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How to Sell MrBeast Burgers and Total Cost to Get Started 

MrBeast is one of the most subscribed content creators on YouTube, with 108 million subscribers as of October 30th, 2022. With that kind of star power backing up the MrBeast Burger chain, it’s no surprise this entrepreneur has created a franchise with over 1,700 locations as of this past September, with more openings shortly. But first, let’s cover how to start selling MrBeast Burgers and the total investment cost.

Selling MrBeast Burgers at a Glance

How to Start Selling MrBeast Burgers

What are mrbeast burgers, mrbeast burger menu, how much does it cost to license mrbeast burgers, early reviews of mrbeast burgers.

• Franchise vs License: What’s the Difference?

Advantages of the MrBeast Brand

Disadvantages of the mrbeast brand.

Page Contents

Who Is MrBeast?

Franchise vs license: what’s the difference.

Unlike other franchises, the main cost of MrBeast burgers comes from licensing the packaging and the menu. Their business model involves using existing commercial kitchens and restaurants and allowing them to use the MrBeast brand through a licensing agreement. If you want to start a restaurant franchise instead of licensing, take our 8-minute quiz to be matched with something that fits your budget and interest. 

MrBeast YouTube Channel.

MrBeast burgers are largely “virtual” partnerships, meaning the brand allows restaurants to use their branding and offer the menu on delivery apps . That said, the brand doesn’t post its licensing fees, requiring potential partnerships to apply through its website for the latest costs. However, this licensing deal costs less than other franchise opportunities, mainly because it depends on an already existing business or kitchen to host the product rather than starting a business from scratch. 

Before we discuss MrBeast Burgers and their licensing opportunities, let’s first take a closer look at the MrBeast brand and how MrBeast became the YouTube and restaurant star he is today. 

Jimmy Donaldson, now more commonly known as MrBeast, started his entertainment empire with a simple YouTube channel titled “MrBeast6000” back in 2012. This YouTube channel, which began when the influencer was only 13 years old, has grown into the internet sensation that is MrBeast. 

From early “let’s play” videos (videos where individuals stream or record themselves playing a game) to MrBeast’s now-infamous video recreating the Netflix series Squid Game in real life, including the lofty $456,000 prize , this YouTube has gained a reputation for over-the-top cash prizes and surprising levels of philanthropy. But, before fans of Squid Game get concerned, MrBeast did not stay true to the murderous themes of the TV show and has a history of donating to various causes, including other content creators. 

In fact, as of October 29th, 2020, MrBeast is eyeing a $1.5 billion valuation for his brand empire , making it clear that these insane challenges and fan-fed marketing opportunities aren’t going anywhere soon. So what better way to capitalize on the influencer-led marketing that is the MrBeast name than investing in MrBeast Burger?

MrBeast burgers gained notoriety for being a “ghost franchise.” This title takes inspiration from the idea of a “ghost kitchen,” which became popular during the early 2020s pandemic shutdowns. In both concepts, a restaurant only operates through virtual distribution channels, including meal delivery apps. However, MrBeast Burgers takes the idea of a “ghost kitchen” to a new level, licensing the menu and branding it to restaurants in exchange for the burgers’ income. 

While many influencers would be over the moon to start just one restaurant with their branding, MrBeast opened 300 at once with a partnership with Virtual Dining Concepts (VDC). The first day this burger business went live, MrBeast gave away the burgers for free and handed out $100 with each burger, not to mention some choice electronic prizes. Not only did this generate plenty of customers, but the video of the day-one launch earned over 121 million views. Now, the ghost franchise has over 1,700 locations across the United States and Canada. 

Not a MrBeast Burger.

Of course, restaurants that partner with MrBeast are not handing out $100 bills with their orders anymore, but the launch day success has continued, with the MrBeast Burger selling over a million burgers in the first two months since beginning the franchise. MrBeast Burgers operate thanks to a strong internet personality and a stronger fanbase. 

You must be wondering what these incredible burgers are; surprisingly, they’re standard franchise burgers. The MrBeast menu includes standard diner burger fare, named after personalities attached to MrBeast’s channel, and some Impossible ™ burger offerings for vegetarian customers. Overall, the most complicated ingredient on their menu is a toss-up between caramelized onions and mayo with house seasoning. Some Nashville-style chicken rounds out the menu and orders are served with crinkle-cut fries. 

The burgers are only available through virtual delivery apps, including Grubhub, Postmates, UberEats, Doordash, and MrBeast Buger’s app. In most cases, customers are not concerned about what restaurant makes their burgers, so long as they have the MrBeast branding and are located near them, making this a low-investment, low-hassle ghost franchise. 

As stated above, the MrBeast Burger menu is rather simplistic. The most prominent indicator of a MrBeast burger is the smashed-style patties, which have more caramelization on the edges than standard burger patties. Their offerings can be found at major burger joints, with some unique flavors added to their seasoned crinkle-cut fries. Still, their offerings are easy to make at most restaurants, meaning less ingredient variety for virtual restaurant investors. 

Beast Style: Smashed crispy beef patties with house seasoning, sharp American cheese, pickles, diced white onion, mayo, ketchup, and brown mustard on a soft roll.

Crispy Chicken Tender Sandwich: Made with mayo, shredded lettuce, and pickles.

Chandler Style: Two smashed crispy beef patties with house seasoning, served plain with American cheese on a bun.

Nashville Hot Chicken Tender Sandwich: Made with mayo, ketchup, shredded lettuce, and pickles.

Chris Style: Two smashed crispy beef patties with house seasoning, sharp American cheese, and bacon, topped with crinkle fries.

Beast Style Fries: Loaded with caramelized onions, American cheese, pickles, mayo, ketchup, and mustard.

Karl’s Grilled Cheese: Three slices of American cheese griddled crisp on an inverted bun.

Seasoned Crinkle Fries: Crinkle fries seasoned with spicy red pepper, garlic, paprika, sugar, and a hint of lime.

Related Reading: Is the Total Cost to Open a Raising Cane’s Franchise Worth It? 

Karl’s Deluxe: A patty melt served Karl’s Style with a crispy seasoned beef patty, caramelized onions, and cheese on a toasty inverted bun.

Impossible™ Beast Style: Smashed crispy Impossible™ patties with house seasoning, American cheese, pickles, diced white onion, mayo, ketchup, and brown mustard on a soft roll.

Impossible™ Chandler Style: Two smashed crispy Impossible™ patties with house seasoning, served plain with American cheese on a bun.

Impossible™ Chris Style: Two smashed crispy Impossible™ patties with house seasoning, American cheese, and bacon, topped with crinkle fries.

Impossible™ Karl’s Deluxe: A patty melt served Karl’s Style with a crispy seasoned Impossible™ patty, caramelized onions, and cheese on a toasty inverted bun.

Of course, the brand also offers combo deals with bottled beverages and fries and has standard chocolate chip cookies as their dessert. 

While the website does not list the prices of each item, standard pricing goes for about the same as a McDonald’s or Five Guys burger, with a slight increase in price due to the virtual cost of the burgers. On average, the burgers range between $8 to $11 , which is standard among non-McDonald’s burger joints. With price increases over the past year, the price of MrBeast burgers has come somewhat close to average burger costs, especially when compared with in-restaurant dining costs. 

Currently, the cost of licensing MrBeast Burgers is private information. The overall cost of investing in this franchise is hidden behind the website’s information form. Once you submit your restaurant information, you must wait for the company to contact you. The most significant investment in this brand comes from building or purchasing a commercial restaurant. Estimates place startup fees for a from-scratch restaurant location at between $500,000 to $1,000,000 , but this depends on the kind of restaurant equipment you invest in and inventory. 

Remember that, according to MrBeast himself , MrBeast Burger has earned over $100 million in revenue since its opening. Unlike other franchise deals, the risk/reward of a MrBeast partnership is quite reasonable. Most restaurants offer the simplistic MrBeast menu alongside their food and have it as a takeout-only option through mobile apps. A restaurant partnered with this “ghost franchise” is not limited to one form of income like other franchise agreements. 

Much like other forms of influencer marketing, MrBeast comes with his built-in fanbase, allowing you to capitalize on his fans without drumming up potential customers. However, if the 20-mile-long line of cars on release day is any indicator, this brand has a way of bringing in customers. 

While MrBeast may have a relatively high approval rating on YouTube, his burgers have been largely hit-or-miss upon release . Fans complain about soggy fries, raw meat, and an overarching lack of quality control since the products are licensed to many restaurants. While MrBeast has stepped in and offered refunds to fans, the reviews have been somewhat disappointing. However, these few reviews have continued the franchise, with incredible revenue reports and 1,700 restaurants signed on to the program. 

Some have expressed concerns about how simple the MrBeast menu is, and with the rise and fall of internet celebrities being instantaneous these days, there are concerns that MrBeast Burgers will fall flat should any big news break about the YouTube star. But, of course, this goes hand-in-hand with the franchise and licensing developments. 

However, the relatively low startup costs of a MrBeast Burger agreement compared with other franchises make it a tempting arrangement for many restaurants looking to generate customers after the downturn of the pandemic. 

While we’ve been using the term “ghost franchise” to describe MrBeast Burgers, it is best described as a licensing agreement, as there aren’t the traditional trappings of a franchise. Restaurants pay to use the logo and menu associated with MrBeast, giving MrBeast part of their revenue from the products. The product overhead is relatively low, as the burgers are only sold using delivery apps and have simple recipes you can make at most Americana restaurants. 

Hey ma! Look what I made.

The most significant part of this brand that makes it a “ghost franchise” is that customers are looking to buy into the brand as a “virtual restaurant” instead of simply being a menu item deal with a company. Take, for example, the Mountain Dew partnership with Taco Bell; this is a licensing deal as Taco Bell gets to offer new Mountain Dew flavors year-round, including their signature Baja Blast. However, the packaging deal for MrBeast Burgers is more like a franchise without the startup franchise investment. 

Since it is accurate to call MrBeast Burgers a “ghost franchise” and a licensing deal, we’ve referenced the company both ways in this article. Still, the initial investment and brand exchange make it more like licensing deal than a traditional franchise. 

As with all forms of influencer marketing, the main perk of the MrBeast brand is the built-in customer base. MrBeast has the 5th most subscribers on YouTube and, compared with other personalities, has a largely positive reception. He’s known for giving to charity, helping those impacted by the pandemic, and continues to turn out new content that, in turn, creates more fans.

The other advantage of the brand is that its menu is simple to make and easy to implement. No additional restaurant space is needed to sell this online-only menu, allowing restaurants to craft the menu on the side. Plus, more virtual orders will enable restaurants to operate without the cost of customer seating and amenities. 

Related Reading: Is the Crumbl Cookies Franchise Cost Too Expensive? (My Opinion)

Another added benefit of MrBeast Burgers is the low startup cost. This licensing agreement is much cheaper than other franchises, and for those who already have a restaurant, this is a no-brainer licensing deal. Of course, startup costs are still associated with starting your restaurant, but without franchise fees, MrBeast Burgers is relatively low-cost. 

As with any brand associated with a celebrity, MrBeast Burgers are heavily tied to the rise and fall of MrBeast’s career. While this YouTube influencer has a largely positive perception now, the internet age can make or break celebrities with one piece of information, which could tank the entire brand. 

Quality control is another problem with the concept of a virtual brand. Of course, your restaurant may make the best MrBeast Burgers out there, but if the brand becomes associated with sub-par, simple burgers, that can impact your whole sales model. Another concern is the menu’s simplicity and if it will outlive its hype. Thankfully, the simple menu choices have carried the brand so far, but whether MrBeast Burger will join the burger joint hall of fame has yet to be decided. 

If you’re interested in finding out about other burger franchises or are curious about different kinds of startups, check out our other articles. We aim to take some of the mystery out of investing in franchises and startups, so we hope we’ve answered some of your questions about this popular “ghost franchise” and the famous MrBeast. Thankfully, if MrBeast Burgers is too new to fit your investment goals, we cover plenty of other franchises that might work better with your business plan. 

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

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About the Author: Brett Lindenberg

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The startup behind MrBeast Burger explains the business of influencer 'ghost kitchens'

• Oops! Something went wrong. Please try again later. More content below

Hi, this is Amanda Perelli and welcome back to Insider Influencers, our weekly rundown on the business of influencers, creators, and social-media platforms. Sign up for the newsletter here.

In this week's edition:

MrBeast Burger and the rise of influencer 'ghost kitchens'

A new talent-management firm wants to help influencers get into TV and products

4 media companies break down how to grow on TikTok

And more including Snapchat influencers who earned over $1 million each and how The 19th survived launching in a pandemic

But before we get started, Insider is looking to hire an associate media editor who will help shape our coverage of creators on platforms like YouTube, Instagram, and TikTok.

Does that sound like your dream job? Apply here .

The startup behind MrBeast Burger sees a huge opportunity in influencer 'ghost kitchens'

YouTube star Jimmy Donaldson (MrBeast) launched a pop-up "MrBeast Burger" restaurant in December with the goal of building a permanent brand, not just a one-off viral stunt.

To do so, Donaldson partnered with Virtual Dining Concepts, a company that works with celebrities to launch delivery-only food brands.

Dan Whateley spoke with Virtual Dining Concepts' CEO to learn more about the business of influencer "ghost kitchens."

Here's what he said:

Virtual Dining Concepts helped the MrBeast team design a menu, secure restaurant partners, and create training materials so every product would taste the same nationwide.

The company enlisted a network of 300 "ghost kitchens" (some that it owned), which paid an all-inclusive platform fee to cook and sell MrBeast menu items.

The company is planning to expand to 1,000 restaurants by the end of the second quarter.

Read more about the business of influencer "ghost kitchens" here.

4 media brands that have surged on TikTok by studying the app's trends and making their employees stars

As TikTok has grown in popularity, both upstart and legacy media companies are joining the app.

"45% of our new audience growth in 2020 was from TikTok," Barstool Sports' CEO Erika Nardini told Insider last month.

Dan Whateley spoke with four media companies about how to build an engaged audience on TikTok:

Barstool Sports has 12 million TikTok followers and has focused on posting content that fits with what's popular on the app, rather than repurposing its existing IP.

NPR's "Planet Money" has about 300,000 TikTok followers and built and audience by converting its podcast and video content into short, funny economics explainer videos.

Yahoo News has 1 million TikTok followers and regularly interacts with users in the comments section of videos.

Read more on the strategies for TikTok growth here.

A new talent-management firm plans to help influencers grow by expanding into areas like TV and consumer products

Dan weinstein. underscore talent.

The cofounders of Studio71 have teamed up again to launch a new talent-management firm for creators.

The firm, Underscore Talent, has signed over 60 clients so far and is focused on helping digital stars expand content into areas like TV formats and short-form video.

I spoke to with Underscore Talent execs at about their plans:

The firm is interested in expanding clients into TV formats with partners like Roku or Amazon Prime.

Underscore wants to help clients create passive, ad-based revenue streams by repurposing YouTube videos for Facebook.

It also wants to launch direct-to-consumer brands with clients.

Read more on the new talent management firm here.

The founders of nonprofit newsroom The 19th break down how they survived launching in a pandemic

The 19th, a nonprofit newsroom covering gender, politics, and policy, launched last January.

Mark Stenberg spoke with cofounders Emily Ramshaw and Amanda Zamora on how they set it up for growth and how they plan to grow after the Trump era.

