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Menachem Lubinsky
Kosher fantasies fulfilled
Eating glatt kosher at a well-known American restaurant is
clearly a novel experience for most of the 200 or so people that are crowded into the new Nathan's this Sunday night.
GENESIS OF A TREND?
Israelis think of these establishments as just another step in the "Americanization" of Israel just like any Western country
(and now Eastern countries as well) . With such American icons as Home Depot and Toys 'R Us already becoming
common shopping stops for Israelis, there is no novelty in the American establishments. But most Israelis also eat kosher as
recent surveys show (nearly 80%). Obtaining kosher certification is a must for anyone opening an eating establishment, but
opting for higher standards has become essential to capture the dynamic Orthodox market in the country, estimated at 20%
of Israel's nearly 5 million Jews.
The successful experiences in Israel may have set off a world-wide trend of new kosher restaurants by some of America's
best known names. In Israel, as in other countries, the ultimate decision will lie with franchise owners rather than corporate
decision makers, knowledgeable sources observe. Perhaps the biggest news is that corporate officials no longer
object to a kosher franchise which is based on solid business grounds.
In the case of Nathan's, the corporate bosses actually looked to the kosher program as an expansion of its existing base.
Nathan's corporate press releases told investors of the company's expansion into kosher. It granted the Shlomo Chaim
Corporation (which includes the well known Levy family) rights to a broad range of such glatt kosher restaurants in Israel and
the U.S. In addition to Jerusalem, the franchise owners already opened a second restaurant in Kiryat Malachi with many
more planned and in the U.S. there may soon be kosher restaurants in such Jewish communities as Teaneck, Monsey and
Cedarhurst, according to Nathan's.
"We are excited to provide theJewish community with our menu's many favorites," said Wayne Norbitz, president of
Nathan's Famous Inc. "Our new customers can enjoy our world famous fare, carefully prepared according to kosher
specifications." In the case of Nathan's the new franchise owners and corporate bosses appear to be on the same page.
Some Jewish neighborhoods may be ripe for additional franchises. In Flatbush, Brooklyn, for example, Dunkin' Donuts and TCBY
franchises already serve the community. A close look at the demographics of neighborhoods like Flatbush shows that kosher
franchises can expect to do better than non-kosher stores in those areas. The same is true for other Jewish communities
throughout the U.S. There are already some 15 kosher Dunkin Donut franchise stores nationwide. Some franchise owners
suggest that a strong kosher base along with non-kosher passersby can be the right formula for success even in markets that
may not be as strong as Flatbush for a kosher program.
CORPORATIONS TAKE NOTICE
Joy Allison, Director of Public Relations for Pizza Hut, said that she was unaware of any pending plans to open kosher Pizza
Huts in the U.S., but she noted that "if there is a strong demand in any particular market, we will certainly look at it." Of
7200 Pizza Hut stores in the U.S. 60% are franchise owned and 40% are under corporate ownership. The Pizza Hut
spokeswoman indicated that if there was a call for kosher, the initiative could come from either corporate or from franchise
owners.
A Wall Street analyst familiar with the thinking of some of the fast food chains said that it would be wrong to conclude that
there is no discussion at corporate board tables about kosher. He noted (on the condition of anonymity): "You might say
that they are in the very early stages of looking at kosher. They are reading and hearing the same reports others are about the
vitality of kosher and they are beginning to ask people like me questions." He also said that the Israel experience has taught
them that it can be done without compromising their standards. One interesting observation that the analyst made was that
there were some voices in corporate offices that "are worried about a backlash, particularly if an avid customer asks for a
menu item that is available in all stores but not the kosher one."
Franchise owners who are looking at kosher take the view that it may very well be an opportunity to expand their franchise
stores in otherwise crowded areas. In other words, frustrated that they cannot open stores in certain areas, the ticket may be
a kosher store.
EFFECT ON SMALLER STORES
If additional franchises make their way into Jewish neighborhoods, as many are now predicting, the landscape of kosher fast
food restaurants may change quickly. Some smaller stores are already spreading rumors that the large fast food chains are on
their way, but none of the large companies spoken to substantiated the rumors.
KOSHER AGENCIES WARY
If new franchise stores or corporate owned restaurants seek out kosher certification, they may well have to live with the
stringent disclaimer requirements by the kosher certification agencies. Rabbi Harvey Senter of the Kof-K Certification which
certifies four Dunkin' Donuts stores says that while he does not require the same disclaimers as the more complex meat
restaurants, he does use every opportunity to educate kosher consumers to frequent only "those stores that clearly post our
certification." He said that core kosher consumers are very much aware of which stores are kosher certified.
From discussions with many rabbis involved in kosher certification, it is possible to detect a dilemma in granting the
certification. One rabbi said: "If one Jew is mislead into believing that he is eating kosher somewhere far from a kosher
establishment, then it may be wrong for us to certify even one store of a national establishment." On the other hand, the
rabbi pointed out, "if these stores are going to open anyway, I would rather that they adhere to my strict standards and that
large numbers of kosher consumers eat properly from a kosher point of view."
