[al_borland]

I ordered a Beast Burger on Door Dash without having any clue it was a Mr Beast thing until it showed up and was heavily branded. I wanted a burger and figured I'd try something new. I had never really watched any Mr Beast videos at that point. For whatever reason, he is never recommended to me.

The seasoning was so strong it was a bit hard to eat. I assumed it was covering up for lower quality meat or something. I have no desire to order one again.

[huvarda]

Mr Beast burgers werent even a real restaurant. Theyre just faceless ghost kitchens with a mrbeast sticker slapped on top.

[dangus]

As it pertains to the original query of this comment thread, whether this is a real business model, it doesn’t really matter that it’s not “a real restaurant,” what matters is whether it’s a viable business that makes money.

Mr. Beast burgers is not really that different than McDonald’s franchising if you really think about it. Most people don’t buy a McDonald’s burger based on who the franchise owner is and how they run their restaurant, they’re buying a McDonald’s burger because of the McDonald’s brand and product.

McDonald’s captures 80% of ~~revenue~~ net income and leaves only 20% to franchisees.

Essentially, the concept is the same: the business value and profit margins are owned by the brand and the laborious act of delivering the product locally is a thin-margin interchangeable “ghost kitchen.” Not only that, the power dynamic is one where the franchise dominates the franchisee. The physical kitchen, its owner, and its employees are replaceable, the nationally recognizable brand is not.

I would argue that ghost kitchens basically take the franchise concept to the logical 21st century conclusion: essentially, why bother doing all the expensive stuff that McDonald’s does with their franchises when your storefront is digital and anyone with a flat top, fryer, and a pulse can follow the directions to produce your fast food product?

[hollerith]

>McDonald’s captures 80% of revenue and leaves only 20% to franchisees.

Most of the revenue goes to paying employees, real estate cost (rent or depreciation), energy cost and cost of ingredients. You mean, "captures 80% of the net income". Or profit.

[dangus]

Yeah I think you’re right.

The numbers I’ve been able to find are:

4-5% of gross sales as franchise fee

8-12% of gross sales as rent (McDonald’s corporate is often the landlord)

I.e., 12-20% of gross sales are going to McDonald’s.

[al_borland]

I’ve tried various things from ghost kitchens via Door Dash. Some are better than others.

From the little I understand, someone like Beast Burger would come up with a recipe, then provide the supplies and recipes to the ghost kitchen to make it. If the ghost kitchen is really Chili’s, it’s not the Chili’s burger showing up when a Mr Beast label, it’s Chili’s Employees in the Chili’s kitchen, making the Beast Burger recipes.

[kalleboo]

The quality control on the Mr Beast Burger was so bad he sued the virtual kitchen company that was producing it https://www.aol.com/mrbeast-sues-shut-down-ghost-110013067.h...

[ChickeNES]

My understanding is that they had massive QC issues. I ordered one on a lark and actually liked it, ended up getting a few times. But from what I've seen online that was not a universal experience.