Celebrity status offers a massive marketing head start, but in the brutal landscape, fame is often a recipe for financial disaster. Many stars find that “star power” cannot fix a broken business model.
Failures usually stem from a “hype-first” approach that neglects razor-thin margins. While a famous name packs the house during opening month, it cannot offset the reality of soaring labor costs and supply chain volatility. Investors often over-leverage these projects, betting on expansion before the flagship is stable. When novelty wears off and the math doesn’t add up, even the biggest icons are served a reality check.
While there are plenty of celebs who have been able to withstand the issues that come along with opening up a restaurant to the public, there are a few that just couldn’t cut it—even if the food was good. So, if you’ve ever wondered just what happened to your favorite celeb’s foray into the food world, we’ve done a little digging to figure out why these celebrity restaurants failed.
😋😋SIGN UP to get delicious recipes, handy kitchen hacks & more in our daily Pop Kitchen newsletter🍳🍔
7 Celebrity Restaurants That Failed
1. Kevin Costner: The Clubhouse (1999-2009)
ShutterStock.com
The Clubhouse, Kevin Costner’s golf-themed venture in Costa Mesa, eventually shuttered in 2009 after a decade-long run that was plagued by identity crises and economic headwinds. Despite its star-studded backing (including Robert Wagner and Jack Nicklaus), the restaurant struggled early on with operational inefficiency and a confusing business model—initially attempting an ultra-exclusive $50,000 “membership” concept before pivoting to a more accessible public format.
While it enjoyed a period of popularity, the parent company was forced into Chapter 11 bankruptcy as early as 2001, and the brand never fully recovered its momentum. By the time it closed permanently on New Year’s Eve in 2009, the “celebrity restaurant” luster had faded, and the Great Recession had severely dampened the high-end dining market in Orange County.
2. Steven Spielberg: Dive! (1994-Early 2000s)
Shutterstock.com
In the mid-1990s, Steven Spielberg and Jeffrey Katzenberg attempted to capitalize on the “eatertainment” craze by launching Dive!, a high-concept, submarine-themed restaurant. The flagship Century City location featured a massive yellow submarine hull jutting out of the building, torpedo-shaped barstools and a periscope that allowed diners to peer out at the city. Every 45 minutes, the restaurant simulated a “dive sequence” with sirens, flashing red lights and bubbling water in the portholes to mimic submersion.
Despite the star-powered opening and an initial surge of curiosity, the novelty wore off quickly; critics found the food (primarily variations on submarine sandwiches) mediocre, and the over-stimulating environment proved exhausting for repeat customers. Ultimately, the business model relied too heavily on merchandise sales that never materialized, leading the chain to sink and close its final locations by the early 2000s.
3. Britney Spears: Nyla (2002)
Shutterstock.com
NYLA (a portmanteau of New York and Louisiana) was Britney Spears’ short-lived venture into the restaurant industry, opening in June 2002 at the Dylan Hotel in Manhattan. Designed to bring southern comfort food to the Big Apple, the restaurant became a textbook example of why the industry is so difficult to navigate: it suffered from massive budget overruns, identity crises (switching from Cajun to Italian menu items mid-stream) and multiple health code violations.
Britney officially severed ties with the establishment just five months after it opened, citing mismanagement and a lack of transparency from her partners. The restaurant closed permanently shortly thereafter, serving as a reminder that even global stardom cannot insulate a business from the brutal operational realities of the culinary world.
Related: 1986 Classic Was a No. 1 Hit on Valentine’s Day 39 Years Ago
4. Justin Timberlake: Chi, Destino, & Southern Hospitality (2003-Mid 2000s; 2006-2013; 2007-2009)
Shutterstock.com
Justin Timberlake’s involvement with Chi, Destino and Southern Hospitality represents his early career foray into the “celebrity restaurateur” world, illustrating just how difficult it is to sustain success in the industry even with massive star power.
His first venture, the Asian-fusion restaurant Chi in West Hollywood (opened in 2003), closed quickly after failing to find its footing. He had better luck in New York with Destino—an Italian eatery—and the Memphis-style BBQ spot Southern Hospitality (opened in 2007), which capitalized on his Tennessee roots. However, by 2009, Timberlake began distancing himself from the daily operations and ownership of these brands, highlighting a common trend where celebrities often transition from active partners to “co-creators” or silent investors to avoid the reputational risks associated with the industry’s high failure rates.
5. Café Dupri: Jermaine Dupri (2005-2008)
Getty Images
Jermaine Dupri’s Café Dupri is a textbook example of how even celebrity backing can’t shield a restaurant from a volatile economy and poor operational management. Opened in Atlanta in 2005 with a focus on “health-conscious” fare—a rarity for celebrity spots at the time—it abruptly shuttered in 2008.
Dupri largely blamed the ailing U.S. economy and a dip in consumer spending for the closure, famously stating, “If it doesn’t make money, it doesn’t make sense.” However, the shutdown was mired in controversy; employees arrived to find “closed indefinitely” signs and later alleged that their paychecks had been bouncing for weeks. While the vision was unique, the combination of high overhead in Buckhead and internal financial instability ultimately made it unsustainable.
6. T.I: Scale 925 (2015-2016)
T.I.’s upscale Atlanta restaurant, Scales 925 opened in 2015 to much fanfare, but shuttered just a year later in 2016 following a cascade of scandals—including a $1 million eviction notice for unpaid rent and multiple lawsuits from former employees. These workers alleged a toxic environment involving unpaid wages, bounced checks and coerced off-the-clock labor, claiming that T.I.’s business partner, Charles Hughes, was diverting restaurant funds into his personal accounts.
While T.I. eventually settled the wage disputes for roughly $100,000 and distanced himself from Hughes, the venture serves as a cautionary tale that celebrity branding cannot save a business from fundamental failures in leadership and financial oversight.
7. Flavor Flav: Flav’s Fried Chicken (2011)
Shutterstock.com
Flavor Flav’s foray into the restaurant world, Flav’s Fried Chicken (FFC), opened in January 2011 in Clinton, Iowa, but the flagship location lasted only four months before shuttering in April. The collapse was fueled by a messy, public feud between Flav and his business partner, Nick Cimino, involving allegations of bounced paychecks, “expired potato salad” and a lack of restaurant experience.
While Flav intended to build a national franchise to rival KFC, the venture was ultimately grounded by a total breakdown in trust and basic operational oversight, illustrating that even a world-famous brand name can’t save a restaurant if the “back of house” is in chaos.
Related: 1973 Hit Ranked Best ‘American Rock Song’ of All Time
