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White Castle Systems: Case Study Two Introduction Regarded by many as the original fast food chain, White Castle Systems has been most original in its careful and controlled growth strategy. A refusal to franchise domestically has been a unique operations decision in an industry where "most fast food chains come into prominence through franchising." While this action has been successful in contributing towards a stronger financial base for the company, this may have been at the expense of additional potential market share. Now, after more than eighty years in the industry, the competition is catching up. Its twenty-four-hours-a-day model and limited menu are easily emulated. As a result, White Castle has begun losing the "novelty effect" of some of its core competitive advantages. Brand loyalty remains as White Castle's single most valuable attribute. This loyalty is achieved by a series of successive, positive experiences and continual reinforcement from childhood...

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