The rise and fall of Chuck E. Cheese, as the iconic chain struggles amid the coronavirus pandemic

Kate TaylorApr 26, 2020, 19:04 IST

Chuck E. Cheese is 43 years old.Getty Images

Chuck E. Cheese was originally created by Atari cofounder Nolan Bushnell to serve as the cigar-chewing mascot at Pizza Time Theatre in 1977.
Chuck E. Cheese's grew into a beloved chain, known in the '90s and early 2000s for its prize tokens, pizza, and animatronic performances.
Today, Chuck E. Cheese's has retired the tokens and animatronics, as it gears up for restructuring.
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Chuck E. Cheese has been through a lot over the last 43 years.

The mascot — full name Charles Entertainment Cheese — was originally created by Atari cofounder Nolan Bushnell, to serve as the cigar-chewing mascot at Pizza Time Theatre in the 1970s. Since then, the chain that took the mascot's name has been restructured and sold numerous times in attempts to keep up with the trends.

Another restructuring may be on the way for the mouse mascot (formerly portrayed as a rat). Business Insider's Casey Sullivan and Alex Morrell reported this week that parent company CEC Entertainment is struggling under a heavy debt load. Lenders are organizing and tapping restructuring lawyers, according to people familiar with the situation.

Change is nothing new for Chuck E. Cheese. Read on to see how the chain evolved, as Chuck E. Cheese transformed from an animatronic rat from New Jersey to a rock star mouse performing live shows on YouTube.

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CEC Entertainment is struggling under a heavy debt load and lenders are organizing and tapping restructuring lawyers, according to three people familiar with the matter.

An image of the sign for a Chuck E Cheese store as photographed on March 18, 2020 in Hicksville, New York. Photo by Bruce Bennett/Getty Images

CEC Entertainment is struggling under a heavy debt load and lenders are organizing and tapping restructuring lawyers, according to three people familiar with the matter.

The coronavirus pandemic hit the chain hard, with sales sinking 21% in the first quarter. Chuck E. Cheese has attempted to keep fans engaged with pizza delivery and "live performances" from the mascot.

Chuck E. Cheese/YouTube

The coronavirus pandemic hit the chain hard, with sales sinking 21% in the first quarter. Chuck E. Cheese has attempted to keep fans engaged with pizza delivery and "live performances" from the mascot.

In April 2019, CEC Entertainment announced that the company would return to the New York Stock Exchange through a merger. But, the deal fell apart.

Susan Montgomery/Shutterstock

Since 2017, the chain has been working to revamp locations with new designs, dynamic pricing, and better birthday packages.

Chuck E. Cheese's debuts its fresh new look on Wednesday, Aug. 9, 2017, in San Antonio. Darren Abate/AP Images for Chuck E. Cheese's

The last few years have seen plenty of change at Chuck E. Cheese. The chain retired its tokens in 2016 and the animatronics in 2017. The chain also changed its name slightly, dropping the possessive to become Chuck E. Cheese in 2017.

CEC Entertainment CEO Tom Leverton, right, speaks to attendees with Chuck E. Cheese during the Chuck E. Cheese Grand Reopening on Wednesday, Aug. 9, 2017, in San Antonio. Darren Abate/AP Images for Chuck E. Cheese's

The last few years have seen plenty of change at Chuck E. Cheese. The chain retired its tokens in 2016 and the animatronics in 2017. The chain also changed its name slightly, dropping the possessive to become Chuck E. Cheese in 2017.

The makeover failed to bring in customers, and Chuck E. Cheese Entertainment was acquired by private-equity firm Apollo Global Management in 2014 for nearly $1 billion.

YouTube

According to the company, the mouse's full name is Charles Entertainment Cheese, an orphan who celebrates others' birthdays to make up for his own sad childhood.

Pasqually The Chef, Chuck E. Cheese, and Helen Henny attend the 84th Annual Hollywood Christmas Parade on November 29, 2015 in Hollywood, California. Photo by Phillip Faraone/FilmMagic)

However, in 2012, Chuck E. Cheese's struggled to boost sales. After decades of Chuck E. Cheese being portrayed as a rat, the company remade the mascot as a "rock star" mouse.

Mike Mozart of TheToyChannel and JeepersMedia on YouTube

However, in 2012, Chuck E. Cheese's struggled to boost sales. After decades of Chuck E. Cheese being portrayed as a rat, the company remade the mascot as a "rock star" mouse.

The chain was famous for its arcade games, prize tokens, and pizza, as well as performances by an animatronic Chuck E. Cheese and crew.

