Shoney's
Shoney's is an American family-casual restaurant chain with roots in a 1947 West Virginia drive-in.
Last updated August 22, 2026
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Overview
Shoney's is an American family-casual restaurant brand headquartered in Nashville, Tennessee. Its history began in 1947, when Alex Schoenbaum opened the Parkette Drive-In beside his father's bowling alley in Charleston, West Virginia. The business became a Big Boy franchisee in 1952, operating initially as Parkette Big Boy Shoppes and later using the Shoney's name. Through company development and subfranchising, the operation expanded across much of the southeastern United States and became one of the largest participants in the Big Boy system. The brand's later corporate history was closely associated with Ray Danner. Danner and business partner James Craft acquired the Shoney's franchise for Middle Tennessee in 1959. Danner subsequently bought out Craft, expanded the restaurant base, and developed adjacent concepts, including the seafood chain that became Captain D's. In 1969, Danner Foods became a public company. In 1971, Danner acquired Shoney's trademark and operating assets from Schoenbaum, moved the headquarters and commissary to Nashville, and became the chain's principal corporate leader. Shoney's gradually sought to operate beyond the geographic restrictions associated with its Big Boy franchise. The company changed its corporate name from Shoney's Big Boy Enterprises to Shoney's, Inc. in 1976, and several restaurants were developed under the Danner's Towne and Country name before ultimately being converted to Shoney's. A legal dispute with Frisch's over expansion and alleged association with the Big Boy system preceded Shoney's withdrawal from Big Boy in 1984. The company paid Marriott, then owner of the Big Boy trademark, to end its franchise agreement. At that point Shoney's was the largest Big Boy franchisee, with 392 restaurants. The chain experienced a major reputational and legal crisis in the late 1980s and early 1990s. A class-action lawsuit alleged systemic racial discrimination in hiring, promotion, workplace treatment, and termination at company-owned restaurants. In 1993, a court-approved settlement valued at $105 million before costs and fees was reached. Ray Danner contributed company shares and left the board, while the court required a company-wide affirmative-action and training program. At its 1998 peak, the broader restaurant enterprise operated or franchised more than 1,800 restaurants in 34 states, including businesses that no longer belong to the present Shoney's operation. The company filed for Chapter 11 bankruptcy protection in 2000 and was acquired by Lone Star Funds in 2002. In 2007, Lone Star sold the chain to David Davoudpour and his Atlanta-based Royal Capital Corporation. Under the subsequent ownership, the business consolidated locations, bought some franchisee restaurants, refreshed menus and facilities, and introduced updated formats. Shoney's menu centers on American comfort food and family dining. Typical offerings include hamburgers, chicken, steaks, fish, sandwiches, salads, desserts, breakfast items, and, at selected restaurants, buffet service and alcoholic beverages. Long-associated products include the All American Burger, Slim Jim Sandwich, hot fudge cake, strawberry pie, and the Shoney's breakfast bar. The company has also experimented with smaller takeout-oriented formats known as Shoney's On The Go, mall-based restaurants, and contemporary restaurant designs. As of April 2024, reference material reported 58 operating locations across 14 U.S. states.
