Gladys Knight Restaurant Atlanta: What Really Happened to the Chicken and Waffles Icon

If you spent any time in downtown Atlanta during the early 2000s, you knew the smell. That specific, mouth-watering mix of maple syrup and deep-fryer grease wafting off Peachtree Street. It was the scent of Gladys Knight’s Chicken & Waffles, a place that wasn't just a restaurant; it was a cultural landmark.

You’d see tourists in line next to local business owners and maybe a celebrity or two ducking into a corner booth. It felt permanent. It felt like Atlanta. But if you try to pull up to 529 Peachtree St. NE today looking for "The Midnight Train" special, you’re going to find a very different scene.

Honestly, the downfall of this soul food empire is one of the messiest chapters in Atlanta’s culinary history. It wasn’t just about bad reviews or a changing neighborhood. It was a high-stakes family drama involving million-dollar tax raids, a legendary mother fighting her own son in court, and health inspections that would make your stomach turn.

The Rise of an Atlanta Institution

The restaurant launched in 1997, a collaboration between the "Empress of Soul" herself and her son, Shanga Hankerson. Later, gospel singer Ron Winans joined the branding, making it Gladys Knight & Ron Winans’ Chicken & Waffles.

It worked because it felt authentic.

While some celebrity-backed spots feel like hollow corporate shells, this place had soul. The menu was a love letter to Southern comfort. You had the "Midnight Train" (four wings and a waffle), the "Memphis" (fried catfish), and sides that people actually swore by. For nearly two decades, it was the spot. If you were visiting Atlanta, you went to the World of Coca-Cola, you saw the CNN Center, and you ate at Gladys Knight's.

By the time the brand expanded to locations in Lithonia and on Cascade Road, it seemed unstoppable. But behind the kitchen doors, things were starting to rot—literally and financially.

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2016: The Year the Waffle Crumbled

Things started getting weird in February 2016. The flagship downtown location, which usually cruised through inspections, suddenly tanked. It failed a health inspection with a score of 57.

We’re talking about "heavy debris" on ceilings, coolers with missing doors, and major violations regarding how employees were washing their hands. For a restaurant of that stature, a 57 is basically a death sentence in the court of public opinion. They eventually cleaned it up and bumped the score back into the 90s, but the damage was done. The "clean" image was gone.

Then came June 21, 2016.

If you were watching the news that day, you saw the Georgia Department of Revenue agents descending on all three locations. This wasn't a routine check. It was a full-blown raid. Agents were hauling out computers and filing cabinets while customers were still finishing their grits.

The $1 Million Scandal

The allegations against Shanga Hankerson were massive. The state accused him of pocketing sales and withholding taxes—money that belonged to the government—and using it for "personal use."

How much? Over $650,000 in principal, which ballooned to over $1 million once you tacked on interest and penalties.

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The most heartbreaking part for fans was that Gladys Knight herself had nothing to do with the crimes. She was just the face of the brand. She had trusted her son to run the business, and investigators quickly cleared her of any criminal wrongdoing. But her name was on the sign, and her reputation was taking the hit.

The Legal Battle: Mother vs. Son

By late 2016, Gladys had seen enough. She didn't just want out; she wanted her name back. She sued Shanga to force him to remove her name, likeness, and memorabilia from the restaurants.

The court filings were brutal.

Knight’s legal team argued the restaurants were in "free fall" and were damaging her "Intellectual Property and reputation." They claimed the shops were running out of food, keeping irregular hours, and were generally being run into the ground.

Shanga fought back with a move that many fans found unforgivable. His legal team initially suggested that Gladys lacked the "mental capacity" to terminate their licensing agreement. It was a low blow. He basically tried to argue his mother was too old or confused to know what she was doing.

In the end, Gladys won.

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By early 2017, the signs came down. The legendary Gladys Knight’s Chicken & Waffles was rebranded to The World Famous Chicken & Waffles. But without the "Empress," the magic was gone. The flagship location was eventually shuttered for good after more tax issues and license revocations.

Where Are They Now?

If you’re looking for Shanga Hankerson, he’s spent the last few years dealing with the fallout of his choices. In 2021, he was sentenced to two years in prison followed by a lengthy probation for failing to remit those payroll taxes.

As for the locations:

• Downtown (Peachtree St): Long gone. The space has seen different tenants since, including a Krab Queenz location at one point.
• Lithonia: Closed permanently in August 2016.
• Cascade Road: Quietly closed around October 2016.

Gladys Knight, thankfully, is doing just fine. At 81, she’s still the "Empress of Soul." Just recently, in late 2025, she had to publicly shut down more rumors regarding her health, assuring fans she is "happy and healthy" and still performing. She’s moved far away from the restaurant business, focusing on her legacy as a performer rather than a restaurateur.

If You’re Craving Soul Food in Atlanta Today

Look, you can't go to Gladys's anymore. That's just the reality. But Atlanta’s soul food scene didn't die with that restaurant. If you want that authentic vibe and food that actually passes a health inspection, you've got options.

The Busy Bee Cafe is arguably the gold standard now. It’s been around since 1947 and has a James Beard Award to prove it. Their fried chicken is legendary.

Then there’s Paschal’s in Castleberry Hill. It’s steeped in Civil Rights history—MLK Jr. used to eat there. Their fried chicken recipe is still one of the best in the city. If you want something more modern but still "celebrity" affiliated, Old Lady Gang (owned by Kandi Burruss) has taken over that "see and be seen" mantle that Gladys Knight’s used to hold.

Actionable Next Steps for Foodies in ATL:

1. Check the Scores: Before you hit any legacy soul food spot, check the Georgia Department of Public Health’s online portal. Standards can slip at old-school joints.
2. Go Early: Places like Busy Bee and Mary Mac’s Tea Room get slammed. If you aren't there by 11:30 AM, prepare for a wait.
3. Respect the History: When you visit Paschal’s or Busy Bee, take a second to look at the photos on the wall. These aren't just restaurants; they are the survival of Atlanta's Black business history.

The story of the Gladys Knight restaurant in Atlanta is a cautionary tale about family and business mixing poorly. It’s a bummer we lost that downtown spot, but the city’s flavor is still very much alive—just under different names.