"This is an interesting time in the burger segment," says Technomic EVP Darren Tristano. "We are seeing very high growth rates from smaller brands and a steady stream of new 'better burger' entries making their presence felt, while at the same time some of the larger brands are struggling to maintain their footholds."
Tristano also points out that while fast-casual concepts now represent the majority of these leading burger chains, they are still only 2.6 percent of total Top 75 burger sales. "This segment contains some of the real giants of the industry, so even a brand growing 150 percent per year is going to be dwarfed in pure dollars by McDonald's, Wendy's and Burger King, which own 75 percent of limited-service burger sales in the U.S."
To assist operators, suppliers and others aligned with the foodservice industry, Technomic has developed the Top 75 Limited-Service Burger Chains Restaurant Report . The report analyzes the segment, identifying top performers by sales and units, and outlines trends that drive success for quick-service and fast-casual burger chains. To purchase or learn more about this report please visit Technomic.com.
Interesting findings include:
* Even as burger restaurants were opened, the segment's rate of expansion continued to slow. Unit counts increased .2 percent, but the growth from the past three years was .5 percent, .7 percent and .9 percent respectively. However, the segment's expansion has consistently outpaced the LSR industry as a whole, as well as the restaurant industry.
* "Better burger" concepts are benefiting from focused menus, as many quick-service chains in the segment are expanding their menus to include breakfast, specialty coffee and broader entrees. At the same time, fast-casual burger chains that offer adult beverages are successfully competing against casual-dining chains, at a lower price point.
* McDonald's is the clear driver of sales growth within the category, offsetting declines by other large burger chains, while unit growth is primarily coming from emerging brands as they continue to take share from both limited-and-full-service restaurants.