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Why MrBeast Burger is the most important restaurant concept in the US right now

Have you been to MrBeast Burger?

  • Yes

    Votes: 21 2.8%

  • No

    Votes: 276 36.7%

  • Who.gif

    Votes: 455 60.5%
  • Total voters
    752
Forerunner

Forerunner

Resetufologist
The Fallen
Oct 30, 2017
14,720
www.restaurantbusinessonline.com

Why MrBeast Burger is the most important restaurant concept in the U.S. right now

The explosion of virtual brands and their quick growth promise a new model that could bring more investors to the space, says RB’s The
www.restaurantbusinessonline.com www.restaurantbusinessonline.com

Beast-Style-Burger-Combo_1613151956.png


MrBeast, otherwise known as Jimmy Donaldson, helped create MrBeast Burger along with the restaurateur Robert Earl. As my colleague Joe Guszkowski noted recently, the virtual concept opened with 300 locations in December. The company's app quickly surged to the top spot on the Apple Store among food and beverage apps—on Friday it was 29th, ahead of such chains as Wingstop and Panda Express.

Why? Because the success of a virtual brand like MrBeast could offer a new route to success in the restaurant space without all those pesky capital costs. If an investor can devise a virtual concept that can get attention without traditional brick-and-mortar locations, that changes the game in the restaurant business. That could potentially bring in a flush of cash into the space. It could also make it that more difficult for traditional concepts starting out the old-fashioned way to get funding.
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Traditionally, restaurants needed to create a concept, find a location, build it out and then use local marketing to get people into the store, then hope it works. A virtual brand takes that buildout out of the equation. To be sure, they generate a lot less cash because consumers aren't walking in. But the lack of buildout costs could help a concept get off the ground, which could lead to a brick-and-mortar location down the road.

To be sure, virtual concepts can be like playing a lottery. There is an estimated 100,000 virtual concepts out there, according to Sterling Douglas, CEO of the tech firm Chowly. The likelihood of starting a concept that goes nowhere is rather high. But if you don't have to take out a massive loan for that virtual concept, the risk of failure is quite low.
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It remains to be seen how well MrBeast Burger does over the long term. Quality still matters with virtual brands—they have to keep customers coming back, after all—and burger customers aren't exactly without options. What's more, delivery is still a small percentage of the overall industry and virtual brands will depend heavily on customers still ordering it at an elevated level post-pandemic. I remain skeptical it does.

Plus, 300 virtual locations is just not the same as 300 brick-and-mortars.

Even if MrBeast doesn't succeed in the long term, its potential is there. And that could bring in investors eager to take their own run at such an idea.
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sir_crocodile

sir_crocodile

Member
Oct 25, 2017
23,523
What is a "virtual location"? Like someone's house? Do they still have to meet hygine standard and get assessed?
 
Milennia

Milennia

Prophet of Truth - Community Resetter
Member
Oct 25, 2017
18,258
I believe this works because they use already established kitchens etc. from other restaurants.
I've heard about other companies doing this before that do delivery only and don't have their own locations, because someone explained it to me at one point.
 
TarpitCarnivore

TarpitCarnivore

Member
Oct 25, 2017
20,239
This sounds like food trucks 2.0. Nothing about this is new or revolutionary. Tons of small restaurants start out delivery only basically working out of shared spaces
 
Hagi

Hagi

Member
Oct 25, 2017
4,950
i don't really get what this is? maybe i'm missing something but it doesn't really explain.
 
AdmiralSnackbar

AdmiralSnackbar

Member
Oct 27, 2017
480
I saw one of these on Seamless or Door dash or something.

I always order carryout anyway and couldn't figure out what was going on because no restaurant was listed at the address.

I kind of get the ghost kitchen idea but I figure there had to be some kind of restaurant there first.
 
Mr.Vic20

Mr.Vic20

Member
Oct 31, 2017
584
sir_crocodile said:
What is a "virtual location"? Like someone's house? Do they still have to meet hygiene standard and get assessed?
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According to the quote from the linked article, it appears that these brands ride on existing restaurants, so they still have to handle health code requirements. Your questions was my first question, so it's encouraging this is the case!

" Virtual concepts are brands that have no brick-and-mortar location of their own. They exist only digitally, as apps or on third-party marketplaces, with the fare produced by actual restaurants for delivery or takeout. "
 
chaobreaker

chaobreaker

One Winged Slayer
Member
Oct 27, 2017
5,565
I know what a ghost kitchen is but how does a virtual brand get a bunch of unique and disparate kitchens to make the same kind of meal with the same level of quality? Franchises source their ingredients from the same places, use the same equipment, and have specific instructions on how to cook the food.

A Big Mac should ideally look and taste the same no matter where you are in the US. Can you say the same for even two MrBeast Burgers from two different locations?
 
skeptem

skeptem

Member
Oct 25, 2017
5,755
sir_crocodile said:
What is a "virtual location"? Like someone's house? Do they still have to meet hygine standard and get assessed?
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Yes. They still have to be made in a licensed kitchen and meet all food code requirements. I personally wouldn't order though because in the end you don't know where this place is or it's history.
 
