WHATABURGER ENTERS A NEW ERA CONTINUED...
LEADERSHIP
the brand. You’ve showed responsi- bility to your people. So let’s elevate your role to a different role, operat- ing partner.’” The company also pushed more technology. It created a loyalty pro- gram last year, Whataburger Re- wards. It also opened a digital-only restaurant where customers order via app or kiosk. Whataburger is continuing to in- vest in technology, Nelson said, on both sides of the counter to make life easier for customers and em- ployees. “We’re investing heavily in some systems to be able to really con- nect,” Nelson said. “It’s a family member connection, real time. It’s a customer connection, real time. And the information goes back into the hands of our operating partners and market leaders, real-time.” LEADERSHIP CHANGE Nelson, however, said that it’s time for him to hand the brand over to someone else. “It’s been such a phe- nomenal, phenomenal five years,” he said. “We have a great team in place now. It’s time for me to step back and watch the brand flourish again under Debbie.” Stroud represents another change for the brand. She was hired last year to be Whataburger’s chief operating officer, and before that spent more than 30 years with the world’s two biggest restaurant chains: McDonald’s and Starbucks. Stroud spent 27 years with Mc-
inflation to be what it has been.” The pandemic, obviously, cre- ated all kinds of problems. So did its inflationary aftermath, as those resignations led to a spike in labor costs that drove up menu prices, which in turn has created its own set of issues. Whataburger awarded $90 mil- lion in bonuses to the company’s employees, or “family members,” for their work during the pandemic. The pandemic, Nelson said, gave employees an opportunity to show the company what they could do. Whataburger in response connect- ed bonuses to success metrics. “It gave me the opportunity to really align bonus levels to the level I saw people,” Nelson said. “And once you see people at a different level, you inspire them to that level, you elevate them to that level.” The company also elevated gen- eral managers into operating part- ners so they are more visible in their local communities. “We were the only brand that stayed open 24 hours a day, seven days a week during COVID,” Nelson said. “My general managers at that time led at a higher level. They were responsible and took care of their people. They were conscientious and they showed up every day with the leadership team at Whataburger to stay open 24 hours a day.” “Part of transitioning out of COVID was [to tell] general manag- ers, ‘You have shown your ability to lead. You’ve shown your passion for
It will be up to Stroud to lead the chain in its 75th year and beyond. Nelson and Stroud sat for an ex- clusive interview for an upcoming episode of the Restaurant Business podcast A Deeper Dive. THE TRANSITION Harmon Dobson founded Wha- taburger as a small burger stand in Corpus Christi, Texas, in 1950. His plan was to serve burgers so big that customers would hold them with both hands and exclaim, “What a burger!” By the end of the decade, the brand had 21 locations, including its first outside Texas in Pensacola, Florida, according to the company’s website. The chain’s restaurants are open 24 hours and serve a wide-ranging menu. But burgers remain at the center that customers can custom- ize with various toppings such as jalapenos or grilled onions and they can dip their fries in spicy ketchup. The menu also features the chain's popular Patty Melts. Nelson joined the company in 2004 as controller. He was pro- moted to chief financial officer four years later and then president in 2019. He was then asked to become the CEO just after BDT took over ma- jority control of the company. “BDT asked me to bridge the transition from family owned to private equi- ty, merchant bank-owned,” Nelson said. Any ownership change can be difficult. But it can be particularly challenging for companies that were owned by one family for several de- cades, only to be sold to an invest- ment firm. Nelson, however, said the transition has gone smoothly. “It’s been a phenomenal transi- tion,” he said. But he then added this: “I didn’t plan for COVID. I didn’t plan for the Great Resignation. I didn’t plan for
“We were the only brand that stayed open 24 hours a day, seven days a week during COVID. My general managers at that time led at a higher level. They were responsible and took care of their people. They were conscientious and they showed up every day with the leadership team at Whataburger to stay open 24 hours a day.” - WHATABURGER CEO ED NELSON
42
RESTAURANT BUSINESS OCTOBER 2024
Powered by FlippingBook