Planet Hollywood has opened a new location in New York with a major celebrity presence. Will the restaurant chain regain its former popularity?
From phenomenon to financial disaster – and back again? The restaurant chain Planet Hollywood, which was wildly popular in the 1990s, has celebrated its grand reopening in New York with an impressive lineup of stars. According to media reports, Hollywood icons such as Arnold Schwarzenegger (77), Whoopi Goldberg (69), and Alec Baldwin (66) attended the opening party in Manhattan on Tuesday evening (March 11).
The Rise of Planet Hollywood
When the first Planet Hollywood location opened in New York City in 1991, founder Robert Earl’s (73) concept quickly became a massive crowd-puller. Earl had previously served as the president and CEO of the Hard Rock Café chain and had extensive experience in the themed restaurant business.
Themed restaurants like Hard Rock Café and Rainforest Café were extremely popular in the 1990s, offering customers not just a meal but a full-fledged experience. At the start of the decade, Earl capitalized on a brand-new combination of dining, entertainment, and Hollywood glamour. He also secured the support of major stars.
Planet Hollywood was backed by well-known actors such as Bruce Willis (69), Demi Moore (62), Whoopi Goldberg, Sylvester Stallone (78), and Arnold Schwarzenegger. Earl made them co-owners of the company, and in return, they appeared at the grand openings of new locations. Fans visiting the restaurant could hope to run into one of their idols or get a taste of Hollywood glamour at events featuring red carpets, celebrities, and media coverage.
Each Planet Hollywood location was decorated with original props, costumes, and memorabilia from famous Hollywood films. Every branch had a unique collection, with some of the most iconic exhibits including the DeLorean from Back to the Future, Luke Skywalker’s lightsaber from Star Wars, and Arnold Schwarzenegger’s legendary Terminator leather jacket.
Financial Disaster in the Late ’90s
However, Planet Hollywood’s rapid success led to overexpansion. The restaurant chain opened too many locations worldwide, including three in Germany. While it had a stock market valuation of $3.5 billion in the mid-’90s, the company soon ran into financial difficulties and had to file for bankruptcy in 1999 after accumulating losses in the tens of millions.
The once-successful concept (which had grown to about 95 locations in 31 countries by 1999) proved unsustainable. Customers also criticized the average-quality food, which even the impressive Hollywood memorabilia couldn’t compensate for. Over time, the enthusiasm of the originally engaged celebrity partners faded, taking a crucial part of the business model with it.
Why Planet Hollywood Is Making a Comeback
Despite its bankruptcy, Planet Hollywood never completely disappeared from the restaurant scene. The chain currently operates several restaurants and hotels worldwide. In addition to the newly opened New York location, Planet Hollywood still has venues at Disney Springs in Orlando, Florida, Los Angeles International Airport, and Doha, Qatar. A new location is also set to open at Hong Kong Disneyland Resort in 2025.
It appears that Planet Hollywood is adapting to the modern era. For example, the new New York restaurant no longer features movie memorabilia on the walls. Instead, high-definition screens transport visitors into different worlds, showcasing films and music videos. “Suddenly, you’re in a beautiful forest, then in an old Western town with Lil Nas performing. Then it transitions to Jelly Roll, and next, you’re with Taylor Swift,” founder Robert Earl explained to the New York Post.
