The Secret Behind Hiram's $3.25 Hot Dogs

Overview

Today, we had the pleasure of sitting with Pete, the proud owner of Fort Lee’s iconic Hiram’s Hot Dogs. Established in 1932 during the Great Depression, Hiram’s has served deep-fried hot dogs and fed the community for nearly a century. In our chat with Pete, we explored how this local gem has tackled economic challenges, including inflation and the aftermath of the COVID-19 pandemic while staying true to its roots.

Inflation in Bergen County

Like much of the country, Bergen County has seen inflation take a toll on businesses and consumers. In 2023, inflation rates hovered around 3.5% annually, a decrease from the peak of 7% in 2022, but still a burden on everyday costs. Inflation has been especially difficult for food-related businesses, with raw materials like meat, bread, and condiments seeing steep price hikes due to supply chain disruptions and labor shortages.

Many local eateries have been forced to raise prices to stay afloat, but Hiram stands out for its unwavering commitment to keeping prices affordable. Pete has ensured that over the last 15 years, the cost of their famous hot dog has only gone up by $1—a rare feat in today's economy.

The Secret to Hiram’s Pricing Strategy

Hiram’s has defied inflation pressures through careful sourcing and a commitment to community-first pricing. “Our customers tell us our prices are too low, but we keep it that way because we’re here for the people, not just for profit,” Pete explained. Pete keeps costs in check by working with multiple suppliers to secure meats at better prices and sourcing sides like soda and beer from business supermarkets while offering his customers incredible value. To put this in perspective, while Hiram’s hot dogs have only seen a $1 increase in over a decade, the Consumer Price Index (CPI) for food in the greater New York–Newark–Jersey City area jumped by 5.3% in 2023 alone. Hiram’s decision to absorb rising costs rather than pass them on to customers has led to slimmer profit margins but has strengthened the restaurant's bond with its loyal community.

Navigating the Pandemic: Hiram’s Resilience

Like most businesses, Hiram’s faced significant challenges during the COVID-19 pandemic. In 2021, the restaurant had to reduce its hours and adapt to restrictions on indoor dining. But thanks to outdoor seating and the support of regular customers—some visiting three to four times a week—Hiram’s remained resilient.

Even with fluctuating demand and operational changes like closing earlier in the evening, Hiram’s could keep prices stable, relying on the consistent flow of loyal patrons to stay afloat. Pete’s ability to pivot and adjust without compromising the affordability of his menu speaks volumes about the business's strength and community ties.

Competing in a Crowded Market

Despite the presence of fast-food giants like Burger King and McDonald's in the area, Hiram’s continues to hold its own, offering affordable prices and a personalized experience that larger chains can’t replicate. Local competitors, such as Callahan’s Hot Dogs (which closed in 2006), may have come and gone. Still, Hiram’s has remained a fixture in the community thanks to its consistent pricing and genuine customer relationships.

Though the summer and winter tend to be slower, the regular influx of students and local families throughout the school year keeps business steady. Pete's strong connection with his customers—often remembering orders before customers even walk in—reinforces the unique experience that makes Hiram’s a local favorite.

Conclusion: A Business Rooted in Community

Hiram’s success goes far beyond its hot dogs. It’s a business deeply rooted in serving the community, a reflection of Pete’s blue-collar background and understanding of the financial pressures facing everyday families.

“I’ve been a blue-collar worker my whole life,” Pete shares. “I know what it’s like to work hard for every dollar. That’s why I’ll keep these prices as low as possible for as long as possible.”

As inflation begins to stabilize in the coming years, Hiram’s ability to maintain its affordable prices without sacrificing quality will be a key factor in its continued success.