History
Shoney's originated in Charleston, West Virginia, where Alex Schoenbaum opened the Parkette Drive-In in 1947 next to his father's bowling alley. After meeting Big Boy founder Bob Wian, Schoenbaum became a Big Boy franchisee on February 7, 1952. His units were initially known as Parkette Big Boy Shoppes. A public naming contest in 1954 resulted in the Shoney's name being applied to the five Parkette drive-ins. Schoenbaum expanded the business through subfranchising. Early operators in several markets used local names, including Elby's, Lendy's, Yoda's, Becker's, Tunes, Arnold's, Adler's, and Shap's. Over time, most of these arrangements either adopted Shoney's branding or developed separately. The Shoney's organization became a significant Big Boy operator in the southeastern United States, although Florida was excluded from its original territory because rights there belonged to Frisch's. Ray Danner entered the story in 1959. Seeking a Big Boy restaurant in Louisville, Danner and James Craft acquired the Shoney's franchise for Middle Tennessee. Danner bought Craft's interest, expanded to additional restaurants, and operated a Kentucky Fried Chicken subsidiary. In 1969, the business became the public company Danner Foods, Inc. It also developed Mr. D's Seafood and Hamburgers, which evolved into Captain D's, and briefly operated a more upscale Mr. D's Islander Restaurant. In 1971, Danner Foods acquired Shoney's trademark and related assets from Alex Schoenbaum. The companies were reorganized under Shoney's Big Boy Enterprises, Inc.; headquarters and commissary operations moved from Charleston to Nashville, and Schoenbaum became board chairman. The company changed its name to Shoney's, Inc. in 1976. The change reflected the development of a broader food-service company and helped the business pursue growth beyond its Big Boy territory. The company's expansion beyond the Big Boy system generated a dispute with Frisch's. Restaurants in Louisville and later Florida used Danner's Towne and Country branding, with some locations co-branded as Shoney's Towne and Country. Frisch's argued that the branding and concept improperly evoked Big Boy associations. A federal district court rejected Frisch's request for a temporary injunction in 1984, and an appeals court affirmed in 1985. Separately, Shoney's negotiated with Marriott, then owner of the Big Boy trademark, to end its franchise agreement. In April 1984, Shoney's withdrew from Big Boy after paying Marriott $13 million. The former Big Boy restaurants were subsequently operated simply as Shoney's. The company faced a severe legal and ethical crisis beginning in 1989, when a class-action complaint filed in Pensacola alleged that African American applicants and employees were systematically denied opportunities and subjected to discriminatory treatment. The allegations implicated senior management and named Ray Danner as an individual defendant. In 1993, the court approved a settlement valued at $105 million before additional costs and fees. Danner surrendered shares valued at $65 million, resigned from the board, and the court imposed an affirmative-action, education, and training program. The case was described in reference material as the largest discrimination settlement of its kind at the time. Shoney's later reached a reported peak of more than 1,800 operated or franchised restaurants in 34 states in 1998. The chain subsequently contracted, filed for Chapter 11 bankruptcy in 2000, and was acquired by Lone Star Funds in 2002. In January 2007, Lone Star sold the chain to David Davoudpour, founder and chief executive of Royal Capital Corporation. The new ownership worked to acquire selected franchisee restaurants, update facilities and menus, and restore a more consistent brand presentation. The modern Shoney's format remains centered on family-casual American food. Its menu includes burgers, chicken, steaks, seafood, sandwiches, salads, breakfast, desserts, and selected buffet offerings. The brand has tested smaller takeout locations, a mall-based prototype, alcohol service at some restaurants, and contemporary interiors. Reference material reported 58 locations in 14 states as of April 2024. Shoney's also previously operated Shoney's Inn, a motel business founded in 1975. The motels were sold in 1991, while the name continued under royalty arrangements until the remaining properties were rebranded as GuestHouse between 2002 and 2006.
- 2017
Modernization program began
[1]The chain began refreshing restaurant interiors and exteriors with a contemporary design.
- 2014
Prototype mall restaurant opened
[1]Shoney's opened a new prototype at Sugarloaf Mills in Lawrenceville, Georgia.
- 2007
Sold to Royal Capital Corporation
[1]Lone Star sold the chain to David Davoudpour and Royal Capital Corporation.
- 2002
Acquired by Lone Star Funds
[1]The bankrupt company was acquired by the Texas-based investment group Lone Star Funds.
- 2000
Chapter 11 bankruptcy filing
[1]Shoney's filed for Chapter 11 bankruptcy protection.
- 1993
Discrimination settlement approved
[1]A court approved a $105 million racial-discrimination settlement before costs and fees and ordered company-wide corrective measures.
- 1984
Exited the Big Boy system
[1]Shoney's paid Marriott $13 million to buy out its Big Boy franchise agreement and continued as an independent restaurant brand.
- 1976
Corporate name changed to Shoney's, Inc.