Tobor

Tobor

Member
Oct 25, 2017
28,614
Richmond, VA
Mr.Vic20 said:
According to the quote from the linked article, it appears that these brands ride on existing restaurants, so they still have to handle health code requirements. Your questions was my first question, so it's encouraging this is the case!

" Virtual concepts are brands that have no brick-and-mortar location of their own. They exist only digitally, as apps or on third-party marketplaces, with the fare produced by actual restaurants for delivery or takeout. "
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They don't have to piggyback on existing locations, although some do. Some set up kitchens that have no actual storefront. Just a pickup area for the various delivery services. They can handle the cooking for multiple different virtual restaurants out of one space.

Read my ghost kitchen link above.
 

mAcOdIn

Member
Oct 27, 2017
2,978
Mr.Vic20 said:
According to the quote from the linked article, it appears that these brands ride on existing restaurants, so they still have to handle health code requirements. Your questions was my first question, so it's encouraging this is the case!

" Virtual concepts are brands that have no brick-and-mortar location of their own. They exist only digitally, as apps or on third-party marketplaces, with the fare produced by actual restaurants for delivery or takeout. "
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So they say. It'd be super temping for people to cut all the corners since no-one ever sees the inside. Hell, lots of dine-in places kitchens are already nasty as shit.
 
vhyn

vhyn

Member
Nov 13, 2017
128
Westbahnhof said:
I'd hope so.. We had a scandal in Austria where (I think) dumplings for sale in restaurants were being made in, like, private apartments, which was very much illegal.
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Oh how could we forget the infamous Teigtascherlgate.
In this case the food is still prepared in a normal restaurant/kitchen except it's for a virtual food chain that normal restaurants can participate in
 
TheMadTitan

TheMadTitan

Member
Oct 27, 2017
27,305
skeptem said:
Yes. They still have to be made in a licensed kitchen and meet all food code requirements. I personally wouldn't order though because in the end you don't know where this place is or it's history.
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They have addresses. Toss the address in a search engine and 6/10 times, it's going to be an existing restaurant making meals outside of their theme (Chinese food place making burgers, for example), 2/10 it's going to be faux brands doing the above riding off of the companies bigger brand, and the remaining will be actual people in shared kitchen spaces they rent for the day to prepare food.

And the latter is what food trucks do before they hit the road if the owner doesn't have their own standing location.

It's easy to see where the food is coming from.
 
FinFunnels

FinFunnels

Banned
Oct 27, 2017
5,610
Seattle
Ghost kitchens have taken over delivery apps like Uber Eats and Door Dash. I always Google restaurants I've never heard of before to see if it's a real location or not. Some of the ghost kitchens are actually pretty good, though. But I haven't tried Mr Beast Burger. I usually get Shake Shack or Dick's Drive-In if I want a burger.
 
Bus-TEE

Bus-TEE

Banned
Nov 20, 2017
4,656
Sure, why not?

The brand recognition is there in Mr Beast which is half the battle.

As the article says the amount of investment needed to start this is low because you aren't opening any locations.

This seems like a total no-brainer.

I don't know why other celebs with a big online following don't do it too.

Snyder Cutlets?
 
Tobor

Tobor

Member
Oct 25, 2017
28,614
Richmond, VA
Bus-TEE said:
Sure, why not?

The brand recognition is there in Mr Beast which is half the battle.

As the article says the amount of investment needed to start this is low because you aren't opening any locations.

This seems like a total no-brainer.

I don't know why other celebs with a big online following don't do it too.

Snyder Cutlets?
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Snyder Cutlets serves only the darkest meat, it takes way too long to eat, and you throw up after every meal.
 
Zeshakag

Zeshakag

Member
Oct 28, 2017
463
chaobreaker said:
I know what a ghost kitchen is but how does a virtual brand get a bunch of unique and disparate kitchens to make the same kind of meal with the same level of quality? Franchises source their ingredients from the same places, use the same equipment, and have specific instructions on how to cook the food.

A Big Mac should ideally look and taste the same no matter where you are in the US. Can you say the same for even two MrBeast Burgers from two different locations?
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It appears you cannot, or at least the problem isn't solved yet. it's an interesting business problem to solve though. See, this vid for just how large the variance in Mr Beast food can be:

youtu.be

I Try MR BEAST BURGERS. - WHOLE MENU

Today, A Review on Mr. Beast Burgers. You can only order these burgers online, through any food apps.Support me on FACEBOOKhttps://www.facebook.com/qqquangtr...
youtu.be youtu.be
 
Zulith

Zulith

Member
Oct 25, 2017
4,776
West Coast, USA
haven't had a MrBeast yet, but these virtual places are all over the place. It's not hard to find them. If some new crazy concept pops up on your delivery app you never heard of you can check the address... a lot of times it's tied to another existing restaurant. They may operate their traditional location at certain hours, then switch over (or possibly even run simultaneously) to the virtual restaurant with an entirely different menu later on, usually as delivery only. They may even have multiple virtual restaurants operating in the same space.