Read more on the nonprofit newsroom, here.

More creator industry coverage from Insider:

How 4 Snapchat influencers made over $1 million each by flooding the app with videos (Dan Whateley, Sydney Bradley, and Amanda Perelli)

We are seeking nominations for the top PR agents for YouTube, TikTok, and Instagram stars in 2021. Submit your ideas here.

A rundown of recent promotions and new hires at firms like Snap and YouTube (Dan Whateley)

Industry updates:

Influencers can now join Hollywood's top union .

Short-form video app Triller is in the hot seat ( again) over its public user figures .

YouTube is fully releasing its TikTok-like feature, Shorts, in the US in March.

This week from Insider's digital culture team:

Insider poll shows some of the most disliked influencers on the internet, from jake paul to jeffree star.

Insider reporter Palmer Haasch surveyed 1,000 people to figure out how well certain influencers are known and liked.

Data revealed which personalities had high unfavorability rankings.

Controversial YouTuber Jake Paul topped the list, with his brother Logan in second.

Logan is the most well-known influencer on this list, with 30.6% of respondents saying that they knew who he was and putting him close to other big-name internet personalities like Joe Rogan, who was known by 37.2% of those surveyed.

Check out the full list here.

More on digital culture:

Jeffree Star is still working with the wig stylist who bullied Trisha Paytas after claiming they severed ties.

Beauty YouTuber James Charles stepped out with a bald head, but most fans think it's an elaborate prank .

Insider ranked the 10 most famous influencers on the internet - from Addison Rae to JoJo Siwa .

Here's what else we're reading:

David Dobrik's photo app gets investment interest that's expected to value the company at $100 million (Kate Clark, The Information)

Audio app Clubhouse breaks through even as it battles with harassment, misinformation, and privacy issues (Erin Griffith and Taylor Lorenz, from The New York Times)

Ivanka Trump joins the Miami influencer scene with controversial fashion blogger Arielle Charnas (Kate Lindsay, from NoFilter)

YouTube creators are racking up high view counts by holding fellow influencers accountable (Ruchira Sharma, from Vice)

Subscribe to the newsletter here .

Read the original article on Business Insider

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What MrBeast’s Restaurant Success Tells Us About the Future

Virtual Dining Concepts’ recent partnership with the YouTube star is one example of celebrities breaking into the industry.

In a December YouTube video that has since garnered over 37 million views, online star Jimmy Donaldson, more commonly known as MrBeast, announced MrBeast Burger. The online influencer’s brand released its menu to more than 300 locations in the country in partnership with Virtual Dining Concepts.

Robert Earl, cofounder of Virtual Dining Concepts, says the partnership started in 2019 and required a significant amount of time and effort to bring to life.

“You can’t just get a name for someone. You have to work together, make sure it fuels their brand. You have to curate it. You have to test it. And [celebrities] have to feel inspired to be part of it,” Earl says.

Before his tenure at Virtual Dining Concepts, Earl had experience working with celebrities as former CEO of Hard Rock Cafe and as founder and chairman of Planet Hollywood International, Inc.

Now as the head of a technologically forward food concept, the cofounder says the principal mission of his company is to help independent restaurants during their time of need. With total restaurant and foodservice sales $240 billion below the National Restaurant Association’s expected 2020 estimate , working with a virtual brand can give operators a way to stay afloat.

Virtual Dining Concepts operates by offering brick-and-mortar restaurants an extra revenue source by creating food from its virtual brands. Virtual Dining Concepts trains the restaurants, which then become a physical distribution and production point for the company in a matter of weeks.

“We believe that restaurateurs have the best chance of designing a product for other restaurateurs, as opposed to people who are tech driven or just other categories of getting into the space,” Earl says. “We don’t ask for any money whatsoever in advance, and we maximize the profit for the restaurant. We also stop them from being distracted from their core business.”

While Earl hasn’t released the exact number of partnered restaurants, he says “many thousand” are involved with the concept. Virtual Dining Concepts has an array of celebrity partnerships supplying these restaurants, with personalities that range from rappers to TV personalities.

In the example of MrBeast, restaurants carrying out this virtual brand’s delivery-only menu serve specialty fries, hot chicken sandwiches, and other American-style items to customers on third-party delivery apps. But depending on the virtual brand, brick-and-mortars can opt to serve different foods, like baked goods from singer Mariah Carey’s cookie concept. The concept also offers restaurants an array of non-celebrity virtual brands to work with if they choose.

On Virtual Dining Concepts’ side of the celebrity partnership, the brand takes charge of the market research that goes into the brand, which includes identifying popular food genres and delivery locations. But influencers play a big part in creating the menu and branding. For both Virtual Dining Concepts and its partners, these brands are a prolonged relationship rather than a one-off deal.

“We’re not renting them. We’re not paying them a royalty. They’re our partners. So that really helps in their commitment,” Earl says. “A lot of the people that we’ve engaged with have genuine concerns to help the whole industry survive.”

As the pandemic exemplified demand for restaurants in the virtual space, Earl predicts success for the company even after the eventual vaccine rollout.

“My personal belief is that the entire country, because of COVID, has been formally introduced in a very big way to delivery. I believe over a period of time, there will be differentiation between a brick-and-mortar delivery, i.e. somewhere you drove past, or a virtual delivery where you don’t really think about where it was produced,” Earl says. “I believe that even when we’re back to normal, there is a large percentage that will change their workplace and their habits forever.”

The brand plans to take a slow approach to releasing new celebrity brands, opting to solidify each relationship before moving on to the next. Earl says there are many partnerships in the works for Virtual Dining Concepts, which is ideal for an environment especially receptive to branding.

“The general subject of celebrity being involved in branding––there’s never been a greater time. It’s a whole other subject,” Earl says. “There’s nothing that you turn on the TV or look in a magazine that doesn’t have a celebrity connected to it.”

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The Untold Truth Of MrBeast Burger

It's hard not to get sucked in by the viral videos of YouTube phenom MrBeast. Expertly edited and fun to watch, one of their biggest draws is MrBeast himself, A.K.A. Jimmy Donaldson. The 24-year-old entrepreneur is the highest paid YouTube star of 2022, according to Forbes , but instead of sitting around counting his money (and he's a stellar counter ), Donaldson is known for giving it away. In fact, he's donated millions since launching his YouTube channel back in 2012, Business Insider   reports. In March 2020 alone, as millions lost their jobs , Donaldson gave more than $1 million in supplies to food banks . It's hard not to like the guy!

If you're out of the loop, here's the basics: MrBeast is a North Carolina native whose fame is based on his antic-filled philanthropic videos. He gives away cars, money, tech gear, and, most recently, food. In December 2020, he launched 300 virtual kitchens , dubbed MrBeast Burger, and gave away food and cash to what seemed like thousands of people as part of the marketing. He also uploaded a corresponding video titled, "I Opened A Restaurant That Pays You To Eat At It." 

It. Went. Huge.

Donaldson's video has gotten more than 117.9 million views at the time of this article. You might have also seen some of Donaldson's fellow YouTubers reviewing the burgers, chicken sandwiches, and fries themselves on their own channels. But reviews are not all you need to know about MrBeast's first venture into the world of fast food. Here's what you're missing:

MrBeast Burger locations started out delivery only

While the YouTube video in which MrBeast and friends served their first customers might make it look like you can visit this restaurant chain, or at a least a colorful drive-through, to pick up your burger and fries, the operation started out 100%  delivery-only .

MrBeast Burger uses multiple third-party delivery apps to get food to customers, which can mean the chain has less control when it comes to quality upon delivery. But using multiple services also means the food is more accessible, and despite some quality concerns,  The Spoon reports that MrBeast Burger's virtual model might be an example for other restaurant chains.

And in response to those quality complaints, Donaldson himself let fans know the team at MrBeast Burger was "the first to admit we are not perfect!" and that while "an overwhelming majority of people are happy with their orders," he would refund those who weren't and added he'd "do what I have to to make it right!" 

As for the issue of eating crispy MrBeast Burger fries after they've turned soft from delivery, customers with air fryers have been getting good results by re-crisping them before digging in.

The locations were originally all in the U.S. , but MrBeast Burger has since expanded to Canada, the United Kingdom, and the United Arab Emirates. Time will tell whether the company continues rolling out the concept around the world.

MrBeast Burger is helping out an industry severely impacted by COVID-19

MrBeast Burger is a virtual kitchen concept. The credit for the idea goes to Virtual Dining Concepts , the startup that Jimmy Donaldson/MrBeast partnered with for the original 300 restaurants.

The startup specializes in linking pre-existing restaurant kitchens with new virtual restaurant concepts. This means that an up-and-running restaurant kitchen can make food for another brand while maintaining its own establishment. Considering it had already established its "turnkey, delivery-only restaurant concept" with other big-name celebs like Mario Lopez and DJ Pauly D, Virtual Dining Concepts had the setup in place and connections it needed to make the MrBeast Burger venture happen. 

Restaurant chains whose kitchens MrBeast Burger has been using include Brio Italian Grille, Buca di Beppo , and Bravo Italian Mediterranean  as well as The Burger Boy location in Wilson, North Carolina. Not only has the virtual MrBeast Burger concept been successful for the brand, it might also be a way to support the partnered restaurants,  who might have faced difficult times , while providing jobs for food industry workers. Now, MrBeast is looking for more restaurant partners. 

Focusing on the growth of virtual restaurants instead of brick-and-mortars could be a more long-lasting investment for MrBeast, as the COVID-19 pandemic might have gotten people more used to ordering in.

There's no original location of MrBeast Burger

Multiple MrBeast Burger kitchens opened on the same day, and since the chain follows a virtual model, there was no original MrBeast Burger location where patrons could go to experience history . The viral video featuring the MrBeast Burger giveaway took place at The Burger Boy in Wilson, North Carolina, where Jimmy Donaldson, aka MrBeast, grew up and is based. 

By the end of 2020 there were 169 cities listed on the MrBeast Burger locations website, and according to Donaldson's Twitter, the chain had already "launched 300 restaurants nationwide." The delivery-only model also means there are no actual addresses listed on the MrBeast Burger website. But if you're concerned about how to track your order, rest assured: After some MrBeast Burger fans couldn't find addresses of the locations post-launch, they created a list on Reddit . The list will at least give you an idea of how far a location is from your home and how long delivery should take –- the same information is now available on the mobile app — though the arrival time might depend on how busy your local restaurant is when you order as much as it does on location. 

After all the initial MrBeast Burger buzz, diners were waiting a long time for their delivery orders, and there were some mistakes. It looks like MrBeast Burger might have some quirks to work out, but considering that even  established fast food chains make mistakes , the company might just be experiencing some growing pains.

MrBeast Burger gave away more than just food during its launch

In addition to the free burgers given away during that day of filming in Wilson, NC, MrBeast Burger also gave away wads of cash to "customers"  through the drive-through window. A line of cars outside the temporary brick-and-mortar location was so long — more than 20 miles to be exact — that police officers had to shut down the restaurant for disrupting traffic. Now that's a successful launch (and it made for a great moment in the video)!

Then there were the Apple products that were given away and, at one point, even a new car. MrBeast told the car recipient, a woman whose car had been damaged while waiting in line, that he'd happened to have a car to give away that day, and he'd like to gift it to her. She cried, and MrBeast also looked misty-eyed, in what was a heartwarming moment.

Will you get a tablet or a stack of bills nestled between some crinkle-cut fries in your next order? Probably not: Now you have to actually pay for your food, with an average meal for one costing between $10 and $20 with tax, tip, and delivery. The price is in line with McDonalds but a bit less expensive than Smashburger. But even without free stuff, you can still feel good about a charitable act: Part of the money raised from sales is supposed to go to feeding "hungry families across America." And judging by app reviews, plenty of MrBeast's fans are liking that part of the transaction.

The MrBeast Burger launch topped the charts

The viral "I Opened A Restaurant That Pays You To Eat At It" video, where MrBeast and his friends announced the launch of the MrBeast Burger chain by running a temporary location for a day, got so big that it became the No. 1 trending video on YouTube according to QSR . It also landed in a top-five spot for Google searches for a bit, QSR Reports.  

And it wasn't just dumb luck. According to an interview with Bloomberg , Donaldson and his friends spent months researching and analyzing what makes a video go viral and then integrating what they learned into their own channel. Donaldson himself studied other YouTube videos and filmmaking , he told Bloomberg. And it seems like he was a good student!

But it's no surprise that Donaldson's quirky video went viral: His breakthrough was a video called "I Counted To 100,000!" where all he did was sit and count all the way from 1 to 100,000, after all. Sounds simple, but it turned out to be a little bit genius. From there came other viral videos, including "I Uber'd People And Let Them Keep The Car" and "I Gave People $1,000,000 But ONLY 1 Minute To Spend It."

MrBeast Burger menu items are smashed and crinkled

Like the restaurant chain Smashburger , these burgers are short and have a wide circumference. They're shaped like hockey pucks and then flipped from wax or parchment paper onto the hot grill, so the meat spreads out a little, and there's more meat touching the grill, which means more caramelization and crispy edges . It also means the patties are thinner.

It's a concept that's proven successful  for others, and MrBeast is riding the wave of its popularity. And even though these burgers might lack in heft and density, if you really want height, you can always get a third patty for $2 more.

When it comes to fries, MrBeast is going with classic crinkle-cut fries , which come seasoned with spicy red pepper, garlic, paprika, lime, sugar, and salt. With straight fries you lose out on a lot of nooks and crannies. The Beast fries, though, are un-crinkled fries, but still have some rough edges for texture, because you don't need all that crinkling to pick up seasonings when there's already so much else going on with the fries. In this case that includes caramelized onions, cheese, ketchup, mayo, and pickles.

The MrBeast Burger menu isn't complicated, but it has some beloved classics

Unlike with most fast food chains , the MrBeast menu is small: There are just four burgers, and they're named after members of the store's team of employees. There's a Beast Style burger ($7.99), a Chandler Style burger ($7.99), a Chris Style burger ($8.99), and a Karl's Deluxe (($6.99). The Beast Style is two seasoned smashed beef patties with a slice of American cheese, pickles, diced white onion, mayo, ketchup and brown mustard on a soft roll, and you can upsize to a triple patty burger for an extra $2. The Chandler Style is the same two patties and a slice of cheese, but none of the other toppings — essentially a plain double cheeseburger. The Chris Style is two seasoned patties with bacon, cheese and fries stuffed between the buns. And the Karl's Deluxe is essentially a patty melt with a seasoned beef patty, caramelized onions, and cheese on a toasted bun that's flipped to have the insides on the outside. Since opening, MrBeast Burger has added plant-based versions of each of those burgers for $4 more using  Impossible Foods .

The only other items on the menu are Karl's Grilled Cheese ($4.99), where the buns are flipped so the domes are facing inward; a crispy chicken tender sandwich ($7.49) with mayo, lettuce and pickles; a Nashville hot chicken sandwich ($7.49), which adds ketchup and soaks the chicken in a spicy, juicy sauce; spiced crinkle fries ($3.49); and Beast Style non-crinkled fries with caramelized onions, cheese, ketchup, mustard, mayo and pickles ($5.29). You can add chopped burger or bacon to those loaded fries, and you can also get them seasoned or unseasoned. The only drink options are canned soda and bottled water. Oh, and there's a chocolate chip cookie ($2.49) for dessert.

