America has a strong love affair with the hamburger. Half the country reports eating a burger at least once a week. 90% of people eat at least one burger a month. Hamburgers are among the biggest and most competitive food markets in the United States. In 2012, the “Better Burger” market grew by over 20%.
Smashburger is an American chain of fast casual burgers restaurants that originated in Denver, Colorado in 2007. The company was founded by Tom Ryan. The name Smashburger refers to the process by which its 1/4-pound, 1/3-pound and 1/2-pound burgers are made. It begins with a ball of raw Angus Beef, which a grill cook “smashes” with a handheld steel mold on to a butter-brushed grill for ten seconds, giving the patty a caramelized sear to lock in the juices. Every burger is made fresh to order. Smashburger offers unconventional toppings including avocado, fried eggs and garlic mushrooms. The typical meal at Smashburger costs $10-$12, $2-$4 more than a meal at McDonald’s.
Every market has specialized burgers created for and sold only in that market. In the D.C. market, for example, there’s the Capital Burger, which isn’t made with lettuce but baby arugula. It’s also has grilled onion, aged Swiss cheese, applewood-smoked bacon, tomatoes and mayo and is served on a brioche bun. Or, there’s the Brooklyn Burger which is topped with grilled pastrami and served on a pretzel bun with yellow mustard. Smashburger also sells sweet potato fries, chili cheese fries, and the house-specialty Smashfries, which come tossed with rosemary, olive oil and garlic.
Smashburger has experienced rapid growth. It is estimated that Smashburger will end the year with over 250 locations. Their goal is to build 400 new units over the next six years. When Smashburger opened its first unit in 2007, the better burger category was just starting to take off. Six years later Smashburger is an industry leader. Forbes magazine ranked Smashburger as America’s most promising company. Smashburger has also made the Inc 500/5000 list an exclusive ranking of the fastest growing private companies for three consecutive years.
Smashburger marketing has relied heavily on social media and generating word of mouth. Smashburger focuses heavily on events, such as when it offered a free sandwich to anyone with “burger” or “berger” in their name on National Cheeseburger day, he said. Each time it enters a new market, it contacts social media trend-setters like restaurant bloggers and “mommy” bloggers who influence where consumers eat. Then, before the restaurant opens its door, it invites the bloggers in — as a group — to demonstrate how the food is prepared.
The other key differentiator is the in-store environment and customer experience. The stores have a cool look. The food is brought to the table, so consumers don’t have to stand around and wait. The burgers are served in a stainless-steel wire basket with a real knife and fork not plastic.
Have you eaten at a Smashburger location?