The better burger trend is not a new concept. For several years, a wide variety of operators both big and small have been trying to convince consumers to patronize their establishments rather than Chipotle, Panera Bread or other quick service restaurants. But Smashburger has loftier goals. Management has its sights set on taking down the king of fast feeders, McDonald's, by convincing consumers they should opt for the affordable luxury that it delivers.
Smashburger CEO David Prokupek told USA Today that he believes the chain, which has opened 200 stores over the past five years, can become a 1,000-unit business over the next five. In essence, Mr. Prokupek believes that Smashburger can achieve its goals by doing for burgers what Starbucks did for coffee.
The chain offers what it believes is better food and charges for it. The typical meal at a Smashburger, according to USA Today, is between $2 and $4 higher than at McDonald's. Unlike McD's and other fast food rivals, consumers get real cutlery when they eat at Smashburger, and staff bring meals to tables so patrons don't have to wait around the counter for their food.
Similar to Starbucks in the early days, Smashburger has a small advertising budget so it relies on social media buzz and press to help it reach influential consumers when it enters a new market. Despite its relatively large size, the chain develops menu options based on local tastes. For example, visitors to the Smashburger in Brooklyn, NY can get a burger with grilled pastrami and yellow mustard on a pretzel bun.
Will Smashburger reach the heights envisioned by its CEO?
Analysts, including some on RetailWire's BrainTrust, have been warning for a few years that the better burger bubble is bound to pop. If that occurs, which it almost certainly will at some point, Smashburger will need to have achieved a Starbucks-like position to weather the downturn.