Have you ever dreamed of opening up a restaurant but don’t
know how to start to make it happen. You also don’t have a mentor to help you over
the hurdles and work with you through the struggles. Well guess what not every
successful restaurant owner knew where to start or even had a mentor. You’ve
worked in restaurants for years, you know what pitfalls there are to running a
successful restaurant, but you’re scared to step out and begin to build that location you’ve been dreaming
about. Well guess what you’re not alone. Use previously successful restaurant
owners as your virtual mentor such as Howard Johnson owner.
In the 50s and 60s, Howard Johnson’s emerged as America’s
biggest restaurant chain, pioneering the industry. With its signature orange
roofs dotting highways across the nation, “HoJo’s” also led in roadside lodging
innovations. However, by the 80s, it was a different tale for this once-iconic
brand. Dive into the story of this legendary American company! Beginnings
Meet Howard Deering Johnson! Born in Boston in 1897 and
raised in historic Quincy, he began his journey selling cigars for his father.
When the business faced challenges after a family tragedy, Howard turned things
around by opening a drug store and soda fountain. His big break? Discovering
the irresistible allure of ice cream!
Howard Johnson's ice cream journey began with a sweet
success! He crafted his own formula, boasting double the butterfat for an
irresistibly creamy delight. With 28 unique flavors—like banana, pistachio, and
butterscotch—he turned heads and hearts! Soon, people were lining up for a
taste of his legendary creations all over town!
In 1926 and 1927, Howard Johnson launched three summer ice
cream stands along the beautiful Massachusetts shore. One Sunday alone? They
sold a whopping 14,000 cones! These stands didn’t stop at just ice cream; they
also served hot dogs, cleverly called “frankforts,” raking in profits. Howard
discovered that eye-catching locations and big signs were key to success!
In 1929, at just thirty-two, Johnson dared to dream big! He
secured a $50,000 loan from the Granite City Bank and opened his restaurant in
Quincy’s tallest building. Fortune favored him when Boston banned Eugene
O’Neill's play, allowing it to thrive downtown instead. The four-hour spectacle drew crowds hungry
for both drama and delicious food—boosting his eatery’s fame across Boston!
Eager to elevate his business, Howard spotted a prime
location on the bustling road to Cape Cod in Orleans, Massachusetts. Lacking
funds for construction, he sold the rights to his recipes and brand name to the
landowners. They launched a Howard Johnson’s restaurant in 1935—and it was an
instant hit! This marked Howard's very first “franchise.”
Howard Johnson wasn’t the pioneer of franchising! In the 19th century, innovators like Singer
in sewing machines and McCormick (later International Harvester) started
“exclusive territorial agencies.” Fast
forward to 1924, when California’s Roy Allen and Frank Wright launched A&W
Root Beer stands. By 1950, a whopping 450 A&W locations popped up across
the nation—though they weren’t full restaurants yet!
Howard Johnson revolutionized the restaurant scene with his
bold franchising approach! Starting in 1935, he rapidly expanded, boasting 132
Howard Johnson’s restaurants by 1940. Famous for its twenty-eight scrumptious
ice cream flavors, his menu also featured classic American delights like pot
pies and fried chicken. He even made fried clams a must-try, sourcing only the
best from New England!
One Howard Johnson’s stole the spotlight! Lydia Pinkham
Gove, heiress to her grandmother's fortune from controversial patent medicines
for women, invested in two locations. In
1940, she opened a stunning new restaurant in Rego Park, NYC—seating 700
indoors and 300 outdoors. Dubbed the
“roadside cathedral,” it served up to 4,000 meals on Sundays and raked in $1
million annually ($19 million today)!
Howard Johnson was all about control! He ran his own
“company stores” and only used franchising when cash was tight, making sure to
perfect his franchise system. With commissaries crafting ice cream and foods to
exact recipes, each restaurant received weekly shipments of frozen
delights. Every detail mattered—no
deviations allowed in the "bible" of operations. A true foodie at heart, he even found time
for art and a yacht!
The secret to the company’s success? Smart real estate and
architectural strategies! In the '20s, as cars roamed free, roadside eateries
popped up—some charming, others not so much. Getting sick was just part of the
adventure! Howard Johnson saw potential in this travel trend and strategically
placed his restaurants at prime spots. He chose visible hilltops and busy
intersections. Instead of ugly billboards, he designed eye-catching buildings
with bright orange roofs that shone day and night! With a steeple reminiscent of New England
churches topped by his iconic “Simple Simon” symbol inside and out!
With smart site choices and eye-catching buildings, Howard
turned his restaurants into billboards! Step inside to find the cozy knotty
pine that’s a HoJo signature. Understanding families was key—he created spaces
where everyone felt at home. With bright colors, giant lollipops, 28 ice cream
flavors, and fun kids' menus, dining out became an adventure! Great locations +
family vibes + delicious food = Howard Johnson's The shining star of American roadside dining!
