On Nathan’s and Coney Island…
Being a Brooklyn girl, I couldn’t pass up the opportunity to take a closer look at Nathan’s (NATH) 10-K. Back when I was a science geek (instead of an SEC filings geek), I spent two summers working at the New York Aquarium in Coney Island and wound up eating at Nathan’s more than a few times.
One of the things that surprised me was the number of hot-dog eating contests that are now being held around the country. Long before it became a spectator sport on ESPN, the Fourth of July contest used to be this local event that would maybe generate some coverage in the Bay News (another former employer). But now that there’s 18 regional events around the country (up from 13 just three years ago), the contest (and the various feeder — ha! — events) have become a huge media event, which, of course, generates lots of cheap publicity for Nathan’s.
Also interesting to me in the filing was that the uncertainties over the future of Coney Island — in a nutshell a developer wanted to turn it into a clone of the Mall of America before the economy cratered — have become a risk factor for Nathan’s. Here’s how they phrase it:
The original, flagship Nathan’s Famous restaurant is located in the Coney Island amusement district in Coney Island, New York. We believe that customer traffic at this location depends, in part, on the operation of the various area amusements and attractions. One such attraction, the Astroland Amusement Park, has reportedly been closed permanently as of September 2008. Additionally, the City of New York and a private real estate developer have proposed competing plans to redevelop the entire Coney Island amusement district. We are unable to determine the impact of the closing of Astroland and/or the redevelopment of the Coney Island amusement district; however, any substantial decrease in the number of visitors to Coney Island would likely have a material adverse effect on our financial results.
Once upon a time, I used to joke that I wanted to get married in Nathan’s back room (my parents and Scott quickly vetoed that idea). But the Nathan’s in Coney Island remains a special place. Hopefully, the tussle over Coney Island’s future won’t reduce the famed back room to a distant memory.
Image source: Jeffrey Stanton
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Posted in Tags: 10Ks |
 5 Comments » |
June 12th, 2009 at 10:38 am
Ah memories. One freezing New Year’s am, bunch of us Pratties piled into a car with no heater, just blankets. It was decided that only Nathan’s would do for chow. Bounced there forever. Beat the long subway rides as a kid tho to Astroland and Steel Pier.
At Nathan’s it turns out they had frog’s legs. Wow hot fresh frog’s legs was so restorative. Better than any Upper East Side French find.
Last I’ve read about future was in Gotham Gazette couple weeks back that a rescue of sorts may keep it all afloat another 2 years.
Hopefully some of the 10% estimated stimulus fraud makes its way to
this cherished institution. Closer than Hamptons. lol
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June 12th, 2009 at 11:57 am
http://www.brooklynvegan.com/archives/2009/05/coney_island_20.html
Lot of videos, esp 2008 Mermaid Parade. Scheduled for June 20, 09.
Also a spat about Ringling Brothers and Barnum & Bailey Circus June 18
and a possible City bill to block said show over animal treatment.
After all the local rains and coolness it’s hoped the Boardwalk gets
the summer mojo on.
June 15th, 2009 at 6:52 am
I forgot to tell you that I recently finally made the trip out to L&B Spumoni Gardens based on your recommendation. Great place. Thanks for the occasional non-financial stuff like this!
June 16th, 2009 at 9:52 pm
Michelle,
It was interesting to read what you wrote about my home town of Coney Island. You brought back lots of memories. I was very young when Luna Park burned down, but the drama of the sky glowing orange and red is etched into my memory. Steeple Chase was a fun place and a big lose when it was torn down by developers, however Coney Island still maintained it’s reputation as an amusement park.
With the lose of Astroland, what will draw the crowds to Coney Island besides sand and surf? The financial impact on Nathans remains to be seen, but without Nathans, Coney Island may just pass into oblivion.
Rhoda Coleman
Mom of Brad Coleman (Proxy Democracy)
June 17th, 2009 at 10:02 am
@ Aaron: Glad you liked Spumoni Gardens. IMO, it is the best pizza in New York. I only wish I lived closer!