Whataburger, the beloved Texas-based fast-food chain, is embarking on an ambitious expansion plan to bring its iconic burgers to new markets across the United States. The company aims to open dozens of new locations by 2027, including its first restaurants in the Tampa Bay area and 12 new franchises in Jacksonville, Florida. This growth strategy marks a significant shift for Whataburger, which had not franchised its restaurants in nearly two decades.
The expansion isn’t limited to the Sunshine State. Whataburger is also setting its sights on other regions, with plans to enter new territories and strengthen its presence in existing markets. This move comes as the company faces increasing competition from other fast-food giants expanding into its home turf of Texas.
To support this growth, Whataburger is updating its restaurant design and streamlining operations. The new look aims to maintain the brand’s classic appeal while incorporating modern elements to enhance customer experience. These changes, coupled with Whataburger’s commitment to fresh, made-to-order meals, position the chain for success as it introduces its unique flavor to more communities across the country.
History of Whataburger
Whataburger’s journey from a small Corpus Christi burger stand to a beloved regional chain spans over seven decades. The company’s growth has been marked by family ownership and a recent acquisition that opened new doors for expansion.
Foundation in Corpus Christi
Harmon Dobson and Paul Burton founded Whataburger in Corpus Christi, Texas, in 1950. Their first restaurant was a humble stand that sold burgers so large customers exclaimed, “What a burger!” This catchphrase inspired the company’s name.
Dobson soon bought out Burton and focused on growing the business. He emphasized quality ingredients and customizable burgers, which became Whataburger hallmarks.
By 1960, Whataburger had expanded to multiple locations across Texas. The iconic A-frame restaurant design, introduced in the 1960s, became a recognizable symbol of the brand.
Acquisition by BDT Capital
For nearly 70 years, Whataburger remained family-owned, with the Dobson family guiding its growth. In 2019, however, the company announced a significant change in ownership.
BDT Capital Partners, a Chicago-based private equity firm, acquired a majority stake in Whataburger. This move aimed to fuel further expansion while maintaining the chain’s core values and quality standards.
Under BDT Capital’s ownership, Whataburger has accelerated its growth plans. The company has entered new markets beyond its traditional Texas and Southern strongholds, including Tennessee and Kansas City.
Expansion Strategy Overview
Whataburger’s growth plans focus on entering new markets and leveraging franchising to accelerate expansion. The company aims to increase its footprint while maintaining brand quality and community involvement.
Market Analysis for Expansion
Whataburger conducts thorough market analyses to identify promising locations for expansion. The company targets areas with strong potential for brand recognition and customer loyalty. Factors considered include local demographics, economic indicators, and competition.
Whataburger has traditionally focused on Southern states but is now exploring opportunities in new regions. The company plans to open restaurants in more states, expanding beyond its current 10-state presence. This strategic move allows Whataburger to tap into previously untapped markets and broaden its customer base.
Franchising as a Growth Model
After a 20-year hiatus, Whataburger has reintroduced franchising as a key component of its expansion strategy. This decision enables faster and more efficient growth across multiple regions simultaneously. Franchising allows Whataburger to leverage local expertise and capital while maintaining brand standards.
The company carefully selects franchisees who align with its values and operational excellence. This approach ensures consistent quality across all locations. Franchising also creates new job opportunities and facilitates community investment in the areas where Whataburger expands.
By combining corporate-owned restaurants with franchised locations, Whataburger aims to achieve a balanced and sustainable growth model. This strategy allows for rapid expansion while retaining control over brand integrity and customer experience.
Current Whataburger Locations
Whataburger maintains a strong presence in its home state of Texas while expanding into new markets across the southern United States. The chain has over 900 locations, with plans for continued growth.
Footprint in Texas
Texas remains Whataburger’s stronghold, boasting 759 restaurants throughout the state. The brand’s deep roots in Texas date back to 1950 when Harmon Dobson opened the first Whataburger stand in Corpus Christi. Major cities like Houston, Dallas, San Antonio, and Austin feature numerous Whataburger outlets.
Smaller towns and rural areas across Texas also have Whataburger restaurants, making the chain accessible to a wide range of customers. The company continues to open new locations within Texas, demonstrating its commitment to its home market.
Presence in Tennessee and Other States
Whataburger has expanded beyond Texas, with a growing presence in neighboring states. Tennessee is a key focus for the chain’s growth, with multiple locations planned or already open. The company’s expansion strategy targets southern states, aligning with its regional brand identity.
Other states with Whataburger restaurants include:
- Alabama
- Arizona
- Arkansas
- Florida
- Georgia
- Louisiana
- Mississippi
- New Mexico
- Oklahoma
South Carolina is set to welcome 10 new Whataburger locations, with the first already open. The chain is also breaking ground in the Midwest, with plans for restaurants in Kansas and Missouri.
New Market Penetration
Whataburger is actively expanding its restaurant footprint beyond its Texas roots. The iconic burger chain is strategically entering new markets to reach more customers and grow its brand presence across the United States.
Launch in Kansas City
Whataburger has set its sights on Kansas City as a key target for expansion. The company plans to open multiple locations in the Kansas City metropolitan area. This move will introduce Whataburger’s signature menu items to a new customer base in the Midwest.
