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Shoney's Pushes Franchise Growth as Chain Falls to 45 Locations

The 1947-founded diner brand showed franchisees a new restaurant design in September 2026 after decades of closures cut it down from about 1,300 units.

By Tom Hadley

· 1 min read

Skyline of White Oak, MD
Photo: Ser Amantio di Nicolao / CC BY-SA 3.0 via Wikimedia Commons

Shoney's is recruiting single- and multi-unit franchisees as the diner chain tries to rebuild from 45 restaurants in 11 states, according to a report published by TheStreet on Oct. 31, 2026, and carried by AOL.com.

The company said in a statement that it is seeking qualified candidates after what it described as an extensive revitalization, and in September 2026 it showed franchisees an architectural plan for a redesigned restaurant intended as the template for both new and existing units.

Founded in 1947, Shoney's once operated roughly 1,300 restaurants across 34 states. It sought Chapter 11 protection in 2000 following a racial discrimination settlement and heavy debt, shut more than 800 restaurants and was down to 282 units by the close of 2006, court filings cited in the report said. Former Church's Chicken franchisee David Davoudpour bought the chain in 2007, and another 130 restaurants closed through 2013 amid the economic downturn.

Recent closures include the Oak Hill, W.Va., restaurant on Mall Road, shut permanently on Aug. 23, 2026, about 13 months after it reopened as a buffet-only site; a Waynesville, N.C., location in October 2025; and two South Carolina restaurants in August 2025.

Newsweek's 2025 Reader's Choice Poll ranked Shoney's the fifth-best buffet chain, behind Golden Corral at No. 1.

This story was first reported by AOL.com.

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