Whataburger's Chicago owners drive out-of-state expansion

Following its 2019 sale to Chicago-based investment group, BDT Capital Partners, Whataburger continues to expand outside of Texas in Colorado, Georgia, Missouri and more.Whataburger in recent months has made a new push into other states, continuing the expansion blitz that its sale to a Chicago investment group was predicated on three years ago.Nearly 900 miles

Kansas City got its first Whataburger late last year in part with financing from Kansas City Chiefs quarterback Patrick Mahomes, a public fanatic of the brand. The opening proved so popular that the local department of transportation warned residents to expect traffic delays.expansion of San Antonio’s test kitchenThe rapid growth of the Texas-centric burger chain isn’t just due to its soaring revenue. It’s also because of a strategy the company committed to three years ago.

But Whataburger has a leg up on the competition, Henkes and other analysts say, because of its relatively high-quality ingredients and the loyalty of its existing customer base. On the strength of that revenue, Whataburger’s expansion appears to be unfolding strategically, analysts say, with a focus on fast-growing areas in adjoining states.

James Turcotte, Whataburger’s executive vice president and chief development officer, told the San Antonio Business Journal at the time that “franchising allows us to open more stores in more areas and do that faster and efficiently.” Larry Reinstein, CEO of Dallas-based restaurant consultancy LJR Hospitality Ventures, said many large national chains like Burger King and Wendy’s have traditionally relied on franchising for rapid expansion and more so in recent years.

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