Kansas City’s thriving food scene and appreciation for quality burgers make it an attractive market. Whataburger aims to compete with established local and national chains in the area. The company is carefully selecting prime locations for its restaurants to maximize visibility and accessibility.
Expanding to Middle Tennessee
Middle Tennessee is another focus of Whataburger’s growth strategy. The company has announced plans to open several restaurants in the region, including locations in Nashville and surrounding suburbs. This expansion will bring Whataburger’s Texas flavors to the heart of country music.
The Middle Tennessee market offers strong potential due to its growing population and robust economy. Whataburger is tailoring its approach to meet local tastes while maintaining its core menu offerings. The company is also exploring partnerships with local suppliers to support the regional economy.
Exploration of New Areas
Beyond Kansas City and Middle Tennessee, Whataburger is actively exploring additional markets for future expansion. The company is conducting market research to identify areas with high growth potential and strong demand for quality fast food options.
Whataburger is considering factors such as population density, income levels, and competition when evaluating new locations. The chain is also assessing the logistical challenges of supporting restaurants in new regions, including supply chain considerations and staffing needs.
Potential target markets include major cities in the Southeast and Midwest where Whataburger currently has limited presence. The company is taking a measured approach to ensure each new location can maintain its high standards for food quality and customer service.
Operational Excellence
Whataburger’s commitment to operational excellence drives its success and expansion. The company focuses on key areas to enhance customer experience and streamline operations.
Importance of Customer Service
Whataburger prioritizes exceptional customer service as a cornerstone of its operational excellence. Staff members receive thorough training to ensure they can efficiently handle customer requests and maintain a friendly demeanor. The company implements a robust feedback system, allowing customers to share their experiences and suggestions.
This approach helps Whataburger continuously improve its service quality. Regular performance evaluations and incentive programs motivate employees to provide top-notch service consistently.
Innovation in Drive-Thru Services
Whataburger invests in cutting-edge technology to enhance its drive-thru services. The company has implemented digital menu boards that display real-time updates and personalized recommendations. These boards adapt to changing conditions, such as weather or time of day, to optimize the ordering process.
Advanced order-taking systems reduce wait times and improve accuracy. Whataburger also utilizes AI-powered voice recognition technology to streamline the ordering process. This innovation allows for faster service and reduced errors in order fulfillment.
Implementation of Delivery Services
Recognizing the growing demand for convenience, Whataburger has expanded its delivery services. The company partners with popular third-party delivery platforms to reach a wider customer base. Whataburger has also developed its own mobile app, allowing customers to place orders directly and track deliveries in real-time.
To maintain food quality during transit, Whataburger uses specialized packaging designed to keep food fresh and hot. The company has implemented a strict quality control process for delivery orders, ensuring that each item meets its high standards before leaving the restaurant.
Franchise Opportunities
Whataburger has recently opened up franchising opportunities for the first time in nearly two decades. This expansion strategy aims to grow the brand’s presence across new markets while maintaining its commitment to quality and customer service.
Becoming a Franchisee
Potential franchisees must meet specific criteria to join the Whataburger family. The company seeks individuals with strong business acumen and a passion for the food industry. Financial requirements include a minimum net worth and liquid capital availability.
Franchisees receive comprehensive training on Whataburger’s operations, menu, and brand standards. This includes hands-on experience in existing locations and classroom instruction. The initial franchise fee and ongoing royalties are not publicly disclosed.
Whataburger carefully selects franchise locations to ensure market viability. New franchisees may have the opportunity to open restaurants in emerging markets or underserved areas within existing territories.
Support for Franchisees
Whataburger provides ongoing support to its franchisees to ensure success. This includes assistance with site selection, restaurant design, and construction management. The company offers a proprietary operating system and technology solutions to streamline daily operations.
Marketing support is a key component of the franchise package. Franchisees benefit from national and regional advertising campaigns, as well as local marketing guidance. The company’s established supply chain ensures consistent product quality and competitive pricing for franchisees.
Regular performance evaluations and business reviews help franchisees optimize their operations. Whataburger’s field support team offers on-site assistance and best practice sharing. Franchisees also have access to ongoing training programs for themselves and their staff.
Economic Impact of Growth
Whataburger’s expansion plans are poised to generate significant economic benefits. The company’s growth strategy will create jobs and boost local economies in new markets.
Job Creation
Whataburger’s expansion is expected to create thousands of new jobs across multiple states. Each new restaurant typically employs 50-100 workers, including managers, cooks, and customer service staff. As the company opens locations in North Carolina and other new markets, it will provide employment opportunities for local residents.
The ripple effect of these new jobs extends beyond direct restaurant employment. Construction workers, suppliers, and service providers also benefit from Whataburger’s growth. This multiplier effect can stimulate additional economic activity in the communities where new restaurants open.
Local Community Benefits
Whataburger’s expansion brings more than just jobs to new areas. Local economies often see increased tax revenue from new restaurant locations. This additional funding can support public services and infrastructure improvements.
The company’s presence can also attract other businesses to the area, creating retail clusters that draw more customers. Local farmers and food suppliers may gain new contracts to provide ingredients to Whataburger restaurants.
Whataburger often engages in community initiatives and charitable giving in the areas it serves. As the company expands its footprint, more communities can benefit from these corporate citizenship efforts.