Growth Club
1851 Growth Club
Comparing Franchise Brands in the Burger Industry
Breaking down the number of locations and FDD Items 7 and 19 for some of today’s leading burger brands.
As America’s quintessential comfort food, burgers power some of the world’s most identifiable brands. Whether your preference is the classic patty or of the vegan variety, today’s popular chains are more than likely to offer something that fits your fancy. In such a crowded market, it’s easy to see why burger brands have gone above and beyond (meat) to further differentiate themselves from their competitors, either on their menu or within the guest experience.
MOOYAH Burgers, Fries & Shakes*
Locations: 89
Item 7: $397,000 to $559,000
Item 19: Average unit volume of $831,336
Since its first location opened in Plano, Texas in 2007, the MOOYAH brand has taken pride in its standing as a “better burger” concept, offering made-to-order burgers, hand-cut french fries and real ice cream shakes. Like many restaurant chains, MOOYAH recognizes the importance of tailoring its customizable menu and marketing campaigns to consumers who value health and wellness or follow popular diets like Keto and Whole 30. At 89 locations and counting, MOOYAH is looking to reach the hearts and mouths of healthy-ish burger lovers everywhere.
Locations: 2,250
Item 7: $1,481,500 to $3,336,600
Item 19: Average sales per unit of $1.45 million
The San Diego-based company founded in 1951 began aggressively expanding in 2004 when it changed its business model and released the majority of its corporate-owned stores to franchisees. Today, 81% of Jack in the Box locations are franchise-owned and exist well beyond the 17-state footprint it originally held. With 2,250 restaurants in 21 states and Guam, Jack in the Box has its eyes on continued growth in new and existing markets. In May, the company implemented a strategic change with an announcement they’d be pursuing a capital restructuring in the form of securitization to drive shareholder value.
Locations: 850-plus
Item 7: $96,414 to $1,501,265
Item 9: Average sales per unit of $917,859
Boasting nearly 900 locations, Checker’s and Rally’s is one of the largest drive-thru chains in the country. With sights set on growth, the burger brand recently named Dwayne Chambers— formerly of P.F. Chang’s, Krispy Creme and Sonic—as its new CMO. The small, modular restaurant model of Checkers & Rally’s provides a unique opportunity to build where other brands have a hard time creating value for landlords and developers. Having opened 43 new locations in 2018 alone, things are looking bright for Checkers & Rally’s as they direct focus to expansion on the West Coast.
Locations: 643
Item 7: $2,043,000 to $4,652,000
Item 19: Average sales per unit of $2.3 million
If it ain’t broke, don’t fix it. The first Culver’s location opened in 1984 in Sauk City, Wisconsin, the Culver family’s hometown. Ever since, it’s been best known for its signature frozen custard and butter burgers, for which the butter is sourced from a family-owned creamery, also located in Wisconsin. Changes the brand has implemented are not so much focused around its menu, but geared towards improved customer experience with in-app mobile ordering and tablets for refining the drive-thru service process.
Locations: 36,000-plus
Item 7: $1,058,000 to $2,230,000
Item 19: average sales per unit of $2.67 million
With a presence in more than 100 countries, McDonald’s is one of the most recognizable brands around the globe—and it’s still growing. The team behind the golden arches recently announced a spike in sales since its 2018 switch to from frozen to fresh beef quarter pounders in most of its U.S. locations. This fundamental change was made to “appeal to consumers’ growing interest in ingredient transparency” and has resulted in a 30% spike in sales of quarter pounders on average in the last 12 months, according to CNN Business.
Locations: 800-plus
Item 7: $1.2 Million average initial investment
Item 19: Average sales per unit of nearly $2.8 million
This family-owned burger chain recently sold controlling interest to a Chicago-based investment firm with eyes on expansion. While many Texans, including football superstar J.J. Watt have expressed their disappointment with the change in ownership, the San Antonio-based brand is looking at a new strategy to increase visibility beyond its cult-like following in the Lone Star state. Currently, Whataburger locations across 10 states with nearly 700 in Texas alone. Aside from the classic burger, one of the brand’s most beloved offerings is daily breakfast service between 11 a.m. and 11 p.m., setting Whataburger apart from major competitors like California burger giant In-N-Out.
Locations: 42
Item 7: Average initial investment of $987,000
Item 19: Average unit volume of $2.38 million
Bareburger restaurants feature organic, grass-fed beef and other organic ingredients, as well as vegan and gluten-free options for its devoted following of consumers with dietary restrictions. Coupled with a mission of sustainability that spans beyond their menu, it’s clear that the Bareburger approach has resonated with cause-conscious consumers in the eastern United States. Unfortunately, the brand has been less successful in maintaining its franchisees than it has its customers; the owner of five Manhattan Bareburger locations is desperately trying to get out of his contract with the burger chain, claiming the restaurateur has led three of his locations to bankruptcy by neglecting to pay various fees such as rent and payroll tax.
Locations: 6,800-plus
Item 7: $1,090,225 to $1,849,525
Item 19: Average sales per unit of $1.27 million
Dairy Queen first opened its doors in 1938 with the sale of a 10-cent ice cream treat. Today, it’s one of the world’s most recognizable brands with locations across the U.S., Canada and 27 other countries, and they’re serving more than just ice cream. Launched in 2002, Dairy Queen’s Grill & Chill concept has earned a devoted following through its commitment to a timeless tradition, but with a menu centered around hot food items like burgers and fries. As fast food royalty, DQ stays ahead of the game with imaginative LTOs like the iridescent Zero Gravity Blizzard honoring the 50th anniversary of the moon landing on July 20th.
Locations: 370-plus
Item 7: $545,000 to $894,000
Item 19: Average sales per unit of just over $1 million
Since being founded in 2007, Smashburger has been on the rise with more than 370 locations in operation, which can perhaps be attributed to Jollibee’s acquisition of a majority stake in the brand in early 2018. Most recently in the news for its legal beef with In-N-Out over the marketing of their Triple Double Burger, the brand was named for the way its burgers are cooked—by smashing a ball of ground beef onto the grill. Smashburger has also jumped on the trend of meat-alternative offerings to satisfy a more diversified customer base.
Locations: 39
Item 7: $746,000 to $2,340,250
Item 19: Average gross sales of $2.45 million
At The Counter, customers are able to customize their burgers with a number of proteins, sauces and toppings and buns, including vegan and health-conscious options, all in a cool, California-inspired setting. The brand first opened in 2003 and began franchising in 2005 with a mission to stand out amongst their competitors, which they’ve achieved through their industrial decor and modern approach to fast-casual food service.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
