Steve Jobs offered Nolan Bushnell a 33% stake in Apple.
But Bushnell was too busy bringing his restaurant idea to life...
Nolan Bushnell graduated from The University of Utah in the late 1960's.
He worked as an engineer at an electronics company before founding Atari in 1972.
Atari became an immediate success, as they invented arcade classics still played to this day:
• Pong
• Asteroids
• Centipede
Bushnell is widely considered a founding father of the ~$300 billion video-game industry.
But even before Atari, Bushnell was more interested in restaurants.
According to his co-founder, Ted Dabney, Bushnell was constantly looking at different pizza parlors in the Bay area, brainstorming restaurant ideas.
"Chuck E. Cheese was always his passion project, even before Atari"
In 1975, a former employee approached Bushnell about investing in his computer company.
The employee - by the name of Steve Jobs - offered him 33% of Apple for just $50,000...
Bushnell declined.
He knew what his next project after Atari would be...
In 1976, Bushnell sold the company to Warner Communications, personally earning him ~$15 million (~$82M today).
He now had the means to fully explore his passion project.
His first idea was to serve pizza, and have Atari arcade games there to keep customers busy while waiting.
Chuck E Cheese would be the distribution model for the newest Atari releases.
But...Warner Communications had no interest in operating restaurants, so Bushnell ventured on his own.
The 1st Chuck E Cheese was an immediate hit, which eventually led Bushnell to franchise the concept.
This led to a fateful deal with Robert Brock, a big hotel operator who agreed to open 200 locations.
Brock later cancelled the deal to start a competitor, ShowBiz Pizza Place - and the 2 companies competed fiercely in the 1980's, taking on debt in the name of expansion.
But in 1984, the video-game industry was in a recession, and stores for both brands were struggling to survive.
Chuck E Cheese would declare bankruptcy.
ShowBiz managed to avoid the same fate, and in a wild twist ended up acquiring Chuck E. Cheese for $35 million.
This was the end of Bushnell's involvement.
Meanwhile, ShowBiz converted all locations to Chuck E. Cheese's, as it was the more popular brand.
They grew to 300 locations by 2000, and enjoyed great years as the go-to birthday party spot for kids nationwide.
But since this golden era, they've been on an absolute roller coaster:
• Leveraged buyout by Apollo Global in 2014
• Failed IPO attempt in 2019
• Bankruptcy in 2020
They re-emerged from the dead in 2021 after eliminating $705M of debt, and are currently exploring *another* sale of ~$1 billion.
Nolan Bushnell, despite missing the opportunity with Apple, had this to say:
"I've got a wonderful family, I've got a great wife, my life is wonderful.
I'm not sure that if I had been uber, uber, uber rich that I'd have had all of that".
He is a legend either way 🤝