Jump to content
  TPR Home | Parks | Twitter | Facebook | YouTube | Instagram 

Daniel Snyder's Red Zone Acquires Johnny Rockets Chain


Recommended Posts

From the New York Times

 

Footballs, Funhouses and Fries

 

By ANDREW ROSS SORKIN

Published: February 9, 2007

 

Daniel M. Snyder, the entrepreneur and owner of the Washington Redskins, has agreed to acquire Johnny Rockets, the 1950s-inspired restaurant chain known for employees that sing and dance to vintage pop tunes every half-hour.

 

Mr. Snyder’s private equity firm, RedZone Capital, is planning to announce the transaction today, he said in an interview. Terms of the deal were not disclosed, but revenues were $250 million, and analysts estimate the chain’s value could be more than $500 million.

 

The acquisition is Mr. Snyder’s latest high-profile transaction in a recent series of deals. Last year, he took over the Six Flags amusement parks after a bitter proxy battle and, over the summer, struck a deal to back Tom Cruise’s production company when Paramount Pictures unceremoniously shed Mr. Cruise.

 

Mr. Snyder’s deal for Johnny Rockets, which started in 1986 as a corner restaurant serving burgers and malts on Melrose Avenue in Los Angeles, is his first major entrance into the food business.

 

Johnny Rockets has been on a tear, growing at least 20 percent a year since it was started by Ronn Teitelbaum, a clothing retailer, who expanded it to 203 locations, with some restaurants abroad. Mr. Teitelbaum died in 2000, but his chain continued to grow. It now has three outposts in Dubai and a presence on Royal Caribbean International cruise lines.

 

For Mr. Snyder, who was a self-made millionaire at 19 and then created an advertising company that made him even wealthier, Johnny Rockets is an opportunity to leverage his marketing prowess and expand the chain across the nation, if not beyond.

 

“We think it’s a big-time brand,” he said, his voice filled with excitement. “You can see the business rocketing, no pun intended, in the future.”

 

He has ambitious expansion plans, anticipating opening 1,000 new restaurants in the next five years. “There’s no reason we shouldn’t have 15 or 20 Johnny Rockets in Dubai,” he said.

 

One of the first steps will be establishing a series of smaller restaurants, called Johnny Rockets Express, in airports, malls and urban areas. While the company owns about a third of its stores, its plans are to expand its franchise program. He also envisions opening Johnny Rockets restaurants inside FedEx Field in Washington, where the Redskins play, and inside Six Flags theme parks.

 

“The thing about Dan is he always keeps you guessing,” said Mark Shapiro, the chief executive of Six Flags, who left his job as ESPN’s programming director to work for Mr. Snyder. “If you had polled 100 C.E.O.’s about what Dan would buy next, this would not be on the list.”

 

Mr. Shapiro, who says the Oreo cookie shake is his favorite Johnny Rockets menu item, added: “Anything he touches, as long as you got the patience, turns to gold.”

 

Patience may be a virtue needed in his investment in Six Flags. Last year, its amusement parks recorded a 14 percent decline in attendance. Mr. Shapiro said he expected a turnaround this year after 7 of the 30 parks were sold for $312 million.

 

But Mr. Snyder’s life has always been a roller coaster ride. A dropout from the University of Maryland who was enrolled for only a few semesters, Mr. Snyder quickly leaped into several entrepreneurial ventures.

 

By the age of 20, he was leasing jets to ferry college students to the Caribbean. By 25, he had started a publishing business, but it ran aground, and a bank confiscated his sports car, a Lotus Elise.

 

But he bounced back. Fred Drasner, chief executive of U.S. News & World Report and a mentor to Mr. Snyder, nicknamed him “Timex,” because he “takes a licking and keeps on ticking.”

 

He created a marketing juggernaut, Snyder Communications, that in 2000 he sold to a French rival, Havas Advertising, for $2 billion in stock, a record for an advertising deal. Mr. Snyder pocketed nearly $300 million in the transaction.

 

Johnny Rockets was sold to Mr. Snyder by the Teitelbaum family, Apax Partners and Centre Partners.

 

Apax and Centre Partners became involved in 1995 after the company suffered a debilitating battle between Mr. Teitelbaum and Alfred M. Bloch, a psychiatrist who was then its controlling shareholder. Mr. Teitelbaum had sued Dr. Bloch and a partner, charging mismanagement and self-dealing.

Link to comment
Share on other sites

  • Replies 20
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

I just find it interesting that Jonny Rocket's are also inside Cedar fair parks. Would Mr Snyder be a prick/idiot and pull these locations? I don't think he would. He has always been about making money. But it does bring up an interesting topic.

 

So, I guess this means that Magic Mtn is getting a Jr for sure. I really hope it is in a new building and not a converted space.

Link to comment
Share on other sites

Interesting. I remember when Johnny Rockets first opened and they were "special". There were not many of them, it was a fun and semi-unique concept. Now they are EVERYWHERE - it really seems to me that the brand is already diluted.. why on earth would he want to add more of them. The fact that they were a destination restaurant is what made them special..now they are like any other chain.

Link to comment
Share on other sites

Bad Diner Food + Bad Service + Annoying People Singing and Dancing = Elissa HATES Johnny Rockets!!!!

 

I *hate* it when people try and interact with me when I am in a restaurant. I am trying to eat my food...not be part of a show. If I am staring at my food or my tablemate and not making eye contact.. that does not mean - "Come over and talk to me!". Blah!

Link to comment
Share on other sites

I never found J-Rockets food any good, and never understood why anyone found them interesting to begin with. Blah.

I think the reason they do maybe decent at the parks is because of one thing. AC!

 

What the parks need are more real sit down casual type environments like Fridays, Applebee’s type restaurants.

 

Or the best thing about Universal FL. Starbucks.

 

Cheers!

Link to comment
Share on other sites

Bad Diner Food + Bad Service + Annoying People Singing and Dancing = Elissa HATES Johnny Rockets!!!!

 

I *hate* it when people try and interact with me when I am in a restaurant. I am trying to eat my food...not be part of a show. If I am staring at my food or my tablemate and not making eye contact.. that does not mean - "Come over and talk to me!". Blah!

 

I agree with all of these statements.

Link to comment
Share on other sites

I didn't completely enjoy either of my sit-down restaurant experiences at Cedar Point, one of them being JR's. It was crowded and we were at the counter. The food was alright, but it was semi-annoying how they'd all stop what they were doing at the same time for certain songs.

 

I thought it was funny the first time...they did YMCA. But then they kept doing it.

Link to comment
Share on other sites

 

I *hate* it when people try and interact with me when I am in a restaurant. I am trying to eat my food...not be part of a show. If I am staring at my food or my tablemate and not making eye contact.. that does not mean - "Come over and talk to me!". Blah!

 

Nailed it! My other restaurant peeve is when the staff address my party as "hey guys". Too much familiarity for my blood.

Link to comment
Share on other sites

I've never been at a Johnny Rocket's myself, but in passing them they seem to be big with families. So following Snyder's strategy fo Six Flags, putting them into SF parks would make sense.

 

I don't they would be removed from CF parks if they make money there.

 

Darien Laker - to me Famous Dave's in the marina is the best sit down place at CP (especially off hours) with friendly staff and damn good chow. I love their BBQ sauce options.

Link to comment
Share on other sites

  • 3 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.

×
×
  • Create New...

Important Information

Terms of Use https://themeparkreview.com/forum/topic/116-terms-of-service-please-read/