What Businesses Should Take Away From This Influencer Opening a Restaurant Chain
YouTuber MrBeast opened a nationwide burger restaurant in the US
The drive-thru line was miles long, and his app ranked #1 in the App Store - all with no ads
This highlights a shift in how businesses get started and compete
One of the biggest YouTubers just opened a burger chain in the US. I know most won’t think much of it, but it highlights a very important change that’s happening in retail and commerce.
Let me explain.
When most businesses begin, they will look to create fans and gain customers. It usually starts with their network of people they know, and will grow through advertising, publications and word-of-mouth.
More recently, early DTC (direct-to-consumer) businesses were able to do this on a large scale by taking advantage of up-to-date social media marketing and its cost-efficient advertising costs.
The “typical” approach has been to Create the business, then build the audience.
As I mentioned in a previous blog I wrote, however, commerce and communication are increasingly merging.
What do I mean by that?
Traditionally in business, we have the “commerce” aspect on one end (ex: shop, restaurant, online store, etc.), and the “communication” aspect of it in order to gain awareness and get customers (ex: magazine ads, TV commercials, social media posts, etc.) on the other.
The two are increasingly blending together.
It’s why social networks are growing their eCommerce and live commerce (selling via livestream, something China is way ahead in) functionalities, and retail brands like Red Bull have created their own media production companies.
But why is an influencer like MrBeast launching a business worth paying attention to?
First, about MrBeast and what he did:
Real name Jimmy Donaldson, born in 1998
48.5 million YouTube subscribers (more than many corporate publications)
2nd biggest YouTube earner in 2020 (USD $24M)
Known for expensive stunts and philanthropy (but not food)
He opened up a brand new 300-location burger chain across the US together with Virtual Dining Concepts
This launch shines a light on this important change in retail and commerce:
The “new” approach is becoming have the audience first, then build the business.
Social media has allowed individual people to build a network of this type of scale.
And imagine already being able to get insights on millions of people in your network before you even open up shop. You’d get a better sense of product variety, location, pricing - a lot.
With all variables the same, the influencer can beat the businessman at launching the same business because they already have a large network that cares about who they are and what they do.
Celebrities and athletes have had endorsements and launched businesses based on that concept for a long time now as well, but the difference is rather than only being able to connect with them via channels like TV or magazines, fans are connected with influencers on multiple channels every day through a device they always carry and are always looking at. And there’s no corporation or label standing in between.
This is why celebrities like Will Smith have worked to become social media influencers. It’s begun here in Japan as well.
Someone like MrBeast can simply announce he’s opening up a business and have cars lined up for miles.
Cars waiting to try MrBeast Burger. Screenshot from MrBeast.
Not to mention, his app shot up to #1 in the US, and many other people and media publications are talking about what he’s done. All with no money spent on paid advertising.
The traditional businessperson opening up a burger restaurant can’t do this.
What’s even better about his business is that it’s completely direct-to-consumer.
Through Virtual Dining Concepts, a company that provides turnkey solutions to operating virtual restaurants, he’s using cloud/dark/ghost kitchens - rented industrial kitchen spaces - that makes it easy to relocate when needed, has virtually no retail footprint, and has the food delivered in minutes via food delivery services all while getting consumer data and credit card registrations via the app.
Influencers of all sizes will continue to get into more and more retail and commerce spaces.
There’s potential to get more money than just that from ad revenue as well as an opportunity to achieve their goals. In MrBeast’s case, a portion of each sale goes to food relief charities in the US.
This is why businesses now need to be competent at modern communication.
Let’s be honest. Most businesses aren’t novel with cutting edge products and services that people feel they can’t do without, and most don’t have deep enough pockets to keep running ads in order to maintain purchase numbers, all while not losing marketshare to a better communicating competitor.
This is why the modern communication aspect is huge - it builds reputation.
If there’s one lesson to take away from this:
Businesses are in the communications and media space now at a deeper level than just being an advertiser. They have to be - their next competitor might already have a much larger and more passionate fan base before their business even opens.