Figured this out on my own a while back when looking at some new places that popped up on doordash and yelp that seemed to appear out of nowhere.
 
FeD

FeD

Member
Oct 25, 2017
4,277
Is there no takeaway.com equivalent in the States? Because I've seen loads of restaurants that are operating from Industry Areas where they rent on the cheap.
 
HStallion

HStallion

Member
Oct 25, 2017
62,262
I
Bus-TEE said:
Sure, why not?

The brand recognition is there in Mr Beast which is half the battle.

As the article says the amount of investment needed to start this is low because you aren't opening any locations.

This seems like a total no-brainer.

I don't know why other celebs with a big online following don't do it too.

Snyder Cutlets?
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Adam Sandlerwiches
 
Lump

Lump

One Winged Slayer
Member
Oct 25, 2017
16,098
I had it doordashed and it wasn't great. I'd rank it above total garbage like A&W or Dairy Queen burgers, but I'd still rather just have a quarter pounder. Coldest fries on this earth too.
 
Foltzie

Foltzie

One Winged Slayer
The Fallen
Oct 26, 2017
6,805
It is highly unlikely that the brand is able to maintain high quality standards for meat or produce using this type of roll out, therefore the product is likely leveraging seasonings or sauces, if not just the name and wrapping.

So sure, a YouTube or or other influencer may well be able to move a significant number of units but I doubt a higher end chain is in any real danger.
 
AlgusUnderdunk

AlgusUnderdunk

Member
Dec 30, 2020
15,330
This cracks me up as I generally have NO idea who YT influencers are, and all I can think is, "Welcome to the nonlocation of MrBeast Burger! Our kitchen is severely haunted!"

Burger in the image doesn't look terribly tempting. I'll stick with Mr.Avocado Burger.
340
 
Rodan

Rodan

Member
Nov 3, 2017
634
I wasn't sure of the ghost kitchen idea until I ordered Korean/Mexican fusion (think kimchee tacos) from my local Korean BBQ place. It was a different restaurant name and menu, and it was fantastic
 

Deleted member 13101

Banned
Oct 27, 2017
17,973
They took frozen crinkle-cut fries (the most boring kind) and drew them on the packaging, then possibly served them from some locations. Yum?

The return on this is the media buzz, marketing, and steering towards his channel. Imagine getting people a lucrative-earning product with a fast-food product as cover, without having to build out locations, or limit yourself to one community or geographic region - while reaping all the rewards of marketing and being seen as a pillar of the community. The product, unlike say from Los polls locos, is legal and is in high daily demand to the tune of tens of millions. So at its unlikely best you disrupt an industry, and it's worst you gain more subscribers.

The funniest thing is that he totally doesn't need to do this at all.

The saddest thing is that there is no push here for a national minimum wage or healthcare access/coverage or short path to citizenship. The entrepreneurship is highly subsidized by the low thread count of the social safety net.
 
riotous

riotous

Member
Oct 25, 2017
11,364
Seattle
Z-Beat said:
"Shadow Kitchen," lmao

Thing is, wouldn't you still need 300 physical locations for food storage, prep, delivery hubs, etc? I can't imagine this brand having enough revenue to keep these running. A house would need quite a bit of equipment for a chain like this
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They likely start not owning any kitchens, and just paying others to cook for them.

edit: Yeah see NinjaGarden's post 2 below this.. they sell themselves to kitchens wanting to make an extra buck.. could be a random mom and pop, or a "commercial kitchen" (catering companies and whatnot)
 
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Ablacious

Ablacious

Member
Dec 23, 2018
1,650
There are a couple of kitchen trailers hooked up at a gas station near me. They're a delivery hub for many different types of food.
 
skeptem

skeptem

Member
Oct 25, 2017
5,755
There are companies that will plaster your name on pretty much anything without you having to do much (I used to work for one). There was a recent wave of YouTube celebrity coffee beans that were just some private label company swapping the label and throwing in some mediocre coffee.

TheMadTitan said:
They have addresses. Toss the address in a search engine and 6/10 times, it's going to be an existing restaurant making meals outside of their theme (Chinese food place making burgers, for example), 2/10 it's going to be faux brands doing the above riding off of the companies bigger brand, and the remaining will be actual people in shared kitchen spaces they rent for the day to prepare food.

And the latter is what food trucks do before they hit the road if the owner doesn't have their own standing location.

It's easy to see where the food is coming from.
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You are correct. My mistake.

I just went through and found one near Cleveland that is straight up a Bucca Di Beppo.
 
WinFonda

WinFonda

Member
Oct 27, 2017
2,444
USA
so this is, essentially, rebranded local/regional burger joints? think five guys, in n out, whataburger, etc. partnering with them, giving them a newer, catchier, hipper coat of paint; perhaps made to the specifications of the brand, but perhaps not, and sold at a (likely) significant upcharge that both MrBeast and the restaurant enjoys because you're paying a premium to get "his" burger and fries and not the same old thing you could get anywhere.... only lol.
 
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