X Y is not Y made in X, it's Y made in Z.

They didn’t actually shut the restaurant down; they just made them change the name to Boise Fry Company.

Are they anything like Jolly Ranchers?

Oh sure - I’m sure it happened many times over 5000 years. But if it wasn’t repeatedly and purposely done and made a particular part of the cuisine until that woman did it in L.A. in the '40s (as that obit and others indicate), then I’d say it qualifies as an American creation. YMMV