Larry Price had a rigid policy that he would not permit cigarette machines to be installed in King's, because he believed they would encourage minors to smoke, despite this being a common revenue stream for restaurants. By 1971, King's began posting losses due in part to overexpansion, Exacerbating the lost cigarette revenues and overleveraged expansion was the
Nixon shock of 1971. Under the temporary policy, suppliers could generally continue to raise prices, but retail prices were fixed for 90 days, leaving restaurants vulnerable to rising input costs. In the wake of the Nixon shock, the
1973-75 recession depressed retail demand just as the debt-burdened King's could least afford it. In 1974, King's new investors filed Chapter 11 bankruptcy, from which it never recovered. == References ==