Better-burger chain looks for ways to differentiate in competitive segment
.svg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale "Nation's Restaurant News")
As BurgerFi approaches 100 units, the North Palm Beach, Fla.-based better-burger chain is looking at avenues that are typical for growth chains, such as airports and other nontraditional outlets.
But it has another goal: A drive-thru.
“One of my real strategic goals is to have a BurgerFi restaurant with a drive-thru starting in 2018,” CEO Corey Winograd told Nation’s Restaurant News. “It’s a personal goal, but we’re laser focused on it.”
Drive-thrus are common at quick-service restaurants, and account for more than two-thirds of business at chains such as McDonald’s Corp. and The Wendy’s Co.
But it’s relatively rare for fast-casual chains to take that step, although Panera Bread Co. and the burger chain Smashburger have done so.
In a segment where burgers are made to order, drive-thrus can be a challenge. But Winograd is determined.
“We’re working very aggressively on expediting the food delivery part of the experience,” he said. “We recently went from a flat-top grill to a clamshell grill. Burgers were cooking over several minutes. Now burgers cook, depending on the patties, in about 42 seconds.”
Winograd said it is important to find efficiencies in the cooking process while maintaining the quality that better-burger customers demand, to enable a drive-thru. BurgerFi is also finding opportunities to configure the kitchen to improve speed of service, he said.
Will it work?
“I think so,” Winograd said. “If you’re able to deliver the food in two to three minutes, you’re going to have a successful drive-thru.”
Still, he added, “It’s not going to be a Wendy’s drive-thru. It’ll be a BurgerFi drive-thru.”
BurgerFi’s drive-thru plans are the latest effort by the six-year-old chain to differentiate itself in a complicated and challenging better-burger segment that is loaded with much larger competitors, like Five Guys, Smashburger, Shake Shack and The Habit Burger Grill, not to mention several quick-service competitors. Last year, BurgerFi started testing kiosks in its restaurants, for instance.
The market has become fiercer as consumers appear to have cut back on restaurant spending.
“We faced some of the same headwinds that other fast-casual and casual-dining concepts had,” Winograd said. But he added that company same-store sales are up in the “double digits” so far in 2017.
“We’re very excited about the start of 2017,” he said.
Winograd said the difficult sales environment made messaging all the more important last year.
“The challenges in the [same-store] sales area really reinforced that we needed to continue to teach people how BurgerFi is differentiated from the other better-burger concepts,” he said.
The company was founded in Florida, in 2011, when industry veteran David Manero opened a burger restaurant in Delray Beach based on a popular burger recipe from one of his restaurants. The concept was popular, a second location opened and the company ultimately decided to franchise.
BurgerFi has 96 locations, with plans to open another 17 units this year. The company is about to open its first airport location. Most locations are franchised.
Despite the competitiveness of the better-burger segment, Winograd sees opportunity.
“I think the opportunity is really there for new brands like BurgerFi that have resonated with consumers,” he said. “There’s tremendous opportunity as we educate the burger-eating public, but there’s no doubt there’s going to be some consolidation.”
Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze
Read more about:
The Habit Burger Grill
