It's cool how they get both capital and distribution from their YouTube channel. Are there any other "real" business started from YouTube like this?
Most of the other YouTube products I see seem like they'd die quickly without a YouTube personality to prop them up. They aren't really filling gaps in the market, or doing something new, they're just slapping their name on something as a way to diversify their income sources. Some do seem to put a good amount of effort into helping with the design, or even work directly with the manufacturers, but they're entering crowded and well served spaces, where their primary differentiation is their YouTube channel. Fans are their target market, and I find it unlikely that most will grow beyond their audience. I don't see LTT becoming the next Craftsman, or MKBHD becoming the next Nike.
Zack started out with the knife, which was a play on his YouTube success, but the various wheelchair adjacent things he's made stepped it up considerably. Others could do the same. It makes sense to test the waters and make some mistakes on something small before shooting for the moon. Time will tell how it plays out for all of them.
If nothing else, having some of these examples could inspire kids to want to start businesses making stuff instead of just wanting to be YouTube famous.
It’s a borderline example since they largely sell to their fans, but the products have broad appeal and are not branded with their names like most YouTuber products.
They are aiming for the “Newman’s Own” model of creating good products and then donating 100% of profit to charity.
*English isn't my first language, no idea what a proper inoffensive way to describe the target audience is. I mean no harm :)
The seasoning was so strong it was a bit hard to eat. I assumed it was covering up for lower quality meat or something. I have no desire to order one again.
From the little I understand, someone like Beast Burger would come up with a recipe, then provide the supplies and recipes to the ghost kitchen to make it. If the ghost kitchen is really Chili’s, it’s not the Chili’s burger showing up when a Mr Beast label, it’s Chili’s Employees in the Chili’s kitchen, making the Beast Burger recipes.
Mr. Beast burgers is not really that different than McDonald’s franchising if you really think about it. Most people don’t buy a McDonald’s burger based on who the franchise owner is and how they run their restaurant, they’re buying a McDonald’s burger because of the McDonald’s brand and product.
McDonald’s captures 80% of ~~revenue~~ net income and leaves only 20% to franchisees.
Essentially, the concept is the same: the business value and profit margins are owned by the brand and the laborious act of delivering the product locally is a thin-margin interchangeable “ghost kitchen.” Not only that, the power dynamic is one where the franchise dominates the franchisee. The physical kitchen, its owner, and its employees are replaceable, the nationally recognizable brand is not.
I would argue that ghost kitchens basically take the franchise concept to the logical 21st century conclusion: essentially, why bother doing all the expensive stuff that McDonald’s does with their franchises when your storefront is digital and anyone with a flat top, fryer, and a pulse can follow the directions to produce your fast food product?
Most of the revenue goes to paying employees, real estate cost (rent or depreciation), energy cost and cost of ingredients. You mean, "captures 80% of the net income". Or profit.
The numbers I’ve been able to find are:
4-5% of gross sales as franchise fee
8-12% of gross sales as rent (McDonald’s corporate is often the landlord)
I.e., 12-20% of gross sales are going to McDonald’s.
I see Prime in basically every convenience store, it seems to be a generally successful drink brand.
I knew about the drink before I knew that it had anything to do with Logan Paul and KSI.