While I don't recall ever buying the Chef's sauce on its own, Amy and I devoured Mini Ravioli, Beefaroni, Roller Coasters, Mini Bites and all of their related canned pasta dishes. We loved canned pasta as kids, except for a misstep the Chef made involving "Papa Smurf's special sauce". Mom had to make sure one of us didn't receive more meatballs than the other. I probably lost most of my taste for Chef-Boy-Ar-Dee due to a disgusting university roommate who liked using it uncooked as a sandwich filling.
Ettore (Hector) Boiardi (1897-1985) was a restauranteur in Cleveland who found take-out requests for his sauces so high that he opened a factory in the late 1920s to keep up with demand. Boiardi's products hit the national market just as spaghetti and others Italian foods became popular in American homes - his kits offered a quick, tasty, economical meal. The line's eventual name was based on the phonetic pronounciation of his name.
Here's Boiardi pitching his economical spaghetti dinner in 1953, as discovered by RW-TV:
Source: Family Circle, December 1967