MrBeast Burger spent no money on marketing

Instead of spending money on advertising, MrBeast simply tweeted about the launch and made a viral YouTube video . Why waste money on Instagram ads, Facebook, or even billboard ads when your audience is already following you, especially when you're sometimes spending nearly  $100,000 per YouTube video? Between the 10-minute viral video on the MrBeast YouTube channel with its 104 million subscribers, plus MrBeast's 15.4 million followers on Twitter, 9.77 million followers on Facebook and 19.9 million followers on Instagram, he might have built a big enough audience to not need to pay for marketing.

And it makes sense: Donaldson is the one that other brands go to when they want to market their products, not the other way around. 

MrBeast/Donaldson also launched a separate @mrbeastburger account on Instagram , which now has more than 790,000 followers. That's small for MrBeast, but we all know how it might grow as he cross-promotes.

For awhile, the MrBeast Burger app was the #1 app on the App Store

Yes, it topped the chart . But that's not all. The MrBeast Burger App Store app had more downloads at one point than YouTube . That's not total downloads, but downloads over a period of time, which is still impressive when you're competing against media juggernauts like TikTok, Facebook, and YouTube. 

While MrBeast joked about betraying his master in a reaction Tweet, it was probably pretty amazing to briefly surpass the platform that birthed his success, even though it clearly has been a mutually beneficial relationship. YouTube benefits from the viewers that MrBeast brings to it just like MrBeast benefits from having a platform for his creative work. 

YouTube benefits from him more than some other creators, though, since MrBeast brings a whole lot more viewers than most other channels. He was, after all, the top YouTube creator of 2020  and 2021 .  

Fans crashed the app pretty quickly

MrBeast Burger's success meant the app ended up crashing for a while on the day of its launch, leading MrBeast to apologize to fans and quickly upgrade the servers to get everything working again. But there still seemed to be some glitches with mixed up orders, which some said could have been the app's fault or the fact that there were so many new locations all at once. 

Judging by Donaldson's history, MrBeast Burger might still have a successful road ahead. These glitches could have been less stressful for MrBeast than filming $100,000 worth of videos that would later be thrown out . Or, you know, cracking the YouTube code for making viral videos in the first place.

And some fellow YouTubers are praising Donaldson for launching the company's own app, which one business news influencer says develops more brand loyalty, reduces fees paid to other third-party apps and allows Donaldson to potentially translate those customers into more sales down the road for additional MrBeast ventures.

But if you have problems with the MrBeast Burger app, you can also place orders on Grubhub, Doordash, UberEats, and Postmates as well as directly from the MrBeast Burger website . 

How good is MrBeast Burger food, really?

As for how good MrBeast Burger food tastes, the reviews are mixed. According to one YouTuber , the bun is fluffy, and the seasoning is tasty, while the cheese is gooey, and the bacon really sets it all off. Other reviewers have expressed concern about the quality of a MrBeast burger after transit, while some don't like the greasiness of the Chris burger that comes with fries in the bun. The Tube Family reported not being into dryness of the Chandler burger.

But for every critic there's someone who loved the burger experience: In the Apple App Store there are plenty of mixed reviews , with lots of people calling out the haters and swearing that they loved their burgers, sandwiches, and fries. 

How long MrBeast Burger lasts will most likely depend on how smoothly the business runs and whether people like the product, but the initial 300-restaurant rollout put it in line with the number of Smashburger, Shake Shack, and In-N-Out Burger restaurants. Plus, those restaurants have had to grow slowly and build a following, while MrBeast Burger started with a strong brand in place and a connection to philanthropy that has meant some might be ordering the food simply because they believe in Donaldson .

Plus, there's also enough customization available on the menu to tweak your order to suit your tastes, so once the glitches are worked out, MrBeast Burger could become a solid fast-food contender with a charitable heart.

MrBeast Burger got physical

Launched in 2020 as a delivery-app-only restaurant, MrBeast Burger grew to more than 1,000 outlets worldwide by September 2022 (via BBC ). That's when the burger enterprise opened its first actual, physical location, where diners could order and eat in person. According to MrBeast Burger , the inaugural not-online-only restaurant opened for business on September 4, 2022, in the American Dream Mall, a New Jersey shopping and entertainment complex. As there was already a built-in audience for the new restaurant from previous just-app customers as well as MrBeast's massive YouTube following , a line had formed by the time employees opened the doors. According to MrBeast himself, who showed up on day one, about 10,000 people queued to be among the first to get a burger from the inaugural meatspace MrBeast Burger.

MrBeast claims that this set a new watermark for high-volume food service. "Our grand opening broke the world record for most burgers sold in a day by a single restaurant lol," he tweeted . ( Guinness World Records would be happy to certify that claim, so long as the burger company provides solid evidence).

MrBeast Burger is part of a larger operation

"I just launched 300 restaurants nationwide!" MrBeast tweeted on December 19, 2020, announcing simultaneously the existence and opening of MrBeast Burger. How did he create a massive, cross-country restaurant business with so few people knowing about it all at once? For one, MrBeast Burger wasn't a traditional restaurant chain with physical dining rooms, but rather it was a delivery-only operation, serving customers through food-on-the-go services like DoorDash. Also, MrBeast Burger contracted with a large company whose entire business model is creating virtual restaurant chains that exist only on delivery apps operating out of other eateries' kitchens or large, anonymous industrial food preparation facilities.

According to The New York Times , such an organization is called a "ghost franchise," and MrBeast is among them. When the COVID-19 pandemic led to massive shutdowns of public places in 2020, thousands of restaurants switched to a pickup and delivery style of service, but still struggled to stay financially afloat. Enter Virtual Dining Concepts and the virtual-branding company Nextbite, which hires out small and local restaurants to prepare, cook, and sell the products of numerous online-only restaurants. In Brookfield, Wisconsin, for example, MrBeast Burger products are grilled and packaged at the same small mom-and-pop operation that also conducts business for Nextbite Ghost Kitchen brands such as Monster Mac, The Big Melt, Miss Mazy's Amazin' Chicken, Outlaw Burger, CraveBurger, and Hotbox by Wiz Khalifa (via The New York Times).

You could get totally Shreked at MrBeast Burger

With his millions of followers and video views, MrBeast clearly understands what the internet, as an entity, wants to consume. His huge fanbase, primarily young people, also has a fondness for the "Shrek" movies, both genuine and ironic, turning the popular animated fairy tale sendups about an ogre, a princess, and a talking donkey into  memes and other online content . When the time came to expand the menu at MrBeast Burger to include temporary offerings and heavily promotable licensed items, the company logically chose to sell an entree inspired by Shrek.

In March 2022, according to Attractions Magazine , MrBeast Burger partnered with Universal to launch the Shrek's Quesadilla for a limited time (as of September 2022, it was no longer listed on the menu). Like the titular green-skinned ogre, the outside of the sandwich was green because it used a spinach tortilla. Inside came two huge patties, American cheese, more green stuff (chilies and pickles), and onions, because, as an often repeated line from the "Shrek" movies says, "Onions have layers. Ogres have layers. Onions have layers" (via Quotegeek ).

• 778-400-4915

6 Marketing Lessons from Mr. Beast Burger That Every Restaurant Marketer Must Know

• Kyle Guilfoyle
• April 19, 2021

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In November 2020, Jimmy Donaldson (aka Mr. Beast) did a one-time pop-up launch for his burger franchise, Mr. Beast Burger .

Cars lined up for about 20 miles. Traffic was backed up.

The next month he opened over 300 more Mr. Beast Burger locations across the United States.

Here’s how Mr. Beast did it + the essential marketing lessons every restaurant marketer must know:

How does Mr. Beast Burger work, anyway?

Mr. Beast Burger is delivery only and operates out of existing kitchens that are underused.

In other words, it’s a burger dropshipping business:

• Orders come in online
• They get made by the nearest franchisee kitchen
• They get brought to the customer via third-party delivery

The know-how behind the operation comes from Virtual Dining Concepts (VDC) — a company that partners with celebrity brands, and leverages their audience to build profitable virtual brands that operate out of underused kitchens.

(VDC was founded by Planet Hollywood owner Richard Earl.)

Here are four slides that demonstrate how Mr. Beast Burger works:

How did Mr. Beast launch Mr. Beast Burger ?

Here’s the Mr. Beast Burger launch strategy:

• Step 1: Partner with Virtual Dining Concepts for logistics
• Step 2: Pick a simple product that others could easily make
• Step 3: Look at Mr. Beast’s watch time by cities. Pick the cities that have the highest watch time.
• Step 4: Find a location to use as the launch site for the Mr. Beast Burger pop up (in this case a Burger Boy in Wilson, North Carolina)
• Step 5: Put up a billboard near the location advertising ‘FREE FOOD’ and $10,000 giveaways
• Step 6: Create a video that documents the one-day Mr. Beast Burger pop up (including cars lined up for 20 miles)
• Step 7: The video gets millions of views
• Step 8: Open more than 300 locations the following month

Now for the key marketing lessons we can take away from Mr. Beast Burger :

6 key marketing lessons from Mr. Beast Burger

Lesson 1: build your own platform like your life depends on it.

In 2015, Jimmy Donaldson scheduled a video called Dear Future Me to be published 6 months after he recorded it.

In the video, he publicly declares that his goal is to have at least 50,000 subscribers on YouTube (at the time he had 8,726 subscribers).

He was declaring what was important to him. And if something’s important to us, there’s a good chance it’s important to others — this creates resonance .

His only focus was building an audience — His own platform.

And today he can draw attention to just about anything to drive sales.

While the world-wide celebrity status that Mr. Beast has achieved is a tall order for most, what’s possible if you put a face and a personality behind your restaurant brand?

What if you shared real stuff that was important to you?

Do you think your audience would better connect with your brand?

Lesson 2: Create a magnetic reason for people to give you a try

One of the biggest reasons restaurant advertising fails is because there isn’t a magnetic offer attached to it.

Because restaurant marketers are too hung-up on making a profit on the one-time transaction instead of the long-term value of getting a guest.

“Break even today. Break the bank tomorrow.” Jay Abraham, Getting Everything You Can Out Of All You’ve Got

Let me know if you can spot the difference between the weak offers versus the strong offers:

The weak offers are a) conditional, and b) have weak value propositions. The strong offers are generous .

( Of course you can get more creative with your offers. But remember that simple works .)

And if Mr. Beast, a guy with 60M YouTube subscribers uses the power of free to launch a concept — you might want to consider using it in your marketing, too.

And before we go on, let me bust 2 myths about ‘free stuff’ I hear all the time:

“Giving stuff away for free will cheapen my brand”

Discounting can cheapen your brand. Giving stuff away for free is generous. And you don’t need to do it all the time.

Think about it: when a brand offers to give YOU something for free, have you ever found yourself thinking, “Pfft. That’s such a cheap brand!” ?

I know I haven’t. Usually my reaction’s more like, “hell yeah!”

“I won’t make any money by giving away free stuff”

This is a view that marketing and advertising is a one-time transaction (like a vending machine), instead of a long-term investment to build your audience of ‘ 1,000 true fans .’

Marketing and advertising compels folks to give you a try so that your brand and experience can do the heavy lifting of turning first-time guests into raving fans.

Lesson 3: Tap into an existing market’s desire

Mr. Beast Burger teaches us that it’s not our responsibility to come up with products that generate demand. It’s up to us to come up with products that tap into existing desire in a market .

This is subtle. But potent.

In his famous copywriting book, Breakthrough Advertising , Eugene Schwartz shares a subtle nuance that many marketers miss:

Let’s get to the heart of the matter. The power, the force, the overwhelming urge to own that makes advertising work,  comes from the market itself , and not from the copy.  Copy  cannot create  desire  for a product. It can only take the hopes, dreams, fears and desires that  already exists  in the hearts of millions of people,  and focus those already existing desires onto a particular product . This is the copywriter’s task: not to create this mass desire – but to channel and direct it. Actually, it would be impossible for any one advertiser to spend enough money to actually create this mass desire. He can only exploit it. And he dies when he tries to run against it. Eugene Schwartz, Breakthrough Advertising

In the case of Mr. Beast Burger, he’ s tapping into an existing market desire by connecting…

• The underused kitchen owner’s desire to get more money out of their space, and…
• The universal desire for burgers…

How is your restaurant tapping into an existing market desire? However you’re doing it, be sure to include it in your messaging again and again and again.

Lesson 4: Do what the data tells you to do

Mr. Beast used data to inform where he would open locations. He looked at his YouTube Analytics to see which cities had the highest watch time and engagement. And boom, Mr. Beast Burger locations opened in those locations.

Using data to inform decisions helps us avoid making decisions based on ‘gut feelings.’

(It’s no secret decisions made based on emotions can often lead us astray.)

A simple antidote is to regulate yourself with data.

Example: Do you get triggered by bad reviews? Obviously, you’re not alone. But if you aggregate the number of reviews you get and you notice that 100 are good and 5 are bad then the data will help you regulate your emotions — they’re just numbers, after all. If, on the other hand, you first look at the content of the review, it’s easy to become triggered. So start with data, root your decisions in data, then look for areas of improvement in the content of the review.

Do what the data tells you to do.

Lesson 5: Appeal to the innate human desire to give

In his Facebook Ads targeting kitchen owners, Mr. Beast hammers home the generosity of the Mr. Beast Burger concept:

• “And to be honest one of the biggest reasons I’m doing this is because I love to give back.”
• “For every burger we sell, we give a burger to someone in need.” 
• “We’re also about to open our very own food bank.”

And one of the major reasons Mr. Beast fans adore him is because they get to live vicariously through him as he gives away hundreds of thousands of dollars in every video.

In his book Building a Story Brand , Donald Miller shares how we’re hardwired to be generous because it helps us survive :

Achieving an aspirational identity of being sacrificial actually helps us survive (fends off foes, decreases outside criticism, helps earn trust in our tribe, and so on), but it also taps into something truly redemptive: we want other people to survive to. Donald Miller, Building a Story Brand

Lesson 6: Tap into existing audiences using influencers

In the direct-to-consumer marketing world, leveraging the audience of influencers is a popular and effective tactic.

It’s hardly on the radar of restaurants.

(Which is an opportunity for you)

The simple truth is people buy from people they trust. One way you can fast-track trust is by getting the endorsement of influencers in your local area.

And they don’t need to have massive followings like Mr. Beast.

They just need to have an engaged audience.

Influencer marketing is outside the scope of this article, but get started forging relationships. A simple Google search for ‘[city name] food bloggers’ might be the start you need to get going. Offer a few who resonate with your brand a no-strings attached gift card, and see what happens.

🙏 Thank you for reading. I hope you found this useful. I know you’re busy which is why I do the heavy lifting and send out the very best of what I’ve learned in my weekly email newsletter .

Weekly takeaways, straight to your inbox..

🙂 Actionable tips to get more guests…

 😃 Ideas to increase per-head spend…

😍 Value-packed quotes from the podcast…

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+$100M Founder Neil Patel Gives Away The Digital Marketing Playbook for Restaurants

I’ve been reading this guy’s blog since I was in high school. Today, I get to ask this 22 year SEO veteran how he’d grow a restaurant. And grow it BIG.

The Red Ocean and Blue Ocean of Getting Attention for Your Restaurant

If you struggle with social media, listen to this.

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Business model disruption: MrBeast vs McDonalds

2020 has been an incredibly disruptive year for the restaurant industry with losses of over $240B in the US market alone.

