The Popular 75-Year-Old Breakfast Chain That Still Exists In 16 States

Some restaurants start from humble beginnings only to grow rapidly, becoming a familiar fixture in states across the country. Such is the case with Shoney's, a diner chain specializing in popular American breakfast fare. The first Shoney's location opened in Charleston, West Virginia, in 1947 as a small drive-in restaurant. Just five years later, the restaurant was incorporated into the Big Boy Restaurants franchise. However, despite its early decades of success, the chain would soon face allegations of mismanagement and racism, which ultimately led to its long, slow decline. At the company's peak in 1998, it operated around 1,300 restaurants in 34 states. Now, Shoney's has just 51 restaurants across 16 states.

Shoney's always served classic American fare, and became known for being a chain restaurant that served hush puppies and meatloaf, along with burgers and fries. But breakfast food was always its specialty. At the height of its popularity, it was famous for its all-you-can-eat breakfast buffet, which at one point featured more than 30 items. As a Big Boy affiliate, Shoney's grew rapidly, building a brand with locations throughout the southeastern U.S. Eventually, the chain outgrew the Big Boy affiliation, and in 1977 returned to operating solely as Shoney's. Unfortunately, by the 1980s Shoney's and its board were facing a civil lawsuit alleging racial discrimination, harassment, unfair hiring practices, and wrongful termination — allegations which ultimately tarnished its legacy. 

By the 1990s, Shoney's was facing serious allegations of mismanagement, hostile workplace environments, and racism. In a class action lawsuit filed against the restaurant chain in Florida in 1989, African American employees alleged racial discrimination during the hiring and promotion process as well as while on the job. In 1993, the Court ruled in favor of the plaintiffs, ordering that the employees who were a party to the lawsuit would be awarded damages of $132,500,000.

By 2000, the company filed for bankruptcy and was acquired by Lone Star Funds. Though it ended up being one of the few major restaurant chains that survived bankruptcy, by 2004, Shoney's had been avoiding upkeep or maintenance of its restaurants for over a decade and had gone through seven board presidents. It had closed hundreds of locations and had only 325 restaurants left across 21 states. Throughout the next decade, it underwent several rebranding attempts.

Shoney's opened its first mall location designed to appeal to Millennials in 2018, offering a full-service bar. It also made several attempts to modernize its restaurants and menus. The chain now has themed meals, offers catering services, and is still looking for franchise partners. But, despite its efforts, it still only operates in 51 restaurants across 16 states in the Midwest and the southeastern U.S., with the majority of its locations in Tennessee.