America’s Disappearing Restaurant Chains

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

In the past 10 years, some of America’s biggest food chains have lost more than 50% of their sales as they closed hundreds of locations nationwide.

These restaurants, which include former American staples such as Big Boy, Ponderosa and Bennigan’s, have not been able to maintain a steady crowd. They have failed to update their brand or menu options. As a result locations have been closed in favor of a new generation of eateries. Based on data provided by food industry consulting and research firm Technomic Inc., 24/7 Wall St. reviewed the 10 large restaurant chains with the biggest decline in locations and sales between 2001 and 2011.

Based on sales data provided By Technomic, 24/7 Wall St. reviewed the 10 restaurant chains that had 60% or greater declines in the number of actual store locations operating from 2001 to 2011. In order to identify the chains that were once the biggest, restaurants had to have sales of at least $225 million in 2001 and experience 50% or greater declines in sales over the same period.
(iStock)

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America’s Disapp... In the past 10 years, some of America’s biggest food chains have lost more than 50% of their sales as they closed hundreds of locations nationwide.

These restaurants, which include former American staples such as Big Boy, Ponderosa and Bennigan’s, have not been able to maintain a steady crowd. They have failed to update their brand or menu options. As a result locations have been closed in favor of a new generation of eateries. Based on data provided by food industry consulting and research firm Technomic Inc., 24/7 Wall St. reviewed the 10 large restaurant chains with the biggest decline in locations and sales between 2001 and 2011.

Based on sales data provided By Technomic, 24/7 Wall St. reviewed the 10 restaurant chains that had 60% or greater declines in the number of actual store locations operating from 2001 to 2011. In order to identify the chains that were once the biggest, restaurants had to have sales of at least $225 million in 2001 and experience 50% or greater declines in sales over the same period.
(iStock)

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The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
5. TCBY Pct. of stores closed: 77.2%
Total stores: 405
Stores closed: 1,372
2011 sales: $98 million
Pct. decline in sales: -60.4%

TCBY started in 1981 in Arkansas as “the country’s first frozen yogurt shop.” The chain was purchased by Mrs. Fields Holdings in 2000. At the time, the Chicago Tribune noted that “both TCBY and Mrs. Fields have considerable [brand] equity among consumers,” and that “in the still-escalating fast-service wars, it makes sense for operators to offer more than one product in order to create more traffic.” Despite this optimism, the combined company filed for bankruptcy protection in 2008, and again required a restructuring deal to avoid bankruptcy last year. Between 2001 to 2011, TCBY shut well over 1,300 stores, leaving just 405 locations as of 2011.
(iStock)

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4. Damon’s Grill... Pct. of stores closed: 78.1%
Total stores: 30
Stores closed: 107
2011 sales: $70 million
Pct. decline in sales: -75.4%

Damon’s was founded in 1979 and is currently based in Columbus, Ohio. It “is a leading full-service, casual dining restaurant concept” with locations in the Midwest and Southeast United States, as well as in the United Kingdom. The chain, which is part of the struggling full-service barbecue restaurant segment, filed for bankruptcy in 2009. According to Tristano, other restaurants have increasingly offered much of the food found on a Damon’s menu. As of 2011, Damon’s had just $70 million in sales, down more than 75% from 2001 when it had nearly $285 million in sales.
(PRNewsFoto/Damon Grill)

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3. Country Kitch... Pct. of stores closed: 79.1%
Total stores: 52
Stores closed: 197
2011 sales: $44 million
Pct. decline in sales: -82.4%

Country Kitchen was started in 1939 as a hamburger stand in Cincinnati, Ohio, and has been a national chain since 1958. Currently, however, it is concentrated in the Midwest and Plains states. In recent years, the chain has struggled to continue attracting customers. According to Technomic’s Tristano, the restaurant exists in the highly competitive mid-scale family style market, which has been crowded out by fast-casual dining. Between 2001 and 2011, Country Kitchen closed almost 200 locations, with the total number of restaurants falling from 249 to 52, as sales declined by more than 80% during the same period.
(AP Photo/Jae C. Hong)

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2. Ground Round ... Pct. of stores closed: 80.9%
Total stores: 25
Stores closed: 106
2011 sales: $37.5 million
Pct. decline in sales: -83.4%

Ground Round is a family style dining chain, founded in 1969 to provide a “‘neighborhood pub’ experience where everyone, including couples and families, felt comfortable.” Like a number of other chains on this list, Ground Round declared bankruptcy relatively recently. However, unlike other disappearing restaurants, after its bankruptcy in 2004, the chain was bought by its former franchisees. Despite the change in ownership, the chain has struggled to survive in recent years, maintaining just 25 restaurants in 2011.
(iStock)

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1. Bennigan’s Pct. of stores closed: 88.2%
Total stores: 33
Stores closed: 247
2011 sales: $62 million
Pct. decline in sales: -89.0%

In the past 10 years, no major restaurant has lost as much of its business as Bennigan’s. The Irish themed restaurant and bar’s parent company, Metromedia Restaurant Group, filed for bankruptcy in 2008. After declaring bankruptcy, Bennigan’s abruptly shut almost all of its franchises. As of last year, there were just 33 Bennigan’s restaurants and the chain’s sales for the year totaled just $62 million — more than half a billion dollars less than the chain’s 2001 sales. Despite these events, there is some hope for Bennigan’s — and perhaps some of the other chains on this list: a group of investors purchased the company and plans to open new locations. Technomic described one of the group’s new locations in Appleton, Wisconsin, as taking “all the best features of the casual dining restaurant today.”
(AP Photo/Paul Sancya)

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The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
See the Full Lis... Click here to see which other restaurant chains are bound for banishment. (AP Photo/Tom Breen)