2020 has been an incredibly disruptive year for the restaurant industry with losses of over $240B in the US market alone. Supply chains have been cut, the way people consume and order food has been turned upside down by the pandemic. These constraints also represent an opportunity for businesses to rethink how customers engage, how to mobilize people and resources to achieve faster results and how to leverage new technologies to their advantage. 

In this blog post we analyze Virtual Dining Concept, the business behind the concept of MrBeast’s Burgers, a new business with the potential to disrupt the fast food industry. And ask ourselves, why did it take an insurgent to come up with this new innovative business model when incumbent chains like Mcdonalds or Burger King would have been better positioned to do the same. 

In December of 2020, YouTube star Jimmy Donaldson - more commonly known as MrBeast - launched his own burger chain, MrBeast’s Burgers, and opened 300 locations overnight. In a period where restaurants are struggling to stay open, MrBeast’s Burgers is growing at an unprecedented rate - to give you an idea of scale, it took McDonalds 6 years to open 300 franchises.  

As a result of the Covid-19 pandemic and its health restrictions, restaurants and their staff are sitting idle, unable to generate sufficient business from delivery. The concept for MrBeast’s Burgers is that those idle kitchens produce and package MrBeast’s Burgers, and use the variety of delivery apps available - UberEats, DoorDash, PostMates - to get them delivered. 

What is interesting about this example is that MrBeast is only one cog in a bigger model. Virtual Dining Concept (VDC) is the brainchild of restaurateur Robert Earl (who owns a variety of successful franchises) and is responsible for the success of Mr Beast’s Burgers. Mr Beast’s Burgers is just one of the many celebrity food brands that VDC is rolling out using virtual kitchens. 

VDC has found a way to productively use spare capacity of kitchens all over the country,  providing these virtual kitchens with ingredients and branding, as well as a home app that centralizes the orders from various delivery apps. In return for cooking and packaging the dishes, the restaurants receive 30% of the overall profits. The value proposition for restaurants is clear: simply by using their own resources more efficiently, they can benefit from increased revenue, without having to invest significantly.

In order for these restaurants to generate enough buzz VDC leverages the star power and existing fan base of notable celebrities. Each food concept is endorsed and branded by a celebrity. From Mariah Carey’s Cookies to the rapper Tyga’s Chicken Bites. VDC is in charge of creating the food concepts while the celebrities promote and market the products for them. 

VDC’s innovative business model is also poised to utilize the booming trend of food delivery by leveraging the algorithms of food delivery apps. Restaurants are limited in their ability to deliver through these apps by their geography, as they will only be listed on the apps of customers that are within a certain range, typically around 5 miles . By working with restaurants spread strategically around a city, they can ensure all customers across the city can receive their delivery. 

The question is: why did it take an insurgent like Virtual Dining Concept to explore this disruptive business model? Why couldn’t an incumbent fast food chain like Mcdonalds or Burger King have done the same? Why are established players incapable of exploring how their assets could leverage radically new concepts like MrBeast’s Burger?  They have strategically placed locations all over the world, they have delivery apps integrated into their order system, they are already familiar with celebrity endorsement, and their brand reach is often global.. 

The answer is simple, it’s hard for incumbents to explore radically new concepts because they are locked into a successful business model. Their entire organization is streamlined to optimize that successful business model and anything that looks differently is rejected by “corporate antibodies”. At Strategyzer we believe that incumbents need to fight against these antibodies and build an exploration engine that gives innovation sufficient power. Power to explore radically new business models based on their core strengths and existing assets. This is the only way they will be able to fight off disruption from much faster and often better funded insurgents.

About the speakers

Lucy is an innovation advisor to organizations large and small. She has been helping them seek breakthrough growth opportunities by launching new startup ideas to future proof their business. She has worked with multinationals to build out and implement their innovation engine as well as advising startups across Europe and Asia.

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Food Industry News

Mrbeast burger opening beefs up american dream mall experience, content creators bring the sizzle, but the steak is still in question.

Inspiration meets innovation at Brandweek , the ultimate marketing experience. Join industry luminaries, rising talent and strategic experts in Phoenix, Arizona this September 23–26 to assess challenges, develop solutions and create new pathways for growth. Register early to save .

The American mall, as we once knew it, is dead. Once the prime shopping location and hangout spot for teens, many malls have transformed into lifestyle experience centers.

Among the new offerings are celebrity-driven projects, such as last weekend’s grand opening of YouTube star MrBeast’s burger shop, which turned into into a mall experience that all future celebrity fast food debuts will judged by.

Just days before officially turning on the grill, the influencer announced the opening on YouTube and Twitter—and that he would personally be at the new MrBeast Burger restaurant on Sept. 4 at the American Dream Mall in Secaucus, N. J.

On Sept. 3, MrBeast also posted a 12-minute-long video of game of hide-and-seek that was essentially an ad for the mall: 100 of his followers were given $10,000 each and sent off to hide in the mall, with those who remained undiscovered keeping their winnings.

According to American Dream, “tens of thousands of guests” came to catch a glimpse and get a photo or video with MrBeast. More than 2,000 people waited in line overnight to attend the QSR’s opening. Considering that the mall is generally fairly sleepy, especially on the Sunday before Labor Day, that’s quite a feat.

So does this massive attraction indicate the relevance, if not necessarily the rebirth, of the American mall? Or is this just another sign of how a major social media figure can command attention in way that’s unlikely to be repeated? 

The Rise of Virtual Influencers and Their Role in the Metaverse

Meet the hype

MrBeast is the online alias for Jimmy Donaldson, a YouTuber who has amassed more than 100 million subscribers and 17 billion lifetime views on his channel.

“MrBeast is the world’s greatest content creator,” Don Ghermezian, CEO of American Dream, said in a statement. “His passion for creativity, powerful brand and philanthropic nature aligns perfectly with the American Dream vision.”

While it’s a bit premature to call MrBeast Burger a hit, the ability to pack a 3 million-square-foot retail space is certainly more proof of the power social media stars can easily wield.

“The success of MrBeast Burger’s first physical restaurant location was a brilliant showcase of how major influencers have the ability to not only be successful but push the boundaries in these entrepreneurial efforts and create over-the-top, record-breaking moments,” said Tatiana Tacca, founder of gaming, esports, anime and livestreaming consultancy Oni Vision. “Physical spaces and pop-ups offer special and exclusive experiences that resonate strongly as an expression of fandom.”

The brick-and-mortar launch comes after MrBeast Burgers debuted in 2020 as a ghost kitchen. These are operations where food is prepped only for outgoing orders made exclusively through third-party delivery apps. There’s no signage or seating that would otherwise let the public know such a brand even exists. The MrBeast virtual kitchen project began with 300 locations, and expanded to 1,000 across the country and Europe.

Malls on the decline

Indoor malls experienced a 1.1% month-over-month decline in foot traffic from July to August, and open-air lifestyle centers saw a 0.9% decrease, according to Placer.ai .

One hinderance for having a burger joint in the American Dream Mall specifically is its lack of convenience.

“The parking is incredibly difficult,” David “Rev” Ciancio, co-founder and chief marketing officer of Handcraft Burgers and Brews, told Adweek. “You have to pay to park there. If you want to go anywhere in the mall, you have to park, like, 3 miles away and take 17 escalators. I don’t think people are going to go there just to eat [MrBeast’s] burger.”

Ciancio noted that if consumers do decide to go to MrBeast’s Burgers, it will likely be tied to other experiences the mall offers such as the Legoland Discovery Center or a specific store.

Long-term prospects

The success of the MrBeast Burger opening had a variety of factors at play in the marketing plan. MrBeast’s tweet announcing the launch had more than 200,000 likes on Twitter. Consumers attended the event because of his appearance. But his team also issued a press release, and several other influencers participated in the event.

“You watch MrBeast because he is a life you don’t know how to live,” Ciancio said. “He is an experience. His brand is built on removing you from your world for a few minutes.”

And then there are the follow-up stories like this—earned media. The bedlam from the launch generated a ton of coverage from local news stations as well as several publications mystified at the content creator’s social impact.

With foot traffic trending down at malls, one wonders if this launch is just a flash in the pan?

MrBeast won’t be at the burger restaurant every day, and influencers won’t be showing up on a regular basis. Ciancio suggested the restaurant would have to continue advertising and create interest around limited-time offers and similar promotions to maintain interest.

“I do think this launch validates MrBeast as an influencer,” he said. “But I don’t think the draw of a cheeseburger is enough to make that brand a success.”

Though there are questions about the business, it is another first for content creators and influencers, and could lead to even larger projects.

Rap Star Latto Debuts Reimagined Burger King Crown During MTV VMAs

Rafael Canton

• @RafelitoC7
• [email protected]

Rafael Canton is Adweek's breaking news reporter for brand marketing.

The Rise and Rise of MrBeast

I recently watched a YouTube video that reminded me of a movie scene from the 2006 comedy, Idiocracy.

For those who haven’t seen it, Idiocracy is a quirky social-satire comedy portraying the life of an ‘average intelligence’ American called Joe, who takes part in a military experiment gone awry. Long story short, Joe is anesthetized and wakes up 500 years later where he is now the smartest person on the planet, by far.

Famed For Videos Featuring Million-Dollar Cash Giveaways And Lavish Prizes, MrBeast Is The YouTuber Turned Business Guru That No One Saw Coming.

Owing to centuries of mass commercialism and social media obsession fueled by short attention spans, everyone in this new world is now moronically stupid. This is a future where only low-intelligence people can procreate, resulting in a post-apocalyptic society full of gormless dumbassery of the highest magnitude. 

The movie portrayed a low-IQ society in which the streets are piled high with garbage, simply because everyone was without sufficient intelligence to qualify as a refuse collector. The president of the free world was a porn superstar and Ultimate Smackdown wrestling champion. Gatorade flowed out of faucets instead of water. The only food available was McDonald’s and KFC, and in this world, people flocked to the cinema in droves to watch the highest-grossing film of all time, a movie called Ass.

Ass was 90 minutes of nothing but a fixed single shot of a naked and quite chubby male posterior, breaking wind repeatedly. With each release of trumpet-like gas, the cinema would erupt in laughter as tears streamed down the collective faces of the easily amused patrons. One person even died of laughter.

At the time, of course, the movie was supposed to be a light-hearted satirical poke at how easily entertained we are becoming. With the benefit of hindsight, however, I fear the movie was in some way prophetic. I am not suggesting we now live in a world full of morons, of course, (far from it) but parallels can be drawn at the very least.

One of those parallels exists in the YouTube video I have just watched, created and released by Jimmy Donaldson AKA MrBeast, in which our protagonist films himself counting to 100,000. 

That’s all that happens. He simply stares into the camera, then gradually starts counting up to 100,000, number by excruciating number. Nothing else transpires. This is simply a guy on camera, sitting in a chair, looking quite bored, and slowly counting. 

At first, I was reminded of the fictional Ass movie, seeing the endeavor as an incredible waste of time and questioning why anyone would draw entertainment from it. I noticed the view count, and gasped; people are so easily amused these days, I pondered. But then something strange happened; the idea started to grow on me as I rooted for him and found the whole thing quite funny. I was genuinely amused. So, it seems, were 26 million others.

One, two, three. Five hundred and sixty-seven. Fourteen thousand, nine hundred and twenty-two. Seventy-seven thousand and… Well, you get the idea. When he hits the magic number of 100,000 after 55 hours of soul-draining counting, the video simply ends and MrBeast presumably goes to bed. Again, I will repeat, the video has 26 million views.

The only mildly suspense-filled moments arrive when MrBeast almost forgets which number he is at. With his face suddenly gripped in panic at the prospect of starting over, his eyes dart around the room as he mentally grasps for the next number, before breathing a sigh of relief as he calls it correctly, and continues counting. Forty-two thousand, five hundred and sixty-three. Forty-two thousand, five hundred and sixty-four.

Bizzare, isn’t it? But aside from being completely genius in its simplicity and also oddly entertaining, the counting video serves a very good point about content creation which can be applied to all facets of content and even business in general. That point, I believe, is this:

Thinking outside of the box is a default mindset for anyone in business and not especially unique. We all do it, or at least, we all should be doing it. Instead, (drumroll) imagine there is no box, to begin with. 

Creators are constantly striving to adjust, tweak, enhance, and improve existing content narratives by thinking outside of the box, and with good reason: the creator economy is booming, with a  market size  of over $100 billion (as of 2021) and over 20 million people worldwide earning income from digital content creation. Gold rush might be the operative word, in an industry now on par with the gig economy.

But in such a competitive creative space, the result of this tweaking, adjusting, and outside-the-box thinking, is just similar content production but with a slightly different delivery and approach. The trick, as MrBeast frequently demonstrates, is to rip up the content creation rule book and replace it with your own.

Engagement 

His unorthodox approach was not limited to the now-famous counting video, however. A one-hit wonder he most certainly isn’t. This young North Carolinian has amassed 31 billion views with a subscriber count of 123 million on his main channel, as of December 2022, making him the fourth most subscribed creator on the platform since launching his YouTube career in 2012.

The videos are mostly centered around stunts, games, and giveaways. Anonymous hitherto before 2017, the counting video was a jumping-off point for enhanced creativity and formula. Latching on to a new style of goofery, he began producing content aimed at high engagement through interesting, oddball events. 

He followed the counting video with a similar stunt centered around laborious attrition: reading every word in the dictionary in one sitting. Another video had him saying “pewdiepie” 100,000 times. Viewer numbers began to increase and with it, so did MrBeasts creativity and production. 

With YouTube revenue now hitting his bank account, he had funding to take his videos outside of his rather glub bedroom and create a spectacle, in one form or another. 

In one video, he visited the same fast food drive-thru consecutively, 1000 times. In another, he filled his friend’s backyard with 1 million Orbeez balls. Further productions show him building the tallest Lego tower ever built, or being buried alive in a coffin for 48 hours. All of these videos have astonishing viewer numbers. After grinding away for a few years without success, MrBeast had arrived. Viewers couldn’t get enough of this oddball creator.

Revenue Model

So how does he do it? Well, YouTube pays MrBeast quite handsomely for the staggering view numbers he acquires, and in turn, he puts a vast chunk of this revenue back into creating the next video. The cycle continues, and probably will ad infinitum because people simply adore this guy, who seems to have struck gold with his unique content approach.

For the unaware, YouTube is actually quite generous in terms of revenue share. In short, advertisers pay the streaming giant for ad placements, usually at the start of a video and quite often two or three times during it. A very healthy 55% of ad revenue is shared with the creator of the video. Through one single five-minute video, the revenue is obviously small – just a few cents, at most – but if your view count is in the millions, the dollar numbers are huge.

The combined cost of video production and prize giveaways are usually upwards of seven figures but despite this, there is sufficient margin through YouTube revenue and sponsorship deals to leave an extremely healthy profit, also in the seven-figure range. 

And there you have it. The MrBeast business model: unique content, engagement, revenue, reinvestment, margin.

46% of Creators who have been building an audience for 4+ years earn over $20k annually across their monetized channels.

Jimmy’s fame isn’t limited to YouTube, with a steadily growing presence through various forms of digital and print media, having been plastered over numerous magazine covers like Rolling Stone, with regular appearances on prime TV shows like Jimmy Kimmel.

