Technology

Whataburger opens a digital-only restaurant

The location in Austin, Tex., is cashless and seatless and without a traditional drive-thru. Customers order via mobile app or kiosk.
Whataburger digital kitchen
Whataburger opened a digital-only kitchen in Austin, Tex. this week. | Photo courtesy of Whataburger.

Whataburger’s latest restaurant doesn’t take cash.

The Whataburger Digital Kitchen, which opened in Austin, Tex., this week, is the chain’s first digital-only restaurant, where customers order via the company’s mobile app or through kiosks and get their food through a pick-up lane or a food locker.

The location does not have seats and it doesn’t have a traditional drive-thru, joining the ranks of brands experimenting with locations targeted specifically at the digital consumer. The location has a staff of 50 people, which Whataburger calls “family members.” The location is open 24 hours a day. The mobile pickup lane replaces the drive-thru, and food lockers on the exterior of the building are weather-resistant.

Austin, a technology hub, also made sense for the test. “Our Austin guests were early to embrace other digital innovations, making it a perfect fit for our first Whataburger Digital Kitchen,” CEO Ed Nelson said in a statement.

Restaurants continue to experiment with new prototypes targeting takeout customers, as to-go orders remain dominant in the post-pandemic economy. They are particularly interested in encouraging more digital orders, which are more profitable because they tend to be larger than in-person orders and operators don’t have an employee taking the order.

Such orders also come with more data, and potential tie-ins with companies’ loyalty programs give them the prospect of one-to-one marketing. Chick-fil-A this week, for instance, announced plans to expand its mobile order lanes to some 300 restaurants by the end of this year. Brands are experimenting with digital kitchens, drive-thru-only locations and various takeoffs.

Whataburger is the nation’s fifth-largest burger chain by sales, according to data from Technomic. The San Antonio-based chain, founded in 1950, generates more than $3 billion in annual system sales from its 950 locations.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Podcast transcript: Dutch Bros CEO Christine Barone

A Deeper Dive: Here is the transcript for the May 29 podcast with the chief executive of the drive-thru coffee chain, who talks real estate, boba and other topics.

Financing

McDonald's value perception problem is with its lighter users

The Bottom Line: The fast-food giant took the extraordinary step of publicizing average prices this week. It was speaking to its less-frequent customers, who are a lot less likely to say the chain is a good value.

Financing

CEO pay soared last year, despite a volatile period for restaurants

Pay for CEOs at publicly traded restaurants took off last year, but remains lower than average among public companies, even as tenure for the position remains volatile.

Trending

More from our partners