The Old Burger Chain That White Castle Took To Court For Copying It

Walt Anderson opened the first White Castle in Wichita, Kansas, in 1921, making it the first American fast-food burger restaurant — predating giants like McDonald's and Burger King, which didn't come around until the '40s and '50s, respectively. In a time when Americans were very wary about eating ground beef, all thanks to a book on the meatpacking industry called "The Jungle", White Castle made cleanliness and sanitation a main focus. All-white restaurants that let customers view the kitchen, along with unique medieval castle-inspired architecture, made White Castle stand out. This, paired with burgers for only a nickel and clever marketing, saw the chain quickly expand, opening dozens of locations throughout the US.

Noting the success of White Castle, John and Thomas Saxe drew inspiration from its aesthetic and methods, opening the first White Tower in 1926 in Milwaukee — same castle design, same pricing strategy, same everything. It's said that the Saxe brothers even poached White Castle employees to glean insider knowledge on operations. Within one year, there were six White Tower locations in Milwaukee, plus one in Racine. By 1937, White Castle took legal action against White Tower, suing them for trademark infringement.

White Castle won its suit against White Tower. The US Court of Appeals told White Tower it had to change the appearance of its restaurants, and was ordered to pay $100 in royalties per location it had already opened. White Tower was made to pay approximately $80,000 in licensing fees. This, however, didn't stop the chain from growing. In 1949, White Tower had 230 locations nationwide. It had switched the restaurants' exteriors from medieval castles to Art Deco and never looked back.

Yet, in the '50s, White Tower started to face a slow decline in business, as it had chosen its locations based on foot traffic, mostly in urban areas. As car ownership increased and suburban development soared in America, drive-in fast food became popular. Most of White Tower's locations didn't even have parking spaces.

The last White Tower in Milwaukee closed in 1976 after 50 years. The ownership company had already transitioned out of opening its own locations to franchising other brands. It eventually switched to real estate investment, leaving the restaurant biz entirely. Slowly, the rest of the White Towers around the country closed up shop — the last one in 2022, in Toledo, Ohio, after a building fire. Don't count White Tower among the 9 struggling chain restaurants that came back from near extinction.