Burger Chains Post Solid Gains
Burger industry posts solid gains through differentiation and premium products, finds Technomic.
-- Chain Leader, 10/8/2009 8:12:00 AM
PRESS RELEASE: Chicago, October 7, 2009, Business Wire - Domestic sales for the limited-service hamburger industry grew by a healthy 4.1 percent in 2008 to $64 billion, outperforming the total limited-service restaurant segment's growth of 3.2 percent. The Top 50 hamburger chains made up the vast majority of the market, with $62.8 billion in sales and growth of 4.4 percent. Their solid results were largely driven by strong concept positioning and the introduction of new premium burgers by the industry's heavy hitters. The findings are detailed in a new study, the 2009 Technomic Top 50 Limited-Service Hamburger Chains Restaurant Report.Some of the trends, chains and products examined in this report include:
* Quality product: Five Guys Burgers & Fries, Smashburger
* Value: McDonalds and Burger King, $1 double cheeseburger wars
* Customization: The Counter's "312,120 plus burger combinations"
* Social responsibility: Burgerville, Evos'
* Healthy: Energy Kitchen, "nothing over 500 calories"
Other interesting findings include:
* Unit growth for the Top 50 hamburger chains was 1.0 percent, bringing store locations to 40,599. The overall U.S. limited-service burger industry grew units by 0.7 percent to 47,674.
* Though unit growth overall was nearly flat, several chains accounted for most it: Sonic Drive-Ins (up 137 units), Five Guys Burgers & Fries (up 119 units), and Burger King (up 53 units).
* Fast-casual chains accounted for 17 of the Top 50 chains, and grew sales an impressive 11.4 percent last year. The Top 50 quick-service chains grew by 4.2 percent.
* Fast-casual concepts Smashburger and The Counter led the Top 50 in rate of sales growth, up more than 150 percent over the previous year.
"In 2008, the burger industry showed that there is more than one route to staying relevant and growing sales in a weak economy," says Darren Tristano, EVP at Technomic. "Fast-casual chains strengthened their gourmet burger positioning and benefited from consumers trading down from casual restaurants. Traditional quick service chains stepped up to premium burgers, and consumers responded well. In the future, the leaders will be those who continue to closely monitor market opportunities and watch how competitors respond."
The 2009 Technomic Top 50 Limited-Service Hamburger Chains Restaurant Reportwas designed to help restaurant operators and suppliers better understand the limited-service hamburger restaurant industry, analyze the top performers by sales and units, and examine the industry's dynamics and current trends. Comprehensive appendices include profiles of individual chains and lists of the Top 50 burger chains sorted alphabetically and by sales and units.
To purchase or learn more about the 2009 Technomic Top 50 Limited-Service Hamburger Chains Restaurant Report, please visit www.foodpubs.com or contact one of the individuals listed below.
About Technomic, Inc.
Technomic provides clients throughout North America with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.
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