His business model also isn’t focused entirely on profits, with a huge facet of the MrBeast brand appeal driven by philanthropy. To date, he has raised over $50 million for charitable projects and has given away over $10 million in prizes to participants of his various YouTube ‘game show’ episodes including a real-life Squid Game with a $500,000 winners prize. He once gave away a private island he had purchased, while a $300,000 Lamborghini might be considered one of his lower-value prizes.

What’s interesting though is that success didn’t happen overnight. After years of grinding away on YouTube trying out different content styles and reaping underwhelming viewing numbers, it was the counting video, of all things, that sent him stratospheric. In this ‘ Evolution of MrBeast ’ YouTube video, you can watch his steady evolution from initial humble beginnings, through to current star status.

Jimmy hasn’t merely become a star of YouTube. He is YouTube, regularly making an appearance in the top five most searched terms worldwide. 

Are there any lessons we can draw from MrBeast’s formula for success? Maybe a few, and we should take a look. But first, who exactly is this guy, anyway?

Who Is MrBeast?

Jimmy Donaldson, a native of Greenville, North Carolina, started his YouTube journey in 2012 while in middle school. Hailing from a typically average American family, he originally experimented with several video-making genres to figure out YouTube’s algorithm.

Source: Screenshot of MrBeast, taken from Leon Lush’s Youtube video

In addition to posting videos of himself playing games like Call of Duty, he created montage compilations of various funny videos (funny in the subjective sense, of course) and live-streamed his reactions to viral videos, among other ad-hoc, spontaneous ideas.

As a self-proclaimed introvert by nature, YouTube was only ever an interesting pastime. No grand plans existed for becoming the Elon Musk of YouTube (that specific ambition would come later). The whole thing was just a bit of fun, and nothing more.

Seeds of future stardom were sown and ambition thoroughly spawned when MrBeast uploaded a gaming cheat video that amassed big viewing numbers (relatively speaking). Surprised and inspired in equal measure, he began trying out different types of content to grow a channel and possibly make a living out of YouTube.

It was a slog, and he should be applauded for sticking with it over five years because, in truth, not much happened. Subscriber numbers constantly remained low, but he was regular with his uploads and posted almost daily with the belief that he would crack the algorithm and find a niche, sooner or later. 

Eventually, he succeeded in hitting huge subscriber numbers, largely by inventing a new format that has since been replicated on a lesser level by copycat creators: stunt giveaways. 

He would hand over thousands of dollars to random, everyday people in return for random, everyday exchanges, such as paying a $10,000 tip for a $20 Uber ride. ‘Hands on a car’ involved a group of randomly selected applicants standing around a Lamborghini with at least one hand on the vehicle at all times: the last person to take their hand off would win the car. This kind of thing makes for surprisingly intense viewing, but not without constant laughs, horseplay, and banter.

The premise is simple, isn’t it? Success porn has become a highly engaging topic over the last few years, with viewers drawn into a world showing everyday people attaining staggering wealth, lured by the trappings of success that these creators are so willing to show off. MrBeast has ripped up the rule book and devised a new form of success porn in which regular people are a part of this success. The theme is less about his own wealth, and more about everyday people suddenly attaining it through various stunts.

Additional Channels

With his main channel MrBeast cemented as a YouTube pillar from 2017 onwards, further channels have evolved in the subsequent years, each with a huge global following:

With a combined total of over 97 million subscribers on these auxiliary channels alone and an additional 50 million from his non-English speaking channels (such as MrBeast Espanol), MrBeast has over 250 million subscribers in total.

Think about that number for a moment. It wasn’t a typo. One-quarter of a billion subscribers. There are entire TV networks, established for decades, that don’t come close to this volume of viewership. Even the networks with big numbers can not boast the same loyalty that MrBeast enjoys from his viewership. 

Networks have to work hard to keep their audience loyal. MrBeast just needs to build a Lego tower. Not for the first time in this case study, I will say again: the whole thing is almost quite bizarre.

Beastly Lessons 

MrBeast has grown from a quirky creator to a credible entrepreneur while retaining his man of the people appeal. He seems to have found that sweet spot of remaining loyal to his creative goofball image while verging into a broader range of businesses, driven by revenue and philanthropy. More on that, later.

With a full-time staff of upwards of 50, close to a quarter of a billion subscribers, and revenue pouring in from different sources, there are lessons we can draw from MrBeasts’ success. We have already touched on one of them: innovation and the whole don’t just think outside of the box, there is no box observation. MrBeast demonstrates this by constantly innovating, taking a leftfield approach to everything he does. He probably has no idea what a metaphorical box even is. 

But what else can we observe?

10,000 Hour Rule

Fifty years ago, Herbert Simon published a paper in American Scientist with a theory relating to expertise. His theory pointed to the game of chess:

“There are no instant experts in chess—certainly no instant masters or grandmasters. There appears not to be on record where a person reached grandmaster level with less than about a decade’s intense preoccupation with the game. We would estimate, very roughly, that a master has spent perhaps 10,000 to 50,000 hours staring at chess positions”

Since then, a whole field of research has evolved relating to the simple observation that it takes, on average,  10,000 hours of dedication , practice, and study, to develop the skill set required to become an expert in something. Or rather, to give yourself a far better chance of succeeding with your enterprise, through efficient and diligent practice. 

MrBeast struggled during his first five years as a YouTuber, between 2012 and 2017, trying out different content styles and strategies. He used this time wisely, figuring out the algorithm, analyzing viewer responses, and practicing, grinding, and persevering. Eventually, he would master the algorithm and find a winning formula, but it wasn’t without five years of dedication to the cause. 

Leveraging Philanthropy

The new brand enhancement strategy. Philanthropy is, of course, a noble endeavor, and plays a significant part in making the world a better place for those less fortunate. Charitable organizations are applauded for the good they contribute, and rightly so: the world needs honest, empathetic people who strive to make the world a better place through charity.

But let’s be honest – philanthropy can also be used to enhance your brand and provide a unique angle in which you can contribute to the world, and serve your brand at the same time. If that sounds cold and slightly insincere, does it matter? It would be nice to live in a world where everything is done for the right reasons, but the fact is, we don’t. Using philanthropy for brand enhancement and cementing a wholesome image is probably forgivable when the fact is, people are benefiting in some way.

MrBeast’s audience is a loyal one. Rarely does celebrity come with so much broad appeal, and while his creativity and entertaining stunts play a huge part in that, his philanthropy has helped brand beast chug along seemingly without critique or negative appraisal. 

Entrepreneurs can tap into this, and employ it as part of a business model that will help create loyalty and brand image by contributing a little good to the world at the same time. Win-win is a term that gets used too easily, but in this case, the phrase is quite appropriate. 

“ Philanthropy can often be the most cost-effective way for a company to improve its competitive context, enabling companies to leverage the efforts and infrastructure of nonprofits and other institutions. ”

Source: Harvard Business Review

Reinvestment Is Key

MrBeast has remained steadfast to a very simple growth strategy conceived soon after his famous counting video attracted big viewer numbers and the subsequent ad revenue that came with it. Given his young years, (he was still in his late teens when the counting video took hold), you would be forgiven for assuming he embarked on an extravagant, decadent lifestyle, considering the money that was flowing inwards.

But we must give credit where it is due. MrBeast decided very early on to use  all of the YouTube revenue to reinvest back into the next video . If he made a few thousand dollars, he would spend the same on this next video. If he made $30,000, he would spend not a single dime less on the next production. This strategy continued until the figures reached seven figures, reinvesting everything back into the various videos along the way.

The strategy paid off. As the videos became more outlandish (courtesy of a huge production budget), more eyeballs would land on his channel, and he continued to grow. He did reach a point, of course, where he started to take profits, and these days, the balance is quite evenly split with around half of his revenue going back into the business, and half recorded as profit.

Currently, MrBeast spends around $8 million each month on video production, staff salaries, everyday business expenses, philanthropy, and various other projects.

Be Pioneering 

A common failure among startups and even established companies is a lack of innovation. Blockbuster video, for example, had a colossal empire spanning hundreds of countries and billions in revenue. The product (VHS video rental) became antiquated as the world discovered digital streaming. 

With a gigantic customer base to target, the digital revolution was Blockbuster’s cue to innovate and enter a new market. Netflix’s innovation was Blockbuster’s demise, and the empire subsequently crumbled.

Innovation is critical. We all know that, of course, but it is surprisingly easy to neglect innovation when protocols are established and business is good. Always strive to innovate, create, and expand. Be a pioneer, as frequently as you are able. 

MrBeast demonstrates innovation by constantly experimenting and testing out new formats, content strategies, and approaches. Planting 20 million trees in the name of charity is not only a highly extraordinary feat but also a solid creative move in terms of viewer appeal. How can you not engage with such an ambitious, worthwhile endeavor? 

MrBeast suffered failure for many years as he tried to crack the algorithm and attract viewers, but through failure came innovation, as he tested different strategies and tried new things.  Failure is fine, almost an accepted part of any entrepreneur’s journey. The key, however, is to fail forward.  Learn from mistakes and failures, and use them to adjust your business blueprint.

Assimilate Your Enterprise

A huge aspect of MrBeast’s success owes to his international reach, stemming from a thorough, comprehensive global strategy that has never been previously aspired to, by any other successful YouTuber.  

During the first six months of 2022, his total view count in English-speaking countries was somewhere in the region of 120 million. Conversely, over the same period, his view count with non-English speaking channels in various other countries amassed over 150 million views. This is a market completely untapped among YouTubers and with that, MrBeast again demonstrates innovation.

MrBeast goes beyond adding subtitles to videos, however. He created a team that deals specifically with voice-over dubbing and polished lip-syncing. Videos are often tweaked, modified, and refashioned to cater to the subtle cultural differences of each country he targets. 

Global targeting is a powerful strategy for growth, tapping into international markets and producing additional revenue streams  you likely never previously considered. There has never been an easier time for international business and while it might be a cliched term, the world really is a small place these days.

Brand Growth

With a net worth estimated at $100 million, MrBeast is now seeking $150 million of investor money in return for a 10% equity, through a valuation of $1.5 billion. While that probably seems ambitious, it might be worth remembering that VCs regularly invest in billion-dollar businesses at the growth stage that are not recording profits.

MrBeast, conversely, reeled in over $50 million of profit in 2021 alone. He might be worth backing. After finding an audience and growing, YouTube creators rarely drop off the radar and MrBeast is no exception. He is more than simply a creator du jour, and I expect he will expand on this new zeitgeist he has created, applying the same creative philosophy to a host of other more tangible, non-video, profit-focused ventures outside of YouTube.

He already has, actually. Last year, MrBeast surprised his audience by announcing a new burger chain – predictably called MrBeast Burger – with 300 locations springing up out of nowhere, pretty much overnight. The premise is simple and born out of a franchise model; he supplies the recipe, branding, and customers (app-based ordering), while partner restaurant kitchens produce the burger. Like the counting video that spawned his incredible success, the idea is so simple, it hurts.

What sets MrBeast apart from most other YouTube success stories is that he wants to evolve beyond the platform, venturing into more tangible business projects. In a Twitter post earlier this year, he mentioned that he “wants to be like Elon Musk one day”, citing the Tesla and SpaceX mogul as a dream collaborator. 

To attain status as a business mogul himself, MrBeast has been hard at work venturing into various other enterprises, in addition to the burger chain. Using his brand as leverage, he has recently launched Beast Games, a company focused on creating mobile games. 

He is also dabbling in the confectionery business with Feastables, a chocolate snack company with a very definite Willy Wonka & the Chocolate Factory vibe about it. Last year he created Backbone One, a tech hardware company manufacturing and retailing cell phone game controllers, with early reports suggesting that the company is doing very well indeed.

With a strong grasp of how to best monetize a rather loyal audience, his merch store alone would put many established high-street clothing retailers to shame, with thousands of shirts, caps, and hoodies sold each month.

MrBeast may have set a precedent with his unique approach, as copycat creators spring out of nowhere and video production is taken more seriously. Profits are being reinvested in a wide range of videos by a broad range of creators and for the viewer, that’s a good thing. 

Rather annoyingly, there has been an emergence in shamefully voyeuristic philanthropy on social media, with low-subscriber-count creators making a huge show of donating $100 to random homeless people. Of course, that is a good thing, but there is a hollowness about how they do so, without the charm or good spirit of MrBeast’s charitable efforts.

Who knows what the future holds? He has already hinted at emulating Elon Musk but that is a remarkably ambitious feat. Musk is a tough act to follow with absolute genius baked into his DNA; arguably, It is quite unlikely that anyone on this planet could ever emulate him. There are far worse role models to aspire to, however, and we applaud MrBeast for showing such enterprising passion.

Either way, this is a very capable, competent young man who is very likely going to create something even bigger. He can count to 100,000, we know that much. He can build a mean Lego tower. He can say Pewdiepie over and over. Entertaining horseplay, but a fragile jumping-off point if your end goal is to build a rocket ship or similar.

Stranger things have happened, however, and these are strange times we live in. Fun, exciting, and very promising times, but strange, nevertheless.  I just wasted a whole hour watching a guy counting to 100,000 after all – and so did 26 million others. Strange indeed.

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About the author: Matty Bates

With over two decades of online marketing experience, Matty has helped launch successful marketing campaigns for a wide range of companies in the eCommerce space, largely through writing engaging copy and devising advertising campaigns with a definite creative flair. After running a small but very successful direct-response advertising company for 12 years, Matty ventured into freelance copywriting in 2019 while also creating and managing his own eCommerce projects, selling viral products through social media sales funnels and landing pages. Matty joined Startup Geek as a senior content writer in mid-2022, before quickly rising to Editor a few months later. His natural style might be described as mildly satirical and humourous - which is an approach not usually employed within the entrepreneurial content realm - but helps to deliver an interesting touch of color to the informative content we are producing here at Startup Geek.

• April 4, 2023

Exploring the Mr Beast Business Model. How does Mr Beast Make money?

Do you want to learn how does mr. beast make money in this article, we uncover the secrets of the mr beast business model to help you learn how the youtube star has built an online empire..

In the world of YouTube creators, few have managed to reach the same level of success and notoriety as Jimmy Donaldson, better known by his online alias, “Mr. Beast.” With millions of subscribers and billions of views, Mr. Beast has not only established himself as a formidable force in the digital space, but he has also built a sustainable and scalable business model that continues to grow and evolve.

In this blog post, we will deconstruct the business model of Mr. Beast using Alexander Osterwalder’s Business Model Canvas, a strategic tool that helps entrepreneurs and business leaders visualize, design, and innovate their business models. We will provide a detailed analysis of each element of the Canvas, using real-world examples and insights from Mr. Beast’s journey to illustrate the key points. By examining the Mr. Beast story through the lens of the Business Model Canvas, we can gain a better understanding of how and why the company was started, and extract valuable lessons that can be applied to other ventures.

The Story of Mr. Beast

Before diving into the Business Model Canvas, it’s important to understand the origins of Mr. Beast and how it has evolved into the influential brand that it is today. The story begins with Jimmy Donaldson, a young entrepreneur from North Carolina who, at the age of 13, started creating videos for YouTube. Over the years, Jimmy experimented with various video formats and themes, but it wasn’t until he began focusing on philanthropy and over-the-top stunts that his channel began to gain traction.

