FranDev Players: James Walker, Senior Vice President of Restaurants, Nathan’s Famous

After nearly 105 years in business, the aroma Nathan’s Famous’s signature hot dogs still wafts over the boardwalk of Coney Island, through Yankee Stadium, and to the New York boroughs beyond. 

With more than 250 company-owned and franchised units (not to mention Nathan’s Famous products available at more 70,000 different retail and foodservice locations throughout all 50 States), Nathan’s remains a seasoned exporter of that New York flavor to the rest of the world, too. 

In 2020, the brand proved that even after a century in business, it’s got some new moves. The brand unveiled a new store design and started offering a ghost kitchen model to franchisees. 

1851 Franchise spoke with James Walker, senior vice president of restaurants for Nathan’s Famous, to gain insight on franchise development and growth. 

1851 Franchise: Nathan's is a well-established brand, so what is something people may not  know about its history? 

James Walker: People know Nathan’s around the world for our flagship location in Coney Island, our annual hot dog eating contest and, of course, our world-famous hot dogs. What many people are surprised to discover is that the brand dates all the way back to 1916, making it one of the oldest and most successful restaurant brands in America. The other surprise for guests of Nathan’s Famous is how diverse our menu is. 

1851: How many franchised vs. corporately owned stores are there? 

Walker: We maintain four corporate owned-and-operated locations, including two locations in Coney Island. These corporate locations serve to test new products and systems, as well as to serve as global training centers. The balance of our system is owned and operated by our valued franchise owners. 

1851: Are there any keys to consistent franchise growth? 

Walker: I think one of the most important elements is remembering how important your franchise owners are. If you’re truly concerned with their well being and treat them with the respect they deserve, they can be a huge help to growing a franchise brand. 

1851: What are the biggest hurdles to successful franchise growth right now?

Walker: The restaurant industry has always been in a constant state of change. What is new is the pace at which that change is happening. The hurdles I believe all restaurant franchisors are facing today include ensuring they are experts at how their current franchise owners can operate successfully in the current environment. Franchisors must also be future-focused, flexible, agile, and adapt their business model to changes quickly for the success of both current and future franchise owners.   

1851: How did the COVID crisis affect franchise growth opportunities?

Walker: Current franchise owners, and prospective candidates, are looking for franchisors who are able to adapt their business model quickly to allow owners to be successful. This includes a concern for their financial commitment and well being. 

At Nathan’s Famous we refused to change our position of serving the highest quality food possible, and remained committed to our entire menu being “memorable, craveable, and Instagrammable.” 

What we did change was how we delivered that customer experience. We developed a business model that allowed current and new operators to provide both Nathan’s Famous and our Wings of New York brand to customers through a ghost kitchen model. This model works for our customers by delivering the highest quality products where and when they want them. But it also works for our operators because it’s quick to market and requires a capital expenditure of less than $3,000. 

1851: Are there any common mistakes you see franchisors making when trying to grow? 

Walker: Yes, I see many of the same mistakes being repeated: Growing beyond their ability to support their franchise owners and selecting franchise owners who are not a good match for the brand.

1851: How did you personally get into franchising? 

Walker: My first experience in franchising was while working for Cinnabon in the early 2000s. During my time at Cinnabon, I was fortunate enough to work for Chris Elliott, who was president of the brand at the time. Chris practiced absolute candor with franchise owners, and practiced daily his “communicate and support” approach to running a franchise organization. My time with Chris was very helpful in formulating my approach to leading a restaurant franchisor. 

1851: What are your biggest goals/plans for 2021? 

Walker: Nathan’s Famous and Wings of New York have been able to grow through our ghost kitchen model during the pandemic, both domestically and internationally. In many cases these kitchens have been launched with virtual support. My preference is always to be closest to those who execute our customer experience on a daily basis, so my hope for 2021 is that I will be able to visit our operators who I have been unable to visit so far due to COVID related restrictions on travel.