Why Steven Spielberg's Nautically-Themed Dive! Restaurant Sunk

Jason Kirk, Getty Images
Jason Kirk, Getty Images

“Dive! Into a fleet of gourmet submarine sandwiches. SUBstantial salads, fresh pastas, wood oven-roasted entrees, and mouth-watering desserts. Enjoy SUBlime food in a playful SUBmerged environment, with bubbling porthole windows, gauges, an underwater video voyage, and working periscope with panoramic city views.”

Ad for Dive!, August 1996

As a film director and producer, Steven Spielberg has been responsible for billions of dollars in box office receipts. That kind of success can sometimes prompt moguls to branch out into other arenas to see if their acumen translates. For Spielberg, the call came in 1993, when he and producing partner Jeffrey Katzenberg decided to enter the very tumultuous theme restaurant category.

For every major success in the industry—the Hard Rock Café, the early days of Planet Hollywood—there were several culinary missteps. Fashion Cafe, endorsed by supermodels like Christy Turlington, wobbled; Hulk Hogan’s Pastamania franchise did not meet even modest expectations. But Spielberg was Spielberg, someone who seemed capable of turning anything he touched into a success.

Dive! grew out of Spielberg’s love of undersea exploration, a fascination that began when he read 20,000 Leagues Under the Sea as a child, continued with 1975’s Jaws, and led to a short-lived aquatic series, Seaquest DSV, which aired on NBC from 1993 to 1996. While he didn’t speak publicly about his involvement with Dive!, his name was enough to get the eatery (which cost $7 million to construct and outfit) a significant amount of press coverage. He and his partners speculated that over 60 Dive! locations would open in the coming years around the world.

Noted chef Michael Northern was in charge of the menu, and the design leaned heavily into the restaurant-as-theatrical-experience. When patrons formed a line to enter the first Dive! location in Century City, California in May 1994, a submarine conning tower and nose jutted out from the building. Inside was a complete stainless-steel aesthetic, with portholes, torpedo-shaped bar seats, and a periscope that could survey the affluent Los Angeles commercial district.

The climax to this simulated nautical submersion was timed to hit every 45 minutes: For 30 seconds, contained water would cover the portholes, lights would flash, and the groaning sounds of a submerged submarine would be piped in through speakers, giving diners the illusion of being lowered into the depths while gorging on $11.95 gourmet submarine sandwiches, the franchise’s signature dish.

"What the California Pizza Kitchen did for pizza, we want to do for the submarine sandwich," restaurant operator Larry Levy said, "but integrated into that is the entertainment function of being inside a submarine."

Dive!, however, sunk. And the reason why has to do with how theme restaurants attempt to make a profit.

When patrons—often tourists—make the trek to an immersive restaurant that offers an “experience,” they typically want a memento of their time there. That’s why Dive!, Planet Hollywood, and others typically devoted a lot of space to a retail shop offering hats, shirts, mugs, and other ephemera. Some restaurants were seeing 50 percent of their revenue from such sales, with the food being less of a profit-earner and more of a reason to get foot traffic in the door.

In its first year of operation in California, Dive! made just 15 percent of its gross sales on souvenirs. When they opened a Las Vegas location a year later, that number jumped to 40 percent as 3000 customers a day streamed into their hatch-like doors.

That profit managed to keep the Vegas arm of Dive! viable for years, but the Los Angeles location closed in 1999, a victim of both poor sales (tourists didn't invade Century City the way they do Vegas) and a mixed critical reception. The regular simulations either grew tiresome for adults, or made young children too anxious to finish their appetizers.

“So many bells and whistles, it's like eating in a pinball machine,” Zagat huffed.

Investors had apprehensions about expanding further, and the Vegas location closed in the early 2000s.

