Cutting the Mustard
Operators put their buns on the line to sell America’s favorite sausage
By Allison Perlik, Senior Editor -- Restaurants & Institutions, 8/1/2004
Beyond the friendly confines of big-league ballparks and backyard barbecues, hot-dog hawkers aim to put sausages in the national spotlight.
In 2003, consumers spent $1.8 billion on hot dogs in supermarkets, according to the National Hot Dog and Sausage Council. Their menu sales strength rated higher than all other items in the sandwich subcategory in the Reed Research Group/R&I Menu 2003 Menu Census Study. With demand still sky-high in a category long dominated by regional chains and street-corner carts, several growing chains are looking to capitalize.
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“Hot dogs are a comfort food. People are used to them at ballgames and picnics and golf courses. It’s something you don’t really have to sell people on,” says Richard Michael, director of marketing for Famous Uncle Al’s Hot Dogs, a casual-dining chain based in Orlando.
Across-the-board appeal has long given dogs a platform for success at chains such as Newport Beach, Calif.-based Wienerschnitzel and Westbury, N.Y.-based Nathan’s Famous. While demographics often still skew toward men, children’s affection for the product attracts mothers and families, and upscale and more-healthful offerings such as chicken sausages and veggie dogs entice women.
“We appeal to everyone,” says David Drake, president of Spike’s Junkyard Dogs USA Franchise Co., a fast-casual chain out of Cranston, R.I. “After all, who doesn’t like a hot dog?”
The Right Stuff
Sausages of Italian, Polish and German descent all have their
places on menus, but the all-American hot dog holds court as
the top seller. All-beef hot dogs are the most common choice,
but other varieties have niches, including pork-beef blends at
Famous Uncle Al’s and Birmingham, Ala.-based Sneaky Pete’s
Hot Dogs.
The casing—or “skin”—is another consideration. Sausage fans and purveyors alike hold strong opinions on the topic.
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“It’s the whole ‘snap’ idea,” says Jordan Monkarsh, founder and president of Venice, Calif.-based Jody Maroni’s Sausage Kingdom, where the signature all-beef dogs feature natural lamb casing. “I like the pop. But we do have skinless as well, because people have very creative opinions on what’s right.”
Other chains also menu both types, especially since children tend to prefer skinless dogs. Spike’s Junkyard Dogs sells skinless only, while Sneaky Pete’s finds middle ground with what spokesman Kevin Gustin calls “a very thin skin, not traditional.”
Prep Rallies
Preparation styles prove another point of controversy. Dick Portillo,
founder and president of 28-unit Portillo’s Hot Dogs, based
in Oak Brook, Ill., makes no bones about his preference for steaming
and poaching. “We don’t grill,” he says. “That’s
not the Chicago way.”
Coe Meyer, co-owner of cart-based company Woody’s Chicago Style in Morrison, Colo., says poaching cooks the products quickly without changing their structure. Holding the hot dogs in a steam environment keeps them at safe temperatures without losing flavor, he adds.
Those who do choose to grill—Jody Maroni’s, Sneaky Pete’s and Famous Uncle Al’s among them—say the process has its advantages. While Meyer contends that keeping sausages on a roller grill draws out flavor, Michael at Famous Uncle Al’s argues that the opposite is true.
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Spike’s Junkyard Dogs finds a compromise amid three methods: sausages are roasted, held in steam drawers and finally placed on roller grills before they are served. Shunning all of the above options, San Diego-based The DogOut prepares products on griddles, which fit as well onto carts as they do in traditional inline locations.
Mixing It Up
While some purist hot dog chains limit their menus to traditional
sausages, others believe that gourmet is the secret to success.
These companies mix it up with products featuring proteins
of all kinds, highlighted with ingredients from paprika to
peppers.
The DogOut’s 10 sausage varieties include the Santa Fe Turkey with roasted green pepper and chipotle chiles; the Calabrese Italian with pork, fennel, paprika and cayenne; and the Chicken Apple with apple and onion.
