Sizzler Explained

Sizzler USA Restaurants, Inc.
Type:Private
Trade Name:Sizzler
Foundation: in Culver City, California, as Del's Sizzler Family Steak House
Location:Mission Viejo, California, U.S.
Founders:Del and Helen Johnson
Key People:James A. Collins, CEO (1967–1999)
Industry:Restaurants
Products:Steak, seafood, salads
Area Served:United States
Locations:84[1]

Sizzler USA Restaurants, Inc., doing business as Sizzler, is a United States-based[2] restaurant chain with headquarters in Mission Viejo, California, with locations mainly in California, plus some in the nearby states of Arizona, Nevada, New Mexico, Idaho, Utah, and Oregon, as well as Puerto Rico. It is known for steak, seafood, and salad bar items.

Since 2023, Sizzler restaurants outside of the United States are owned by Thailand-based Minor International and are not related to the American firm.

In September 2020, Sizzler USA filed for Chapter 11 bankruptcy due to the COVID-19 pandemic hurting sales. The bankruptcy filing does not affect the similarly named Minor International affiliated restaurants that are located outside of the United States.

History

The chain was founded in 1958 as Sizzler Family Steak House by Del and Helen Johnson in Culver City, California.[3] At its peak, the chain was composed of more than 270 locations throughout the U.S.[4] Most of Sizzler's U.S. locations are in the West.In the late 1970s and early 1980s, Sizzler promoted steak and combination steak dinners with an optional salad bar. The restaurant wanted to give customers the feel of a full-service restaurant at a price slightly more than a fast food chain. To control costs, many restaurants had in-house meat cutters that would cut steaks and grind beef.

Into the early to mid 1980s, competition appeared: Ponderosa Steakhouse and Bonanza Steakhouse. After promotions, such as all-you-can-eat fried shrimp, the chain expanded its salad bar into a full buffet promoted as the "Buffet Court". Patrons began to use the buffet as a meal instead of an add-on to an entree. In response, Sizzler lowered the quality in other menu areas.[5] Sizzler also introduced a free grilled cheese bread roll at the start of the experience which was intended to line the stomach, curbing appetite. Customers took notice, and Sizzler's reputation suffered.

Sizzler filed for Chapter 11 bankruptcy in 1996 ("to escape costly leases on unprofitable restaurants"), and closed over 130 of its locations.[6] [7] [8] The company reemerged from Chapter 11 in 1997. During the late 1990s, new management upgraded the quality of food and increased prices. Twenty one locations closed in 2001. Sizzler began an image makeover circa 2002. A new restaurant concept was created, featuring a lighter and more open dining room. The changes were accompanied by a new menu. In an effort to return to its roots, Sizzler emphasized steaks, seafood, and the salad bar. While the all-you-can-eat buffet was phased out in some locations, it remained in many others.

In the 1990s, Sizzler ran upscale locations with the Buffalo Ranch Steakhouse brand.[9] [10] [11]

Sizzler was sold to Pacific Equity Partners, an Australian-based investment firm, in 2005.[2] In January 2008, Sizzler announced it was planning to take action against the Multi-State Lottery Association (MUSL) of Urbandale, Iowa, over the use of the name The Sizzler (Hot Lotto).[12]

In June 2011, Sizzler USA announced that a US management group led by the Sizzler CEO would buy the American portion of the chain of 178 restaurants from Pacific Equity Partners with the remaining 100 restaurants located outside of the United States remaining with Pacific Equity Partners.[13] The headquarters initially remained in Culver City, California, where the chain was founded,[14] but moved to Mission Viejo, California, in 2012.[15]

Sizzler has launched its "ZZ" food truck to expand sales and test market new dishes.[16]

In September 2020, Sizzler USA announced that they had filed for Chapter 11 bankruptcy protection, citing impacts of the COVID-19 pandemic, namely forcing it to temporarily close its restaurants' dining rooms. The company also cited problems paying rent.[17] Most of the company-owned restaurants are located in highly COVID-19 infected areas of California that did not even permit restaurants to partially open dining rooms as recently as September 2020.[18] At the time of the bankruptcy filing, Sizzler had 107 locations in 10 states, with all but one location in Florida in states west of the Rocky Mountains in addition to several locations in Puerto Rico. This number is down from the 134 locations in 2018.[19]

Post-COVID, Sizzler is still in operation and is attempting to rebuild its business with renovations, a new menu, and an advertising campaign.[20]

International locations

See main article: Collins Foods.

