From SantaBarbara.com :
On June 17, 1957 the first of Sambo's nationwide chain of family restaurants was opened in this very location, right across the street from the beach. The name derived from a combination of the original owners Sam Battistone and Newell Bonette who commonly were referred to as Sam and Bo. When they discovered the book "Little Black Sambo" written by Hellen Bartrum in 1899, they thought it was the perfect match. Today, this original Sambo's is the only one remaining in America.Another interesting story on this topic is Pancakes and Prejudice.