Kodak’s New Cameras Don't Just Take Photos—They Also Print Them

Your Instagram account wishes it had this clout.
Your Instagram account wishes it had this clout.
Kodak

Snapping a photo and immediately sharing it on social media is definitely convenient, but there’s still something so satisfying about having the printed photo—like you’re actually holding the memory in your hands. Kodak’s new STEP cameras now offer the best of both worlds.

As its name implies, the Kodak STEP Instant Print Digital Camera, available for $70 on Amazon, lets you take a picture and print it out on that very same device. Not only do you get to skip the irksome process of uploading photos to your computer and printing them on your bulky, non-portable printer (or worse yet, having to wait for your local pharmacy to print them for you), but you never need to bother with ink cartridges or toner, either. The Kodak STEP comes with special 2-inch-by-3-inch printing paper inlaid with color crystals that bring your image to life. There’s also an adhesive layer on the back, so you can easily stick your photos to laptop covers, scrapbooks, or whatever else could use a little adornment.

There's a 10-second self-timer, so you don't have to ask strangers to take your group photos.Kodak

For those of you who want to give your photos some added flair, you might like the Kodak STEP Touch, available for $130 from Amazon. It’s similar to the regular Kodak STEP, but the LCD touch screen allows you to edit your photos before you print them; you can also shoot short videos and even share your content straight to social media.

If you want to print photos from your smartphone gallery, there's the Kodak STEP Instant Mobile Photo Printer. This portable $80 printer connects to any iOS or Android device with Bluetooth capabilities and can print whatever photos you send to it.

The Kodak STEP Instant Mobile Photo Printer connects to an app that allows you to add filters and other effects to your photos. Kodak

All three Kodak STEP devices come with some of that magical printer paper, but you can order additional refills, too—a 20-sheet set costs $8 on Amazon.

This article contains affiliate links to products selected by our editors. Mental Floss may receive a commission for purchases made through these links.

Overexposed: A History of Fotomat

Fotomat locations promised speedy photo processing in the 1970s.
Fotomat locations promised speedy photo processing in the 1970s.
George, Flickr // CC BY-SA 2.0

Like the Golden Arches of McDonald’s that came before it, the familiar gold and pyramid-shaped roofs of Fotomat locations acted as a beacon. Instead of hamburgers, Fotomat was in the photography business, offering tiny huts situated in shopping plaza parking lots that were staffed by just one employee. Men were dubbed Fotomacs. Women were known as Fotomates, and management required them to wear short-shorts, or “hot pants,” in a nod to the strategy used for flight attendants at Pacific Southwest Airlines.

Cars pulled up to the Fotomat location and dropped off film they wanted processed. After being shuttled via courier to a local photo lab, it would be ready for pick-up the following day. And aside from selling film and a foray into renting videocassette tapes, this was all Fotomat did.

The idea, which was originally made popular by wealthy aviator Preston Fleet, was almost deceptively simple in concept and execution. At the height of Fotomat’s success in the 1970s and early 1980s, there were more than 4000 of the tiny kiosks located across the United States and Canada. But even with extremely low overhead—the little huts didn’t even have bathrooms—and a widespread love of photography, Fotomat fell victim to its own success. Its legacy even grew to include a former company president who became a federal fugitive from justice.

 

In the 1960s, Americans were fond of Kodak Instamatic cameras and film. People submitted the familiar yellow spools full of images from weddings, birthdays, trips, and other social events to photo processing labs, which might take days to return prints.

That’s where Preston Fleet saw opportunity. Fleet was a wealthy aviation enthusiast. His father, Reuben Fleet, had founded the Consolidated Aircraft Company—later known as Convair—which manufactured aircraft for World War II. Born in Buffalo, New York, Fleet moved with his family when the airplane business was relocated to San Diego. On the West Coast, he met Clifford Graham, an entrepreneur well-known in La Jolla, California, for his multiple business pursuits. Graham also had a reputation for carrying a gun and leading investors astray with questionable business practices.

