Nathan's Famous Announces New Franchise Sales Strategy Targeting Current or Former Restaurant Owners

Rhea-AI Summary

Nathan's Famous has launched a new franchise sales initiative targeting struggling restaurant owners impacted by the COVID pandemic. This program allows these owners to convert their existing or closed restaurants into Nathan's Famous locations. A limited-time offer reduces the franchise fee by 50%, providing flexibility in design and equipment usage to minimize costs. Additionally, franchisees can capitalize on revenue opportunities from Nathan's ghost kitchen brands like Arthur Treacher’s and Wings of New York.

Positive

• Launch of a franchise sales initiative targeting struggling restaurant owners.
• 50% reduced franchise fee for conversions to Nathan's Famous.
• Flexibility in restaurant design and equipment usage to lower costs.
• Additional revenue opportunities through ghost kitchen brands.

Negative

• None.

Brand to offer owners and operators flexible options to convert their current or closed restaurant to a Nathan’s Famous

JERICHO, N.Y.--(BUSINESS WIRE)-- Nathan's Famous, Inc., the American tradition serving New York favorites for more than 100 years, recognizes that many restaurant owners were forced to close during the COVID pandemic and those that survived still struggle to meet pre-pandemic sales goals. With that understanding, today it announces the launch of a new franchise sales initiative aimed specifically at these struggling restaurant owners, offering to cost-effectively convert their location into a Nathan’s Famous.

Nathan's Famous Announces New Franchise Sales Strategy Targeting Current or Former Restaurant Owners. (Graphic: Business Wire)

"The COVID pandemic was hard on all of us, but especially for small business owners and restaurant owners who were forced to close due to restrictions or stretch resources to make up for lost sales any way they could," states Phil McCann, Vice President of Marketing. "The unfortunate reality was that many couldn’t, and those that made it through are still struggling today. Our goal is to give these restaurant owners a brand that has more than 100 years of recognition packaged in a quick, easy-to-open strategy aimed at driving revenue fast."

For a limited time, the brand is offering potential franchisees a 50 percent reduced franchise fee if they commit to converting their shuttered or currently open restaurant location to a Nathan’s Famous. The conversion program offers flexibility across restaurant design, equipment and infrastructure, often using the restaurant’s current arrangement, to save costs and open quickly. Potential franchisees that sign up for the conversion program can also take advantage of additional revenue opportunities through the Nathan’s Famous ghost kitchen brands, Arthur Treacher’s and Wings of New York.

To learn more about Nathan's Famous franchise opportunities, visit https://franchise.nathansfamous.com/ or call 1-800-NATHANS ext. 306.

About Nathan's Famous

Nathan's is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 16 foreign countries through its restaurant system, foodservice sales programs and product licensing activities. For additional information about Nathan's, please visit our website at www.nathansfamous.com.

Except for historical information contained in this news release, the matters discussed are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the current belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially include but are not limited to: the impact of the COVID-19 pandemic; the status of our licensing and supply agreements, including our licensing revenue and overall profitability being substantially dependent on our agreement with John Morrell & Co.; the impact of our debt service and repayment obligations under the 2025 Notes, including the effect on our ability to fund working capital, operations and make new investments; economic (including inflationary pressures like those currently being experienced); weather (including the impact on the supply of cattle and the impact of weather on sales at our restaurants particularly during the summer months), and change in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the continued viability of Coney Island as a destination location for visitors; the ability to attract franchisees; the impact of the minimum wage legislation on labor costs in New York State or other changes in labor laws, including regulations which could render a franchisor as a “joint employee” or the impact of our union contracts; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; the future effects of any food borne illness, such as bovine spongiform encephalopathy, BSE and e coli; and the risk factors reported from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221214005201/en/

For Nathan’s Famous

Kate Laird

Trevelino/Keller

404.214.0722 x.125

klaird@trevelinokeller.com

Source: Nathan's Famous, Inc.

FAQ

What is Nathan's Famous new initiative for restaurant owners?

Nathan's Famous has launched a franchise sales initiative aimed at helping struggling restaurant owners by offering to convert their existing locations into Nathan's Famous restaurants.

What benefits does the Nathan's Famous franchise program offer?

The program offers a 50% discount on the franchise fee and flexibility in restaurant design and equipment to help minimize costs.

How can current restaurant owners participate in Nathan's franchise program?

Current or former restaurant owners can participate by signing up for the conversion program to turn their locations into Nathan's Famous restaurants.

What are the additional revenue opportunities for Nathan's franchisees?

Franchisees can access additional revenue through Nathan's ghost kitchen brands, including Arthur Treacher’s and Wings of New York.