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By Alan Dorich   
Tuesday, 26 February 2008
After nearly a century, Nathan’s Famous Inc. is expanding on its legacy by refreshing its menu and growing its presence in the United States and internationally. By Alan Dorich
smc Nathan’s Famous Inc. operates in all 50 states and in 13 countries, and sold 360 million hot dogs in 2006.
Nathan’s Famous Inc. operates in all 50 states and in 13 countries, and sold 360 million hot dogs in 2006.
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As it has grown from a single, five-cent hot dog stand in Coney Island, N.Y., to the owner and marketer of multiple restaurant brands, two things have remained constant for Nathan’s Famous Inc. : its all-beef hot dogs and its “krinkle-cut” french fries. President and COO Wayne Norbitz says the two products are the company’s signature items.

 “They’ve almost developed a cultish appeal,” he says, noting that the products have been made the same way since their introduction. “At the core [of] what we do, those are our stars of the show.”

Based in Westbury, N.Y., Nathan’s operates and franchises 201 restaurant outlets with its namesake and sells its products in more than 7,000 supermarkets and club stores, as well as 10,000 foodservice locations. Founders Nathan and Ida Handwerker started the company with a frankfurter stand in 1916.

The couple had met while working at a beach resort on Coney Island. At the resort, the two gained the advice of two singing waiters — Jimmy Durante and Eddie Cantor.

The two future stars advised the Handwerkers to go into business for themselves and open their own stand, where they used Ida Handwerker’s grandmother’s secret spice recipe in their frankfurter sandwiches. Over time, Nathan’s says, the sandwich became known as “the original Coney Island Hot Dog.”

Today, Norbitz says, Nathan’s stands as an established company with a “tremendous” heritage. He notes that the company does business in all 50 states and in 13 countries, and sold 360 million hot dogs in 2006. In addition, Forbes ranked the company as No. 142 on this year’s list of the 200 Best Small Companies.

In addition to hot dogs and fries, Nathan’s menu also includes char-grilled hamburgers, onion rings, hot dog nuggets, chicken tenders and fish fillet sandwiches. The company also owns two other restaurant brands: Kenny Rogers Roasters, which serves rotisserie chicken; and Arthur Treacher’s Fish & Chips, which specializes in seafood.

Nathan’s also sells its products on the QVC network, and appears on five to 10 shows a month, Norbitz says. The company also gains exposure with its Fourth of July International Hot Dog Eating Contest. Nathan’s holds preliminary contests throughout the country, with a final competition on July 4th at its Coney Island location.

This year’s champion, Norbitz says, was Joey Chestnut of San Jose, Calif., who ate 66 hot dogs in 12 minutes. This year’s event saw 40,000 in attendance, and was featured on ESPN. “Our PR people estimate that the contest [generates] over $40 million worth of publicity each year,” Norbitz adds.

A key ingredient to Nathan’s success, Norbitz adds, is its people. He notes that many employees hold 20 years with the company. “These people really feel like the company is their own,” he states. “There’s a lot of pride taken here, when new stores open up [and when] we engage in new businesses.”

Shaping the Concept
Norbitz is a 32-year veteran of Nathan’s Famous and became president in 1989. When he originally joined, “I became very friendly with the family of the founder and totally engaged in this concept,” he remembers. “I’ve just enjoyed it over the years, reshaping and expanding it.”

He notes that Nathan’s Famous is now focused on establishing restaurant outlets where there are “captive” audiences, such as airports, highway travel plazas, universities or amusement parks. “That’s definitely been a focus of ours,” he says, noting that these locations now comprise 75 percent of its restaurants.

Although its signature items are its hot dogs and fries, Nathan’s Famous strives to constantly change its menu and prevent it from becoming stagnant. “A menu should always meet changing customer needs,” he says.

The company recently introduced unique products, such as a variety of sandwiches sold on hot dog rolls, including lobster salad, steak and fried clam sandwiches. He notes that reaction to them has been “very, very positive.”

Nathan’s also focuses on implementing new technologies, allowing it to occupy less space with its cooking equipment. With these advances, “Nathan’s has been able to become smaller and smaller, so now we can fit into more places,” Norbitz says.

Nathan’s once required spaces of 3,000 square feet. “Today, we’re designing Nathan’s that can be as small as 300 square feet,” Norbitz reports, adding that restaurant outlets include freestanding locations, as well as counters in strip malls and food courts.

Continuing on the ‘Path’
Norbitz says Nathan’s plans to remain in an expansion mode. For the last six years, the company has enjoyed annual growth in revenues and profits. “It is our intent to continue to invest our resources in the Nathan’s brand,” he says.

The company plans to continue growing in restaurant outlets as well as selling its hot dogs through foodservice and at retail. “[Within] each one of the business segments we’re in, we’ve been successful,” he says. “We want to continue along that path.”
 
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