This time we are looking at what was once one of the biggest chains in America. At its peak they had over 1100 outlets. Now they are down to one. A number of factors came into play with this massive decline. One of which was the hugely controversial name.
Ostensibly the name was a contraction of two of the founders. Sam Battistone Sr. and Newell Bohnett. However the name is also one that was offensive to a large part of the population, especially with it being linked to a book written in 1897 called The Story of Little Black Sambo. Much of the interior decor drew on illustrations from the book.
Predictably the name attracted protests, criticism and petitions for change during most of its operating life. The final remaining store changing its name after the George Lloyd protests in 2020
The first store opened in Santa Barbara, California in 1957. By 1968 it had grown to operate in 98 cities across America. It also diversified operating Red Top Hamburgers, Heidi’s Pie Shop, and the Blue Ox Steak House.
Jolly Tiger
In the second half of the 70’s the chain came under increasing pressure regarding its unacceptable name. They steadfastly refused to change it, though in a number of locations they branded their eateries as Jolly Tiger, usually in locations where local laws had been passed forbidding the Sambo brand, or where they were having trouble obtaining permits due to the name.
In 1979 however the company reversed course and announced that they were dropping the Jolly Tiger brand citing poor financial performance, and would revert all restaurants to Sambo’s. They also cited a study claiming that three times as many black people ate at their chain than at other restaurants.
It was to be their peak. After 79 the company spiralled into decline. How much is down to the issues around the name isn’t clear, as a number of other corporate decisions also hastened their demise. One major issue arose when they dropped their “Fraction of the Action” scheme. This had paid the managers 20% of the outlets profits, with other staff being allowed to bid for percentages of the remaining profits.
Bankruptcy
A mere two years later the chain was filing for bankruptcy. Reorganisation and a name change to “No Place Like Sam’s” failed to help. And by 1982 all except the original diner had closed their doors. The restaurants were sold off to several operates, such as Denny’s and Baker’s square. All that now remains is the original located in Santa Barbara.
Following the riots over the George Floyd case, the owner Chad Steven, grandson of one of the original founders, finally gave in to public pressure and announced a name change, finally Christening it “Chafs” in 2020.
