Although Papaya King plans to remain true to its menu, the company needs to make adjustments to appeal to certain markets outside of the city.

Although its menu "defies logic," according to CEO Dan Horan, Papaya King is a New York institution. The company has been recognized by food critics and the Zagat Survey, and namedropped in "Seinfeld." Opening new locations across the country—while keeping the authentic New York experience intact—is the company's main focus.

"We have a quirky menu," Horan notes. "We offer great tropical drinks and smoothies, and we serve great hot dogs. And, 50 percent of our customers buy the frank and papaya drink combo."

In addition to papaya drinks, Papaya King serves mango, coconut champagne, pina colada, banana daiquiri and strawberry supreme blended drinks. Fresh fruitshakes and smoothies—made with mango, papaya, pineapple and other fresh fruits—are also available, as are fresh-squeezed orange, apple, carrot and pineapple juice.

Papaya King's original frankfurter is a top seller, but customers can also opt for smoked sausages. Toppings include chili, cheddar cheese, sauteed onions, sauerkraut, tropical relish and sweet pickles.

The company takes hot dogs seriously. "We're committed to the grilled-to-order frankfurter," Horan states. "When hot dogs sit on a roller grill, it takes away from the flavor.

"We're also one of the first to create smoothies. Orange Julius has been around a while, but very few other smoothie companies have the history that we have."

Company History
Papaya King's history traces back to Gus Poulos, an immigrant from Greece. Poulos arrived at Ellis Island in 1923 and purchased a deli a few years later.

A trip to Florida sparked his interest in fresh fruit and juices, the company says. Poulos sold his deli and opened Hawaiian Tropical Drinks Inc., a fruit juice store, in Manhattan in 1931. Papaya was the store's specialty, and customers waited in long lines to place their orders.

During the next few years, Poulos opened additional stores in Brooklyn and Philadelphia. Poulos' wife, a German-American woman, introduced him to German foods, and the company added frankfurters to the juice stand menu.

It says one of the Brooklyn Dodgers baseball players was a regular customer, and nicknamed Poulos "the Papaya King," and the name stuck. However, the stand did not officially change its name to Papaya King until the 1960s.

Big Vision
Although Papaya King plans to remain true to its menu, the company needs to make adjustments to appeal to certain markets outside of the city. "New York is the classic walk-up, hotdog stand market," Horan explains. "As we expand our company and our concept, we need to address the issue of leaving the city. We're talking about opening drive-thru locations because our items are impulse buys."

Despite being a fast-food concept, Papaya King does not take shortcuts on quality. Horan says people looking for the highest-quality smoothies and hot dogs know Papaya King uses the best ingredients.

"Our drinks are more than 20 percent fruit, and our franks are hand-made with 100 percent beef," Horan says. "We've seen people really respond to that. We're not an artisan product, but our customers gravitate toward quality."

The company's popularity has generated inquiries. "We've seen a lot of interest from potential franchisees, but we're still very new to it," Horan says. "We started opening franchise locations about three years ago. Today we have seven units with three more set to open by mid-year."

In the New York area and parts of California, steep rents make opening new locations a challenge. Horan says the company can operate out of footprints as small as 400 square feet, which gives the company flexibility in its locations. Papaya King has opened some locations in airports, although the strict regulations can slow the process. "Papaya King is 75 years old, and that means a lot to our core customer base," Horan notes. "Anytime you replicate a concept, you're really trying to replicate an experience. And, we need to be cautious to preserve that experience—particularly as we open in airports, schools and smaller locations."

Future Opportunities
The company is currently looking to connect with area developers in the Northeast corridor, as well as Florida, Texas, Southern California and Las Vegas, Horan notes. "We're cautious about the markets we enter because we're really in this for the long haul," he adds.

The company has new stores opening in Clifton, N.J., and the Bronx this year. Papaya King already has operations in JFK International and LaGuardia Airports, and plans to open in two more locations at Baltimore Washington International Airport later this year.

"Our core menu hasn't changed since 1938, but we have added items to address certain needs," Horan explains. "For example, we needed to offer a breakfast menu at the airport locations. And, chili has become a bigger piece of our business. But, we make sure that our customers across the country are getting our original recipes. We ship our franks from our manufacturers in the Bronx, and our fruit comes from Hawaii, South America and Mexico. We do allow franchisees to come up with suggestions to reflect regional preferences. As far as what customers want on their franks, Clifton, N.J., is worlds away from New York."

Horan says Papaya King aims to establish itself in several local markets and eventually become a national brand. The company is considering acquiring other brands in the coming years to enhance its concept.

"We don't want to dilute our own brand, but we think leveraging with multiple brands can enhance our position," he explains. "We want to be a good investment for franchisees, and provide fast, fun food to our customers. "There's a certain irreverence that we've always had, and we're committed to maintaining that."