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Eatery Chain ‘Hot Dog On A Stick’ Files For Chapter 11 Bankruptcy
KCAL-TV ^ | February 3, 2014

Posted on 02/08/2014 11:58:03 PM PST by 2ndDivisionVet

Carlsbad-based chain Hot Dog on a Stick filed a Chapter 11 petition in U.S. Bankruptcy Court in Los Angeles on Monday.

The company, known widely for staff in brightly-colored, striped uniforms and impaled corn dogs, said in a statement that it is seeking relief in order to reorganize and restructure its business.

Hot Dog on a Stick, which currently operates 93 locations, said that it plans to continue business as usual throughout the bankruptcy proceedings.

The company also said that, in addition to working to save money in the supply chain and in stores, it has made significant reductions to its corporate workforce and expenses, while trying to increase sales over the past year.

In addition to these continued efforts, HDOS said that it plans to work with its landlords in order to review and renegotiate leases, the vast majority of which are reported to have been written at the height of the real estate bubble.

“Like many mall-based businesses, HDOS signed some very expensive leases during the booming economy of the mid-2000s,” CEO Dan Smith said. “In addition, declining mall foot traffic over the past several years has had a negative impact on sales at most company locations. We’ve been pursuing new leases in all locations and the Chapter 11 filing will allow us to do so in a more effective manner. The mall business is built around the relationships and partnerships between tenant and landlord. We want to be in malls where the relationship is positive and the partnership is mutually beneficial.”

Smith said that, since the Hot Dog on a Stick brand has been strong and iconic for so many years, the initiatives of the company and cooperation of partners will allow them to emerge from the bankruptcy proceedings “in a position to thrive well into the future.”

The first HDOS restaurant was opened by founder Dave Barham in 1946 as Party Puffs at Santa Monica Beach. The restaurant sold ice cream and lemonade, according to the company’s website. Later, Barham used his mother’s cornbread recipe to perfect the corn dog, and he changed the eatery’s name to Hot Dog on a Stick, traveling with his product to county fairs. It was at these fairs that he got the idea for the colorful, eye-catching colorful uniforms.

Barham reportedly opened his first shopping mall restaurant in 1973 in Salt Lake City. He died in 1991 and left the company to his workers.

Hot Dog on a Stick operates under an employee stock ownership plan.


TOPICS: Business/Economy; US: California
KEYWORDS: bankruptcy; economy; fastfood; food
But I thought the economy was getting better?
1 posted on 02/08/2014 11:58:03 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet
Stick on a hotdog ruined their business.


2 posted on 02/09/2014 12:05:38 AM PST by TigersEye (Stupid is a Progressive disease.)
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To: 2ndDivisionVet

Lots and lots of restaurant chains going Chapter 11, or nearly so. What this needs is a minimum wage hike.


3 posted on 02/09/2014 12:08:21 AM PST by Vince Ferrer
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To: TigersEye

Now where is Obama going to eat, Indonesia?

Hey, that wouldn’t be “Bo” in that bun, would it?


4 posted on 02/09/2014 12:09:29 AM PST by MadMax, the Grinning Reaper
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To: MadMax, the Grinning Reaper
Because muzzies find it distasteful, I can only hope it's dog meat.
5 posted on 02/09/2014 12:20:09 AM PST by itssme
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To: Vince Ferrer

Which other chains have gone Chapter 11? It could be that this chain just did not have good food and was not properly run and managed.


6 posted on 02/09/2014 12:23:59 AM PST by freedom462
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To: freedom462

I have heard both Olive Garden and Red Lobster are close to Chapter 11.


7 posted on 02/09/2014 12:27:15 AM PST by Vince Ferrer
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To: freedom462

Furr’s cafetrerias as well


8 posted on 02/09/2014 12:32:07 AM PST by Vince Ferrer
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To: MadMax, the Grinning Reaper
Let's have a closer look...

Nope, that's not Bo.

9 posted on 02/09/2014 12:35:24 AM PST by TigersEye (Stupid is a Progressive disease.)
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To: 2ndDivisionVet

Discretionary income is way down — just wait until ObamaCare fully kicks in.

I used to spend money at many, many restaurants from the early 1990’s to early 2000’s.

Not any more. Not for a while. A long while.


10 posted on 02/09/2014 12:41:14 AM PST by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
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To: 2ndDivisionVet

I’ve honestly never heard of the place, but then I tend to avoid malls like the plague. Even as a teen, I never wanted to “hang out” at them. I would imagine it’s rather tough business running a niche food place in a mall. I mean, rents are high, and not everyone wants a corndog for lunch.

Still, I’m guessing the hot dog on a stick type places aren’t the only ones taking the hit at shopping malls. Several of the malls in my area have lost anchor stores and/or have a fair number of empty spaces for rent.


11 posted on 02/09/2014 1:12:26 AM PST by DemforBush (A Repo Man is *always* intense.)
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To: DemforBush

My local mall just lost its McDonald’s. You know things are bad when McDonald’s can’t survive.