While it is impossible to predict just how many new kosher restaurants the national chains will open in the future, it is clear
that it is more than just a passing fad. The kosher Jew of the '30s may have grown up with homemade kosher food, the
kosher adherent of the '50s on food from the Lower East Side, the kosher consumer of the '80s and '90s on new
kosher fast food restaurants, the new kosher Jew of 2000 may grow up on McDonald's, Pizza Hut, KFC and perhaps
everyone else in this business.
We'll be
THEIR LATE MODEL LEXUS was double-parked outside as were many other luxury vehicles in front of 825 Kings Highway in
Brooklyn. The two 18-year olds, members of the nearby Syrian Jewish community, were waiting on one of the lines to select
the menu package on one of a half dozen choices on the electronic menu facing them. Others on the line which extended
to the front door were young Orthodox Jews, some who had come from Boro Park to the new Nathan's Glatt Kosher
restaurant, the first of 10 planned by the new franchise owners.
In Buenos Aires, several young yeshiva students waited patiently in the spanking new Glatt Kosher McDonald's in the
center of the beautiful new mall which has become a "Jewish hang-out", according to the Spanish-speaking youngsters.
With tango music in the background, more than 50 people, half of them Orthodox wait patiently for a burger, which, of
course, does not have the cheese common at one of the 25,000 McDonald's establishments throughout the world. Several
secular Jews are on line too, confirming the suspicions of the franchise owners that the restaurant would not only be popular
with Orthodox Jews but for the majority of Argentina's 300,000 Jews who are not Orthodox and do not generally eat
kosher.
In Jerusalem, a family of 6 waits patiently for a table at the Pizza Hut in the popular Malcha Mall in the suburbs of Jerusalem.
Outside, cars continue to circle for the few remaining parking spots on this late Fall Saturday night in the Holy City. The
family orders several small pizza pies with a range of toppings to please every palate from the 6-year old to the American
born mother who can't believe just how good the Pizza is (For the past 10 years as an oleh in Israel, she avoided Israeli
pizza). Her husband had thoroughly read the teuda (Kosher Certificate) in the window and was satisfied. There are
many yarmulkes amongst the 70 patrons who fill most of the tables that evening.
As little as a decade ago, these scenarios would be fantasy. No longer.
A drive though downtown Jerusalem is enough to make one stop and reflect about the cluster of well-known American eating
establishments who have opened restaurants in the Holy City. On the corner of Jaffe Road and King George Street is a new
Sbarro's. Across the road is the Nathan's and within a few hundred yards a Pizza Hut, KFC and McDonald's. Also in
the area is a Ben and Jerry's and a Carvel's.
Because of larger families, they tend to spend far more on food than their numbers would
indicate. Coke and Pepsi in Israel, for example, fought a pitch battle several years ago as to who has the better kosher
standard. Pepsi is a staple in many of the large Chasidic centers while Coke is not, although as is the case throughout the
world, Coke enjoys a far larger market share.
One common franchise throughout the country that is predominantly kosher is an ice cream chain like Carvel's. At one time,
while the company was still under family ownership, Tom Carvel had taken the unusual step of obtaining kosher certification
for all of his 800 independently owned stores. Knowledgeable sources say that Mr. Carvel used the certification as a
measure of quality control, a theme heard periodically from manufacturers. But under its most recent management, corporate
officials maintained Kof-K certification for the ice cream they manufactured, but left it to each individual store to opt for
specific certification for their stores. 25% of the stores or 200 retained their certification.
Brad Trask, Director of International Communications of McDonald's, notes that the company was already
catering to the specific needs of various markets in its 12,000 stores outside of the U.S. (There are 13,000 stores in the
U.S.). He singled out India where in deference to Hindu tradition, there is a beefless menu, Arab countries where Halal is
served and Israel and Argentina where kosher is the fare. Since 85% of McDonald's stores are franchise owned, the
company spokesman said, "the likelihood is that any expansion of kosher would come from them."
Just as kosher-focused supermarkets forced some small kosher stores to either expand or go out of business, a major
expansion by large fast food chains into Jewish areas may have an impact on small kosher stores. In Jerusalem, the
international restaurants were additions to the contemporary fast-food menu which may have consisted of falafel and
shawarma, but in New York bagels and hot dogs are commonplace.
Observers note that kosher restaurants in Flatbush did suffer a small decline in business when Nathan's opened. They
believe, however, that Nathan's attracted many new customers who did not frequent the kosher establishments and that
existing kosher customers would come back after they "had the experience." There is evidence that some traditional kosher
customers are in fact returning to such established glatt kosher fast food chains as Kosher Delight with its more extensive
American, Chinese, and now Mexican menus.
For the large U.S. kosher certification agencies, the franchising of kosher poses an unprecedented dilemma. Their concern is
that certification of a franchise kosher store should not be misconstrued as a blanket kosher endorsement of all such stores.
The Orthodox Union, which along with the local Kehila Kashrus, certifies the new Nathan's has forced the franchise owners
to post large signs outside of the store that only this store was certified kosher "while all other Nathan's restaurants are
not." The OU also required the franchise owners to highlight the uniqueness of the kosher certification to this one store in all
marketing materials such as advertisements and public relations materials.
JWR contributor Menachem Lubinsky is editor of Kosher Today and heads the Manhattan firm, Integrated Marketing & Communications. You may contact him by clicking here.
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