In 2017, Jimmy’s philanthropic acts, such as giving away thousands of dollars to random Twitch streamers and Uber drivers, started to gain widespread attention. The Mr. Beast brand was born, and Jimmy quickly surrounded himself with a team of talented individuals, including friends and family members, who helped him scale the operation. Today, the Mr. Beast team includes creative minds, marketers, and business strategists who have enabled the brand to expand beyond YouTube and create a sustainable, multi-faceted business model.

The Business Model Canvas: Mr. Beast Edition

To analyze the Mr. Beast business model, we will use Alexander Osterwalder’s Business Model Canvas, which consists of nine building blocks: Customer Segments, Value Proposition, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. Each of these components will be explored in detail, providing a comprehensive understanding of how the Mr. Beast business model operates.

• Customer Segments

At its core, Mr. Beast’s primary customer segment is the global YouTube audience, which consists of individuals from diverse demographics, age groups, and interests. However, the company has also been successful in catering to specific sub-segments, such as gamers (through the Mr. Beast Gaming channel), food enthusiasts (through the MrBeast Burger venture), and even philanthropists and environmentalists (through initiatives like Team Trees and Team Seas).

By understanding and catering to these distinct customer segments, Mr. Beast has been able to create a wide range of content and products that appeal to different audiences, ensuring that its brand remains relevant and continues to grow.

• Value Proposition

The value proposition of Mr. Beast lies in its unique and innovative content, which combines philanthropy, entertainment, and education. The company’s videos are characterized by their over-the-top stunts, such as giving away cars, homes, or large sums of money, which not only capture the attention of viewers but also inspire a sense of awe and wonder. Additionally, Mr. Beast has been successful in creating content that is both emotionally engaging and shareable, which has contributed to its rapid growth and widespread popularity.

Another aspect of Mr. Beast’s value proposition is its commitment to social and environmental causes. By partnering with organizations like Team Trees and Team Seas, Mr. Beast has been able to use its platform to raise awareness and generate significant donations for these initiatives. This approach has not only bolstered the company’s brand image but has also fostered a loyal and engaged community of followers who share its values and mission.

Mr. Beast primarily uses YouTube as its main channel for reaching and engaging with its audience. However, the company has also diversified its presence across other digital platforms, including Instagram, Twitter, TikTok, and Snapchat, to maximize its reach and audience engagement. These platforms enable Mr. Beast to share content, updates, and promotions, and interact with its community of followers, further solidifying its brand presence.

Beyond social media, Mr. Beast has also leveraged traditional media channels, such as television and radio, to reach a wider audience and create brand awareness. The company has also experimented with offline channels, such as the MrBeast Burger pop-up restaurants, which not only serve as a revenue stream but also provide a unique, in-person brand experience for customers.

• Customer Relationships

Mr. Beast has built strong customer relationships through its engaging and interactive content, as well as its commitment to philanthropy and social causes. By consistently delivering on its value proposition, the company has been able to foster a loyal and passionate community of followers who actively engage with its content and support its various initiatives.

In addition to its content, Mr. Beast has also leveraged social media platforms to maintain an ongoing dialogue with its audience, soliciting feedback, and incorporating user-generated ideas into its videos. This approach has helped the company to maintain a strong bond with its customers and ensure that it remains relevant and responsive to their needs and interests.

• Revenue Streams

The primary revenue streams for Mr. Beast include advertising revenue from YouTube, brand partnerships and sponsorships, and merchandise sales. As the company’s audience has grown, so too has its ability to attract high-profile sponsors and advertisers, who are eager to capitalize on the brand’s popularity and reach.

In recent years, Mr. Beast has also diversified its revenue streams by launching new ventures, such as MrBeast Burger, which leverages the company’s brand equity to sell food products through a virtual restaurant model. Additionally, the company has expanded its merchandise offerings to include a wide range of products, such as clothing, accessories, and collectibles, providing another source of income and further cementing its brand presence.

• Key Resources

The key resources for Mr. Beast include its talented team of content creators, marketers, and business strategists, who are responsible for producing the company’s innovative and engaging content, as well as managing its various revenue streams and partnerships. Additionally, the company relies on its extensive network of social media followers, who serve as both customers and brand ambassadors, helping to spread the word about Mr. Beast and its various initiatives.

Another important resource for Mr. Beast is its intellectual property, which includes its unique content formats, brand name, and logo. By protecting and leveraging these assets, the company has been able to create a strong brand identity that differentiates it from competitors and ensures its continued success in the digital space.

• Key Activities

The key activities for Mr. Beast include content creation and production, marketing and audience engagement, and business development and strategy. These activities are essential for maintaining the company’s brand presence, growing its audience, and generating revenue.

Moreover, Mr. Beast also focuses on innovation and experimentation, constantly seeking new ways to entertain and engage its audience, while exploring opportunities for growth and diversification. This commitment to innovation has been a driving force behind the company’s success and has enabled it to stay ahead of the curve in an increasingly competitive digital landscape.

• Key Partnerships

Mr. Beast has forged numerous strategic partnerships that have played a crucial role in its growth and success. These partnerships range from collaborations with other content creators and influencers, which help to expand the company’s reach and audience, to partnerships with organizations and nonprofits for philanthropic initiatives, such as Team Trees and Team Seas.

Additionally, Mr. Beast has established relationships with advertisers and sponsors, who provide a significant source of revenue for the company. By aligning itself with high-profile brands and leveraging its extensive audience, Mr. Beast has been able to secure lucrative sponsorship deals that have contributed to its financial success.

• Cost Structure

The primary costs associated with Mr. Beast’s business model include content production expenses, such as equipment, props, and giveaways, as well as salaries and compensation for its team of creators, marketers, and strategists. The company also incurs costs related to marketing and promotion, including social media advertising and merchandise production.

To maintain its competitive edge and continue to innovate, Mr. Beast must also invest in research and development, exploring new content formats and strategies for audience growth and engagement. Additionally, as the company expands its operations and ventures into new markets, such as the MrBeast Burger, it must also account for the costs associated with these initiatives, such as product development and supply chain management.

The Mr. Beast story serves as a powerful example of how an entrepreneur can leverage the power of digital platforms to create a thriving business in today’s fast-paced world. By applying Alexander Osterwalder’s Business Model Canvas to the Mr. Beast case study, we have been able to gain a deeper understanding of the company’s unique value proposition, customer segments, channels, and key activities, as well as the strategic partnerships, resources, and cost structures that underpin its success.

Aspiring entrepreneurs and business leaders can learn valuable lessons from the Mr. Beast story, including the importance of innovation, audience engagement, and strategic partnerships, as well as the value of diversifying revenue streams and exploring new opportunities for growth. By emulating the strategies and principles that have guided Mr. Beast’s meteoric rise, entrepreneurs can position themselves for success in the digital age and create businesses that not only generate profits but also have a lasting impact on the world.

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MrBeast Has Your Views. Now He Wants Your Cash

By CT Jones

In less than 10 years, media mogul MrBeast has conquered YouTube with an empire of stunt videos branded philanthropic ventures, and a hoard of teenage fans . Now, the YouTube star wants to dominate store shelves. According to an Axios report Tuesday, MrBeast is searching for $150 million in funding, which would help the YouTuber expand his presence in the consumer goods space. With this round of funding, MrBeast has valued his company at $1.5 billion — marking another attempt by the social media star to cement his online domain with a physical (and cash-rich) retail stronghold. 

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I went to YouTube star MrBeast's massively popular new burger restaurant and ate a shockingly disappointing meal

• YouTube star MrBeast's burger brand opened its first physical location in New Jersey's American Dream megamall.
• Before this opening, MrBeast Burger saw massive success as a delivery-only brand using ghost kitchens.
• I tried the Beast Style burger and was disappointed with the meal.

One of YouTube's most popular creators, known as MrBeast, has launched his first physical MrBeast Burger restaurant after finding massive global success in the ghost kitchen-based delivery market.

On opening day, the launch of MrBeast Burger in New Jersey's American Dream mall drew in at least hundreds of the creator's fans, as can be seen in the photos from the event.

But when I visited a few days after its grand opening, I was confronted with a mediocre burger that wasn't worth waiting even a few minutes for.

If you've been a fan of MrBeast for a few years, you might not associate his brand with fast casual dining.

MrBeast, real name Jimmy Donaldson, is known for his undeniably eye-catching viral stunt videos, which often include massive cash giveaways like giving strangers a million dollars with only one minute to spend it.

And unsurprisingly, his unique videos have amassed a dedicated following.

With 104 million subscribers, Donaldson is now the fifth most subscribed creator on YouTube …

… making him one of the most viewed and highest paid creators on the platform having reeled in $54 million in 2021, according to Forbes.

Source: Insider , Insider , Forbes

But MrBeast's public presence isn't all about wild stunts and giving away hundreds of thousands of dollars.

Along with a strong social media presence, in 2020, Donaldson began venturing into the food industry with a predictably named virtual restaurant brand: MrBeast Burger.

The burger, fries, and grilled cheese concept first launched in partnership with Virtual Dining Concepts, which works with celebrities and influencers to create delivery-forward food brands.

And soon after Donaldson announced the brand in a now-viral YouTube video, the burger concept saw a meteoric rise in popularity.

Source: YouTube

"The minute the video came out we opened and we were beyond slammed and ill-prepared for his incredible following and demand that ensued," Robert Earl, Virtual Dining Concepts' CEO, told Insider in 2021. "It was beyond any expectation anywhere."

Source: Insider

At first, MrBeast Burger was delivery-only, relying on 300 ghost kitchens across the US ...

... food delivery platforms, and an eponymous app that became one of the most downloaded apps on Apple's App Store and Google's Play store, according to a press release.

And there's no denying the burger brand's achievements.

MrBeast Burger sold over one million sandwiches in its first two months, Donaldson tweeted in February 2021.

Now nearly two years later, the brand has 17,000 "locations" around the world, according to a press release.

And in early September, it cemented its virtual success with a physical win: The grand opening of its first brick-and-mortar store in the monstrously large American Dream mall in East Rutherford, New Jersey, about eight miles from New York City …

Source: Insider  

… an event that amassed a sea of adoring fans hoping to catch a glimpse — or even a few dollars — of MrBeast.

Source: Rolling Stone

The opening event packed the halls of the infamous three million-square-foot megamall.

Source: Twitter

But when I visited the burger shop for lunch a few days after its launch, the mall was devoid of MrBeast fan mobs.

However, announcements of the new MrBeast opening were inescapable the moment I entered the massive shopping center.

From the large banner …

… to digital ads …

… to signs telling people where to find the restaurant, reminders of the content creator-branded fast-casual concept were unavoidable.

And luckily for me, it made finding the tucked away restaurant easy to find.

As MrBeast himself was long gone from the premise, I didn't have to fight a mob of thousands of children and their patient parents.

Instead, the line was relatively short, speckled with teenagers, children, and their parents.

I only waited a few minutes in line before I ordered.

And there were still plenty of seats available among the small congregation of (presumably) MrBeast fans.

I only saw a handful of adults dining alone or with other adults.

All the other patrons were just a reminder of my old age.

And surprisingly, within minutes of ordering, my food was ready.

For a new restaurant, I was surprised by how quickly my meal was prepared and delivered to my table.

According to Virtual Dining Concept, MrBeast Burger's menu is a "straightforward no-nonsense take on the classic American smash burgers" with items named after MrBeast and his friends.

Source: Virtual Dining Concept

And as far as smash burgers go, MrBeast's burgers are pretty traditional.

The Beast Style has two smashed beef patties, American cheese, pickles, diced white onions, mayonnaise, ketchup, and mustard between a roll.

But if you want a burger with less or different accouterments, there are other options like the Chandler style — two beef patties with American cheese — or the Karl's Grilled Cheese with three slices of American cheese.

There are also different iterations of a chicken sandwich …

… as well as different fries options, whether it be peri-peri-seasoned crinkle fries (shown below) or "Beast Style" loaded fries.

I decided to stick with my cashier's recommendation: the Beast Style, which I ordered as a combo with the seasoned fries.

Unfortunately, the loaded burger wasn't as life changing as MrBeast's cash gifts.

The menu promised "crispy" beef patties that would've been a perfect contrast to the melted cheese, soft bun, and slew of condiments.

But I never got this crispy bite that would've provided a nice relief from the burger's softer textures.

Not even the pickles and diced onions could save the mushy burger.

I wouldn't call it a bad meal, but it was just perfectly okay.

If anything, I was disappointed. My expectations were high given the massive line on opening day.

But in retrospect, those patrons were probably there for MrBeast, not his burger.

It was fine as far as work lunches go, but definitely nothing I would go out of my way for.

I couldn't imagine waiting in line for hours with thousands of people for a burger this mediocre.

I'll give credit where credit is due: The fries were good, but it's not easy to mess up seasoned fries.

But if there's one feature the restaurant concept executed well, it's bringing fans one bit closer to MrBeast.

Like any fast food chain, the branding was prominent throughout the restaurant and packaging, justifiable given how integral MrBeast's name is to the brand and its promotion on social media.

From the large picture of MrBeast holding a burger on the exterior walls of the restaurant …

… to the TV screen playing MrBeast YouTube videos on loop …

… the sight of MrBeast and his burger brand were inescapable.

And it wouldn't be a MrBeast restaurant without cash.

A glass case filled with money served as decor on the exterior walls of the large joint.

And a corner of the restaurant was even occupied by a MrBeast merchandise store.

I've never seen a merchandise store in a fast-casual restaurant, but for some influencers, merch sales are an integral revenue stream.

At the end of the day, MrBeast Burger is more than a traditional restaurant.

It's a place for fans to immerse themselves in the MrBeast branding, bringing themselves one step closer to their favorite creator and his promise of insane cash prizes and burgers.

Just don't go expecting the best burger of your life: You'll find better at McDonald's.

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• Here's where Gen Z wants restaurants to spend their tech dollars

Save Time And Labor With Highly Efficient Equipment

Doordash hires leaders from standard ai to help grow its ai voice product, chownow acquires digital order integrator cuboh, how nimbus is succeeding where ghost kitchens failed, the owner of mrbeast burger launches a tiktok concept.

Ever wanted to order the wild and wacky food that goes viral on TikTok? Now you can.

Creators’ Kitchen As Seen on TikTok, a new virtual brand from the company behind MrBeast Burger, will offer a rotating menu of dishes that gained popularity on the social media app. The debut menu has an Italian focus, with baked feta pasta, a chopped Italian sandwich, fried lasagna and more.

The menu also highlights the TikTok users, or “creators,” who popularized each dish. And the brand is encouraging other creators to apply to become “affiliates” who will help create new menu items and promote them in exchange for a share in the sales they generate. 

The strategy underscores the unique cultural impact of TikTok, where videos can rack up hundreds of millions of views and drive consumer trends in the real world. Restaurants have even begun to look to the app for menu inspiration . 

Unveiled Thursday by Virtual Dining Concepts (VDC), Creators’ Kitchen is already live in more than 100 locations across 32 states. As a virtual brand, it has no brick-and-mortars of its own and is instead produced within the kitchens of existing restaurants. It’s available for delivery and pickup via delivery apps and its own website. 

VDC  first aired plans for a TikTok brand in late 2021. It was to be called TikTok Kitchen and offer a rotating menu of viral dishes from the app. But the brand stalled after TikTok fired marketing chief Nick Tran in early 2022, in part because it didn’t approve of the restaurant idea.

VDC had been tight-lipped on the future of the TikTok brand until Thursday, when it announced Creators’ Kitchen. It’s using the TikTok name under a licensing agreement with TikTok, according to a press release.