12 posted on 02/09/2014 1:33:29 AM PST by fatnotlazy
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To: freedom462

Their food and fresh lemonade is very tasty. I think there problem is they charge like $3.25 for a not so large corn dog. And expensive lemonade too. Look at In and Out burger with huge success..like a dollar less for a bigger cheeseburger. Greed makes a bad business model.


13 posted on 02/09/2014 1:42:52 AM PST by fabian (" And a new day will dawn for those who stand long, and the forests will echo in laughter")
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To: fatnotlazy

“My local mall just lost its McDonald’s. You know things are bad when McDonald’s can’t survive.”

Mmmm, but was there an increase in sport shoe shops at that mall? I’ve noticed that dying malls have an increase in those stores right before they finally bite the dust.


14 posted on 02/09/2014 2:39:52 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
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To: freeangel
No. I noticed that every year right after Christmas, the mall loses a store or 2. After this last holiday shopping season, the mall lost 3 stores. Despite all the spin, retail sales were bleak, most likely because of the sticker shock from the Obamacare roll out. Except for the habitual credit card maxing crowd, most people didn't want to spend big bucks on holiday shopping. They will need the money for exorbitant premiums and those huge deductibles.
15 posted on 02/09/2014 3:01:02 AM PST by fatnotlazy
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To: 2ndDivisionVet

The HDOS should have added SOS to their menu. That would pull them out of trouble.

(For those who don’t know about SOS, it means S-— on a Shingle, a favorite of our military in years gone by. Oh, I have to take my dog out. He needs to dump a load of S-—.)


16 posted on 02/09/2014 4:21:37 AM PST by Right Wing Assault
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To: DemforBush

I seem to vaguely recall the place from family visits to SoCal in the 80’s. But I remember more so encountering Orange Julius and whatever place it was that sold the pita sandwiches in malls out there.

Also, Cali Dairy Queens were weird from what I remember.


17 posted on 02/09/2014 4:32:05 AM PST by FAA
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To: Vince Ferrer
Lots and lots of restaurant chains going Chapter 11, or nearly so. What this needs is a minimum wage hike.

I hear ya. More taxes, too. It will give the employees the opportunity to write poetry and drink hot cocoa in their PJs.

18 posted on 02/09/2014 4:35:28 AM PST by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
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To: St_Thomas_Aquinas

“I hear ya.”

Yup. Nothing like $8 hamburgers to drive consumer demand and provide job security.


19 posted on 02/09/2014 4:42:34 AM PST by FAA
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To: F15Eagle; Gamecock
You said to sell hot dogs. Where are people? Show me the people!


20 posted on 02/09/2014 4:47:28 AM PST by Larry Lucido
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To: 2ndDivisionVet

If all it had was a hotdog on a stick then it should go bankrupt.


21 posted on 02/09/2014 5:22:58 AM PST by Uncle Chip
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To: 2ndDivisionVet

Another victim of Obama and his handlers.


22 posted on 02/09/2014 5:26:30 AM PST by riri (Plannedopolis-look it up. It's how the elites plan for US to live.)
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To: 2ndDivisionVet

HDOS sounds like a cyber attack.


23 posted on 02/09/2014 6:13:17 AM PST by Flick Lives (Got a problem with the government? Have a complaint. Get a free IRS audit!)
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To: 2ndDivisionVet

I am waiting for some enterprising Mexican-American to start a franchise operation for Sonoran Hot Dogs, perhaps the most high calorie, totally bad for you, delicious food item this side of the Mississippi. It makes a Philly cheese steak with all the trimmings look like nouvelle cuisine. If you just read the ingredients, it sounds like a foot tall pile of gross. However, once you eat one, you are hooked.

First of all, the hot dog is wrapped in Mesquite-smoked bacon. Then it is put on a Bolillo bun, about three times larger than a hot dog bun. Always with grilled yellow chilies on the side. Then you add the fixins:

pinto or black beans, whole or refried
fresh onions
grilled onions
chopped fresh tomatoes
sliced jalapenos (some masochists use habaneros)
pico de gallo
guacamole
celery salt
oregano
too damned much cilantro
jalapeño salsa
Mexican table cream
Queso blanco (Mexican white cheese)
mayonnaise
mustard

(optional variations)
shrimp
chorizo
crushed potato chips
pineapple

(optional side orders)
steak cut french fries
lime wedges
steamed tortillas
Atherosclerosis

Vendors of this culinary war crime are called “dogueros”.


24 posted on 02/09/2014 6:38:20 AM PST by yefragetuwrabrumuy (WoT News: Rantburg.com)
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To: 2ndDivisionVet

Well, that’ll probably finish off the stick industry as well.


25 posted on 02/09/2014 8:06:01 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: 2ndDivisionVet

Get those girls out of those degrading “uniforms” and I’ll be more likely to sample some of their wares. The built in voyeuristic aspact of lemonade churning always seemed undignified. But that’s just me.


