Fatburger Corporation - First Fatburger Stand Opens in 1952

First Fatburger Stand Opens in 1952

Fatburger was founded in 1952 in Los Angeles by African-Americans Lovey Yancey and Charles Simpson. According to company lore, their friends so enjoyed the hamburgers Yancey served them in her kitchen, often during the course of late-night jam sessions, that they encouraged her to open her own hamburger stand. She and Simpson decided to go into business together, and, despite a lack of money, they worked out a rudimentary business plan. They coined "Mr. Fatburger" as the name of the restaurant, determined the menu, and found a site at 31st Street and Western Avenue in Los Angeles. Simpson was then able to construct the first building at no cost. He worked for Martin Sheavy Construction Company, whose owner made a habit of dividing leftover building materials with his crews after a job was completed. With these materials and the free labor of his co-workers, Simpson was able to construct the first stand after working hours. When this walk-up restaurant, offering just three stools, opened, Yancey and a helper worked the day shift, while Simpson, after a day of working construction, with the help of his sister, Josie, took the night shift.

The first burger stand proved so successful that Simpson and Yancey opened three more sites. When they decided to part ways, they split the business. Simpson and his wife ran their Mr. Fatburger stands, while Yancey dropped the "Mr." and looked to expand her Fatburger business beyond Los Angeles's inner city. In 1973, she opened a store in Beverly Hills, and then in 1980 she began to grow the business through local franchising of the Fatburger concept. By the end of 1985, the chain had 32 units, four of which were company owned, and was named the number five fastest growing burger franchise chain by Entrepreneur magazine in its annual Franchise 500 list, trailing only McDonald's, Burger King, Wendy's, and Jack in the Box. There was talk in the press about expanding Fatburger beyond Los Angeles to Orange County and San Diego, and the possibility of moving into Ann Arbor, Michigan, and New York. Overseas licensing was also being discussed. Although the chain during this phase would grow to 40 units, many of the locations proved ill-suited to the business, and a number were forced to close. It was also during the 1980s that CEO Keith Warlick first went to work with Fatburger, learning the culture of the chain from Yancey herself.