Local and regional burger chains are experiencing significant growth and sales, often outperforming their national counterparts. Brands such as In-N-Out, Culver's, and Whataburger are highlighted for their success, which is attributed to their emphasis on fresh, high-quality food and excellent customer service. This strategy resonates with consumers who are increasingly looking for better value and a more personalized experience.
Whataburger, a Texas-based chain, has been particularly lauded for its value. A study by NetCredit found that Whataburger's classic Whataburger offers the best value among 14 major American burger chains, costing $1.66 per ounce of meat. Its signature sandwich weighs 3.56 ounces and costs $5.92, making it larger and, despite being more expensive upfront, a better value per ounce than competitors. In comparison, McDonald's cheeseburger, while cheaper at about $2.02, costs $1.91 per ounce due to its smaller 1.06-ounce patty.
Culver's, another regional success, has nearly quadrupled its system sales over the past decade, adding 53 net new locations in 2024 to push its footprint past 1,000 restaurants. It achieves an impressive $3.8 million in average unit volumes without a breakfast daypart. Culver's success is attributed to its commitment to quality, cleanliness, and genuine hospitality, along with a mandate for engaged owner-operators at every franchise location. This hands-on approach contributes to its high customer satisfaction score of 78, which leads all burger chains and widens to 82 in its Midwest stronghold against McDonald's.
The overall fast-casual burger segment is navigating a challenging economic environment with inflation and discerning consumers. While Freddy's, Smashburger, and Bobby's Burgers are also vying for market share, regional chains like Whataburger and Culver's demonstrate that focusing on quality, value, and customer experience is a winning strategy. Other chains are responding with value menus, such as Smashburger's $4.99 value menu, and digital engagement, but the regional players' strong brand loyalty and operational models set them apart.
