percent
Sales 2001: $284.84 million
Sales 2010: $86 million
Change in units (2001-2010): -72.3 percent

Damon’s, which is headquartered in Columbus, OH, is an American-style restaurant that “emphasizes prime rib, grilled steaks, chicken, seafood, salad and Damon’s award-winning ribs.” The restaurant, which also positioned itself as a sports bar, ran into tough times in 2006 as the quality of home entertainment improved enough to keep sports fans at home. This was an aspect of the business the restaurant depended on. The chain had 137 restaurants in 2001, but only 86 in 2007. The company has begun reformatting its restaurants, altering their interiors, menus, and logo. Today, however, there are only 38 Damon’s.

(Photo Credit: http://www.flickr.com/photos/buckaroobay/4179288134/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Don Pablo’s Change in sales (2001-2010): -69.8 percent
Sales 2001: $268.25 million
Sales 2010: $81 million
Change in units (2001-2010): -70.2 percent

Don Pablo’s is a national chain that serves Tex-Mex-style food. In September 2007, Avado Brands, Inc., the restaurant’s parent company, filed for Chapter 11 bankruptcy. The company sold off a number of its assets, including many buildings that were subsequently auctioned off to other restaurants, such as Buffalo Wild Wings. From 2001 to 2010, the number of Don Pablo’s fell from 131 to 39.

(Photo Credit: http://www.flickr.com/photos/rockinfree/2409528784/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Gloria Jean’s Co... Change in sales (2001-2010): -69.1 percent
Sales 2001: $135 million
Sales 2010: $41.75 million
Change in units (2001-2010): -73.6 percent

Gloria Jean’s Coffees was founded in Chicago, IL, in 1979. By 1995, the brand spread to Australia, where it is a huge success today. In the U.S., the brand, which was owned by Diedrich Coffee, expanded rapidly, reaching 330 locations by 2001. This expansion proved too much for the company, which began to have financial troubles. Diedrich sold off the international segment of Gloria Jean in 2005. In 2006, it sold a large number of cafes to Starbucks. In 2009, Diedrich sold the remaining Gloria Jean’s Coffees to Praise International North America. As of 2010, only 87 cafes remain.

(Photo Credit: http://www.flickr.com/photos/davebinm/3695647023/)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Big Boy Change in sales (2001-2010): -68.6 percent
Sales 2001: $580 million
Sales 2010: $182.25 million
Change in units (2001-2010): -65.2 percent

Big Boy is the restaurant with the most locations on this list. It is also, perhaps, the most well known. In 2000, the company’s owner, the Elias Brothers Corporation, declared bankruptcy following cash-flow problems and difficulties with expansions. The month before it filed for bankruptcy, the company closed 43 restaurants. The restaurant, which specializes in double-decker hamburgers, has not done very well since. In 2001 Big Boy had 405 locations. By 2010, that number had decreased to 141.

(AP Photo/James A. Finley)

More From 24/7 Wall Street:
The 10 American Cities With The Lowest Credit Scores
The 10 States With The Cheapest Gas
The Net Worth Of The Republican Presidential Campaign

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
More From 24/7 W... Which other restaurant chains are quickly vanishing? Click here to find out.