When
the news broke Monday that Nathan's Famous Corp., the hot dog company, had sold Kenny Rogers Roasters to its Malaysian master franchiser, we knew the story bore looking into. Never mind Nelson Peltz's plans for melding Wendy's International Inc. and Arby's Restaurant Group Inc. Here was a window into deeper mysteries, from the surprising quirks of globalization to the more profound question of why there are so many hamburger chains and so few specializing in hot dogs.
Nathan's couldn't talk on our tight deadline, but here's what we've pieced together so far. Kenny Rogers Roasters was founded in 1991 by the country singer and his partner, ex-Kentucky Governor John Y. Brown. Nathan's bought it out of bankruptcy in 1999. That was also the year that Nathan's bought another chain, called Miami Subs.
In the years since, Nathan's appears to have done some soul-searching about whether it wanted to be mainly in the restaurant business, which is where its Coney Island roots lie, or a branded food company with some presence in restaurants. In this
2005 interview with CEO Wayne Norbitz, we see him emphasizing the branded product business, which puts Nathan's dogs in convenience stores and Johnny Rockets diners, among many other places.
And sure enough, Nathan's seems to have mainly continued on that course. Though it bought Arthur Treacher's in 2006, it sold Miami Subs in 2007 at what looks like a loss. And earlier this week, it sold Roasters to the Malaysians, retaining a license to sell Kenny Rogers sandwiches at the 229 units in its restaurant system, six of which it owns. The strategy seems to be working: For the
quarter ended last December, it increased its net to $877,000, on sales of $10.3 million.
So what's with the Malaysians? Well, if KFC Corp. can add hundreds of stores per year in China, why can't a healthier, country-singer-branded, roast-chicken-and-biscuits concept thrive in Southeast Asia? According to the Berjaya Roasters (M) Sdn. Bhd.
Web site there are 35 Roasters in Malaysia alone, with more in China, Singapore, Dubai and elsewhere.
As for Kenny Rogers, he's concentrating on his music and a busy
touring schedule. You can catch him in Santa Rosa, Calif., Thursday night, or in Las Vegas on May 2, 3 and 4. No dates in Kuala Lumpur, but he might want to look into it. -
Kenneth Klee
Juergen Lasowski
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