You often hear people saying that what the ended up doing for a career was different from what they majored in when they were at college, and this is often the case. Well that statement also holds true for businesses, brands, and corporations. Sometimes they start out as one specific type of company and the later move into a completely unrelated industry. You wonder how things like this happen, but no one ever knows what life has in store for them. This is certainly true for the famous Caesars casino company (now known as Caesars Entertainment, Inc.). Would you believe that this massive corporation and casino conglomerate all began as a simple hot dog stand?
Back in the 1950’s, brothers Stuart and Clifford Perlman were interested in forming a business for themselves. After contemplating many different opportunities, the brothers decided upon something quite moderate: a hot dog stand. In 1956 they would go in together to purchase Lums, which was a hot dog stand located in Miami. You wouldn’t think that a hot dog stand would turn into a casino empire, and neither did the Perlman brothers. They ran and operated Lums very well, and it began to turn into a local hot spot. As money continued to come in, they eventually opened up a few other stands throughout the city. One thing lead to another, and they soon moved from a mere stand to physical locations as they eventually opened permanent restaurants.
Lums was so successful and profitable, that the brother actually took the company public in 1961. They continued to grow their business which attracted the eyes of many investors. Then in 1965, the Perlman brothers entered into a partnership with Ken Chivers. Now they were able to start offering franchises that propelled the business to new heights. Over just a few months in 1965 the brothers were able to take Lums from a mere 15 different locations to 90 in total, spreading throughout the surrounding area. That hot dog stand turned out to be a huge hit, and the brothers were raking in a lot of money.
Later in the 1960’s, Stuart and Clifford again looked to expand their business. The acquired a meat packer which allowed them to sell some of their products in stores. With revenues at an all time high, they began to break into other industries. It first began with purchasing a series of army-navy supply stores. Then they purchased the Cove Haven honeymoon resort. The brothers would then finally purchase Caesars Palace in Las Vegas for $58 million in 1969. Originally the casino opened up in 1962, but due to the owners being tied to organized-crime, they had to eventually sell the casino, and the Perlman brothers would be its newest owners.
While their restaurants were still extremely popular, the brothers realized that even more money could be made in the casino game. The sold off over 350 restaurants, essentially the entire Lums business, in 1971 to the owner of Kentucky Friend Chicken for around $4 million dollars. They changed the name of their company to Caesars World, and focused on casinos full-time.
During the 1970’s, the brothers would purchase various stakes into gaming systems companies in a continued effort to expand their business. They moved their headquarters from Miami to Los Angeles to be closer to their casino. Caesars World would then go on to acquire a few other casinos on the strip, and then the brothers found themselves as casino moguls. They expanded their empire and opened up casinos in the Poconos, Lake Tahoe, Miami, and various other locations. Then gambling was legalized in Atlantic City in 1976, so Caesars purchased an old hotel, renovated it, and then opened another casino location in New Jersey. The brothers then went on to open a few other locations including the acquisition of the Dunes hotel near the original Caesars.
Eventually the brothers would step down from their empire and retire. Caesars World would continue to expand before the company was acquired by the ITT Corporation in 1992. They would eventually be purchased by Starwood Hotels in 1998 before the Caesars brand was again purchased by Park Palace for $3 billion by Park Place, who would eventually change their name to Caesars Entertainment.
So while the brothers weren’t the original ones to construct the iconic casino in Las Vegas, they were able to take a single hot dog stand in Miami and elevate it into a massive casino company. They were the ones that truly spread the Caesars name and create the Caesars empire that we now know today. As it would seem, sometimes you can turn a thing like a modest hot dog stand and turn it into a billion dollar company.
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