Operations

Nathan’s Famous has opened 100 virtual locations since June

The hot dog chain is growing rapidly via ghost kitchens and a virtual wing brand and has 45 additional branches in the works.
Wings of New York tenders
Photograph courtesy of Nathan’s Famous

Nathan’s Famous opened its 100th virtual location Monday, capping eight months of rapid virtual growth that has significantly expanded the brand’s overall footprint.

The milestone location will be inside Brooklyn independent restaurant The Black Iron Burger, which will offer both Nathan’s namesake brand and its new Wings of New York offshoot for delivery via third-party apps. 

The hot dog chain began rolling out its aggressive virtual brand strategy in June, adding locations via Reef ghost kitchens, Franklin Junction host kitchens and independent restaurants in both the U.S. and internationally. It has agreements to open 45 more virtual locations in the coming months, with plans to expand to California, Pennsylvania, Europe and Canada.

“Our goal with these ghost kitchens is not just to grow our brand around the world, but also help other restaurants by providing them additional business during these turbulent times for the industry,” said James Walker, SVP restaurants, in a statement. 

Nathan’s, which had 213 locations worldwide as of 2019, is one of a few brands that are growing quickly with virtual locations, viewing them as a more economical way to expand.

“There’s no way, with our resources, even with the demand, that we would have been able to open 75 brick-and-mortar restaurants,” Walker said on an episode of RB’s “A Deeper Dive” podcast last month, when Nathan’s virtual network stood at 75.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners