By Mark Seavy  

A number of casual dining brands are staging comebacks or planning expansions.  

The return of The Ground Round, Steak & Ale, Kenny Rogers Roasters, and Chi-Chi’s comes, however, as brands like Red Lobster and TGI Fridays struggle.   

TGI Fridays, for example, has closed 100 U.S. locations since November and turned over management of more than 400 international franchised locations to former CEO Ray Blanchette, who in December made a $30.5-million bid for nine of the franchised restaurants.  

Amid all of these changes, licensing and merchandise remain a constant—even for brands that haven’t operated as restaurant in more than 20 years.  

Chi-Chi’s closed in 2004, having peaked with 210 locations. But Hormel Foods, which initially licensed the brand in 1987 and later acquired it, has continued producing branded salsa and other products. Hormel, which also owns brands including Spam, Skippy, and Planters, is represented for licensing by Brand Activation Consulting. Late last year, Michael McDermott, son of the original Chi-Chis owner, Marno McDermott, was licensed to reopen restaurant locations starting in Minnesota.   

Steak & Ale, which shut the last of its 280 locations in 2008, has reopened in a Wyndham Hotel in Burnsville, MN under new owner Legendary Restaurant Brands. Legendary also owns the 47-restaurant Bennigan’s chain, which itself fell into bankruptcy in 2008.  

Ground Round had 215 locations at its peak but dwindled to just three. That was before Joseph and Nachi Shea purchased the IP rights with plans for a new restaurant in Shrewsberry, MA, the opening of which was delayed from January to spring.   

And Kenny Rogers Roasters, which had its moment of cultural zeitgeist during an episode of the TV series Seinfeld in 1996, closed its last U.S. location in 2011. But it has expanded internationally under master franchisee Berjaya, including a flagship location in Dubai, United Arab Emirates in 2023. It also sells branded merchandise through its online store.   

“The resurgence of legacy restaurant brands is fueled by nostalgia, strong brand equity, and shifting consumer trends,” said Frances Alvarez, SVP of Brand Management at Beanstalk, which handles licensing for TGI Fridays and has an agreement with Kraft Heinz, among others, for frozen appetizers. And even when the restaurant brand lacks physical locations, they retain “strong emotional connections” with consumers that can spark a revival leading to licensed goods, Alvarez said.   

The same holds true for existing competitors like Red Robin Gourmet Burgers, which recently signed a licensing deal for hamburger patties with Belmont Meats, said Jeff Dotson, VP for Strategic Brand Licensing at Valen Group, which represents Red Robin as well as the International House of Pancakes (IHOP).   

“It all depends how you are looking at it, whether it is a restaurant platform or licensing,” Dotson said. “From a licensing standpoint, if one of these brands wants to build out as a restaurant platform it is going to do so through a nostalgia play for those exposed to it before and they are going to have to connect anew with those consumers. It’s all about whether you can make your brand relevant in a busy market. If there is nostalgia on the menu, and you hit the current notes in the market based on fashion, you can reinvigorate a brand.” 

 And, according to Alvarez, social media makes it easier than ever to reignite interest in nostalgic brands, among both past loyalists and new audiences. Because of this, nostalgic brands are having a cultural moment far beyond anything that could have been created using the traditional television, radio, or newspaper-based marketing efforts that existed when these casual dining spots were at their peak. Other necessary updates are also being made. The Ground Round, for example, is replacing the spent peanut shells that once covered the restaurant floors with popcorn out of caution for peanut allergies.   

“People love the comeback story of heritage, iconic, and historic brands, especially in the restaurant business,” Legendary Restaurant Brands CEO Paul Mangiamele told the food news site Eat This, Not That!