Following Sizzler USA's separation from Sizzler International in 2011, all locations outside the United States were operated or licensed by Australia-based Collins Foods.[21] [22] In 2023, Collins sold its Sizzler business and intellectual property to Thailand-based Minor International.[23]

Current locations

Japan

The current Sizzler franchise-holder in Japan is Royal Holdings Co., Ltd., a Fukuoka-based food service company. Royal Holdings opened the first Japanese Sizzler steakhouse in 1991.[24] By August 2021, Royal Holdings had 10 Sizzler restaurants in Japan.[25]

Thailand

The current Sizzler franchise-holder in Thailand is Minor Food Group via a subsidiary called SLRT Limited.[26] Minor opened its first Thai Sizzler steakhouse in 1996.[27] By 2001, Minor had 19 Sizzler restaurants throughout Thailand.[28]

During the COVID-19 pandemic, the company experimented with the use of robotic waiters in the dining room in December 2020 to minimize physical contact between customers and restaurant staff.[29] After the Thai government loosen COVID-19 dine-in restrictions in September 2021, Sizzler Thailand was able to reopen 54 out of a total of 60 restaurants for dine-in.[30] Two months after reopening, the Thai franchise announced expansion plans of trying to open new 3-5 restaurants per year over the next three years. The franchise also announced plans of installing more robot food delivery systems within each restaurant which would minimize human contact between dine-in customers and the restaurant staff which would in turn lessen the transmission of COVID and other diseases.[31]

Former locations

Australia

The first Australian Sizzler steakhouse was opened in Brisbane in 1985.[32] [33] The steakhouses in Australia were reasonably popular during the 1990s.[34] In the 2013 financial year, Collins Foods reported stalling revenue for their Sizzler operations in Australia, blaming the downturn of the casual dining sector in the country.[35]

By 2015, Collins Foods wrote down the value of Sizzler by AU$37.5 million. In an investors meeting by Collins Foods, CEO Graham Maxwell states: "We no longer consider Sizzler to be a strategic growth prospect in Australia and therefore we will not be investing further capital". Collins Foods began to close a number of Sizzler restaurants in Australia. Meanwhile, Collins Foods' Sizzler operations in Asia continued to thrive, with further expansion planned in China.[36]

Collins Foods closed all of its remaining Sizzler restaurants in Australia in November 2020. Collins Foods said of the three restaurant brands that it operates, Sizzler had been hardest hit by the COVID-19 pandemic.[37]

Taiwan

Sizzler was in operation in Taipei for twenty years at Tianmu and Da'an from 1990 to 2010, and eventually closed due to negotiation with international franchisee Collins Foods resulting in not continuing the contract.[38]

China

According to archived snapshots of the official Sizzler China website, the Thailand-based Minor Food Group had seven Sizzler restaurants in China from May 2009[39] and November 2012.[40]

Indonesia

Sizzler opened a restaurant in Indonesia during the mid-1990s with the first location located at Jalan M.H. Thamrin with other locations notably in Jalan Sabang, Mal Kelapa Gading, and Mall Taman Anggrek but was renamed into American Grill in mid-2000s due to expiring licensing rights.

