Burger Segment Posts Solid Gains
-- Foodservice Equipment & Supplies, 10/9/2009 9:37:00 AM
Domestic sales for the limited-service hamburger industry grew by 4.1 percent in 2008 to $64 billion, outperforming the total limited-service restaurant segment’s growth of 3.2 percent, according to data released by Technomic. Driving this performance were the top 50 hamburger chains, who accounted for $62.8 billion in sales and growth of 4.4 percent. These chains’ results were largely driven by strong concept positioning and the introduction of new premium burgers, according to the 2009 Technomic Top 50 Limited-Service Hamburger Chains Restaurant Report.
“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.”
Though unit growth overall was nearly flat for the burger segment, several chains managed to continue to grow considerably, including: Sonic Drive-Ins increased by 137 units, Five Guys Burgers & Fries added 119 units, and Burger King expanded its system by 53 units.
Other findings from the Technomic study 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.
• 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.
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