You may find it hard to believe, but shopping malls didn’t always have food options, and York Steak House, a pioneer of contemporary mall food, has slipped into obscurity. Folks today may not know the name, but there was a time when York Steak House was one of the country’s biggest chain restaurants.
In the 1960s, friends Ed Grayson and Bernie Gross were modestly successful franchisers of Burger Chef, a ’50s burger chain that dominated the Midwest until the ’90s. Inspired by a profitable Ponderosa in Springfield, Ohio, they chose Columbus for their first York Steak House, named for its Old English theming. The cafeteria-style restaurant was a hit, but their second location was the one that helped make history.
In 1971, Ed’s brother Howard opened a York Steak House in Portland, Maine, as one of the first restaurants located inside of a mall. This enormously successful store raked in up to $400,000 a year in profits — just under $3.2 million when adjusted for inflation. In 1977, with 33 restaurants to their names, Grayson and Gross sold ownership of the business to General Mills for $17 million (over $94 million today) but stayed on staff to run the brand.
York Steak House’s decade of expansion and collapse
According to Ed Grayson, at first, “General Mills couldn’t have been better. They’d come in, look at our figures, and never say a word, never do anything.” Except for the pressure to open 25 new units per year, a difficult challenge that York Steak House met as it quickly spread to malls across the U.S.. Business was still booming in 1982, with almost 200 restaurants in 27 states. But one potential misstep may have foretold the chain’s fate…