Howard Deering Johnson
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Howard Deering Johnson ( * February 2, 1897 in Boston, Massachusetts – † June 20, 1972) was a U.S. hotel and restaurant industrialist. He was the founder and eponym of Howard Johnson's.
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[edit] Business venture
Howard Johnson only finished elementary school because he began to work in his father's cigar business. He served during World War I in the American Expeditionary Force. His father died and left him him a business that was in debt. Howard Johnson entered the restaurant industry in order to pay off debts that remained after selling the cigar venture.
In 1925, he bought a small soda shop, the Walker-Barlow drugstore in Quincy, Massachusetts. The store sold three flavors of ice cream: chocolate, strawberry, and vanilla. Using an old German pushcart operator’s “recipe”, he enhanced the quality of the ice cream by using hand-cranked makers and doubling the butterfat of the product.
Johnson expanded operations by opening a second store in Wollaston, Massachusetts in 1927 and a third store in Natasket Beach, Massachusetts the following year. He also started selling food items such as hamburgers and frankfurters at his original store. In 1929, Johnson opened a second restaurant in Quincy. This store had a broader menu and laid the groundwork for future expansion.
In 1935, Howard Johnson teamed up with a local businessman, Reginald Sprague, and created the first modern restaurant franchise. The idea was new in that day - let an operator use the name, food, supplies, and logo, in exchange for a fee.
[edit] Growth of chain
By 1941, the chain had grown to 150 units and was poised for growth, most of which occurred along the Atlantic Coast, and into Florida. The placing of restaurants on the route to Florida was especially strategic because travelers wanted a predictable meal at a predictable price.
After World War II, the first area of growth was along the Pennsylvania Turnpike. Restaurants were placed at approximately 50-mile intervals along the new roadway. Growth also continued with the franchising of stores in other areas, mostly in the eastern United States. The main concentration of restaurants was in the greater Boston, New York City, and Philadelphia areas.
By 1954, the chain boasted 400 restaurants and was ready to enter the lodging industry. During this same year, Howard Johnson opened his first motel, a franchised unit, in Savannah, Georgia. Howard Johnson required that motel operators install a restaurant adjacent to the motor lodge. Each was under separate franchise agreements and could be operated by separate entities. The combination of a motel and restaurant on the same property proved popular. Growth continued throughout the entire country, and on into Canada and Puerto Rico.
Johnson's son, Howard B. Johnson, took over the company in 1959. During his retirement, he continued to monitor the food preparation and cleanliness of his restaurants. This was a period of fast growth for his company. However, Johnson was very wary of debt. He started the company while in debt and developed the franchise strategy because he did not have cash to expand. The result in later years was a conservative approach to financial management by building up large cash reserves and not spending it on innovation. He was also pre-occupied with cost cutting. "Every time I saw Howard Johnson he was always telling me how he was going to cut costs further", remarked one competitor.
The size of the restaurant chain topped over 1,000 by the late 1970s, with about 500 motor lodges.
[edit] External links
[edit] Sources
- Brian Miller, "Profile of Howard Deering Johnson: The Man Under the Orange Roof", Published by the International Council on Hotel, Restaurant and Institutional Education, 2810 North Parham, Suite 230, Richmond, Virginia USA 23294.
- William “Rick” Crandall, Christopher Ziemnowicz, and John A. Parnell, "The Growth and Demise of the Howard Johnson’s Restaurant Chain: A Schumpeterian Perspective", Published in the Proceedings of the Southern Management Association Meeting, Charleston, SC., November 2005.
