Shoney's
Encyclopedia
Shoney’s is a privately held restaurant chain that operates primarily in the Southeast, Midwest and Mid-Atlantic states and is headquartered in Nashville, Tennessee
. It is named after Alex Schoenbaum
, who was the owner of the original chain of Big Boy
restaurants in the southeastern United States in the 1950s
. The corporate entity is Shoney’s North America Corp., and David Davoudpour is chairman and chief executive officer. Davoudpour acquired Shoney’s in 2006 through Royal Hospitality Corp. in Atlanta. He is founder and chairman of Royal Hospitality. As of early 2011, there were approximately 230 company-owned and franchised Shoney’s restaurants in 18 states, stretching from Maryland
to Florida
in the east and from Missouri
to New Mexico
in the west.
. Schoenbaum later acquired a Big Boy franchise in 1951, and his first restaurant bearing the Shoney’s name came in 1953 - chosen through an employee/customer contest.
In 1969 Shoney’s created a fast-food seafood
concept called Mr. D’s, named after Ray Danner, co-founder of Shoney’s, Inc. The name was later changed to Captain D's
and grew to more than 100 restaurants. The company (Shoney’s, Inc.) went public in 1971 and was listed as “SHO” on the New York Stock Exchange
. At various times, the corporate portfolio also included a lodging chain (Shoney’s Inns), four casual dining concepts (Fifth Quarter, The Sailmaker, Barbwire’s and Pargo’s), and Lee’s Famous Recipe Chicken
.
In 1984 a dispute arose between Big Boy and Shoney’s franchise holders about territory restrictions and Shoney’s ultimately gave up its rights to the Big Boy name. As a result, the Big Boy sandwich was renamed the “All-American Hamburger” and Shoney Bear was created as a corporate mascot.
At its peak in 1998, the restaurant chain operated or franchised over 1,300 restaurants in 34 states. None of those businesses remain a part of the Shoney’s restaurant enterprise today.
In 2000 the company went bankrupt and was acquired by Texas-based investment group Lone Star Funds
two years later. On January 1, 2007, Lone Star announced that the Shoney's chain — at this point down to 282 restaurants — was being sold to David Davoudpour, founder and CEO of Atlanta, Georgia-based Royal Capital Corporation, the largest franchisee of Church's Chicken
restaurants. Davoudpour set up a new company, Shoney's North America Corp., as a subsidiary of Royal, and currently serves as chairman and CEO. Lone Star had originally planned to sell the chain to Centrum Properties, a Brentwood, Tennessee
investment group, but Centrum later sued to get out of the deal.
As part of his revitalization efforts, Davoudpour has established an aggressive quality improvement process that includes a new menu, new restaurant prototypes and rebuilds, and a new Executive and Operations team focused on adding unique twists to the Southern comfort food
menu for which Shoney’s is known.
Nashville, Tennessee
Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
. It is named after Alex Schoenbaum
Alex Schoenbaum
Alex Schoenbaum was an American collegiate football player and businessman in the hospitality industry, eventually operating a chain of motels and over 1,000 restaurants...
, who was the owner of the original chain of Big Boy
Big Boy (restaurant)
Big Boy is a restaurant chain with its headquarters in Warren, Michigan.Big Boy was started in 1936 by Bob Wian, in partnership with Arnold Peterson in Glendale, California, USA. Marriott Corporation bought the chain in 1967...
restaurants in the southeastern United States in the 1950s
1950s
The 1950s or The Fifties was the decade that began on January 1, 1950 and ended on December 31, 1959. The decade was the sixth decade of the 20th century...
. The corporate entity is Shoney’s North America Corp., and David Davoudpour is chairman and chief executive officer. Davoudpour acquired Shoney’s in 2006 through Royal Hospitality Corp. in Atlanta. He is founder and chairman of Royal Hospitality. As of early 2011, there were approximately 230 company-owned and franchised Shoney’s restaurants in 18 states, stretching from Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
to Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
in the east and from Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
to New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
in the west.
