penny restaurants | Restaurant-ing through history

Tag Archives: penny restaurants

October 27, 2024 · 11:13 am

An early health food empire

It’s rare to find business documents from long-gone restaurants, but last weekend I stumbled upon two letters to investors from the Physical Culture Restaurant Company headed by fitness and health food advocate Bernarr Macfadden [shown above, age 42].

Macfadden was a body-builder, natural food proponent, and entrepreneur who decided to spread the gospel by opening inexpensive, largely plant-based restaurants at the turn of the last century. He attributed his strength and energy to this special diet.

The 1904 end-of-year letter reported that four new restaurants had been added to the ten already in business, and that they had done business totaling over $243,000, with a net gain of $2,637. Five restaurants had been judged failures and closed, four of them in NYC and one in Jersey City. He and his board of directors believed in rapidly shutting down locations that did not draw crowds. The letter blamed a “business depression” and the normally slow start of new locations for the smaller-than-hoped-for profits.

Although he wanted the restaurants to succeed, his personal income was not dependent upon them. Macfadden’s primary business was publishing periodicals, beginning in 1899 with Physical Culture, which discussed diet and health, followed by True Story, Liberty and then, increasingly, a large number of detective and romance magazines with titles such as Dream World, True Ghost Stories, and Photoplay. In addition he authored scores of books on fitness, sex, and health, and established a tabloid newspaper, The New York Evening Graphic. His publications earned him a fortune.

The total number of Macfadden restaurants open at the same time never seemed to exceed sixteen or so. The first ones were in New York City, of which there were nine at one point. Others were spread across the East and Midwest, including Boston, Newark, Jersey City, Philadelphia, Pittsburgh, Detroit, Cleveland, Cincinnati, Chicago, and St. Louis. There was also one in Toronto. [above: 1906 advertisement and 1906 restaurant at 106 E. 23rd, NYC]

In the 1907 letter to stockholders shown above he floated the idea that the restaurant holdings might grow to 40 or 50 units if stockholders invested in more stock. This never happened.

Despite the growing popularity of the restaurants, it seems that for Macfadden they served primarily as a way to spread the gospel of a healthful diet. He could not be described as a restaurateur. No doubt he helped to conceptualize the restaurants and make up the early menus, but he did not manage them except in his role as corporate executive.

Prices were low in his early restaurants. A bowl of thick pea soup was 1c, as was a bowl of steamed hominy or oats or barley. Whole wheat bread and butter, however, cost 5c as did creamed beans or whole wheat date pudding. He sold loaves of whole wheat bread for 10c. [shown above]

A Macfadden menu shown in a 1919 British book reveals a wealth of choices then but also higher prices that reflect post WWI inflation. Five cents now bought less. Mushrooms on Toast cost 20c, as did meat substitutes Nuttose and Protose. A Macaroni Cutlet or Lentil Croquettes cost 25c, while omelets such as Mushroom, Walnut and Pecan, Orange, or Protose and Jelly were 30c.

In 1931, at which point only three Physical Culture restaurants remained, Macfadden gave up his fortune, said to be $5,000,000, and created the Bernarr Macfadden Foundation. In a radio broadcast he said: “It is a source of indescribable relief to feel like a free man again. Too much money unwisely used makes people greedy and ungrateful, destroys the home, steals your happiness, enslaves, enthralls you, lowers your vitality, and enfeebles your will.”

Yet his personal life continued to be full of numerous wives, affairs, and lawsuits. And, despite being “freed” of his fortune in 1931, he continued to spend money lavishly, taking it from the treasury of the Physical Culture Publishing Company after he turned that into a public corporation. Stockholders accused him of using nearly a million dollars for his own private interests, which included failed attempts to become a presidential candidate, governor of Florida, or mayor of New York.

In 1931 the Foundation opened the first of several Depression-era penny restaurants, no doubt modeled on Macfadden’s first restaurant at the beginning of the century where most dishes cost only one or a few cents. The initial Depression “pennyteria,” run by the Foundation, was located in midtown NYC. Drawing a crowd of about 6,000 a day, it quickly became self-supporting.

At a penny restaurant run by the Foundation, one cent would buy any of the following: coffee, split pea soup, navy bean soup, lentil soup, green pea soup, creamed cod fish on toast, raisin coffee, honey milk tea, cabbage and carrot salad, steamed cracked wheat, hominy grits, raisins and prunes, bread pudding, whole wheat doughnuts, whole wheat bread, or whole wheat raisin bread.

As the operator of the 1930s restaurants, the Foundation proved more flexible than Macfadden about dietary standards, but evidently he still had some say over what was served. According to one account he agreed to let meat appear on the menu as well as dairy products. Meat took the form of beef cakes, beef stew, and chicken fricassee. But he stood firm about bread, insisting only whole wheat be served.

