First Look: The Good Ol’ Days

Coney Beach trades on nostalgia as guests build their own hot dogs and burgers.

By Maya Norris, Managing Editor -- Chain Leader, 2/1/2007

David and Camille Rutkauskas have already made a name for themselves with Camille’s Sidewalk Cafe, a California-influenced sandwich concept. The fast-casual chain they founded 10 years ago has grown to 106 units in 36 states. Now the husband-and-wife team plans to expand their portfolio with Coney Beach, a fast-casual hot-dog and hamburger concept inspired by the beach hot-dog stands of the 1970s.

"Every town has fast-food places that serve hot dogs and hamburgers, but we think there’s a real service gap existing in quality burgers and quality hot dogs," says David Rutkauskas, founder and CEO of parent Beautiful Brands International. "I didn’t personally see anything out there that was fun food in a really hip, slick environment that was truly fast casual."

Made in America

Coney Beach centers on guests customizing all-beef hot dogs, Black Angus burgers and crinkle-cut fries from among 50 ingredients. Toppings include standard condiments like spicy mustard and onions (free), cheeses like pepper Jack (50 cents), "Cold Stuff" including corn relish and habaneros (30 cents), and "Hearty Stuff" such as corned beef and chili con carne (80 cents). Guests can also use sides such as carrot salad and hummus as toppings for $1.

The retro beach-shack decor is meant to convey a homey, nostalgic feeling. Distressed wood, cork floors, chalkboards, corrugated tin and screen doors provide the backdrop for an old-fashioned jukebox and photo booth, pinball machines, beer buckets and surfboards.

"This will be a make-yourself-at-home kind of place," Rutkauskas says. "Trick your own dog. You can play a game of pinball. You can relax with friends and have a cold beer and a dog on the patio. I mean, how American can you get?"

Mass Appeal

The fun atmosphere and versatile menu means Coney Beach will appeal to a wide range of customers from teenagers to families to blue-collar workers to professionals, Rutkauskas says. So the company is looking for endcap or inline locations in business districts, residential areas, retail communities and college campuses. It will cost about $140,000 to $388,000 to open a unit, which averages 1,500 square feet to 2,500 square feet with 60 to 90 seats.

According to Rutkauskas, the average unit volume should be about $900,000 to $1 million with an average check of $9 because he expects sales to be strong not only at lunch but at dinner and for catering as well.

Coney Beach expects 12 to 15 units to open in 2007 and 25 in 2008 in Oklahoma, Texas, Kansas, Missouri, Arkansas, Mississippi and Louisiana. Although the company’s first unit isn’t slated to open until April in Tulsa, Okla., Coney Beach has already signed deals with two franchise groups to open four units in Tulsa and two in Jackson, Miss., this year. "People normally don’t buy franchises of a brand that doesn’t have a unit open yet, but I think that there’s some buzz about what we’re doing," Rutkauskas says.

Coney Beach expects franchisees to open 50 units in 2009 and 100 in 2010.