A patron at Moon's Lake House ordered fried potatoes with his meal. The diner complained that the potatoes were too thick and sent them back to the cook.

The cook at the restaurant was George Crum, who is described as Native American in some accounts and an African American in others. There is agreement, however, on Crum's disposition—he was generally ornery. Upset that someone would criticize his cooking, Crum sliced a new batch of potatoes paper-thin, fried them in boiling oil to a crisp, and then salted them.

But what was intended as a stunt turned into an instant hit – the fussy patron and his friends loved the "crunch potato slices." Soon the chips became known as Saratoga Chips. At first they were served in restaurants throughout the region. When George Crum left Moon's Lake Inn to start his own restaurant called "Crumbs House," he placed large baskets of the chips on every table. It was not long before Saratoga Chips could be found in restaurants up and down the East Coast. Soon they became known as potato chips.