26 posted on 02/09/2014 8:12:12 AM PST by onedoug
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To: 2ndDivisionVet

We have a huge outing (we live by a lake) every 4th of July. We have a lunch of brisket and pulled pork but in the evening Hot Dogs are very popular. My grandkids all like Hot Dogs anytime anywhere. My question is why doesn’t McDonalds and other fast food chains sell dogs? Does anyone know?


27 posted on 02/09/2014 8:21:42 AM PST by Starstruck (If my reply offends, you probably don't understand sarcasm or criticism...or do.)
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To: fatnotlazy

The future of most malls is conversion to Section housing.
Plus fill the parking lot with mobile homes.


28 posted on 02/09/2014 8:26:15 AM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: nascarnation

Don’t know about housing, but I know of one mall that is converting most of its space into offices. At one time this mall had 5 flagship stores plus about a hundred or so smaller retailers. Macy’s and Penneys are the only major stores left. About 90% of the rest of the storefronts are shuttered. It’s a tragedy.


29 posted on 02/09/2014 8:59:58 AM PST by fatnotlazy
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To: fatnotlazy

I think the harsh reality is that most malls built in the mall boom years of the 60s and 70s are now in neighborhoods that a lot of folks avoid.


30 posted on 02/09/2014 9:02:29 AM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: nascarnation
Where I live, it's not the location exactly, but rather, accessibility via public transportation. This region depends heavily on public transit and the operating system is designed to enable anyone from almost anywhere to get to work, shopping and so on without the need for a car. That's great for the elderly, young people who can't afford wheels and people like me who never learned to drive. But it also allows the riff-raff from the ghettos to pollute the malls and the nicer amenities of the suburbs.

A number of older malls also never invested in good security. The mall across town I mentioned was a prime example. Crime increased, the owners couldn't or wouldn't deal with it, so people stayed away in droves. I give the mall closer to me credit. It has an active security force that patrols every inch of the mall, including the parking lots. In addition, the local police department maintains a substation in the mall. This mall probably looked at what happened to other malls and decided to take action now before these punks destroyed it as they did at other malls.

31 posted on 02/09/2014 11:59:08 AM PST by fatnotlazy
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To: nascarnation

Data Center is the obvious way to go.


32 posted on 02/09/2014 12:08:20 PM PST by eyedigress ((zOld storm chaser from the west)/ ?s)
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To: fatnotlazy

Ghetto youth were the main killers of the indoors malls and continue to this day.


33 posted on 02/09/2014 2:05:19 PM PST by packrat35 (Pelosi is only on loan to the world from Satan. Hopefully he will soon want his baby killer back)
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To: packrat35

The gangs even kill business in their own neighborhoods. Then they whine when there is no supermarket or drug store in the community. Business can’t survive the relentless onslaught of crime.


34 posted on 02/09/2014 6:03:07 PM PST by fatnotlazy
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To: onedoug

35 posted on 02/09/2014 6:07:57 PM PST by Jet Jaguar
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To: 2ndDivisionVet

36 posted on 02/09/2014 6:09:04 PM PST by dfwgator
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To: 2ndDivisionVet

Never understood the appeal of a hot dog on a stick. Seems awkward to eat it that way. A bun seems to be a much more effective delivery system for a hot dog - and it’s fully edible.


37 posted on 02/09/2014 6:13:33 PM PST by SamAdams76
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To: yefragetuwrabrumuy
I'll see your Sonoran Hot Dog, and raise you and OKI-DOG!

38 posted on 02/09/2014 6:14:14 PM PST by moehoward
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To: SamAdams76
Never understood the appeal of a hot dog on a stick.

"Hey, that's my brother......On a steek."

39 posted on 02/09/2014 6:15:24 PM PST by dfwgator
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To: 2ndDivisionVet

>”HDOS signed some very expensive leases during the booming economy of the mid-2000s”<

How can that be? I thought the Eight years of the Bush Economy were terrible, or was it just the last two years after Pelosi and Reid took over the House and Senate. Hmmmmmmm...


40 posted on 02/09/2014 6:18:18 PM PST by Kickass Conservative (Nobody owes you a living, so shut up and get back to work...)
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To: Starstruck
I can't speak for the other fast food restaurants but Ray Kroc prohibited McDonalds from selling hot dogs because he felt that the meat byproducts used in them were unhygienic and not up to the standards of McDonalds.

Before Kroc took over the chain from the McDonald brothers, they did have hot dogs on the menu.

41 posted on 02/09/2014 6:21:41 PM PST by SamAdams76
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To: SamAdams76
Never understood the appeal of a hot dog on a stick. Seems awkward to eat it that way. A bun seems to be a much more effective delivery system for a hot dog - and it’s fully edible.

Depends, I suppose, on whether or not you like cornbread -- which may not appeal to a New Englander.

42 posted on 02/09/2014 6:29:38 PM PST by okie01 (The Mainstream Media -- IGNORANCE ON PARADE)
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