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A Beloved, Struggling Diner Chain Makes a Big Comeback

After dealing with years of challenges, the affordable chain is finding success.
FACT CHECKED BY Mura Dominko

Beloved regional Southern-style diner chain Grumpy's may be a success story now. It's a franchise of five successful restaurants that boasts a list of awards, recognitions, and accolades for its food and hospitality. But this hasn't always been the case. In fact, since opening the first location in 1999, the chain went through several rough patches until it finally landed in the right hands several years ago and mounted an incredible comeback.

Two years after Grumpy's opened, the original owner, also known as "Chef Grumpy," stepped down. This led to 15 years of unpredictability for the restaurant, according to FSR Magazine. The brand struggled to find an identity with staying power, serving French-style cuisine one year and operating as a dinner service the next.

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However, when husband and wife Daniel and Morgan DeLeon took over in 2017, Grumpy's embarked on a path to success. The couple chose to resurrect the restaurant's original spirit by serving diner favorites at an affordable price, as reported by FSR Magazine. Daniel DeLeon told the publication that he and his wife were the ones who developed Grumpy's, as opposed to a group of executives. He noted that they "changed literally everything."

grumpy's restaurant exterior
Grumpy's Restaurant / Facebook

In 2019, Grumpy's began franchising and has opened four locations since. Today, the restaurant has units in Orange Park, Middleburg, St. Johns, Neptune Beach, and Wildlight.

According to FSR Magazine, DeLeon attributes Grumpy's current success to the ongoing support of its franchisees.

"That is the number one thing we do do that differentiates us from most franchise concepts … that we will be as supportive and active with a franchisee as they would like us to, and that's everything from wanting us to be on-site more often, weekly calls, [or] biweekly calls," DeLeon told the publication.

Another essential component to Grumpy's mission is serving high-quality, homestyle food. The chain has grown its menu from 10 items to four pages, serving breakfast favorites like pancakes, waffles, omelets, and eggs Benedict, in addition to sandwiches, burgers, and other diner staples. All of the locations use the same ingredient distributor and make their food from scratch.

Grumpy's also prioritizes generous food portions and offers a family-friendly environment, reinforcing its slogan, "No one leaves Grumpy!"

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In terms of its plans for the future, the chain noted in an August press release that it's "actively targeting" franchise partners in Florida and Georgia and is looking at markets in Orlando, Gainesville, Jacksonville, St. Augustine, and Savannah. Grumpy's aims to sign three additional development deals by the end of the year.

Additionally, the Florida brand has implemented menu changes this year. During the first quarter of 2024, Grumpy's introduced a limited alcohol menu at its Neptune Beach location, the chain's largest restaurant. The new offerings include fresh-squeezed mimosas and other breakfast favorites. According to the restaurant, Grumpy's saw "immediate success" with its new drink options and plans to offer them at other locations in the future.

Brianna Ruback
Brianna is a staff writer at Eat This, Not That! She attended Ithaca College, where she graduated with a degree in Journalism and a minor in Communication Studies. Read more about Brianna