“Working with TikTok creators to develop and market the menu of this brand has been an exciting endeavor,” said VDC co-founder Robbie Earl in a statement. “We believe Creators' Kitchen As Seen On TikTok has set a new standard. With creators steadily producing new recipes and content, Creators' Kitchen As Seen On TikTok will always be relevant and inspiring.”

VDC, founded by restaurateurs Robert Earl, Trish Giordano and Earl’s son Robbie, also owns MrBeast Burger, Pardon My Cheesesteak, Man Vs. Fries and other delivery-only restaurant brands. Restaurants can add these concepts as additional revenue streams, with VDC taking a portion of the sales.

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MrBeast Burger Menu

Pricing and menu options may vary by location

Beast Style Burger Combo

Smashed crispy beef patties with house seasoning, American cheese, pickles, diced onion, mayo, ketchup, and brown mustard on a toasted bun served with your choice of fries and a drink.

Chicken Sandwich Combo

A Crispy Chicken Tender Sandwich or Nashville Hot Chicken Tender Sandwich with your choice of Crinkle Fries or Beast Style fries and a drink.

Beast Style

Smashed crispy beef patties with house seasoning, American cheese, pickles, diced onion, mayo, ketchup, and brown mustard on a toasted bun.

Chandler Style

Two smashed crispy beef patties with house seasoning, served plain with American cheese on a toasted bun.

Chris Style

Two smashed crispy beef patties with house seasoning, American cheese, bacon, topped with crinkle fries on a toasted bun.

Karl’s Deluxe

A patty melt served Karl’s Style with a crispy seasoned beef patty, caramelized onions and cheese on a toasted inverted bun.

Impossible™ Burgers

Impossible™ Beast Style Combo

Smashed crispy Impossible™ patties with house seasoning, American cheese, pickles, diced onion, mayo, ketchup, and brown mustard on a toasted bun served with your choice of fries and a drink.

Impossible™ Beast Style

Smashed crispy Impossible™ patties with house seasoning, American cheese, pickles, diced onion, mayo, ketchup, and brown mustard on a toasted bun.

Impossible™ Chandler Style

Two smashed crispy Impossible™ patties with house seasoning, served plain with American cheese on a toasted bun.

Impossible™ Chris Style

Two smashed crispy Impossible™ patties with house seasoning, American cheese, bacon, topped with crinkle fries on a toasted bun.

Impossible™ Karl’s Deluxe

A patty melt served Karl’s Style with a crispy seasoned Impossible™ patty, caramelized onions and cheese on a toasted inverted bun.

Karl’s Grilled Cheese

3 slices of American cheese griddled crisp on an inverted bun

Crispy Chicken Tender Sandwich

with mayo, shredded lettuce and pickles on a toasted bun.

Nashville Hot Chicken Tender Sandwich

with mayo, ketchup, shredded lettuce and pickles on a toasted bun.

Crinkle Fries

Crinkle fries lightly seasoned with salt.

Signature Crinkle Fries

Crinkle fries seasoned with spicy red pepper, garlic, paprika, sugar, and a hint of lime.

Beast Style Fries

Seasoned crinkle fries loaded with caramelized onions, American cheese, pickles, mayo, ketchup and mustard.

Chocolate Chip Cookie

Freshly baked chocolate chip cookie

Canned Beverages

Canned Pepsi

Canned Diet Pepsi

Canned Starry

Aquafina Bottled Water

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Ronna McDaniel, TV News and the Trump Problem

The former republican national committee chairwoman was hired by nbc and then let go after an outcry..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.”

[MUSIC PLAYING]

Today, the saga of Ronna McDaniel and NBC and what it reveals about the state of television news headed into the 2024 presidential race. Jim Rutenberg, a “Times” writer at large, is our guest.

It’s Monday, April 1.

Jim, NBC News just went through a very public, a very searing drama over the past week, that we wanted you to make sense of in your unique capacity as a longtime media and political reporter at “The Times.” This is your sweet spot. You were, I believe, born to dissect this story for us.

Oh, brother.

Well, on the one hand, this is a very small moment for a major network like NBC. They hire, as a contributor, not an anchor, not a correspondent, as a contributor, Ronna McDaniel, the former RNC chairwoman. It blows up in a mini scandal at the network.

But to me, it represents a much larger issue that’s been there since that moment Donald J. Trump took his shiny gold escalator down to announce his presidential run in 2015. This struggle by the news media to figure out, especially on television, how do we capture him, cover him for all of his lies, all the challenges he poses to Democratic norms, yet not alienate some 74, 75 million American voters who still follow him, still believe in him, and still want to hear his reality reflected in the news that they’re listening to?

Right. Which is about as gnarly a conundrum as anyone has ever dealt with in the news media.

Well, it’s proven so far unsolvable.

Well, let’s use the story of what actually happened with Ronna McDaniel and NBC to illustrate your point. And I think that means describing precisely what happened in this situation.

The story starts out so simply. It’s such a basic thing that television networks do. As elections get underway, they want people who will reflect the two parties.

They want talking heads. They want insiders. They want them on their payroll so they can rely on them whenever they need them. And they want them to be high level so they can speak with great knowledge about the two major candidates.

Right. And rather than needing to beg these people to come on their show at 6 o’clock, when they might be busy and it’s not their full-time job, they go off and they basically put them on retainer for a bunch of money.

Yeah. And in this case, here’s this perfect scenario because quite recently, Ronna McDaniel, the chairwoman of the Republican National Committee through the Trump era, most of it, is now out on the market. She’s actually recently been forced out of the party. And all the networks are interested because here’s the consummate insider from Trump world ready to get snatched up under contract for the next election and can really represent this movement that they’ve been trying to capture.

So NBC’S key news executives move pretty aggressively, pretty swiftly, and they sign her up for a $300,000 a year contributor’s contract.

Nice money if you can get it.

Not at millions of dollars that they pay their anchors, but a very nice contract. I’ll take it. You’ll take it. In the eyes of NBC execs she was perfect because she can be on “Meet the Press” as a panelist. She can help as they figure out some of their coverage. They have 24 hours a day to fill and here’s an official from the RNC. You can almost imagine the question that would be asked to her. It’s 10:00 PM on election night. Ronna, what are the Trump people thinking right now? They’re looking at the same numbers you are.

That was good, but that’s exactly it. And we all know it, right? This is television in our current era.

So last Friday, NBC makes what should be a routine announcement, but one they’re very proud of, that they’ve hired Ronna McDaniel. And in a statement, they say it couldn’t be a more important moment to have a voice like Ronna’s on the team. So all’s good, right? Except for there’s a fly in the ointment.

Because it turns out that Ronna McDaniel has been slated to appear on “Meet the Press,” not as a paid NBC contributor, but as a former recently ousted RNC chair with the “Meet The Press” host, Kristen Welker, who’s preparing to have a real tough interview with Ronna McDaniel. Because of course, Ronna McDaniel was chair of the party and at Trump’s side as he tried to refuse his election loss. So this was supposed to be a showdown interview.

From NBC News in Washington, the longest-running show in television history. This is “Meet The Press” with Kristen Welker.

And here, all of a sudden, Kristin Welker is thrown for a loop.

In full disclosure to our viewers, this interview was scheduled weeks before it was announced that McDaniel would become a paid NBC News contributor.

Because now, she’s actually interviewing a member of the family who’s on the same payroll.

Right. Suddenly, she’s interviewing a colleague.

This will be a news interview, and I was not involved in her hiring.

So what happens during the interview?

So Welker is prepared for a tough interview, and that’s exactly what she does.

Can you say, as you sit here today, did Joe Biden win the election fair and square?

He won. He’s the legitimate president.

Did he win fair and square?

Fair and square, he won. It’s certified. It’s done.

She presses her on the key question that a lot of Republicans get asked these days — do you accept Joe Biden was the winner of the election?

But, I do think, Kristen —

Ronna, why has it taken you until now to say that? Why has it taken you until now to be able to say that?

I’m going to push back a little.

McDaniel gets defensive at times.

Because I do think it’s fair to say there were problems in 2020. And to say that does not mean he’s not the legitimate president.

But, Ronna, when you say that, it suggests that there was something wrong with the election. And you know that the election was the most heavily scrutinized. Chris Krebs —

It’s a really combative interview.

I want to turn now to your actions in the aftermath of the 2020 election.

And Welker actually really does go deeply into McDaniel’s record in those weeks before January 6.

On November 17, you and Donald Trump were recorded pushing two Republican Michigan election officials not to certify the results of the election. And on the call —

For instance, she presses McDaniel on McDaniel’s role in an attempt to convince a couple county commissioner level canvassers in Michigan to not certify Biden’s victory.

Our call that night was to say, are you OK? Vote your conscience. Not pushing them to do anything.

McDaniel says, look, I was just telling them to vote their conscience. They should do whatever they think is right.

But you said, do not sign it. If you can go home tonight, do not sign it. How can people read that as anything other than a pressure campaign?

And Welker’s not going to just let her off the hook. Welker presses her on Trump’s own comments about January 6 and Trump’s efforts recently to gloss over some of the violence, and to say that those who have been arrested, he’ll free them.

Do you support that?

I want to be very clear. The violence that happened on January 6 is unacceptable.

And this is a frankly fascinating moment because you can hear McDaniel starting to, if not quite reverse some of her positions, though in some cases she does that, at least really soften her language. It’s almost as if she’s switching uniforms from the RNC one to an NBC one or almost like breaking from a role she was playing.

Ronna, why not speak out earlier? Why just speak out about that now?

When you’re the RNC chair, you kind of take one for the whole team, right? Now, I get to be a little bit more myself.

She says, hey, you know what? Sometimes as RNC chair, you just have to take it for the team sometimes.

Right. What she’s really saying is I did things as chairwoman of the Republican National committee that now that I no longer have that job, I can candidly say, I wished I hadn’t done, which is very honest. But it’s also another way of saying I’m two faced, or I was playing a part.

Ronna McDaniel, thank you very much for being here this morning.

Then something extraordinary happens. And I have to say, I’ve never seen a moment like this in decades of watching television news and covering television news.

Welcome back. The panel is here. Chuck Todd, NBC News chief political analyst.

Welker brings her regular panel on, including Chuck Todd, now the senior NBC political analyst.

Chuck, let’s dive right in. What were your takeaways?

And he launches right into what he calls —

Look, let me deal with the elephant in the room.

The elephant being this hiring of McDaniel.

I think our bosses owe you an apology for putting you in this situation.

And he proceeds, on NBC’S air, to lace into management for, as he describes it, putting Welker in this crazy awkward position.

Because I don’t know what to believe. She is now a paid contributor by NBC News. I have no idea whether any answer she gave to you was because she didn’t want to mess up her contract.

And Todd is very hung up on this idea that when she was speaking for the party, she would say one thing. And now that she’s on the payroll at NBC, she’s saying another thing.

She has credibility issues that she still has to deal with. Is she speaking for herself, or is she speaking on behalf of who’s paying her?

Todd is basically saying, how are we supposed to know which one to believe.

What can we believe?

It is important for this network and for always to have a wide aperture. Having ideological diversity on this panel is something I prided myself on.

And what he’s effectively saying is that his bosses should have never hired her in this capacity.

I understand the motivation, but this execution, I think, was poor.

Someone said to me last night we live in complicated times. Thank you guys for being here. I really appreciate it.

Now, let’s just note here, this isn’t just any player at NBC. Chuck Todd is obviously a major news name at the network. And him doing this appears to just open the floodgates across the entire NBC News brand, especially on its sister cable network, MSNBC.

And where I said I’d never seen anything like what I saw on “Meet the Press” that morning, I’d never seen anything like this either. Because now, the entire MSNBC lineup is in open rebellion. I mean, from the minute that the sun comes up. There is Joe Scarborough and Mika Brzezinski.

We weren’t asked our opinion of the hiring. But if we were, we would have strongly objected to it.

They’re on fire over this.

believe NBC News should seek out conservative Republican voices, but it should be conservative Republicans, not a person who used her position of power to be an anti-democracy election denier.

But it rolls out across the entire schedule.

Because Ronna McDaniel has been a major peddler of the big lie.

The fact that Ms. McDaniel is on the payroll at NBC News, to me that is inexplicable. I mean, you wouldn’t hire a mobster to work at a DA’s office.

Rachel Maddow devotes an entire half hour.

It’s not about just being associated with Donald Trump and his time in the Republican Party. It’s not even about lying or not lying. It’s about our system of government.

Thumbing their noses at our bosses and basically accusing them of abetting a traitorous figure in American history. I mean, just extraordinary stuff. It’s television history.

And let’s face it, we journalists, our bosses, we can be seen as crybabies, and we’re paid complaining. Yeah, that’s what we’re paid to do. But in this case, the NBC executives cannot ignore this, because in the outcry, there’s a very clear point that they’re all making. Ronna McDaniel is not just a voice from the other side. She was a fundamental part of Trump’s efforts to deny his election loss.

This is not inviting the other side. This is someone who’s on the wrong side —

Of history.

Of history, of these moments that we’ve covered and are still covering.

And I think it’s fair to say that at this point, everyone understands that Ronna McDaniel’s time at NBC News is going to be very short lived. Yeah, basically, after all this, the executives at NBC have to face facts it’s over. And on Tuesday night, they release a statement to the staff saying as much.

They don’t cite the questions about red lines or what Ronna McDaniel represented or didn’t represent. They just say we need to have a unified newsroom. We want cohesion. This isn’t working.

I think in the end, she was a paid contributor for four days.

Yeah, one of the shortest tenures in television news history. And look, in one respect, by their standards, this is kind of a pretty small contract, a few hundred thousand dollars they may have to pay out. But it was way more costly because they hired her. They brought her on board because they wanted to appeal to these tens of millions of Americans who still love Donald J. Trump.

And what happens now is that this entire thing is blown up in their face, and those very same people now see a network that, in their view, in the view of Republicans across the country, this network will not accept any Republicans. So it becomes more about that. And Fox News, NBC’S longtime rival, goes wall to wall with this.

Now, NBC News just caved to the breathless demands from their far left, frankly, emotionally unhinged host.

I mean, I had it on my desk all day. And every minute I looked at that screen, it was pounding on these liberals at NBC News driving this Republican out.

It’s the shortest tenure in TV history, I think. But why? Well, because she supports Donald Trump, period.

So in a way, this leaves NBC worse off with that Trump Republican audience they had wanted to court than maybe even they were before. It’s like a boomerang with a grenade on it.

Yeah, it completely explodes in their face. And that’s why to me, the whole episode is so representative of this eight-year conundrum for the news media, especially on television. They still haven’t been able to crack the code for how to handle the Trump movement, the Trump candidacy, and what it has wrought on the American political system and American journalism.

We’ll be right back.

Jim, put into context this painful episode of NBC into that larger conundrum you just diagnosed that the media has faced when it comes to Trump.

Well, Michael, it’s been there from the very beginning, from the very beginning of his political rise. The media was on this kind of seesaw. They go back and forth over how to cover him. Sometimes they want to cover him quite aggressively because he’s such a challenging candidate. He was bursting so many norms.

But at other times, there was this instinct to understand his appeal, for the same reason. He’s such an unusual candidate. So there was a great desire to really understand his voters. And frankly, to speak to his voters, because they’re part of the audience. And we all lived it, right?

