Tenth Anniversary: A Decade of Chain Business

By Staff -- Chain Leader, 8/1/2006

Both Democrats and Republicans have ruled the White House. America has suffered wildfires, blackouts, terrorism and hurricanes. Chains have seen booming growth and retrenchment, acquisitions and sell-offs, praise from the Street and stock slumps, influxes of capital and dry spells. Price has ruled over quality, and quality has ruled over price.

In the 10 short years since Chain Leader’s debut, we’ve learned that the more things change, the more they stay the same. For evidence, take a look back at some of the milestones in the chain-restaurant industry, from August 1996 until today.

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1996

A Decade of Chain Leader

CRYSTAL BALL:
Predictions for the Next 10 Years

Facing slowing sales growth, McDonald’s will move the concept “back to basics,” winning applause from franchisees and Wall Street.

The National Restaurant Association show will continue to take place at Chicago’s McCormick Place.

At least one family-dining chain will face a race-, gender- or sexual-orientation-discrimination lawsuit.

Gas prices will normalize, then spike, then normalize again.

A restaurant chain will win customers by promoting the fact that its food isn’t healthy, it’s full of fat, salt, calories and taste.

A Decade of Chain Leader

Cantina del Rio, Bob Evans’ Mexican casual-dining chain, closes. The company claims distraction from its core concept.
U.S. minimum wage rises to $5.15.
President Bill Clinton is re-elected.
1996 chain sales: $164.4 billion*

1997

Carl’s Jr. parent company CKE Restaurants Inc. acquires about 3,000 Hardee’s stores.
McDonald’s promotes—and runs out of—Beanie Babies.
KFC brings the Colonel back with a new logo.
PepsiCo spins off Tricon Global Restaurants: KFC, Pizza Hut and Taco Bell. Wendy’s discontinues self-serve salad bars.
1997 chain sales: $174.5 billion*

1998

McDonald’s invests in 14-unit Chipotle Mexican Grill.
T.G.I. Friday’s parent company, Carlson Restaurants Worldwide, acquires Stephan Pyles’ Star Canyon and AquaKnox restaurants.
Saint Louis Bread Co. (now Panera Bread Co.) divests Au Bon Pain.
Tricon Global Restaurants opens its first three-in-one restaurant.
Boston Chicken Inc. files for Chapter 11 bankruptcy.
P.F. Chang’s China Bistro Inc. issues IPO.
1998 chain sales: $181.6 billion*

1999

A&W Restaurants buys Long John Silver’s.
McDonald’s acquires Donatos Pizza Inc.
Carlson Restaurants Worldwide files IPO of $145 million.
Planet Hollywood files for Chapter 11.
Restaurant Associates acquires Joachim Splichal’s Patina Group.
1999 chain sales: $181.0 billion*

2000

AmeriServe Food Distribution files for Chapter 11 bankruptcy.
McDonald’s acquires Boston Market out of Boston Chicken Inc.’s bankruptcy.
California Pizza Kitchen offers IPO.
P.F. Chang’s launches fast-casual Pei Wei Asian Diner.
Krispy Kreme Doughnuts Inc.’s IPO raises $63 million.
2000 chain sales: $190.0 billion*

2001

President George W. Bush takes office.
AFC Enterprises Inc. issues IPO.
McDonald’s apologizes about beef extract in its french fries.
Sept. 11 terrorist attacks on the World Trade Center and Pentagon.
2001 chain sales: $196.6 billion*

2002

Carlson announces its emerging brands are on the block.
Wendy’s buys stake in Cafe Express.
Tricon buys A&W and Long John Silver’s concepts and changes its name to Yum! Brands Inc.
Wendy’s acquires Baja Fresh Mexican Grill.
Red Robin issues IPO.
Sarbanes-Oxley provisions become effective.
McDonald’s is sued for allegedly causing obesity in teens with misleading marketing.
2002 chain sales: $207.6 billion*

2003

Jack in the Box Inc. takes in Qdoba Mexican Grill.
The war in Iraq begins.
North America sees its first incidence of mad cow disease.
AFC Enterprises Inc. announces it will restate earnings for 2000, 2001 and part of 2002.
Applebee’s debuts Weight Watchers dishes.
Chi-Chi’s suffers a hepatitis A outbreak, traced to green onions.
Buffalo Wild Wings Inc. files IPO.
2003 chain sales: $218.1 billion*

2004

Ground Round tells stores to close immediately and send home customers and employees. Its franchisees later acquire a majority of the chain.
McDonald’s phases out Super Size fries and drinks.
Domino’s, McCormick & Schmick’s and Texas Roadhouse go public.
President George W. Bush is re-elected.
Wendy’s allows customers to order four side choices with combos.
2004 chain sales: $237.4 billion*

2005

Bobby Cox Cos. Inc. buys Schlotzsky’s Inc. out of bankruptcy.
Anna Ayala is arrested for claiming she bit into a finger from her Wendy’s chili.
McDonald’s celebrates its 50th anniversary.
Hurricane Katrina strikes the Southeast, devastating the coast.
Ruth’s Chris Steak House issues IPO.
2005 chain sales: $259.5 billion*

2006

U.S. House passes bill that would increase punishment for hiring or helping illegal immigrants.
Chipotle issues IPO.
Tim Horton’s issues IPO.
Immigrants and supporters hold rallies in cities nationwide.
KFC adds “food safety assurance” seals to packaging, without mentioning avian flu.
Senate passes immigration bill that includes guest-worker program.
Burger King issues IPO.
Joe Micatrotto and other former Buca Inc. executives plead guilty to fraud charges.

*Total global sales, Restaurants & Institutions Top 400 Restaurant Concepts