Singapore

According to archived snapshots of the official Sizzler Singapore website, Collins had three Sizzler restaurants in Singapore in December 2001.[41] In March 2013, the company had two Sizzler restaurants in Singapore.[42]

Controversy

Food safety

In 2000, more than 60 people became ill and one person died in an outbreak of that originated at a Sizzler restaurant in Milwaukee, Wisconsin. Health officials said that the most likely source of contamination was meat supplied by the Excel Corporation meat packer. The health officials believed that cross contamination to other food items occurred when Sizzler employees handled the meat near areas where salad bar items were prepared.[43] This was similar to an outbreak in Washington and Oregon in 1993. In the 1993 case, as in 2000, the tainted meat apparently came from Excel and contaminated salad bar items.[44] This ultimately led to Sizzler closing the chain's remaining Midwest locations, including those in Wisconsin, Illinois, and Indiana.

See also

Notes and References

  1. Web site: Sizzler Locations . Sizzler.com . 2022-03-19.
  2. Web site: The Sizzler Story . Sizzler.com . 1958-01-27 . 2012-06-22 . dead . https://web.archive.org/web/20120618221632/http://www.sizzler.com/about/our_history.asp . 2012-06-18 .
  3. Web site: Sizzler USA Franchise, Inc. . Chain Leader . 2012-06-22 . dead . https://web.archive.org/web/20070209233148/http://www.chainleader.com/franchise-developer/profile.asp?id=35 . 2007-02-09 .
  4. Web site: Our History . Sizzler . dead . https://web.archive.org/web/20120618221632/http://www.sizzler.com/about/our_history.asp . 2012-06-18 .
  5. Web site: Cast in a New Light . Norris . Maya . 2006-09-01 . 2007-01-01 . Chain Leader . dead . https://web.archive.org/web/20070207052933/http://www.chainleader.com/archives/2006/09/sizzler.asp . 2007-02-07 .
  6. News: Sizzler Closes Outlets . . . 1996-06-04 . 2012-06-22 . Gregory J. . Wilcox.
  7. News: Huesmann . Chris . Sizzler closes 7 East Bay outlets as part of restructuring . . Final . June 4, 1996 . C01 . . subscription . June 26, 2019.
  8. News: Brooks . Nancy Rivera . Sizzler files for Chapter 11, To close 130 outlets . . Final . June 3, 1996 . A06 . . subscription . June 26, 2019.
  9. News: Upscale Buffalo Ranch Sizzzzzles . . 2015-12-03 . 1993-04-15 . Max . Jacobsen.
  10. News: Sizzler declares bankruptcy . . 2015-12-03 . 1996-06-03 . .
  11. News: Beef On The Comeback Trail . 1994-07-06 . David . Young . Chicago Tribune.
  12. News: Sizzler said to be considering trademark suit against lottery group . 2011-06-09 . . dead . https://web.archive.org/web/20120330112331/http://nrn.com/article/sizzler-said-be-considering-trademark-suit-against-lottery-group . 2012-03-30 .
  13. News: Sizzler USA Acquired by Management Group . . June 10, 2011 . Deborah . Crowe . The deal announced late Thursday separates 178 owned or franchised Sizzler locations in the United States from about 100 restaurants overseas that Pacific Equity will continue to control.
  14. News: Sizzler sold to team led by CEO . 2011-06-09 . . 2011-06-09 . Luna . Nancy.
  15. News: Luna . Nancy . Sizzler moves headquarters to Orange County . 2012-04-11 . . 2012-04-10.
  16. Web site: Marte . Jonnelle . 10 Things Food Trucks Won't Say . . . 2012-07-23 . 2012-07-20.
  17. News: Sizzler, one of America's first steakhouse chains, files for bankruptcy . 2020-09-22 . CNN.
  18. News: Limited Indoor Dining Can Return to Orange County Today, Says California Gov. Newsom: The state's new coronavirus reopening guidelines mean Orange County can do 25 percent indoor dining, beginning immediately . Farley . Elliott . September 8, 2020 . Eater LA.