But just let me take you back anyway because everything’s fresh again with perspective. And so if you go back, let’s look at when he first ran. The networks, if you recall, saw him as almost like a novelty candidate.

He was going to spice up what was expected to be a boring campaign between the usual suspects. And he was a ratings magnet. And the networks, they just couldn’t get enough of it. And they allowed him, at times, to really shatter their own norms.

Welcome back to “Meet the Press,” sir.

Good morning, Chuck.

Good morning. Let me start —

He was able to just call into the studio and riff with the likes of George Stephanopoulos and Chuck Todd.

What does it have to do with Hillary?

She can’t talk about me because nobody respects women more than Donald Trump.

And CNN gave him a lot of unmitigated airtime, if you recall during the campaign. They would run the press conferences.

It’s the largest winery on the East Coast. I own it 100 percent.

And let him promote his Trump steaks and his Trump wine.

Trump steaks. Where are the steaks? Do we have steaks?

I mean, it got that crazy. But again, the ratings were huge. And then he wins. And because they had previously given him all that airtime, they’ve, in retrospect, sort of given him a political gift, and more than that now have a journalistic imperative to really address him in a different way, to cover him as they would have covered any other candidate, which, let’s face it, they weren’t doing initially. So there’s this extra motivation to make up for lost ground and maybe for some journalistic omissions.

Right. Kind of correct for the lack of a rigorous journalistic filter in the campaign.

Exactly. And the big thing that this will be remembered for is we’re going to call a lie a lie.

I don’t want to sugarcoat this because facts matter, and the fact is President Trump lies.

Trump lies. We’re going to say it’s a lie.

And I think we can’t just mince around it because they are lies. And so we need to call them what they are.

We’re no longer going to use euphemisms or looser language we’re. Going to call it for what it is.

Trump lies in tweets. He spreads false information at rallies. He lies when he doesn’t need to. He lies when the truth is more than enough for him.

CNN was running chyrons. They would fact check Trump and call lies lies on the screen while Trump is talking. They were challenging Trump to his face —

One of the statements that you made in the tail end of the campaign in the midterms that —

Here we go.

That — well, if you don’t mind, Mr. President, that this caravan was an invasion.

— in these crazy press conferences —

They’re are hundreds of miles away, though. They’re hundreds and hundreds of miles away. That’s not an invasion.

Honestly, I think you should let me run the country. You run CNN. And if you did it well, your ratings —

Well, let me ask — if I may ask one other question. Mr. President, if I may ask another question. Are you worried —

That’s enough. That’s enough.

And Trump is giving it right back.

I tell you what, CNN should be ashamed of itself having you working for them. You are a rude, terrible person. You shouldn’t be working for CNN.

Very combative.

So this was this incredibly fraught moment for the American press. You’ve got tens of millions of Trump supporters seeing what’s really basic fact checking. These look like attacks to Trump supporters. Trump, in turn, is calling the press, the reporters are enemies of the people. So it’s a terrible dynamic.

And when January 6 happens, it’s so obviously out of control. And what the traditional press that follows, traditional journalistic rules has to do is make it clear that the claims that Trump is making about a stolen election are just so abjectly false that they don’t warrant a single minute of real consideration once the reporting has been done to show how false they are. And I think that American journalism really emerged from that feeling strongly about its own values and its own place in society.

But then there’s still tens of millions of Trump voters, and they don’t feel so good about the coverage. And they don’t agree that January 6 was an insurrection. And so we enter yet another period, where the press is going to have to now maybe rethink some things.

In what way?

Well, there’s a kind of quiet period after January 6. Trump is off of social media. The smoke is literally dissipating from the air in Washington. And news executives are kind of standing there on the proverbial battlefield, taking a new look at their situation.

And they’re seeing that in this clearer light, they’ve got some new problems, perhaps none more important for their entire business models than that their ratings are quickly crashing. And part of that diminishment is that a huge part of the country, that Trump-loving part of the audience, is really now severed from him from their coverage.

They see the press as actually, in some cases, being complicit in stealing an election. And so these news executives, again, especially on television, which is so ratings dependent, they’ve got a problem. So after presumably learning all these lessons about journalism and how to confront power, there’s a first subtle and then much less subtle rethinking.

Maybe we need to pull back from that approach. And maybe we need to take some new lessons and switch it up a little bit and reverse some of what we did. And one of the best examples of this is none other than CNN.

It had come under new management, was being led by a guy named Chris Licht, a veteran of cable news, but also Stephen Colbert’s late night show in his last job. And his new job under this new management is we’re going to recalibrate a little bit. So Chris Licht proceeds to try to bring the network back to the center.

And how does he do that?

Well, we see some key personalities who represented the Trump combat era start losing air time and some of them lose their jobs. There’s talk of, we want more Republicans on the air. There was a famous magazine article about Chris Licht’s balancing act here.

And Chris Licht says to a reporter, Tim Alberta of the “Atlantic” magazine, look, a lot in the media, including at his own network, quote unquote, “put on a jersey, took a side.” They took a side. And he says, I think we understand that jersey cannot go back on him. Because he says in the end of the day, by the way, it didn’t even work. We didn’t change anyone’s mind.

He’s saying that confrontational approach that defined the four years Trump was in office, that was a reaction to the feeling that TV news had failed to properly treat Trump with sufficient skepticism, that that actually was a failure both of journalism and of the TV news business. Is that what he’s saying?

Yeah. On the business side, it’s easier call, right? You want a bigger audience, and you’re not getting the bigger audience. But he’s making a journalistic argument as well that if the job is to convey the truth and take it to the people, and they take that into account as they make their own voting decisions and formulate their own opinions about American politics, if tens of millions of people who do believe that election was stolen are completely tuning you out because now they see you as a political combatant, you’re not achieving your ultimate goal as a journalist.

And what does Licht’s “don’t put a jersey back on” approach look like on CNN for its viewers?

Well, It didn’t look good. People might remember this, but the most glaring example —

Please welcome, the front runner for the Republican nomination for president, Donald Trump.

— was when he held a town hall meeting featuring Donald J. Trump, now candidate Trump, before an audience packed with Trump’s fans.

You look at what happened during that election. Unless you’re a very stupid person, you see what happens. A lot of the people —

Trump let loose a string of falsehoods.

Most people understand what happened. It was a rigged election.

The audience is pro-Trump audience, was cheering him on.

Are you ready? Are you ready? Can I talk?

Yeah, what’s your answer?

Can I? Do you mind?

I would like for you to answer the question.

OK. It’s very simple to answer.

That’s why I asked it.

It’s very simple. You’re a nasty person, I’ll tell you that.

And during, the CNN anchor hosting this, Kaitlan Collins, on CNN’s own air, it was a disaster.

It felt like a callback to the unlearned lessons of 2016.

Yeah. And in this case, CNN’s staff was up in arms.

Big shakeup in the cable news industry as CNN makes another change at the top.

Chris Licht is officially out at CNN after a chaotic run as chairman and CEO.

And Chris Licht didn’t survive it.

The chief executive’s departure comes as he faced criticism in recent weeks after the network hosted a town hall with Donald Trump and the network’s ratings started to drop.

But I want to say that the CNN leadership still, even after that, as they brought new leadership in, said, this is still the path we’re going to go on. Maybe that didn’t work out, but we’re still here. This is still what we have to do.

Right. And this idea is very much in the water of TV news, that this is the right overall direction.

Yeah. This is, by no means, isolated to CNN. This is throughout the traditional news business. These conversations are happening everywhere. But CNN was living it at that point.

And this, of course, is how we get to NBC deciding to hire Ronna McDaniel.

Right. Because they’re picking up — right where that conversation leaves off, they’re having the same conversation. But for NBC, you could argue this tension between journalistic values and audience. It’s even more pressing. Because even though MSNBC is a niche cable network, NBC News is part of an old-fashioned broadcast network. It’s on television stations throughout the country.

And in fact, those networks, they still have 6:30 newscasts. And believe it or not, millions of people still watch those every night. Maybe not as many as they used to, but there’s still some six or seven million people tuning in to nightly news. That’s important.

Right. We should say that kind of number is sometimes double or triple that of the cable news prime time shows that get all the attention.

On their best nights. So this is big business still. And that business is based on broad — it’s called broadcast for a reason. That’s based on broad audiences. So NBC had a business imperative, and they argue they had a journalistic imperative.

So given all of that, Jim, I think the big messy question here is, when it comes to NBC, did they make a tactical error around hiring the wrong Republican which blew up? Or did they make an even larger error in thinking that the way you handle Trump and his supporters is to work this hard to reach them, when they might not even be reachable?

The best way to answer that question is to tell you what they’re saying right now, NBC management. What the management saying is, yes, this was a tactical error. This was clearly the wrong Republican. We get it.

But they’re saying, we are going to — and they said this in their statement, announcing that they were severing ties with McDaniel. They said, we’re going to redouble our efforts to represent a broad spectrum of the American votership. And that’s what they meant was that we’re going to still try to reach these Trump voters with people who can relate to them and they can relate to.

But the question is, how do you even do that when so many of his supporters believe a lie? How is NBC, how is CNN, how are any of these TV networks, if they have decided that this is their mission, how are they supposed to speak to people who believe something fundamentally untrue as a core part of their political identity?

That’s the catch-22. How do you get that Trump movement person who’s also an insider, when the litmus test to be an insider in the Trump movement is to believe in the denialism or at least say you do? So that’s a real journalistic problem. And the thing that we haven’t really touched here is, what are these networks doing day in and day out?

They’re not producing reported pieces, which I think it’s a little easier. You just report the news. You go out into the world. You talk to people, and then you present it to the world as a nuanced portrait of the country. This thing is true. This thing is false. Again, in many cases, pretty straightforward. But their bread and butter is talking heads. It’s live. It’s not edited. It’s not that much reported.

So their whole business model especially, again, on cable, which has 24 hours to fill, is talking heads. And if you want the perspective from the Trump movement, journalistically, especially when it comes to denialism, but when it comes to some other major subjects in American life, you’re walking into a place where they’re going to say things that aren’t true, that don’t pass your journalistic standards, the most basic standards of journalism.

Right. So you’re saying if TV sticks with this model, the kind of low cost, lots of talk approach to news, then they are going to have to solve the riddle of who to bring on, who represents Trump’s America if they want that audience. And now they’ve got this red line that they’ve established, that that person can’t be someone who denies the 2020 election reality. But like you just said, that’s the litmus test for being in Trump’s orbit.

So this doesn’t really look like a conundrum. This looks like a bit of a crisis for TV news because it may end up meaning that they can’t hire that person that they need for this model, which means that perhaps a network like NBC does need to wave goodbye to a big segment of these viewers and these eyeballs who support Trump.

I mean, on the one hand, they are not ready to do that, and they would never concede that that’s something they’re ready to do. The problem is barring some kind of change in their news model, there’s no solution to this.

But why bar changes to their news model, I guess, is the question. Because over the years, it’s gotten more and more expensive to produce news, the news that I’m talking about, like recorded packages and what we refer to as reporting. Just go out and report the news.

Don’t gab about it. Just what’s going on, what’s true, what’s false. That’s actually very expensive in television. And they don’t have the kind of money they used to have. So the talking heads is their way to do programming at a level where they can afford it.

They do some packages. “60 Minutes” still does incredible work. NBC does packages, but the lion’s share of what they do is what we’re talking about. And that’s not going to change because the economics aren’t there.

So then a final option, of course, to borrow something Chris Licht said, is that a network like NBC perhaps doesn’t put a jersey on, but accepts the reality that a lot of the world sees them wearing a jersey.

Yeah. I mean, nobody wants to be seen as wearing a jersey in our business. No one wants to be wearing a jersey on our business. But maybe what they really have to accept is that we’re just sticking to the true facts, and that may look like we’re wearing a jersey, but we’re not. And that may, at times, look like it’s lining up more with the Democrats, but we’re not.

If Trump is lying about a stolen election, that’s not siding against him. That’s siding for the truth, and that’s what we’re doing. Easier said than done. And I don’t think any of these concepts are new.

I think there have been attempts to do that, but it’s the world they’re in. And it’s the only option they really have. We’re going to tell you the truth, even if it means that we’re going to lose a big part of the country.

Well, Jim, thank you very much.

Thank you, Michael.

Here’s what else you need to know today.

[PROTESTERS CHANTING]

Over the weekend, thousands of protesters took to the streets of Tel Aviv and Jerusalem in some of the largest domestic demonstrations against the government of Prime Minister Benjamin Netanyahu since Israel invaded Gaza in the fall.

[NON-ENGLISH SPEECH]

Some of the protesters called on Netanyahu to reach a cease fire deal that would free the hostages taken by Hamas on October 7. Others called for early elections that would remove Netanyahu from office.

During a news conference on Sunday, Netanyahu rejected calls for early elections, saying they would paralyze his government at a crucial moment in the war.

Today’s episode was produced by Rob Szypko, Rikki Novetsky, and Alex Stern, with help from Stella Tan.

It was edited by Brendan Klinkenberg with help from Rachel Quester and Paige Cowett. Contains original music by Marion Lozano, Dan Powell, and Rowan Niemisto and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Michael Barbaro. See you tomorrow.

• April 2, 2024   •   29:32 Kids Are Missing School at an Alarming Rate
• April 1, 2024   •   36:14 Ronna McDaniel, TV News and the Trump Problem
• March 29, 2024   •   48:42 Hamas Took Her, and Still Has Her Husband
• March 28, 2024   •   33:40 The Newest Tech Start-Up Billionaire? Donald Trump.
• March 27, 2024   •   28:06 Democrats’ Plan to Save the Republican House Speaker
• March 26, 2024   •   29:13 The United States vs. the iPhone
• March 25, 2024   •   25:59 A Terrorist Attack in Russia
• March 24, 2024   •   21:39 The Sunday Read: ‘My Goldendoodle Spent a Week at Some Luxury Dog ‘Hotels.’ I Tagged Along.’
• March 22, 2024   •   35:30 Chuck Schumer on His Campaign to Oust Israel’s Leader
• March 21, 2024   •   27:18 The Caitlin Clark Phenomenon
• March 20, 2024   •   25:58 The Bombshell Case That Will Transform the Housing Market
• March 19, 2024   •   27:29 Trump’s Plan to Take Away Biden’s Biggest Advantage

Hosted by Michael Barbaro

Featuring Jim Rutenberg

Produced by Rob Szypko ,  Rikki Novetsky and Alex Stern

With Stella Tan

Edited by Brendan Klinkenberg ,  Rachel Quester and Paige Cowett

Original music by Marion Lozano ,  Dan Powell and Rowan Niemisto

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

Ronna McDaniel’s time at NBC was short. The former Republican National Committee chairwoman was hired as an on-air political commentator but released just days later after an on-air revolt by the network’s leading stars.

Jim Rutenberg, a writer at large for The Times, discusses the saga and what it might reveal about the state of television news heading into the 2024 presidential race.

On today’s episode

Jim Rutenberg , a writer at large for The New York Times.

Background reading

Ms. McDaniel’s appointment had been immediately criticized by reporters at the network and by viewers on social media.

The former Republican Party leader tried to downplay her role in efforts to overturn the 2020 election. A review of the record shows she was involved in some key episodes .

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Jim Rutenberg is a writer at large for The Times and The New York Times Magazine and writes most often about media and politics. More about Jim Rutenberg

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