The very first Hot Dog on a Stick location was opened in 1946 near the Santa Monica Pier in Santa Monica, California. The store's classic mix of hand-dipped hot dogs and lemonade appealed to customers, and soon the small shop had expanded across Southern California. Hot Dog on a Stick locations eventually became staples of shopping malls across the country, but changes in consumer behavior later spelled the end for several fast casual chains parked inside food courts. Hot Dog on a Stick would likely have suffered the same fate, but the strength of the store's brand prompted Global Franchise Group to acquire the decades-old franchise.
GFG to the rescue
Global Franchise Group, a private equity firm, has a history of acquiring and revitalizing struggling fast-casual franchises. In addition to Hot Dog on a Stick, GFG owns and manages several restaurant franchises including Great American Cookies, Pretzelmaker and MaggieMoo's Ice Cream and Treatery. Chris Dull, president and CEO of GFG, recently expressed an optimistic outlook for the HDOS brand. The executive noted that Global Franchise Group has a proven "brand-building track record" and that the company expects to see "immediate traction" as the company rebrands HDOS for the future.
HDOS makes a comeback
Prior to bankruptcy and subsequent acquisition, Hot Dog on a Stick operated 78 corporate-owned stores and 20 franchise locations. Much of the decision to file for bankruptcy was driven by about 20 units that were locked into extremely expensive real estate licenses in malls with dwindling foot traffic. Dull remarked to the San Diego Union-Tribune that those few struggling stores were doing so poorly that they were "pulling the entire system down." Bankruptcy provided an opportunity for HDOS to shed its least productive locations and stabilize the value of the company.
Now under the guidance of GFG, Hot Dog on a Stick is slotted for a brand revival, according to Restaurant News. Global Franchise Group representatives have promised that the hot dog joint will keep its carnival-themed coloring scheme. Likewise, GFG plans to continue developing HDOS locations inside of shopping malls. After all, Hot Dog on a Stick has retained its California roots and the beach-inspired, fun-loving brand experience. Global Franchise Group hopes that this appeal keeps HDOS relevant for modern consumers. While HDOS is set to expand its market through GFG's real estate partners, the brand's headquarters will remain in Carlsbad, California.