WHAT-A-CHANGE

Ken Hoffman digs into the juiciest questions after Whataburger's surprising sale

This article originally appeared on CultureMap.


The headline induced heart palpations in drive-thru burger fans across Texas and neighboring states … "Texas-based Whataburger sells to new owner amid expansion plans." While that sounds unsettling, the real concern is:

What does this mean to Whataburger's everyday (sometimes twice-a-day) customer in Texas?

In the immediate future — like tomorrow, next week, next year — probably very little. But in the long run, all bets are off. Most likely, there will be significant changes at your local Whataburger over the next three to five years.

Whataburger is now owned by a private equity company (Chicago's BDT Capital Partners), which may not know a Chop House Cheddar Burger from a Whatacatch Sandwich — and doesn't understand that when you're stuck in morning traffic on I-45, nothing beats a Honey Butter Chicken Biscuit.

That investment company bought Whataburger for only one reason: to make money. Shocking, that's what investment companies do. They are not fast food philanthropists. They're financial killers who want to see a return on their investment.

What's next?

So don't be surprised if they take Whataburger national. That's my big takeaway. It may mean Whataburger may have less Texas on its menu in the future.

The new owners are buying a very successful or stagnant company, depending on how you crunch the numbers. According to QSR Magazine, the bible of the fast food industry, Whataburger is only the No. 22 fast food chain in the U.S. — with total sales of $2.2 billion for its 821 restaurants across 10 states.

But, more important, Whataburger has the second highest sales per store, $2.7 million. That beats the average McDonald's, Taco Bell, Burger King, Wendy's, etc. — the whole bunch of national biggies. Only Chick-fil-A has higher sales per store, a printing press $4 million.

What a deal?

If Whataburger is so successful on a per-store basis, why did the owners sell? Two factors, one probably, one definitely. In Godfather terms, the investment company probably made them an offer they couldn't refuse. While Whataburger has phenomenal sales per unit, it was growing at a very slow rate — only 15 new restaurants in 2017. That same year, Chick-fil-A opened 140 new restaurants. Taco Bell opened 168 new units. Domino's expanded by 216 locations. Popeyes popped the lid on 147 places.

Continue reading on CultureMap to learn about how the rising price of beef could impact burger chains.

40 years later the amazing moment in sports history still holds its place

Do you (Still) believe in miracles?

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It's hard to believe, but this week marks the 40th anniversary of "The Miracle On Ice" A result and event where "if scripted", Hollywood would immediately reject on general premise, due to it's improbability. For a younger generation who is unfamiliar with the story (or the odds), visualize a bunch of nobodies and college kids two weeks ago trying to defeat Patrick Mahomes and the KC Chiefs in the Super Bowl. Then, magnify that by about 50 times, and you'll have the general scope and idea. You see, this is exactly what TEAM USA was comprised of, a bunch of college kids, and nobodies going up against the mighty Soviets.

The average age on the American team was 21. They lacked speed, fire power and the tenure of their opponents. The Soviets hadn't lost an Olympic Hockey game since 1968. They had won 4 straight Gold Medals with their core players intact for entire stretches of their Olympic and Global dominance. By contrast, the only American returning from the 76' games was Buzz Schneider. Schneider would actually score the first goal vs. the Soviets. If you ask most American's today, they probably think Buzz was one of the astronauts. The Soviets were so dominating in this era, they had even defeated the NHL All-Stars 6-0 in 1979 to easily win The Challenge Cup.

Lake Placid, New York served as the backdrop for the 1980 Winter Olympics. Lake Placid is a small village in Essex County, NY with a population today of around 2,500 people. If you visit, it's amazing because everyone in that town claims that "they" were in attendance or had their elders in the tiny 8500 seat arena with their families. What makes the story even more remarkable, is that the matchup wasn't even supposed to happen. The U.S. were heavy underdogs even their opening contests with Sweden & Czechoslovakia. Not to mention, that no one really anticipated a contest vs the Soviets as a mere two weeks prior, the Soviets had easily defeated Team USA in an exhibition game at Madison Square Garden by a score of 10-3. Adding insult to injury in that loss, was defenseman Jack O'Callahan pulling ligaments in his knee. Jack remained on the Olympic roster, but played sparingly throughout the tournament.

The Soviets steamrolled through their tier of countries, defeating Japan, Netherlands, Poland, Finland & Canada by a combined margin of 51-10. The American's railed for a 2-2 draw in their opening game vs. Sweden, then stunned the Czechs, and then handled, Norway, Romania & West Germany. Thus the stage was set. There are edited versions of the historic matchup available for viewing on YouTube. Unlike the late Jim Mckay who refused to reveal the result on ABC's coverage (the game had been played several hours earlier) would never have had the impact in today's age of social media, and technology. Most American's had no idea the result prior to the game's airing on that tape delay. As a 9 year old kid at the time, this was certainly the case for me! This improbable upset didn't actually secure the Gold Medal. Team USA had to play Finland (trailed 2-1) before rallying 4-2 for the victory.

The "Miracle On Ice" launched some amazing sports moments in the decade to come. The Flutie Hail Mary, Lorenzo Charles stunning the Cougars, Nova shocking the Mighty Hoyas, but nothing could ever match American Pride on February 22nd, 1980 after the Soviets went down 4-3.

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