Whatever Happened To Ponderosa Steakhouse?

Known for Western-themed decor like horse statues 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 sported over 700 locations, but only around 15 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 suffered its fair share of ups and downs in its very early years. The company 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 respective 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.

The franchise continues to operate, though it's hard to say what the future holds. Factors like the 2020 pandemic and fluctuating beef prices have slowed growth in the past. Ponderosa was acquired by FAT Brands in 2017. FAT Brands is facing struggles of its own due to an ongoing FBI investigation regarding the former CEO's alleged tax evasion. So, it's unclear if new life can or will be given to the franchise. It's unfortunate news for those who were hoping for a Ponderosa comeback.