  19. News: Chappell . Bill . Pandemic Fizzle: Sizzler Steakhouse Chain Files For Bankruptcy Protection . 10 July 2021 . . September 23, 2020.
  20. News: Sizzler aims for a renaissance by unabashedly embracing its past. 2024-04-07. 2023-09-08. Peter. Romeo. Restaurant Business Newsletter.
  21. News: Collins Foods' IPO plans highlight food sector strength . Hammond . Michelle . 2011-07-05 . StartupSmart . en-AU . 2016-11-26.
  22. Web site: ASX release - Collins Foods Limited 2016 Annual Report . 1 September 2016 . . Collins Foods . 26 Nov 2016 . .
  23. Web site: Van . Tong . 2023-06-29 . Minor International acquires Sizzler brand . 2023-09-13 . Inside Retail Asia . en-US.
  24. Royal Holdings Co., Ltd. Integrated Report 2020 . Royal Holdings Co., Ltd. . 2020 . 6.
  25. サラダバー&グリルレストラン「シズラー」親子で楽しくおいしく野菜を学ぶ小学生向け食育イベント「ベジフルキッズクラブ」をカゴメと協働で初開催 . ja . Salad bar & grill restaurant "Sizzler" Held for the first time in collaboration with Kagome, a food education event for elementary school students to learn vegetables in a fun and delicious way with parents and children . August 18, 2021 . Royal Holdings Co., Ltd. . PR Times.
  26. Web site: Minor Food Group Companies . Minor Food Group.
  27. Web site: Minor Food History 1992 . Minor Food Group.
  28. News: Thailand: Minor Food Group to continue building Sizzler International's Thai presence . November 9, 2001 . Just Food.
  29. News: Sizzler turns to robotic waiters for distancing . December 24, 2020 . Bangkok Post.
  30. News: Eateries set to reopen from Wednesday . September 1, 2021 . Bangkok Post.
  31. News: Sizzler eyes expansion, marketing push . November 30, 2021 . Bangkok Post.
  32. News: Shaw . Rebecca . March 24, 2022 . Shame on us, we didn't know what we had until Sizzler was gone . .
  33. Web site: Kirkwood . Katherine . November 11, 2020 . Vale Sizzler: the cheese toast king couldn't keep up with dining trends . The Conversation.
  34. News: Hepworth . Mary-Ellen . May 21, 1992 . Hot family dining . 18 . .
  35. News: Pash . Chris . 2015-06-25 . Sizzler is dying in Australia as owner pulls investment . . dead . 2016-11-26 . https://web.archive.org/web/20161126133306/https://www.businessinsider.com.au/sizzler-is-dying-in-australia-2015-6 . 2016-11-26.
  36. News: . 2015-06-25 . Some Sizzler restaurants to shut after Collins Foods posts loss . en-AU . . 2016-11-26.
  37. Web site: Skantzos . Kathy . 2020-10-02 . Sizzler will close the remaining 9 restaurants by November 15 . 2020-10-02 . news.com.au.
  38. News: 許 . 娸雯 . 權利金談不攏 "時時樂"經營20年停業 . 非凡新聞 . 2010-11-12.
  39. Web site: Sizzler Locations . Sizzler China . https://web.archive.org/web/20090525035541/http://www.sizzler.com.cn:80/en/Sizzler_locations.htm . 2009-05-25 . dead.
  40. Web site: Sizzler Locations . Sizzler China . https://web.archive.org/web/20121123050248/http://www.sizzler.com.cn:80/en/Sizzler_locations.htm . 2012-11-23 . dead.
  41. Web site: The Sizzler Story . Sizzler Singapore . https://web.archive.org/web/20011205074204/http://www.sizzler.com.sg/ . 2001-12-05 . dead.
  42. Web site: The Sizzler Story . Sizzler Singapore . https://web.archive.org/web/20100323225910/http://www.sizzler.com.sg/ . 2010-03-23 . dead.
  43. News: Beef grinder close to salad prep area, official says . https://web.archive.org/web/20060131091035/http://www2.jsonline.com/news/metro/aug00/ecoli26082500a.asp . 2006-01-31 . Tom . Held . 2000-08-25 . Milwaukee Journal Sentinel.
  44. Web site: Cross contamination caused outbreak . . About E coli . 2012-06-22 . .