1967–1968: RoBee's and Marriott
In 1967, the Azar's Big Boy restaurant franchise started RoBee's House of Beef restaurants in Ft. Wayne, Indiana.[6][7] The Marriott Corp., which had acquired Bob's Big Boy and the Big Boy trademark in 1967, acquired RoBee's in February 1968 with plans to expand nationwide. RoBee's franchises would first be offered to Big Boy franchisees to coincide with their existing Big Boy territory.[7] At the time there were 13 RoBee's restaurants in six states.[7]
During the acquisition, in January 1968, the competing roast beef chain Arby's sued RoBee's for trademark infringement and (other similarities that it considered) unfair competition.[8] Because "RoBee's" sounded too much like "Arby's" the settlement required a new brand name and Marriott wanted something recognizable.[9] Big Boy founder Bob Wian, then sitting on Marriott's board of directors, was friends with Roy Rogers' agent and suggested that the company approach Rogers about the use of his name. Already interested in associating with a chain restaurant, Rogers was in similar discussions with another company when Marriott called.[10] Nonetheless, he accepted Marriott's offer: Rogers would receive a licensing fee for use of his name and also be paid for personal appearances at the restaurants.[11] The restaurants would be called "Roy Rogers Roast Beef Sandwich" restaurants, and despite Arby's complaints,[8] it retained RoBee's building design[12]
Several major Big Boy franchisees accepted Marriott's offer and became Roy Rogers regional franchisees, including Abdow's,[15] Frisch's,[16] Elias Brothers,[17] Marc's,[18] and Shoney's[19] which together covered much of the Northeastern, Midwest and Southern US. Pittsburgh franchisee Eat'n Park rejected the offer and took public offense at paying fees to Rogers.
Marriott divided the United States into 33 franchise regions[11] and required regional franchisees open a set number of restaurants in a four-year period. Regional franchisees would pay Marriott a 2% royalty, and subfranchisees typically pay the regional franchisee 3%,[23] who would keep the additional 1%.[11] A restaurant required a $35,000 cash investment upfront,[24][25] including $7,500 paid to Marriott. Additionally, the cost of the building and equipment, with seating for 42 persons, cost about $100,000 in 1968, excluding the cost of land.[26] Marriott offered financing but charged an interest rate of 12% on land and 17% for the building.[11] The prototype restaurant seated 40 to 45 persons with additional outdoor seating on an optional patio in front of the building, but actual restaurants varied, one franchisee's dining area accommodating 75 persons.
The first Roy Rogers restaurant opened up on Co- founder and Hot Shoppes manager, Henry L. Wright's property in April 1968 in the Bailey's Crossroads section of Falls Church, Virginia, on the corner of Leesburg Pike and Carlin Springs Road (5603 Leesburg Pike). Another opened at 5214 River Road, in Bethesda, Maryland. The area was selected because Marriott was headquartered in metropolitan Washington, D.C., with the River Road unit located directly across the street. (Marriott executives and Marriott family members were frequent patrons of this store.) These first locations were conversions of Jr. Hot Shoppes, Marriott's existing fast food chain. In May 1968, RoBee's units began to open as Roy Rogers. Rogers made a four-state tour of namesake restaurants in the Southern U.S., appearing at each location for an hour, shaking hands and handing out signed photographs.[27] Filming for the first television commercials advertising Roy Rogers Restaurants took place in the Apple Valley, California, area where Rogers lived with his family. In 1968 and 1969, Rogers and friends, Earl Bascom[28] and Mel Marion, were filmed at various locations including the historic Las Flores Ranch in Summit Valley and the Campbell Ranch in Victorville.
1968–1989: Growth and challenges
Rapid growth began in 1968 and Marriott made optimistic projections. In October 1968, there were reportedly 38 units open and 65 under construction,[29] and by December, 56 opened with 39 under construction.[30] Marriott projected 700 or more Roy Rogers restaurants in four years.[30] By June 1969, 105 units were open with a new projection of 870 in four years.[23] A February 1970 newspaper article reported that over 160 units were in operation.[31] However, growth halted in 1970, when Marriott suspended Roy Rogers franchising, due to financial losses from closing failing locations.[32] The following year, the Texas–based regional franchise, Ram-Hart Systems, filed for Chapter 11 protection, asking to terminate unprofitable leases, which made the entire chain unprofitable.
1990–1997: Hardee's
In 1990, Marriott sold the chain for $365 million to Imasco, the parent company of Hardee's, a Midwestern and Southern chain seeking further expansion into the Mid-Atlantic market. The remaining non-franchised Roy Rogers locations were converted into Hardee's restaurants, although many of the converted Hardee's continued to offer Roy Rogers' fried chicken. This conversion caused a customer revolt and the units returned to the Roy Rogers' brand.[42] The restaurants promoted new flame-broiled hamburgers, but they were not the same as the original Roy Rogers products and later failed.
Hardee's finally sold the remaining Roy Rogers locations to McDonald's, Wendy's, and Boston Market between 1994 and 1996.[43][44][45]
1997–present: CKE, Imasco, Plamondon Companies
In 1997, CKE Restaurants acquired Hardee's from Imasco, but Imasco retained the Roy Rogers trademark and franchise system. The Riese family, which owned 18 Roy Rogers restaurants, sued CKE Restaurants and Imasco for $10 million in 1997, claiming the Roy Rogers chain has been destroyed through "a series of marketing errors of epic proportions."[48]
Imasco sold Roy Rogers to Plamondon Enterprises (now Plamondon Companies) in 2002, after three years of negotiation.[49] Roy Rogers was relaunched as Roy Rogers Franchise Company, LLC. Plamondon had already opened the first new Roy Rogers restaurant in Frederick, Maryland, in 2000.[50][51] At the time of the sale, there were 63 existing Roy Rogers franchises in nine states.[49]