Whataburger is making strides in its Arizona expansion with the groundbreaking of yet another location in Gilbert. This latest addition will be situated on the southeast corner of Gilbert Road and Warner Road, conveniently located just south of Black Rock Coffee Bar. As part of Whataburger’s ongoing effort to meet the growing demand from local fans, this new location will provide residents and visitors with easy access to the brand’s famous burgers and southern hospitality.
Whataburger has started to franchise their restaurants for the first time in nearly 20 years. This approach enabled Whataburger to open more locations in more areas, faster and more efficiently.
Whataburger’s recent expansion in Arizona is likely due to several key factors:
In 2019, the Dobson family sold a majority stake in Whataburger to BDT Capital Partners, a Chicago-based investment firm, to support the company’s growth:
The Dobson family aimed to pursue long-term expansion and sought a partner who would uphold the brand’s values and culture. BDT Capital Partners provided the necessary capital and strategic guidance, helping Whataburger expand into new markets.
Strong Market Demand: Arizona has shown significant enthusiasm for Whataburger, with a dedicated customer base. This strong consumer demand makes it a prime location for growth.
Population Growth: Arizona, particularly the Phoenix metropolitan area, has experienced rapid population growth. More residents create a higher demand for fast-food options, making it a favorable market for Whataburger to tap into.
Strategic Expansion: Whataburger has been expanding beyond its traditional Texas stronghold, and Arizona is seen as an attractive market because of its proximity and cultural similarity to Texas. The company is taking advantage of the opportunity to fill gaps in the fast-casual dining space.
Franchise Opportunities: Many of the new Arizona locations are likely driven by franchise partnerships. Franchisees see the opportunity to bring a well-known brand into a growing market, which in turn accelerates the company’s expansion efforts.
These factors together make Arizona an ideal market for Whataburger’s continued growth.