They hosted a million family dinners — then vanished. What killed five beloved chains.
Howard Johnson’s: Eaten by Fast Food
Howard Johnson’s was both — 1,000-plus restaurants and 500 motor lodges, once America’s biggest chain. Marriott broke it up in 1985 as fast food stole its diners. The last restaurant closed in 2022; the hotels survive.
Chi-Chi’s: Bankruptcy First, Outbreak Second
Bankrupt in October 2003, Chi-Chi’s was then hit by a hepatitis A outbreak that sickened 630-plus and killed four — the largest in U.S. history. It scuttled a sale; the last locations closed in 2004. The founder’s son reopened it in 2025.
Steak and Ale: Debt Ate the Salad Bar
Steak and Ale pioneered the affordable steakhouse and its famous salad bar, but its parent went bankrupt in 2008, closing all 58 locations in one day. A one-location revival opened in 2024.
Lum’s: From Hot Dogs to Caesars Palace
Lum’s beer-steamed hot dogs built it past 400 locations; the brothers even bought Caesars Palace. After they sold, overexpansion bankrupted it, though one Nebraska holdout lasted until 2017.
Sambo’s: A Name That Became Poison
Sambo’s hit 1,100-plus pancake houses. Named for its founders, its branding leaned into a racist children’s book, drawing protests. Bankruptcy in 1981 shut 447 locations; the last renamed itself Chad’s in 2020.
Sources: Wikipedia, Kiplinger, news archives
