In New York and a handful of other densely populated cities, you can sit in a Starbucks (SBUX), look out the window and see another Starbucks. That's a bizarre sight, but it makes sense in an area where the occupants of a single office building might keep a cafe busy all day.
Starbucks -- more than any other chain -- has embraced the idea that one of the solutions to busy stores is to simply open more stores. The coffee company has done that in big cities, adding mobile-order-only stores alongside its traditional cafes.
Starbucks fully embraces the idea that people will wait only so long, and sometimes the way to be efficient is simply to have more locations.
Chipotle (CMG) has solved the same problem in a different way. It has added a so-called make line in all its stores to handle digital orders. That doubles the capacity in its restaurants and improves the experience for in-person customers as well.
Now, another iconic fast-food brand, White Castle, has a problem with one of its restaurants being too busy, and it's borrowing the Starbucks solution.
White Castle Doubles Down
White Castle is famous for its sliders, little burgers that people buy by the bag, opened its largest location, in Orlando, in 2021.
That restaurant quickly rocketed to success and will sell more than five million hamburgers in its first year. Demand at the location has been tremendous, with it being open from 7 a.m. until 4 a.m. and planning to go 24-hours this summer.
"We had so many loyal fans in Central Florida who were eagerly anticipating White Castle's arrival, but the response this past year has far exceeded our expectations," said Jamie Richardson, vice president at White Castle, in a statement.
That's more demand than the store can handle, and White Castle has a solution to fix the problem. Because it's already pushing its Orlando kitchen to the brink, White Castle plans to open a takeout-only location next to its existing Orlando castle.
“The investment in this new space allows us to offer a delivery and pickup option for customers on the go who are craving convenience,” White Castle Vice President Jamie Richardson told the Orlando Sentinel.
That's a simple solution, but it's also a bold bet because it's operating from the assumption that demand for White Castle in Orlando isn't driven by novelty. This is the chain betting that having a location in a city that's a huge draw for tourists will continue to pay off.
White Castle Continues Its Comeback
At a time when burgers have gone more upscale at chains like Five Guys, White Castle has leaned into nostalgia. The chain's Original Sliders are a throwback to simpler times when fast food was about being fast and delicious (and nothing else).
That doesn't mean the company has not evolved with the times. In addition to its classic hamburgers, it also offers a fish slider, a chicken and waffles slider, and a plant-based Impossible slider.
The Columbus, Ohio, chain operates more than 375 restaurants in 14 states. It also "sells its famous fare in retail stores nationwide, in a growing number of international locations, and at military exchanges around the world," according to the company.