When America launched its first toll road, the Pennsylvania
Turnpike, awarding the service plaza restaurant contract to Howard Johnson’s
was a no-brainer! Opening in 1940, these unique eateries not only showcased
local stone but also boosted the brand's reputation far and wide. Talk about
effective advertising!
During the war, sugar shortages made it tough to whip up the
signature ice cream. Gasoline rationing and fathers off to battle led to family
road trips coming to a halt. Howard Johnson’s dwindled down to just twelve
restaurants, with the Queens location falling victim. They pivoted by feeding
our troops!
Post-war? The economy roared back in the '50s! More
highways, cars, and kids fit Howard's vision perfectly. He stayed true with
eye-catching signs and orange roofs, opening new spots across the Midwest and
South. Soon enough, everyone knew them as “HoJo’s!” No other restaurant chain
was quite like it!
The 1950s and 1960s were a golden era for the company! ✨
In 1959, Howard appointed his son, Howard B. “Bud” Johnson,
as president—making him one of the youngest to hold such a title in
America! With an MBA from Harvard, Bud
learned under his father’s relentless drive for excellence.
By 1961, their stock made a grand entrance on the exchange! In
1953, they recognized the need for better rest stops along highways and opened
their first combo restaurant and “motor lodge” in Savannah, Georgia. With a mix
of company-operated and franchised spots, this roadside inn chain boosted
profits tremendously. By the mid-60s, Howard Johnson’s became America’s largest
restaurant organization and one of its biggest hotel chains. Their
coast-to-coast presence was sealed with a restaurant launch in Mesa, California
in 1965!
By 1968, the Marriott family took a big leap by acquiring
Big Boy and launching Hot Shoppes, claiming the top spot in the restaurant
scene. Meanwhile, KFC soared to second with their franchise magic, pushing
Howard Johnson's to third! With $400
million in combined revenue from foodservice and lodging, they were unbeatable!
Howard Deering Johnson hung up his apron in 1968, passing
the torch to Bud. Sadly, Howard left us at seventy-five in 1972.
Bud expanded both the restaurants and motor lodges, with
revenues soaring throughout the '70s! By
'75, there were:
- 649 company-owned eateries
- 280 franchised spots
- Over a thousand total by '79!
The brand was a household name across forty-three states and
beyond!
Despite record results, the company’s “feet were made of
clay.” Bud sought ways to cut food costs, which soared at 48% of revenues. He
brought in analysts who strayed from his father’s vision. As a result, food
quality declined and enforcement of franchise standards waned. Howard Johnson’s
began to feel tired—and even dirty.
Timing is everything! As the big fast-food chains like
McDonald's, led by Ray Kroc, took off, they brought obsession with
standardization and ambition. McDonald’s, Burger King, and KFC boasted
streamlined methods with smaller menus and locations—offering lower prices to
hungry customers! The same era also welcomed a wave of new competitors in
lodging.
In 1979, Bud Johnson made a bold move, selling Howard
Johnson’s to Britain’s Imperial Group for $630 million. But under their
management, the brand faced missteps and downturns. Just six years later, in
1985, Imperial sold it to Marriott for only $314 million—half the original
price! Marriott was on its way to becoming the world's largest hotel empire!
Marriott, known for top-notch management, decided to bid
farewell to the Howard Johnson’s name. They sold off competing lodging
operations to Prime Motor Inns and repurposed restaurants into Big Boy or Hot
Shoppes. Once a beloved American icon, only one Howard Johnson’s restaurant
remains in upstate New York with low ratings. Meanwhile, the inns have found
new life under Wyndham's care - 310 locations worldwide!
If Bud Johnson wasn’t so greedy and kept to his father’s
obsession to high-quality food and service Howard Johnson’s would still be
around, maybe not as many as in the past, but still around. Bringing in analysts
who had no real knowledge of the industry or the effort his father gave to the
company destroyed the legacy of what Howard put forth in building the company.
I grew up on Howard Johnson’s New England Clam Chowder,
Grilled Cheese sandwiches and their ice cream, so I was sorry to see them close
up their varied locations.
Elizabeth Kilbride is a Writer and Editor with forty years
of experience in writing, with 12 of those years in the online content sphere.
Author of 5 books and a Graduate with an Associate of Arts degree in Business
Management, a bachelor’s in mass communication and cyber-Analysis, a master’s
in criminology with emphasis on Cybercrime and Identity Theft and is currently
studying for her Ph.D. degree in Criminology. Her work portfolio includes
coverage of politics, current affairs, elections, history, and true crime.
Elizabeth is also a gourmet cook, life coach, and avid artist in her spare
time, proficient in watercolor, acrylic, oil, pen and ink, gouache, and
pastels. As a political operative who has worked on over 300 campaigns during
her career, Elizabeth has turned many life events into books and movie scripts
while using history to weave interesting storylines. She also runs 7 blogs
ranging from art to life coaching, food, writing, Gardening, and opinion or
history pieces each week.
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