Howard Johnson's $600M Orange Roof Mastery

Dear Hospitality Leader,

Imagine an era where every road trip, family vacation, or business travel had one thing in common—a bright orange roof and a name that stood synonymous with comfort, affordability, and trust: Howard Johnson’s.

Before Airbnb disrupted the market and boutique hotels sprouted up on every corner, Howard Johnson’s was the undisputed king of mid-century American road culture.

But this isn’t just a story of nostalgia.

It’s a masterclass in how a clever marketing proposition turned a humble ice cream stand into a hospitality empire valued at over $600 million. Buckle up, because this is how Howard Johnson's marketing strategy burned through the competition and raked in profits.

The Orange Roof Revolution: How It All Started

Howard Deering Johnson wasn’t born into the hotel business. He started in 1925 with a simple ice cream stand in Quincy, Massachusetts, selling double scoops for just 5 cents. By focusing on two things—quality and consistency—he quickly gained a reputation. But it was in the 1930s that Johnson had his stroke of genius: opening franchised restaurants along new highways, each crowned with a bright orange roof.

This bright, eye-catching color became a beacon for travelers.

This approach wasn’t just for visibility—it was brand recognition at its finest.

It meant no matter where you were, if you saw that orange roof, you knew what to expect.

Predictability in an unpredictable time—genius.

Howard Johnson’s smart branding became the blueprint for future franchise chains, including McDonald’s, which would later borrow heavily from this concept.

Numbers that Speak: Growth Through the Mid-20th Century

By 1954, Howard Johnson’s had grown to 400 restaurants.

A mere decade later, the company reported $156 million in revenue.

The key?

Leveraging the burgeoning American highway system and betting on post-war travelers. Families on vacations, truckers hauling goods, and businessmen traveling cross-country—all of them turned to Howard Johnson’s as a trusted rest stop.

By the 1970s, Howard Johnson’s had expanded to over 1,000 locations, including restaurants, motels, and motor lodges, leading the brand to become America’s largest hotel chain.

In fact, by 1975, Howard Johnson’s hotels alone generated over $90 million annually, and by 1979, combined restaurant and hotel revenues hit a staggering $600 million .

The Magic Formula: How Marketing Transformed a Brand

Here’s what made their marketing pure gold:

1. The Family-Centric Proposition: Howard Johnson’s identified a key demographic long before others—families. Offering kid-friendly menus in restaurants, children’s discounts in motels, and brightly colored marketing targeting “mom, dad, and the kids” was revolutionary. They even rolled out national ad campaigns proclaiming Howard Johnson’s as the “Landmark for Hungry Americans,” complete with jingles that stuck like glue in the minds of families across the country.
2. Franchising Like No Other: Johnson made franchising an art form. By maintaining tight control over franchise standards and pushing a uniform appearance (that orange roof again), Howard Johnson ensured every customer had the same experience, whether they were stopping in Pennsylvania or California. This consistency is what propelled the company’s meteoric rise.
3. Loyalty Before Loyalty Programs Existed: Johnson’s marketing team understood that repeat business came from familiarity and reliability. Their marketing leaned heavily into this, with TV ads and radio spots emphasizing that Howard Johnson’s was “always there for you,” a comfort during long road trips. By the time loyalty programs became industry norms, Johnson had already embedded loyalty in the American psyche.

The Numbers Game: Revenue Fueled by Marketing

In the 1960s, Howard Johnson’s was spending approximately 2-3% of its annual revenue on advertising, which amounted to around $2.4 million annually by 1964 .

For perspective, that would be about $20 million in today's dollars.

And it worked.

By 1965, 89% of Americans were aware of Howard Johnson’s motels and restaurants, a level of brand recognition few companies could dream of achieving today. Their marketing was so effective that even when competitors slashed prices, Howard Johnson maintained its margins and customer base, banking on the power of its brand.

In 1972, they rolled out their most iconic slogan yet: “Howard Johnson’s, where good people meet.”

This campaign, coupled with their highly visible orange-roofed buildings, helped push revenues to over $500 million in the early '70s, cementing their dominance in the market.

How Marketing Drove Financial Success

Howard Johnson’s leveraged a strategy that today’s hoteliers could still learn from: they poured resources into branding and visibility rather than endless price competition.

Their financial strategy was tied to marketing campaigns that resonated with the public. Even during economic downturns, the company’s marketing ensured travelers saw Howard Johnson’s as a reliable, comforting choice.

By the mid-1970s, Howard Johnson’s had seen a return on investment from its marketing that outperformed expectations.

Their brand’s value alone was estimated at $500 million by industry analysts, a figure many attributed directly to their consistent and strategic marketing efforts .

Lessons for Today’s Hoteliers: Embrace the Power of Marketing

So, what can today’s hoteliers learn from Howard Johnson’s roaring success?

Three key takeaways:

• Consistency is King: Your brand must be easily recognizable and reliable, just like Howard Johnson’s orange roofs.
• Targeted Marketing Pays: Focus on a core demographic and build your messaging around their needs.
• Invest in Your Brand: Strong, consistent marketing can pay dividends that last decades, as Howard Johnson’s proved by dominating the market for over 50 years.

Howard Johnson's success is a testament to the power of smart, consistent marketing. By understanding their audience, investing in branding, and sticking to core principles, they became a legend in the hospitality industry.

Today's hotel giants would be wise to follow in those bright orange footsteps.

Until next time.

Stay well. Swim strong.

Warmly,

David

P.S. As you know I have been involved in Project SunRize, which is owned and was founded by my son Evan Samuel Vogel—he's a natural-born entrepreneur. With a successful restaurant in the food and beverage industry under his belt, Evan's been in the game long enough to know how to thrive. I've been serving as CEO, but now that I’m 64, I plan to make an orderly transition to the next generation of leadership. I’ll still be here to support my son and our clients, writing grants—which I’m preeminent at—and, of course, crafting newsletters. But soon, the helm will pass to a younger man with fresh energy and vision.

P.P.S. If you’ve followed me on LinkedIn, you probably know that I’m an ordained minister and recently founded the Church of Unity Society. Every commercial project that Project SunRize undertakes will now donate 3% of its profits to support the church’s mission of spreading unity and faith. But that’s not all—we’ve also committed another 3% of profits to the Council For Unity, an organization dedicated to promoting peace, empathy, and understanding in communities worldwide. Both causes are close to my heart, and with every project we complete, we’re giving back to create a better world. Let’s make your solar project part of that impact!

One More Thing: Do you know a business drowning in electricity costs? Refer them to Project SunRize, and if we close the deal, you'll earn a royalty that's as big as a shark's bite.

? Published by: David Vogel, in Wolfeboro, New Hampshire

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