Whatever Happened To Ponderosa Steakhouse?

Known for its Western-themed decor and a bountiful buffet packed with steak, chicken wings, and ice cream, Ponderosa Steakhouse was once among the most popular national steakhouse chains. However, the franchise has seen better days. Ponderosa once boasted over 700 locations, but according to an email Mashed received from a representative of the chain, only around 26 remain as of 2025.

So, what happened? The answer is more complicated than you might think. Ponderosa got its start in the mid-1960s, when Dan Lasater, Norm Wiese, and Charles Kleptz opened the first location in Kokomo, Indiana. Ponderosa weathered its share of ups and downs in its early years. The restaurant verged on foreclosure in 1969 but bounced back in the '70s, a decade that saw steadily rising profits for Ponderosa. The old adage, "What goes up, must come down," certainly applies to the rise and fall of Ponderosa. Over the ensuing decades, a string of bad luck and misfortune contributed to the multitude of struggles Ponderosa faced.

Like many steakhouse chains struggling to stay in business, Ponderosa was hit hard by growing public health concerns. Americans became worried about overconsumption — something that's easy to do at buffets. Plus, Ponderosa didn't offer much in terms of health food, sticking to standards like steak and baked potatoes. Customer concerns only worsened in the '90s and early 2000s. Major players in the buffet industry like Sizzler and Chi-Chi's were the source of E. coli and hepatitis A outbreaks. Buffet chains facing lawsuits over foodborne illnesses became a common occurrence.

Despite a growing distaste for buffet chains, Ponderosa held out for a while, but there were more bumps in the road. In 1989, Metromedia Restaurant Group, which owned Ponderosa's rival Bonanza, acquired the franchise and merged the two restaurants. Both companies brought financial and managerial problems into the merger. By 2008, the impact of the recession forced Ponderosa to declare bankruptcy.

While the franchise continues to operate, factors like the 2020 pandemic and fluctuating beef prices have slowed growth. Ponderosa was acquired by FAT Brands in 2017, a company with struggles of its own. FAT Brands CEO and prominent Donald Trump donor Andrew Wiederhorn was arrested for tax evasion in 2024. The charges were dropped in 2025 after the Trump administration fired the federal prosecutor overseeing the case. This prompted the prosecutor to file a complaint with the Merit Systems Protection Board for wrongful termination. Given this adds more scandal to the chain's history, Ponderosa's future remains unclear.