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Jody Maroni’s unique offerings include the Chicken & Duck with Basil, featuring sun-dried tomatoes, fresh basil and duck stock; the Yucatan, with chicken, duck, cilantro, serrano chiles and beer; and the Cubana Chicken Sausage, with plantains and garlic.
Chains serving only traditional frankfurters, Italian sausage, Polish kielbasa and German bratwurst offer variety of their own through toppings. Many take the traditional route with mustard, onions, relish, tomatoes, pickles, peppers, celery salt, sauerkraut, chili and cheese. Others get more creative, both in product monikers and ingredients.
At Famous Uncle Al’s, which names menu items after cities in the United States, specialties include the Daytona Dog, deep-fried and served with jalapeños and hot sauce, and the Miami Dog, topped with salsa and Cheddar cheese.
Spike’s signature Junkyard Dog heaps on tomatoes, pickles, mustard, green onions and pepperoncini on top; Samurai Dog includes teriyaki sauce and sautéed mushrooms, while Pizza Dog features pizza sauce, mozzarella cheese and Italian spices.
More Than Meets the Eye
While sausages are top dog at all the above concepts, many also
seek to broaden their appeal with additional offerings. Traditional
items such as burgers, chicken sandwiches, grilled cheese, pizza,
nachos and onion rings make frequent appearances, while more
unusual options include jambalaya, pasta and ribs. Sneaky Pete’s
and Jody Maroni’s even serve breakfast.
Multibranding offers hot dog chains another avenue to expand their audiences, although some operators are wary of the strategy.
“One of the biggest mistakes people make in the restaurant business is to add products when sales are slow. What you have to do is market more of what you’ve got,” says Doug Matheson, director at The DogOut.
Dick Portillo takes the opposite view, having opened several of his Portillo’s Hot Dog restaurants in combination with one or two of the company’s other concepts: Barney’s, which serves ribs, chicken, sandwiches, and salads; and Barnelli’s Pasta Bowl, offering pasta, gourmet salads and hand-tossed pizza.
“Growth there has been tremendous,” he says. “Wherever I can do that, I will.”
The Right Side
Hot dog-chain operators find their concepts fit a multitude of
site styles and locations.
The DogOut uses five prototypes to match real estate availability: carts, kiosks, limited-seating inline units, 60-seat diners and a new double-drive-thru design.
Carts are bread-and-butter vehicles for Woody’s Chicago Style, allowing the chain to enter high-foot-traffic areas such as home improvement stores, military bases, museums and campuses.
All Portillo’s Hot Dogs restaurants are freestanding units that reflect Founder Dick Portillo’s love of history with themes such as a 1950s diner or 1920s prohibition-era décor.
Famous Uncle Al’s, which typically builds its casual-dining restaurants in strip centers, plans to expand into the college market with counter-service-only units.
To build dinner business, quick-service chain Sneaky Pete’s Hot Dogs is launching a sister concept called Sneaky Pete’s Cafe, a neighborhood grill-style casual dining spot.
Locales for Jody Maroni’s, which also manufacturers its own sausage products, include beaches, amusement parks, ballparks, airports and casinos.
| Chain, Headquarters | Units |
Seats |
Check Average |
AUV |
Growth Plans |
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The Dogout, San Diego | 10 |
0-60 |
$6.15 |
$100,000 to $600,000 |
40 stores in development |
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Famous Uncle Al’s Hot Dogs, Orlando |
11 |
50 or less |
$6.50 |
$300,000 to $600,000 |
240 stores in development |
 |
Jody Maroni’s Sausage Kingdom, Venice, Calif. | 30 |
0-50 outside |
$6.50 |
n/a |
25 to open by end of 2005 |
 |
Portillo’s Hot Dogs, Oak Brook, Ill. | 28 |
30-400 |
$8.90 |
n/a |
3 more in 2004 |
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Woody’s Chicago Style, Morrison, Colo. | 100 |
None |
Just under $4 |
$150,000 |
25-50 more in 2004 |
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