I found no trace of the Macfadden restaurants nor the Foundation’s penny restaurants in the 1940s. Macfadden largely faded from the headlines, dying in 1955 and leaving an estate valued at only $5,000.

6 Comments

Filed under alternative restaurants, chain restaurants, menus, popular restaurants, proprietors & careers, restaurant prices

Tagged as 1930s Depression, early restaurant chains, penny restaurants, vegetarian restaurants

June 8, 2014 · 6:18 pm

Serving the poor

Recently, in Colorado Springs, I ate lunch at Seeds, a “community restaurant” devoted to making meals affordable to all. Guests are invited to pay what they can and, if that is nothing, to volunteer for an hour. A few days later, I saw another similar enterprise, Café 180, located on Denver’s outdoor 16th Street Mall.

It might seem like a new phenomenon but it’s more of an old idea with a new twist. Sellers of cooked food ranging from vendors with a cart all the way up to deluxe restaurants have long given away food to the needy.

In 1820 a French restaurateur in the City of Washington (D.C.) informed the public that he would sell the beef left over after being boiled for his special bouillon, while “to persons unable to pay it will be given gratis.”

John W. Farmer, a wealthy plumber, opened a Free Dining Saloon in New York City during the financial panic of 1857. After the first six months he announced he had served nearly 231,000 meals composed of dishes such as soup, corned beef, pork, ham, fish, bread, potatoes, cabbage, and turnips. Though hailed by the poor, especially the Irish, the New York Tribune rebuked him for failing to distinguish the deserving poor from the drunks, reprobates, and other “vile” persons “who prefer the bread of idleness to that of industry.” He carried on for several years, then opened the Farmer Institute, a reading room and lecture hall where speakers promoted an economy based on cooperation. A Cooperative Building Association that was formed as a result was quite successful.

Many free and low-price dining rooms as well as restaurant breadlines have sprung up during panics and depressions (of which there have also been many). Some have been motivated by religion or a social cause. In the 1870s a bad economy combined with the temperance movement helped make Holly Tree Coffee Inns successful. They were designed by Christian groups as alternatives to saloons, pitting “Queen Mocha against King Alcohol.” In addition to serving coffee, the self-supporting coffee houses provided low-priced food for working-class men in Hartford, Chicago, New York City, Washington, Boston, and many smaller New England towns. Quaker Joshua L. Bailey created similar coffee houses in Philadelphia.

The severe depression of the 1870s inspired others to open cheap restaurants. Some had meals for 10 cents, some for 5 cents, and some sold dishes for as low as 1 cent apiece. In New York a restaurant proprietor described only as an “old lady” was popular with newsboys for bargains like “Plate of soup one cent” and “All kinds of meat one cent.” Despite her rock-bottom prices she claimed to make a good profit.

Louis Fleischmann earned a fine reputation for the breadline he started at his New York Vienna Bakery restaurant during the Depression of the 1890s. He kept it going until his death in 1904, whereupon his son continued it for several years [shown above]. Another New Yorker, the Bowery’s Mike Lyon was also well known for his beneficence. Every morning at 5:00 a.m. he handed out food left from the night before to hundreds of women and children who gathered at his back door.

Physical fitness advocate Bernarr Macfadden also fed New York’s poor, thereby introducing what he claimed was the city’s first vegetarian restaurant in 1902. He recreated a similar penny cafeteria in 1931, selling soup, codfish, beans, prunes, bread, and other dishes for 1 cent each. He charged more for coffee because he didn’t think it was a “vital” food. Similar restaurants could be found then in Detroit and Springfield MA and probably many other cities. Max Rosoff invited the poor to eat for free in his NY Times Square restaurant after 10 pm., while Harry Rapoport, operator of a Jewish dairy restaurant on the Lower East Side was called the “Mayor of Second Avenue” in recognition of his culinary charity, especially after feeding 300 capmakers during a 7-week strike during the 1930s Depression.

Equally impressive were the efforts of Clifford Clinton who not only ran a penny restaurant for about six months during the Depression but also made low-priced or nearly free meals a standard in his Los Angeles Clifton’s cafeterias. [30-cent meal shown, 1940s] Patrons were instructed they could pay what they wanted. He was patronized largely by the elderly who appreciated getting “A Tra-ful for a Tri-ful” at his odd but cheerfully upbeat cafeterias. Hot cereals ran about 8 cents while an egg was 9 cents. In 1954 he served a whopping 20,000 meals each day in his two cafeterias. During World War II he created a “Meals for Millions” foundation that funded scientists to develop an inexpensive soy-based meal distributed by wartime relief agencies to refugees throughout the world.