The famous hamburger chain WhiteCastle, known for its square-shaped greasysliders and for being the first fast-food burgerchain,was immortalized in the 2004 stoner buddy rompHarold & Kumar Go to WhiteCastle. White Castle's restaurants, modeled after the Chicago Water Tower andtraditionally made of porcelain, reflect a clean and consistent aesthetic thatspeaks to the quality of the food that consumers can expect from each andevery visit to this elusive den of tasty sliders.
In addition to their unique look and menu, White Castle restaurants are knownfor being hard to find, as referenced by the epic, night-long journey of ouraforementioned stoner pals.So, why is one of the nation’s most talked-aboutfast food restaurants, with its cult-like following, absolutely nowhere to befound on most street corners? Why haven't White Castle's owners franchisedtheir burger concept, extending their greasy goodness into all corners of thecountry?
The answer is actually pretty simple and proves that rabid customer loyaltyand a consistent menu, while not sufficient for world-beating growth, canstill take a brand a long way.
The White Castle Menu
White Castle, viewed by many as being the original fast food joint, is veryopen about having no interest in offering franchiseopportunities. Despite its founders beingcredited with inventing the hamburger bun and pioneering the kitchen assemblyline model that allowed so many fast food franchiseopportunities tothrive, White Castle franchiseopportunities don'texist and the company doesn't expand at nearly the same rate as other popularrestaurants. But with no public shareholders to answer to, White Castle has noexternal pressure to generate faster rates of growth -- so why rock the boat?
Why White Castle Doesn't Franchise
Surprisingly, the reason White Castle doesn't expand (and use the franchisemodel to do so) isn't so much that they hope to keep their restaurants aselusive as the famous Harold & Kumar buddy movie would suggest. It'sactually that White Castle's core offering of quality food and semi-localizedmenu options at low cost demands that its restaurants be located near itssupply facilities. And guess what? Building out or sourcing new facilities tosupport dramatic expansion across the country would require a huge investment(and, most likely, external capital and investor scrutiny). So, don't holdyour breath.
Perhaps this is why people swear by White Castle's bite-sized sliders andlaunch grassroots petitions begging the company to open facilities in morecities. Instead, White Castle opts to operate a limited number of restaurants,all near the meat plants, bakeries, and fresh produce facilities form whichthey source their raw materials -- thereby keeping costs manageable, keepingprofits up, and maintaining high levels of food quality while still allowingfor special, localized menu options based on each restaurant's region. Ifcustomers have to go out of their way to enjoy the White Castle experience,it's no big deal -- as long as White Castle maintains that experience and thepeople keep showing up.
White Castle Customer Loyalty
White Castle deeply understands its place in the fast food universe, andrightfully recognizes that rapid expansion (which would pit it in competitionfor customers against the very, very big boys) doesn't fit with its strengths.The company makes delicious little oniony burgers with a dill pickle on top: asimple, tasty proposition that attracts a sizable (though still relativelysmall) and very committed customer base. People know what they want when theycome to a White Castle restaurant, and the company has wisely avoidedtampering much with its menu. Although the company has added some new items,like a pulled pork sandwich, a basic selection of burgers and fries are whatthe company is known for -- and what has customers drooling on the drive over.
By contrast, other fast-food restaurants, such as the massive, worldwideMcDonald’s franchise,whose scale and ongoing growth requirements necessarily mean they MUST appealto a broad demographic of customers, are constantly updating and changingtheir menu items. From low-calorie options to healthier side items like applesand milk, these fast-food chains monitor the latest food trends, experimentingwith new products and combinations to attract yet more customers and keeptheir similarly aggressive and inventive competitors at bay. All the while,White Castle stays in the background, out of the fray of this competition --realizing that its time-tested and simple menu may not steal away customersfrom the McDonald's of the world, but confident that it will continue to drawin the White Castle lovers.
Much like the beloved California-based IN-N-OUTBuger (which set the restaurant world abuzz when itfinally expanded into to Texas), White Castle hasestablished itself, quite simply, as a burger and fries joint that appeals toa ravenously loyal (though relatively small) customer base. For a privatecompany, that's a very nice place to be.
White Castleis a Family Business
Since opening its doors in 1921, White Castle has found a source of pride in being family-owned and operated. Unlike other burger joints, White Castle’s ownership has strict control, even though the restaurant has nationwide marketing and advertising campaigns. White Castles are only available in 11 states, and the company attributes its very controlled growth over time to being family owned. It has been reported that, on average, White Castle opens just 10 new stores each year (compared to well over a thousand per year for McDonald's).
Despite remaining one of the most hard-to-find fast-food joints in thecountry, White Castle has a devoted group of customers who will do almostanything to get those famous sliders. “We do get stories about customerstraveling an hour, two hours, even overnight to get our product because it’sso unique. And you can’t find it anywhere else,” said Lisa Ingram, vicepresident of restaurant operations.
So, what's the bottom line? You can love their sliders and fries all you want,but don’t plan on owning a White Castle restaurant of your own anytime soon --unless you plan on marrying into the family!
