Thursday, May 27, 2010

Whataburger will survive in Dallas but who will fail?

In & Out Burger is planning on opening new units in the Dallas metroplex. The competition for customers in the Quick Service Burger category is heating up! This time around someone is going to lose. I will say that it will not be Whataburger. Whataburger has established itself as a “Texas” original and Texans will rally around it over time.

What about Sonic and Jack in the Box; have their menus created a point of differentiation to resonate long term with the consumer? Five Guy’s is picking up steam and now competing for sites with In & Out will the franchisee be able to compete with a solid well backed company like In & Out?

McDonalds owns a place in the hearts and minds of all American burger lovers! One on one they can take a short term hit but they will be just fine. National advertising will carry the day.

Wendy’s & Arby’s with 650 million in new debt; franchisee’s who have been over looked while the parent company “reorganized themselves. Well they will have to battle Burger King for the remaining consumers? It looks right now to be a toss up! Does the King know where it is $7.95 ribs or burgers for a $1:00?

One thing is very clear In & Out will have to open 30 plus unit to garner solid market share and if they do, they will disrupt the national landscape in the burger category. If success leaves clues, In & Out Burgers entrance into Texas will cast a shadow that some will never be able to come out from under

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