In our new vs Goliath series, we will be examining how smaller chains measure up to their larger national counterparts. These goliaths have a presence in every state with advertisements as far as the eye can see. Despite the popularity and capital of a large chain there are competitors who find a way to carve out their own market and win over consumers. This is the story of how those little guys have matched a goliath.

McDonald’s is the king of the fast-food hamburger, sorry Burger King. The golden arches are worldwide and seem to be on every other street corner. They have been around since 1955 and had movies and documentaries made in their name. They are famous for their fries, burgers, and shakes. Those shake machines have particular notoriety with an entire website dedicated to their availability. Not to mention their breakfast offerings which has also dominated the fast-food category. With all of this dominance, what hope does a smaller burger chain have?

Enter Whataburger, the Texas based fast food burger chain with the flying W challenging McDonald’s for supremacy. The smaller chain has no chance to beat the goliath in sheer size or spending, yet they have found their way into America’s heart. They often find themselves near the top of fast-food burger rankings and there is something special about that burger from Texas. Whataburger got its start in 1950 giving the brand plenty of time to earn loyalty. The company is significantly smaller with double digit locations in only eight states and the majority being in Texas. The company is slowly spreading to more states and franchise some of their locations. The smaller footprint could also contribute to a higher quality control. Part of McDonald’s appeal is that it offers the same food no matter where you go. However, it is well known that the quality of McDonald’s offerings vary greatly based on location. There are simply too many locations for corporate to oversee every franchised location. Their smaller footprint can allow for greater oversite from corporate and allows them to exercise their main advantage over McDonald’s. While they cannot compare in sheer volume or total systemwide sales, they have been able to become more profitable per location, over taking McDonald’s in 2015, and now generating 24% more revenue for each restaurant vs their competitor.

McDonald’s may be famous; however, is not known for its freshness. They have received scrutiny in the past for beef that wasn’t all meat and items aren’t traditionally made to order. Whataburger uses 100% fresh beef and fresh ingredients that top the burger. They also encourage customization and cook more items to order. Freshness is hard to find in fast food and they have used it to their advantage. Their menu is also more streamlined and focuses on their famous burger, fries, shakes, and some chicken items. This more limited menu allows for the use of fresher ingredients and cuts down on kitchen complexity. On the breakfast front, the morning menu starts serving at 11pm and offers more Tex-Mex inspired items. Nothing on the menu is as famous as the McMuffin, yet the unique offerings and extended timeframe has allowed them to make a name for themselves. It doesn’t hurt that many items at Whataburger are Texas sized when compared to their smaller McDonald’s counterparts.

The golden arches will always be the largest fast food burger chain, yet it has come with some drawbacks that Whataburger is able to exploit. McDonald’s sheer size means that they will never be able to compete on freshness and will have to rely on more frozen and cheaper ingredients. A more streamlined menu has allowed for efficiency in the kitchen that is hard to match. The goliath chain has struggled in the past with the kitchen battling to keep up with the variance of the menu. It is this very problem that led to them ceasing their all day breakfast offering several years ago. McDonald’s can’t be beaten in a head-to-head battle, yet Whataburger has leaned on their own strengths to make a unique product.

To learn more about these chains, check out our Chain Restaurant Premier database of all U.S. & Canadian multiunit foodservice establishments.