The Once-Popular 1950s Fast Food Chain That Closed All Locations But One

The enduring success of popular fast food joints, such as McDonald's and Burger King, can give the impression that once a business cracks the code of consumers' taste buds, they are destined to stay around forever. However, even after considering how much Americans spend on fast food, some once-prominent chains in the industry failed to stand the test of time. Henry's Hamburgers is one such name. The eatery once boasted more than 200 locations across the nation. It rivaled McDonald's among popular fast food chains with the most U.S. locations and even outnumbered them in the early 1960s, according to the company's own records. As of today, Henry's Hamburgers is down to a single location in Benton Harbor, Michigan. Its decline is attributed to franchise mismanagement and a failure to adapt. 

Henry's Hamburgers was established in Chicago in the 1950s by Bresler's Ice Cream Company, its parent company, and was named after co-founder Henry Bresler. The idea was to capitalize on the booming fast food industry and drive-in trend of the '50s. On the back of menu favorites, such as fish sandwiches, fried shrimp, and chili dogs, Henry's Hamburgers amassed hundreds of locations throughout the U.S. and Canada. While nostalgic lovers of the brand may not find its only remaining outlet as romantic as their memories from the '60s, the Michigan Henry's retains a big chunk of the original menu. It still offers the "Brown Bag Special," comprised of a double cheeseburger, fries, and a fountain drink. Henry's began selling the special in the '80s as one of its best value meals – decades before McDonald's debuted its Dollar Menu in 2003. 

Why did Henry's Hamburgers fail as a fast food chain?

Out of the multitude of reasons that led to the decline of this once-popular burger joint, probably the biggest was its failure to adapt to new fast food trends. The 1950s saw a massive upsurge in car production and ownership, which led to a car culture ripe for what became known as drive-in restaurants. However, fast-forward a couple of decades, and chains began to install drive-thru lanes in restaurants as well. Henry's Hamburgers failed to ride the drive-thru wave, and sales started dwindling in the '70s. The Henry's that remains operational in Benton Harbor, Michigan, finally adopted drive-thru service in 1988. Today, drive-thru service is responsible for 70% of the franchise's sales.

Cash flow is the lifeblood of any business. Owing to its lack of sales in the '70s, Henry's was consistently at a competitive disadvantage when it came to advertising budgets. While McDonald's and Burger King were ruthless in the areas of marketing and menu diversification, Henry's could not catch up. Add to that some major changes in the upper management of Bresler's Ice Cream, and the restaurant side of its business was sidelined for far too long. Another major blow to Henry's came in the form of a '70s-era rumor in Chicago, claiming that Henry's was using horse meat in their burgers. Although the claims were never proven, the company that had once advertised, "Aren't you hungry for a Henry's?" had to endure the distaste that follows a rumor like this one. 

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