Chuck E. Cheese's in Springfield, Mo., as seen Sunday, January 6, 2008. Mark Schiefelbein/Getty Images

Chuck E. Cheese's continued to evolve and grow, reaching 300 locations in 2000.

Ed Porter, Area Director for Chuck E. Cheese, chats with a family having a birthday party. Bryan Chan/Getty Images

In the '80s, the pizza chain went public, followed by various restructuring efforts as sales slumped. By 1992, all locations of the pizza chain that had grown out of the Pizza Time Theatre concept were rebranded as Chuck E. Cheese's.

Chuck E. Cheese at the Annual Hollywood Christmas Parade in 2003. Mark Sullivan/WireImage

In the '80s, the pizza chain went public, followed by various restructuring efforts as sales slumped. By 1992, all locations of the pizza chain that had grown out of the Pizza Time Theatre concept were rebranded as Chuck E. Cheese's.

Originally, Chuck E. Cheese made abrasive and sometimes sexual jokes, aimed at adult customers. But, the chain transitioned to more kid-friendly approach relatively quickly in its early years.

Adam Roberts; the man inside; dresses up as Chuck E. Cheese; rodent restaurateur. And he loves his job. The little ones kiss my nose and say: 'I love you Chuckee.' They pass me notes and drawings; he says. John Mahler/Toronto Star via Getty Images

Originally, Chuck E. Cheese made abrasive and sometimes sexual jokes, aimed at adult customers. But, the chain transitioned to more kid-friendly approach relatively quickly in its early years.

"I always felt that was something that was lacking in restaurants," Bushnell told Fast Company. "I wanted to add a dimension of fun to the act of having a meal."

Giant novelty robot The King posing with Nolan Bushnell, founder/owner of Pizza Time Theater Photo by Ted Thai/The LIFE Picture Collection via Getty Images

The star of the restaurant was Chuck E. Cheese, a cigar-smoking rat with a Jersey accent.

Nolan Bushnell in one of his Pizza Time Theater Restaurants. Ted Thai/The LIFE Picture Collection via Getty Image

Atari cofounder Nolan Bushnell founded Pizza Time Theatre in 1977.

Silicon Valley technology pioneers Nolan Bushnell (right) and Steve Wozniak Getty Images/Bettmann

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The rise and fall of Chuck E. Cheese, as the iconic chain struggles amid the coronavirus pandemic

CEC Entertainment is struggling under a heavy debt load and lenders are organizing and tapping restructuring lawyers, according to three people familiar with the matter.

The coronavirus pandemic hit the chain hard, with sales sinking 21% in the first quarter. Chuck E. Cheese has attempted to keep fans engaged with pizza delivery and "live performances" from the mascot.

In April 2019, CEC Entertainment announced that the company would return to the New York Stock Exchange through a merger. But, the deal fell apart.

Since 2017, the chain has been working to revamp locations with new designs, dynamic pricing, and better birthday packages.

The last few years have seen plenty of change at Chuck E. Cheese. The chain retired its tokens in 2016 and the animatronics in 2017. The chain also changed its name slightly, dropping the possessive to become Chuck E. Cheese in 2017.

The makeover failed to bring in customers, and Chuck E. Cheese Entertainment was acquired by private-equity firm Apollo Global Management in 2014 for nearly $1 billion.

According to the company, the mouse's full name is Charles Entertainment Cheese, an orphan who celebrates others' birthdays to make up for his own sad childhood.

However, in 2012, Chuck E. Cheese's struggled to boost sales. After decades of Chuck E. Cheese being portrayed as a rat, the company remade the mascot as a "rock star" mouse.

The chain was famous for its arcade games, prize tokens, and pizza, as well as performances by an animatronic Chuck E. Cheese and crew.

Chuck E. Cheese's continued to evolve and grow, reaching 300 locations in 2000.

In the '80s, the pizza chain went public, followed by various restructuring efforts as sales slumped. By 1992, all locations of the pizza chain that had grown out of the Pizza Time Theatre concept were rebranded as Chuck E. Cheese's.

Originally, Chuck E. Cheese made abrasive and sometimes sexual jokes, aimed at adult customers. But, the chain transitioned to more kid-friendly approach relatively quickly in its early years.

"I always felt that was something that was lacking in restaurants," Bushnell told Fast Company. "I wanted to add a dimension of fun to the act of having a meal."

The star of the restaurant was Chuck E. Cheese, a cigar-smoking rat with a Jersey accent.

Atari cofounder Nolan Bushnell founded Pizza Time Theatre in 1977.