[1]The company removed Big Boy from its corporate name as it pursued a broader restaurant identity.
- 1975
Shoney's Inn founded
[1]The company entered the motel business with the Shoney's Inn chain.
- 1971
Danner acquired Shoney's assets
[1]Danner Foods acquired the Shoney's trademark and assets, moved headquarters to Nashville, and reorganized as Shoney's Big Boy Enterprises.
Products and positioning
Family-casual American dining focused on approachable comfort food, broad menus, breakfast service, desserts, and value-oriented restaurant experiences.
Burger
All American Burger
A signature hamburger offering associated with Shoney's traditional American casual-dining menu.
Sandwich
Slim Jim Sandwich
A long-associated Shoney's sandwich item and one of the brand's recognizable menu offerings.
Breakfast and buffet · 1980
Shoney's Breakfast Bar
A breakfast-bar format that became an important part of Shoney's identity from the 1980s onward, complementing the chain's full-service family restaurant menu.
Dessert
Hot Fudge Cake
A signature-style dessert associated with Shoney's menu and brand recognition.
Dessert
Strawberry Pie
A fruit pie identified with Shoney's traditional dessert offering.
Takeout restaurant format
Shoney's On The Go
A smaller-format, takeout-oriented concept used in locations such as malls and airports.
Motel · 1975
Shoney's Inn
A motel chain created by Shoney's in 1975. The properties were sold in 1991, and the remaining locations were later rebranded as GuestHouse.
Controversies
1989
Racial-discrimination class action
A class-action lawsuit filed in Pensacola, Florida, alleged systemic discrimination against African American applicants and employees, including barriers to hiring and promotion, harassment, and improper termination. The allegations also implicated management practices and senior leadership. In 1993, the court approved a settlement valued at $105 million before costs and fees. Ray Danner contributed shares valued at $65 million, resigned from the board, and Shoney's was required to implement affirmative-action, education, and training programs.
Brand decisions
2017
Modernize restaurant designStrategyBackground
The company sought to refresh the appearance and relevance of an established family-dining chain.
Action taken
Shoney's began updating locations with a more contemporary look.
Aftermath
Modernized restaurants became part of the chain's continuing repositioning under Royal Capital ownership.
2014
Launch a mall-based prototypeProduct launchBackground
Shoney's was testing formats that could reach customers outside its traditional roadside and standalone restaurant base.
Action taken
The company opened a prototype restaurant at Sugarloaf Mills in Lawrenceville, Georgia, with alcohol service.
Aftermath
The location was presented as a model for the brand while the chain operated restaurants in 16 states.
2007
Transfer ownership to Royal Capital CorporationM&ABackground
After Lone Star's ownership and the chain's contraction, a new owner sought to rebuild the restaurant system.
Action taken
Lone Star sold Shoney's to David Davoudpour and Royal Capital Corporation.
Aftermath
The new ownership purchased selected franchisee restaurants, refreshed menus and facilities, and pursued updated restaurant formats.
2000
Enter Chapter 11 bankruptcy protectionOtherBackground
The company had contracted substantially from its earlier national scale and faced financial distress.
Action taken
Shoney's filed for Chapter 11 bankruptcy protection.
Aftermath
Lone Star Funds acquired the company in 2002, followed by its sale to Royal Capital Corporation in 2007.
1984
Withdraw from the Big Boy franchise systemStrategyBackground
Shoney's wanted to expand beyond the territory and identity associated with its Big Boy franchise. Its use of Towne and Country and Shoney's branding also produced litigation with Frisch's.
Action taken
The company negotiated with Marriott, then owner of the Big Boy trademark, paid $13 million, and ended its Big Boy franchise agreement.
Aftermath
The former Big Boy restaurants continued under the Shoney's name, allowing the chain to operate as an independent family-restaurant brand.
Buyout payment. $13 million (April 1984)
- Frisch's — Frisch's challenged Shoney's expansion and branding in court, but its request for a temporary injunction was denied and the denial was later affirmed on appeal.
Recent events
Sources2 sources
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