Eating continues to cost more, even as overall inflation has eased compared with 2022-23. Prices at restaurants and other eateries were up 5.1% in January 2024 compared with January 2023, while grocery costs increased 1.2% during the same period, Labor Department data suggest.
In January, Dataessential put out a Table Stakes Report that said 70% of consumers say they are still worried about the rising cost of living. In response, nearly half (47%) of consumers are scaling back on dining out.
Burgers are not immune from that economic reality, but Americans’ ongoing love for the iconic patty and marketers’ creativity position the category for continued success.
“We understand burgers are not just a mere item on a restaurant menu -- they’re a timeless essential,” said Elizabeth Rice, brand manager for BUBBA burger. “The demand is a constant, and it falls on us to bring those delicious burgers straight to the heart of everyday kitchens.”
Burgers and grinds are doing very well, as consumers want great quality and claims but are feeling the pinch of higher food costs, said Jeff Tripician, president and CEO of Grass Fed Foods, which markets burger products under the Teton Waters Ranch and SunFed Ranch brands.
“Burgers and grinds are the most affordable way to buy the quality and claims they want,” he said.
Tripician said Grass Fed Foods is experiencing robust interest from foodservice and retail (both traditional and specialty) for better claims, while keeping prices modest.
“With grinds, we can still deliver our regenerative agriculture promise, but using blends and options like smaller portion packaging we can keep prices affordable both for the customer and end consumer,” he said.
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Brett Erickson, director of prepared and packaged solutions for Certified Angus Beef said that although beef costs have been rising, consumers remain willing to pay a little more for the promise of a great eating experience.
”The burger space continues to rise in popularity, and we expect to see that take off as the weather gets warmer and grilling season gets into full swing,” he said.
Erickson noted two processing trends for burger products are the use of whole muscle cuts like chuck and sirloin in burgers, as well as a push for 75/25 blends.
“Those higher fat blends sell at a slightly lower price point and cook similar to a more traditional 80/20 blend, and offer the high-quality burger shoppers want to prepare at home,” he said. “It’s a blend that has more traditionally been found in foodservice, but shoppers are finding it to be a great option, and it truly does deliver that restaurant-style burger at home. “
Burger product innovations
Consumers today are all about new flavor experiences, and they are interested in exploring global flavors and expect to be wowed with different flavor profiles at every meal, Erickson said.
“We’re seeing new formulations and inclusions to deliver just that,” he said. “We have Certified Angus Beef burgers that range in flavors: bacon, jalapeno and cheddar, classic steakhouse, and so many more.”
Erickson noted that consumer demand for new flavors is going to keep rising.
“There’s high demand for unique flavors, and we’ll continue working with our partners to explore global flavors and offer burger solutions, both fresh and frozen, that make the consumer’s life easier at home.“
According to Datassential, some of the hot burger trends include leveling up the classics by adding jams instead of tomatoes, or arugula instead of lettuce. Bacon, Angus and turkey all trend to the top in popularity with consumers, while cheddar, American and Swiss all remain popular cheeses for burgers.
Tripician said Grass Fed Foods’ Teton Waters Ranch has launched its Teton Taste Buds line of products that are a blend of grass-fed beef and vegetables, geared toward getting children (and families in general) eating healthier.
“The Burger Buddies are smaller portion sizes-- lower fat, lower sodium, no sugar added, antibiotic free,” he said.
SunFed Ranch has updated packaging to highlight attributes -- regenerative, humanely raised, domestic -- they have always honored but had not always emphasized, Tripician said.
“This brand provides consumers with ground beef that meets the expectations of a planet in need of better beef,” he said.
Product offerings for BUBBA burger include not only straightforward USDA Choice Chuck beef burgers but also a whole lineup of varieties such as jalapeno cheddar and Angus beef, bacon cheddar, and additional protein options like turkey with sweet onion.
“We offer multiple variations of beef burgers, a turkey burger, a veggie burger and are always looking to add an additional protein to our burger lineup,” Rice said. “BUBBA burger can be the staple or the go-to foundation for crafting the trendiest burgers right in your kitchen.”
Marketing strategies
Erickson said CAB works with packers and retailers to bring their quality difference message forward and arm them with merchandising and marketing strategies to reach shoppers and boost sales.
“We know consumers are interested in valued-added items, especially as they offer new flavors and time-saving solutions at home,” he said. “We offer chef-created recipes, recipe photos and videos, e-commerce images, ads, and in-store POS items for our retail partners to help them promote and meet consumer demand for these items. As we gear up for grilling season, we’ll also come alongside retailers to offer in-store promotional contests.”
Another approach to catch consumers’ attention is limited-time offers, Erickson said.
“We’ll partner with a retailer to offer a new burger blend LTO that creates buzz and excitement, and then evaluate consumer interest in these LTOs to dictate flavor direction,” he said. “At retail, we offer both fresh and frozen Certified Angus Beef burgers. The fresh options sell well, especially during traditional grilling season, but they’re also tons of interest in our frozen inclusion burgers. They’re great to have on hand and save time for home cooks who want to be able to put together a quick but delicious meal. “
Foodservice favorite
On the foodservice side, Erickson said Certified Angus Beef continues to see consumer interest in custom burger blends, as well as Smashburgers.
“Our Certified Angus Beef Smashburger balls are incredibly popular — they’re pre-portioned to save time for back of house,” he said. “Foodservice is the overall industry burger driver, and we’ve seen restaurants use Certified Angus Beef ground beef or inclusion burgers as their differentiator in a competitive market. As costs rise, our partner restaurants are putting a sharp focus on quality to deliver an exceptional eating experience for their diners. “
Burgers in general on a cost-per-serving basis remain competitive, Tripician said.
“It is perceived as a very good value,” he said. “We are seeing foodservice -- burger chains -- switching over to or adding grass-fed burgers, especially those that are from domestically raised, humanely raised, regeneratively raised cattle. Those three claims are very meaningful today at both foodservice and retail.”