Wendy's is Now the No. Menu Price Inflation Breaks Records. Emerging Concepts. Customer Experience. Inside the Rise of the Game-Changing 'Chipotlane'. Menu Innovations. Fast Casual. Drive Thru. Drive-Thru and the Evolution of Fast Casual. Consumer Trends. Long John Silver's fall from grace was gradual. The company's heyday was a ten-year period from about to , during which it grew from a footprint of one thousand units to an all-time high of 1, locations.
Today, the seafood chain claims a little under half of that amount, with about units to its name. In terms of sales, the company has watched its hold on the quick-service seafood market steadily weaken.
Since then its share has decreased to about a third. Likewise, its year-over-year sales change jumped from It's no secret that Long John Silver's is in decline, and has been for a while. Served daily. Subscribe to Food Business News' free newsletters to stay up to date about the latest food and beverage news. Potential Russian tax hike send US wheat futures higher. TreeHouse Foods is on the block.
Subway adds Hero Bread as part of test. Soon the two men were looking for a restaurant concept they could duplicate across the country. They tried new menu concepts at Jerry's by adapting foodservice ideas borrowed from restaurants in other locations. The popularity of eating away from home and the growth of the restaurant business in general was just beginning; Jerrico's timing was perfect. By , Jerrico was operating seven Jerry's Restaurants and was one of the first companies to use the franchise concept as a means of stimulating growth.
Rosenthal, who had been made chief executive officer of Jerrico, eventually served as president and gained ownership of the company as well when Lederer died in Jerrico's success in the foodservice industry has been credited to the company's willingness to generate ideas and take risks. Indeed, the company tested a variety of restaurant concepts during the s, including: Lott's roast beef and other sandwiches ; Davy's Dock full-service seafood ; Don Q's Spanish food ; and The Governor's Table full-service dining.
Then, in , Rosenthal was inspired to try out a new market for quick-service seafood as competition for the standard American favorites of hamburger, pizza, and fried chicken. Rosenthal studied the competition, particularly the menu at the H. Salt Fish and Chips chain, and then persuaded James Patterson, a Jerry's Restaurant franchisee, to join him at Jerrico to help develop the notion of an expanded version of fast food fish-and-chips. Patterson became the first president of Long John Silver's.
Located on Southland Drive in Lexington, the first restaurant was a success; LJS developed into a chain and soon became Jerrico's most successful endeavor. By the end of , there were more than LJS units in operation. Designed to provide the atmosphere of a seafood establishment along a wharf, the outlets' interiors were decked out with brass lanterns, signal flags, and boat oars. The original menu featured battered fish, chicken, french fries, and hush puppies.
However, noting that competitor H. Salt had a relatively limited menu and was experiencing financial difficulties, Rosenthal quickly moved to expand LJS's offerings, implementing a more comprehensive line of seafood to augment its batter-dipped fillets.
By , the chain's name was changed to Long John Silver's Seafood Shoppes to reflect this expanded menu. During this time, Ernest E. Renaud, Jerrico's executive vice-president since , became the second president in LJS history. By June , there were LJS restaurants in operation. Of these, were owned directly by Jerrico and another were franchised to independent operators, who paid a fee to Jerrico for the concept and covered construction and business costs themselves.
Within two years, the total number of shops had grown to 1,, of which were company-owned. Changes in LJS leadership took place in the early and mids. In , Renaud was named president of parent company Jerrico in addition to his duties as LJS president, while Rosenthal retained a role as chairman of the board. In , John E. Tobe, who had been LJS's chief financial officer since the early s, succeeded Renaud. Growth at LJS continued apace in the s, as company-owned development increased significantly.
By , Jerrico owned of a total 1, LJS restaurants, and by LJS accounted for approximately 75 percent of Jerrico's total revenues and 80 percent of its operating profits. Although LJS was not considered a truly national chain at the time, it was gaining enough ground to warrant an investment in regional network television advertising time.
Jerrico's intent was to have stores in all areas of the country by , and to have LJS become a full network television advertiser. During this time, Jerrico's other business interests included a chain of Jerry's Restaurants and other new restaurant concepts the company was testing, including a full service Italian restaurant called Florenz, established in Ohio.
Jerrico also opened its first fast-food Italian restaurant--called Gratzi's--in Such diversification was prompted in part by the continually rising prices of Icelandic cod, LJS's staple menu item; hoping not to become overly dependent on the LJS chain, with its rising operating costs, Jerrico continued to expand its holdings. Moreover, LJS was facing increasing competition from outside the industry, particularly from grocers and their suppliers, who were quick to take advantage of market demand for fast food that could be microwaved at home.
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