Fast-food chains are losing market share to 'better burger' brands

With McDonald's reporting low sales, better burger franchises are sliding in as fan favorites.

SPONSOREDUpdated 7:07AM • 03/18/15

With more and more better burger brands popping up across the U.S., see how these leaders stack up.

Consumers are seeking quality, and slowly shifting away from low-cost food options in lieu of better menu items - especially went it comes to burgers.

A $77 billion-a-year market has emerged from America’s favorite food item. According to Technomic Inc., a Chicago-based food industry analysis company, 95 percent of Americans said they eat burgers at least once a month, a four percent increase from 2011.

Burgers, however, are not all equal.

The “better burger” segment has exploded in the United States and has been eating market share from fast-food giants like McDonald’s. McDonald’s recently posted an overall sales slump in February, reporting a 4 percent decrease. As the fast-food chain suffers, other burger brands are picking up the slack.

Touted as a segment that is a step above fast food in both quality and price, the “better burger” market has been growing. In a 2014 reader survey by Consumer Report magazine, traditional burger chains scored relatively low overall by customers when rated for cleanliness, food quality and value.

MOOYAH Burgers Fries & Shakes, a Dallas-based better burger brand, remains in a heightened growth mode because of the brand’s commitment to customizability. Customers can choose from a combination of three buns, five different cheeses, 11 toppings and 11 sauces. And due to growing customer demand, MOOYAH opened 21 new restaurants last year and aims to open 30 new locations to reach the milestone of 100 before year’s end.

“We are energized and ready to build on that momentum and further the expansion of the brand while strengthening the operations, improving guest satisfaction, continuing to be positive force in the community,” said Michael Mabry, chief operating officer for MOOYAH.

The brand will also be opening new restaurants in Wisconsin, Indiana, Ohio, New York, Massachusetts, and Florida, and will continue being represented internationally with a new opening in Qatar.

Back Yard Burgers, a quick-service better-burger concept focusing on made-to-order Angus burgers, has also seen great success. After the better-burger brand exited Chapter 11 bankruptcy in January 2013, it ended 2014 with 21 consecutive months of same-store sales increases. The company also experienced a 10.2-percent increase in same-store sales compared to 2013 with a four percent increase in franchisees.

“Two years ago, we made it a priority to create a first-class franchise system. We are proud of our accomplishments, and 2015 will be the year that Back Yard Burgers grows full throttle with current and future franchisees,” said CEO Dave McDougall.