Discount steakhouse chain closed over 600 restaurants, 15 left

The definition of discount steakhouse has changed over the decades.

From the 1950s through maybe the 1990s (although some old-school locations have lingered) low-priced steakhouses offered cheap steak, and usually an all-you-can-eat salad bar. The models varied slightly, but the focus was on value.

You weren’t getting the best cut of meat, but you got something that could legally be called steak, and the value was excellent. Chains like Ponderosa, Sizzler, and York Steak House, which used a cafeteria-style model, were popular nationally, while regional chains, including Tad’s and American Steakhouse, thrived regionally.

In the 1990s, Sizzler tried to pivot to a fuller buffet model rather than just a salad bar with soup.

“I think that they were trying to find a niche,” Mary Chapman, a senior director at Technomic, told The Washington Post. “They probably thought they could take advantage by offering all of the things competitors were, but in a buffet.”

That did not work, and Sizzler actually filed for Chapter 11 bankruptcy in both 1996 and 2000.

• 1996 bankruptcy source:Los Angeles Times
• 2020 bankruptcy source:NPR

The chain survived, but Sizzler, Ponderosa, Tad’s, and other similar brands have dwindled as more modern rivals like Outback Steakhouse, Texas Roadhouse, and Longhorn Steakhouse have taken their place.

Now, Ponderosa, which also uses the Bonanza name, has shrunk from over 700 locations at its peak to only 15 now.

What happened to Ponderosa?

Ponderosa and Bonanza Steakhouses, which are essentially now the same restaurant under different names, have a simple mission.

“Established in 1965 and 1963, respectively, Ponderosa Steakhouse and Bonanza Steakhouse are leading fast-casual restaurant concepts where families can find the spirit of the Old West, the flavors they crave, and something-for-everyone variety. Both concepts serve great steaks, seafood, and sides along with an expansive buffet featuring a variety of dishes from fresh vegetables and fruits to beef, chicken, pasta offerings, and desserts,” new owner Fat Brands shared on its website.

The chain has dwindled to less than 20 locations, but it still has diehard fans.

A Ponderosa server for 40 years, Denise Morin, 58, told local news outlet TribLive that the chain has fans who are willing to make a trip to visit.

“They drive here from Erie, New Jersey, New York, and Ohio. It’s a dining destination for them,” she shared.

Fellow server Kaitlyn Pastorius echoed the sentiment, sharing, “It’s crazy how people drive hours to dine here, the loyalty. I feel like people feel at home here,” she added.

A large part of the chain’s problem is that buffets have fallen out out favor with Americans.

“The shifting consumer preferences of the 1990s and early 2000s, which saw the average consumer become more health conscious and conscious of their meal choices. Buffets typically aren’t considered ‘healthy options’ by most consumers,” wrote Conrad Belknap for Business Review at Berkley.

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Covid also dealt buffets some blows, from which many will never recover.

“With restaurants  and especially buffets being considered extremely high-risk, the damage to the industry was immediate and likely permanent. Across the nation, buffets went dark. And with new federal guidelines recommending the discontinuation of self-serve restaurant concepts, many chains do not see a sustainable way to continue their already struggling operations,” he wrote.

Ponderosa has not given up, but it’s a greatly diminished chain.

Ponderosa Steakhouse history timeline

• 1965: Ponderosa Steakhouse is founded in Kokomo, Indiana, by Dan Lasater, Norm Wiese, and Charles Kleptz. The concept was modeled after Bonanza Steakhouse.
• 1966-1968 : The chain begins franchising; by 1968, the business is expanding rapidly.
• Late 1960s-1970s : Ponderosa expands strongly, moves headquarters (to Dayton, Ohio), and grows across multiple states and into Canada.
• 1988 : Ponderosa is sold to Metromedia Restaurant Group.
• 1989: Metromedia acquires Bonanza Steakhouse and combines the two chains under its umbrella.
• By the late 1980s/early 1990s: Ponderosa reaches a peak of nearly 700 U.S. locations.
• 2003: Location count falls to fewer than 400 across the U.S.
• 2008 : The parent company (Metromedia Steakhouses) files for Chapter 11 bankruptcy, reemerges as Homestyle Dining LLC in 2009. (PacerMonitor)
• 2017: Ponderosa and Bonanza chains are acquired by FAT Brands.
• 2024-2025 : The number of U.S. locations dwindles dramatically: Reports indicate only 20-30 remain as of mid‑2024.
  Sources: Yahoo! Life – The Rise and Fall of Ponderosa Steakhouse, Fat Brands

A history of inexpensive American steakhouses

• Tad’s Steaks
  Founded 1955 in San Francisco; cafeteria‑style, ultra‑low‑priced steaks.

  Peaked at 28 U.S. locations. The Times Square location closed in 2020.

  Only one location remains.

• Ponderosa Steakhouse (and Bonanza)
  Founded 1965 in Indiana; themed after “Bonanza” TV series.

  Peaked near 700 U.S. locations, and only 21 remained by 2024.

  The chain’s decline was due to changing consumer preferences and buffet/dine-in model struggles.

• Sizzler
  Founded 1958 in California as a casual family steakhouse with salad bar.

  U.S. peak: 270 or so locations. The chain filed Chapter 11 bankruptcy in 2020.

  By 2025, only 74 U.S. locations remained.

• York Steak House
  Founded 1966 in Columbus, Ohio. Famous for its cafeteria‑style service.

  Peaked at 200 locations across 27 states in the early 1980s.

  Declined in the late 1980s; only one location remains in Columbus today.

• American Steakhouse
  Family-owned, opened since 1978. Known for its steaks and salad bar.

  Meriden, Conn., location closed in 2024 after 53 years.

  Other locations in Bridgeport and Norwalk, Conn., remain open.