Mr. Beast Burger is a fast-food restaurant chain founded by YouTuber MrBeast in North Carolina in 2020. It is a delivery-only brand, meaning that the kitchens that prepare the food are ghost kitchens – see below for more information – and that there are no in-person stores and dining options. And that there are no in-person stores and dining options. There are currently over 1,000 kitchens under the MrBeast Burger name across North America and Europe, and there are plans to dramatically expand operations in the near future. The restaurant chain gets its name from YouTuber MrBeast, whose fame and loyal followers have ensured that the chain has grown in popularity.
MrBeast Burger is available to license and is not formally considered a franchise. This allows MrBeast Burger to avoid FTC regulations concerning franchise sales.
Existing restaurant owners who successfully receive a MrBeast Burger license are able to produce MrBeast Burger items out of their surplus kitchen space, which allows them to increase revenue. Such a concept helps small, local businesses boost their income and keeps them open and thriving.
A ghost kitchen – otherwise known as a delivery-only restaurant or a virtual kitchen – is a food preparation facility set up to prepare delivery-only meals. These kitchens do not include a storefront or seating for customers, although some ghost kitchens have opened drive-thrus. Their main purpose is to prepare meals for a restaurant, which they then pick up for delivery or take-out.
Ghost kitchens have risen in popularity in recent years because of the rapid growth in restaurant delivery meals, facilitated by apps such as Grubhub, UberEats, and DoorDash. Established restaurants with dining options will use a ghost kitchen to expand their delivery and take-out options without putting additional strain on their existing kitchen or taking up parking from the delivery vehicles.
Ghost kitchens are not a new concept, but they took off during the coronavirus pandemic due to the increased demand for delivery rather than sit-down options.
Because most of the people who watch his videos are young, MrBeast uses the phantom kitchens to his advantage. These consumers may have difficulty traveling to in-person restaurants, making delivery options to be more convenient and accessible.
MrBeast is an American YouTuber known for his expensive stunt videos. Officially known as Jimmy Donaldson, the 23-year-old MrBeast has 163 million followers across all platforms, making him one of the most popular internet celebrities. Most of his videos center around two ideas: giving away lucrative prizes as a result of simple challenges, or participating in grueling punishments. For example, some of his most popular video titles include “I Spent 50 Hours in Solitary Confinement”, “Anything You Can Fit In the Circle I’ll Pay For”, and “$456,000 Squid Game in Real Life”; each of these videos has an over 150 million views.
These videos with their appealing, curiosity-inducing titles and thumbnails often go viral, drawing the attention of a large audience. Donaldson has recognized that large monetary prizes are critical for viewer engagement and retention; to this end, his videos often include donating large sums of money to individuals or charities. Such partnerships have benefitted his image and income streams, because, in January 2022, Forbes ranked MrBeast as YouTube’s highest-earning creator, with income exceeding $54 million in 2021.
MrBeast has also gained fame and recognition for his philanthropic contributions, including his partnerships with TeamTrees and TeamSeas, organizations that plant trees for every dollar donated and remove waste from aquatic ecosystems, respectively.
MrBeast’s exciting videos, entertaining personality, and philanthropy, among other things, have made him a very popular entertainment star. Recently, an opinion poll by SurveyMonkey in 2021 found Donaldson to be one of the most liked YouTubers with a 70% approval rating and only a 12% disapproval rating.
The MrBeast Burger menu features many items normally found in a fast food restaurant. It has various burgers, named after MrBeast’s friends, chicken sandwiches, Impossible burgers, and various sides and desserts. The online menu features bright colors and bold fonts, which speak to the flashy and entertaining lifestyle of MrBeast.
MrBeast Burger items are priced slightly above similar items at bigger fast-food restaurants, such as McDonald’s and Burger King. For example, MrBeast Burger burgers fall in the $8 to $11 range, while McDonald’s burgers are mostly between $6 to $8.
MrBeast Burger‘s popularity is a product of MrBeast’s own popularity. The social media star has an enormous following across all of his platforms, most notably YouTube. However, customers at MrBeast Burger should make a distinction between MrBeast – the YouTuber – and MrBeast Burger – the restaurant and its associated food products. While MrBeast has been a successful and popular persona, the MrBeast Burger brand has drawn mixed reviews since its opening.
MrBeast Burger has had varying degrees of success across different metrics. The mobile app has a 4.3 out of 5-star average based on over 3900 reviews. Many comments left by users speak to the buggy, rudimentary design of the app, which has resulted in transaction delays and canceled orders. As of April 2022, MrBeast Burger doesn’t allow for special instructions or sufficient customization of items on either the app or on web orders, which has irritated some customers.
On Yelp, MrBeast Burger has received an average rating of 2.0 out of 5 stars based on 53 reviews. While the demographic who reviews on Yelp might be skewed towards those who have had a particularly bad experience, many customer reviews pointed to the same glaring errors. Fries were soggy and bland because MrBeast Burger’s packaging seals the fries, and the burgers had “cafeteria grade” buns and flavoring. Others have commented on the “dry aftertaste” of the burgers, and one viral video even pointed out the bun was moldy.
As a result, prospective franchisees should be wary of the public’s perception of the brand. Although teens and young adults are attracted to the company because of MrBeast’s appeal, the actual burger product does not meet the expectations of many.
According to the company website, individual MrBeast Burger restaurants can make profits of around $500 a day.
Overall financial information about the entire chain remains unclear. MrBeast Burger has not published any information regarding the profitability of the entire business and has no reason to do so, considering they are privately owned.
MrBeast Burgers may appear to be appealing to potential franchise owners to begin with. There are no additional franchise fees. The only fee paid is commission to the third-party marketplace. Costs associated with the brand are largely operational costs, with food, packaging, and platform fees being the main ones.
As such, the overall overhead costs of licensing a MrBeast Burger franchise is much lower than a traditional burger franchise, which boils down to three reasons. First, the MrBeast Burger kitchens are not a traditional burger franchise in the sense that they are entirely virtual. There is no need to provide indoor seating or a customer storefront, which reduces costs associated with rent and leasehold improvements. Second, most MrBeast Burger kitchens operate out of an existing kitchen.
The cooking and food preparation facilities needed to produce items for MrBeast Burger exist in kitchens, meaning that the fixed costs associated with equipping a kitchen for a normal fast food franchise is more or less eliminated. Lastly, owners who operate a MrBeast Burger kitchen don’t have to worry about marketing costs. MrBeast and his friends endorse the brand on social media and hire celebrities to promote the burger chain at no additional cost to the kitchen owner.
There are currently over 1,000 MrBeast Burger kitchens across North America and Europe. MrBeast has aggressively planned to open more shops. MrBeast Burgers can be easily scaled, considering the marketing and brand already exists and all the company needs is a kitchen and a suitable market.
Prospective investors should treat MrBeast Burger license opportunities with caution. The concept behind it is great: the kitchens provide small, local businesses with extra income, while consumers get to enjoy the MrBeast brand. However, there are multiple red flags about the brand, such as the mixed reviews about food quality, service, and delivery options. Additionally, financial information regarding the MrBeast Burger franchise is unclear, with profits likely varying by location and kitchen size. Though MrBeast Burger has plans to expand, the initial hype that propelled the company may dwindle, so the future outlook of the burger chain may be uncertain.