Famous sports bar chain, Chili’s rival, has closed more than 140 locations

Most Americans probably believe that Chili’s pioneered the sale of ribs in the United States. That chain, however, was actually more famous for bringing another popular staple to menus nationwide.

The chain is certainly proud of its ribs, but it literally deserves credit for teaching Americans how to pronounce one of its menu items.

“Chili’s opened its first restaurant on the corner of Greenville Avenue in Dallas in 1975. Back then, the restaurant was known as a burger shack with 25 menu items, beer and margaritas included. In 1986, Chili’s popularized an up-and-coming dish called fajitas (the menus at the time said how to pronounce the dish there: ‘the fajitas of the day’): Americans how to sing about ribs for children,” the chain shared in a press release.

And while Chili’s was growing the rib market in the 1980s, so was another chain that didn’t experience the same level of sustained success.

There was a time when, along with Chili’s, Damon’s was a fast-growing brand.

“The Columbus sports bar and rib purveyor once ruled its small casual niche. But then things changed. New, similar concepts, both chains and independents, entered the scene, savings in its core markets diminished, and Damon’s suffered not only from growing guest indifference, but also from its own identity crisis,” said the Food Service director.

The chain survived bankruptcy and saw its store count climb to more than 150 at its peak. Now, only a handful of independent operators keep the name alive.

Damon had a slow, steady collapse.

“There were liquidity problems. We were $40 million in debt and losing money. It’s not a good way to run a business,” former CEO Carl Howard told Food Service.

Howard resigned in 2007 after 17 months on the job, according to Nation’s Restaurant News. The company’s fortunes arguably took a turn for the worse from there.

The general market in 2009 and 2010 was not great for most restaurants.

“Expect slower traffic,” Technomic’s Tim Powell said at an industry event in 2009, Nation’s Restaurant News reported. “A lot of people are not going to feel good when they go out to eat. There’s a way to go before we see a rebound.”

Technomic also shared some data for 2010:

  • Food service sales this year will fall 3.8 percent on a nominal basis, which includes an assumption of 2.5 percent menu price inflation, as the industry was hit hard by subdued consumer spending during the “Great Recession.”

  • Projections for 2010 include a nominal 0.8% decline in total foodservice sales, reflecting a 1.5% inflation rate, according to Technomic’s forecast.

  • The three years from 2008 to 2010 mark the weakest time span in food service history, Technomic executives said.

  • During that time, not only did same-store sales slow for nearly all restaurants.

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