White Castle, the Oldest Hamburger Chain in the U.S., Embraces On-Demand Tech
*By Michael Teich*
Convenience has been the prime selling point for fast-food joints for decades, but new technology and a surplus of on-demand delivery options are eating away at the value proposition for companies building their business around speed and drive-thru lanes.
"Delivery is really reshaping the whole landscape, and those that are early adapters are really going to benefit," said White Castle VP Jamie Richardson in an interview with Cheddar.
The popularity of on-demand delivery services has prompted restaurants to either create partnerships with those companies or risk falling behind and missing out on consumers who prioritize convenience. White Castle has made an effort to get on-board early by expanding delivery to more than 300 locations in partnerships with GrubHub ($GRUB), DoorDash, Postmates, and Uber Eats.
"It's changing everything," Richardson added.
White Castle's mobile app is another way the Columbus-based chain is looking to optimize the consumer experience and boost sales. Richardson told Cheddar that White Castle's app "doubled in terms of the percent of sales it represented this year." People who order fast food via a mobile app or online increase their spending by 20 percent, according to Deloitte.
"For us, it's all about the app. The mobile app is something we can empower each of our customers with," he said.
While technological advancements and speed of delivery improve the consumer experience, quality of food and menu diversity are also crucial, Richardson stressed. Four months ago, White Castle became the largest fast-food chain to implement the Impossible Burger, a meatless burger substitute, on its menu.
It's not just for vegans, he said. "People love a range of tastes."
Cheddar News breaks down what to look for on The Day Ahead. The House will hold a hearing on the federal response to the recent banking issues while Starbucks CEO will testify on Capitol Hill about union-busting claims. Disney Parks workers are set to vote on a new contract proposal.
A new indictment charges FTX founder Sam Bankman-Fried with directing $40 million in bribes to one or more Chinese officials to unfreeze assets relating to his cryptocurrency business.
Producing your own food doesn't mean you have to own your own farm, and it might be as simple as raising some backyard chickens. Agri-tech startup Coop aims to make this easier for non-farmers with a so-called "smart" chicken coop. Cheddar News Senior Reporter Michelle Castillo found a flock to learn more.
Capitol hill is trying to get to the bottom of the bank collapses that shocked the financial system last month, and today lawmakers grilled banking regulators about why they weren't able to stop the crisis. Cheddar News correspondent Lisa Bennatan broke down the proceedings.
Alibaba is splitting itself into into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increase the value of those units.
Juul will finally have its day in court for its role in the teen vaping epidemic. The Minnesota attorney general is preparing for opening arguments in the state's lawsuit against the vape maker. Here to break down the complicated backstory for this legal case is Senior Reporter Chloe Aiello.