History
The Shoney’s brand history began in 1947 when Alex “Shoney” Schoenbaum opened the Parkette Drive-In next to his father’s bowling alley in Charleston, West VirginiaCharleston, West Virginia
Charleston is the capital and largest city of the U.S. state of West Virginia. It is located at the confluence of the Elk and Kanawha Rivers in Kanawha County. As of the 2010 census, it has a population of 51,400, and its metropolitan area 304,214. It is the county seat of Kanawha County.Early...
. Schoenbaum later acquired a Big Boy franchise in 1951, and his first restaurant bearing the Shoney’s name came in 1953 - chosen through an employee/customer contest.
In 1969 Shoney’s created a fast-food seafood
Seafood
Seafood is any form of marine life regarded as food by humans. Seafoods include fish, molluscs , crustaceans , echinoderms . Edible sea plants, such as some seaweeds and microalgae, are also seafood, and are widely eaten around the world, especially in Asia...
concept called Mr. D’s, named after Ray Danner, co-founder of Shoney’s, Inc. The name was later changed to Captain D's
Captain D's
Captain D’s is a U.S.-based chain of fast-food restaurants, specializing in seafood and fish and chips. The restaurant also features a low-carbohydrate menu. The restaurant chain's headquarters is located in Nashville, Tennessee....
and grew to more than 100 restaurants. The company (Shoney’s, Inc.) went public in 1971 and was listed as “SHO” on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. At various times, the corporate portfolio also included a lodging chain (Shoney’s Inns), four casual dining concepts (Fifth Quarter, The Sailmaker, Barbwire’s and Pargo’s), and Lee’s Famous Recipe Chicken
Lee's Famous Recipe Chicken
Lee's Famous Recipe Chicken is a casual dining franchise founded in 1966 specializing in chicken, homestyle sides, and biscuits. There are currently 142 Lee's Famous Recipe Chicken locations in 14 states across America...
.
In 1984 a dispute arose between Big Boy and Shoney’s franchise holders about territory restrictions and Shoney’s ultimately gave up its rights to the Big Boy name. As a result, the Big Boy sandwich was renamed the “All-American Hamburger” and Shoney Bear was created as a corporate mascot.
At its peak in 1998, the restaurant chain operated or franchised over 1,300 restaurants in 34 states. None of those businesses remain a part of the Shoney’s restaurant enterprise today.
In 2000 the company went bankrupt and was acquired by Texas-based investment group Lone Star Funds
Lone Star Funds
Lone Star Funds is a worldwide private equity firm based in Dallas, Texas, that specializes in purchasing distressed companies and assets, often well-known consumer brands that have seen better times or gone through financial difficulties due to leveraged buy-outs...
two years later. On January 1, 2007, Lone Star announced that the Shoney's chain — at this point down to 282 restaurants — was being sold to David Davoudpour, founder and CEO of Atlanta, Georgia-based Royal Capital Corporation, the largest franchisee of Church's Chicken
Church's Chicken
Church's Chicken is a US-based chain of fast food restaurants specializing in fried chicken, also trading outside North America as Texas Chicken. The chain was founded as Church's Fried Chicken To Go by George W. Church, Sr., on April 17, 1952, in San Antonio, across the street from The Alamo...
restaurants. Davoudpour set up a new company, Shoney's North America Corp., as a subsidiary of Royal, and currently serves as chairman and CEO. Lone Star had originally planned to sell the chain to Centrum Properties, a Brentwood, Tennessee
Brentwood, Tennessee
-Demographics:As of the census of 2000, there were 23,445 people, 7,693 households, and 6,808 families residing in the city. The population density was . There were 7,889 housing units at an average density of . The racial makeup of the city was 94.63% European American, 1.89% African American,...
investment group, but Centrum later sued to get out of the deal.
As part of his revitalization efforts, Davoudpour has established an aggressive quality improvement process that includes a new menu, new restaurant prototypes and rebuilds, and a new Executive and Operations team focused on adding unique twists to the Southern comfort food
Comfort food
Comfort food is food prepared traditionally that may have a nostalgic or sentimental appeal. Comfort foods may be foods that have a nostalgic element either to an individual or a specific culture...
menu for which Shoney’s is known.