The iconic Wienerschnitzel is experiencing increased interest by investors looking to diversify their business holdings
When things get tough, Americans turn to the food that brings the most comfort to get them through. For millions of Americans, that food is the hot dog.
Business Insider declared hot dogs, “the best quarantine food.” During the height of the pandemic in March, when millions of people were practicing social distancing at home, Business Insider reports that hot dogs sales increased 120% compared to last year.
“Sales of hot dogs exploded as people sheltered-in-place in March, according to data from data analytics firm IRI,” Business Insider reports. “For the week ending March 15, hot dog sales were up 123% compared to the same week last year. They soared 127% in the week ending March 22.”
And now as we move into summer, where hot dogs shine at backyard BBQs, picnics, and other social gatherings, the hot dog surge is expected to continue:
“People are still buying more hot dogs than they did last year,” Business Insider reports. “Since the pandemic started in early March, sales have been at least 29% higher every week compared to the same week in 2019.”
In a recent article in The New York Times, entitled, “How Quarantine Saved the Hot Dog,” the publication tells the tale of how New Yorkers are “pandemic-buying hot dogs like crazy.” The newspaper points out that long standing New York hot dog brands like Feltman Brothers have experienced “a 100 percent increase in sales from supermarkets and a 200 percent increase in online orders.” And they’re not the only ones.
“Other Brooklyn-associated hot dog brands are seeing increased business, too. Nathan’s sales are up more than 50 percent. The Brooklyn Hot Dog Company, a start-up in East Williamsburg that makes flavored hot dogs (like Buffalo chicken), has seen its online business grow by 300 percent, according to the company,” The New York Times reports.
On the other side of the country in California, where the iconic Wienerschnitzel hot dog franchise is based, sales are also up.
“We’re fortunate enough to have a business model that is ideal for the situation at hand,” says JR Galardi, President of Wienerschnitzel. “We’ve been able to thrive through this crisis. Not only is our restaurant convenient for the customer with drive-thru ordering and mobile delivery, but our business model is able to produce high-volume sales with a minimal number of employees, which has been a huge boost to our franchise owners during this time.”
Entrepreneurs are looking at hot dog franchise opportunities to expand their portfolios
As hot dog sales go through the roof, entrepreneurs are discovering that hot dog businesses are an ideal way to diversify their existing business holdings without competing with their burger, chicken or pizza concepts.
Wienerschnitzel, the world’s largest hot dog franchise, is experiencing a spike in interest for exactly this reason. Recently, Wienerschnitzel signed a multi-year development deal to open 20 restaurants in Louisiana. The iconic brand’s expansion into new markets is fueled by eight years of same-store sales increases, which is the result of menu engineering designed for large orders, as well as the addition of Tastee Freez soft serve ice cream.
For entrepreneurs, investing in a hot dog concept is a great way to expand their portfolio and increase revenue potential with a concept that consumers crave, landlords want, and doesn’t compete with other brands in their market.
“There isn’t anything like Wienerschnitzel out there,” Galardi says. “There really isn’t anybody in our category to compete with. If you’re franchising in a new market, you’re going to dominate that market. If you’re trying to expand a burger concept or a chicken concept, you’re going to get excluded out of a lot of leases. If you’re going to expand with a hot dog franchise, there’s a lot more opportunities for you to secure prime real estate in your market.”
Ready To Own A Hot Dog Franchise?
If you are thinking that there must be a silver lining to this epidemic. and you are able to think several months ahead, now is an excellent time to research and learn more about investing in a proven Wienerschnitzel business for your market.