Fotomat, however, was no hustle. The concept of a kiosk where people could easily drop off and pick up film that would be ready overnight originated in Florida, where Charles Brown opened the first location in 1965. After buying Brown's stock shares and arranging for a royalty, Fleet and Graham founded the Fotomat Corporation in 1967, with Graham president and Fleet vice-president. The concept grew quickly, boasting 1800 sites in its first 18 months of operation. Owing to its color scheme, people often thought Kodak operated the business, which led to complaints from Kodak as well as lawsuits. (Fotomat changed its design in 1970 to avoid confusion.)

While it was relatively easy to slot in a Fotomat hut in a parking lot, a business operating as an island surrounded by traffic had its problems. Remembering an old Fotomat in New Dorp on Staten Island, residents on Facebook recalled plowing into the kiosk or backing into it. (Most notably, terrorists destroy a Fotomat lookalike hut in the Twin Pines Mall lot in 1985’s Back to the Future.)

There was also the matter of bathrooms: They weren’t any. Employees often made arrangements to duck into local supermarkets or other stores when nature demanded it.

Hot pants and a lack of lavatories aside, Fotomat performed so well that Fleet and Graham decided to take it public in 1969, with each man holding stock worth $60 million at one point. But Graham’s controversial business practices made him a short-timer. In 1971, he was ousted from Fotomat over allegations he was misusing funds for his own personal gain, including his political interests—Graham was a supporter of both Richard Nixon and football player-turned-congressman Jack Kemp, who became an assistant to the president in the Fotomat corporation and referred football pros to become franchisees.

 

By the early 1980s, Fotomat—now minus Fleet, who had sold off his shares, and Graham—had opened over 4000 locations. That was both impressive and problematic. Fotomat had far overextended itself, sometimes opening kiosks so close to one another it cannibalized sales. There was also a growing number of pharmacies and grocery stores offering photo development services.

Fotomat locations were usually found in parking lots.David Prasad, Flickr // CC BY-SA 2.0

The real death blow for Fotomat, however, wasn’t over-expansion. It was the emergence of the one-hour minilab.

For an investment of $50,000 to $100,000, existing stores could install labs that could process photos in as little as one hour while customers shopped. Minilabs exploded from just 600 locations in 1980 to 14,700 by 1988. And since film never left the sites, it was less likely to get lost. It decimated Fotomat and its copycat businesses, with Fotomat moving from an impressive 18 percent market share in the photo processing industry to just 2 percent by 1988.

The company tried to recalibrate, converting home movies to videotape and even offering VHS rental during the VCR boom of the 1980s, but it wasn’t successful. Mass layoffs and closures followed. (Minilabs would have their own reckoning, both due to the rise of 35mm photography and digital photography.) In 1990, Fotomat was down to just 800 locations.

Fleet, who had exited Fotomat years prior—the company had been sold to Konica—was no worse for the wear. Prior to his death in 1995, he authored a book, Hue and Cry, which called into question the authenticity of works attributed to William Shakespeare. He was a founding director of the San Diego Aerospace Museum in 1963. He also helped popularize Omnimax, an immersive theater experience owned by Imax, installing a screen at the Reuben H. Fleet Space Theater and Space Museum in San Diego in 1973.

Graham’s future after Fotomat was far more colorful. Promoting a bogus gold mining operation he named Au Magnetics, he promised he could turn sand into gold. Instead, he was accused of fleecing investors. When a federal grand jury handed down an indictment that included charges of mail fraud, wire fraud, and tax evasion in 1986, Graham was nowhere to be found. Nor would he ever be located. Associates speculate he either successfully eluded authorities or was possibly killed by an investor who was unhappy with losing money.

As for the Fotomat locations themselves: Following the company’s collapse, many were repurposed into other businesses. Some became coffee shops; others morphed into watch repair kiosks, locksmith huts, windshield wiper dealers, or tailors. Presumably, none of the owners who took over mandated their employees wear hot pants.