Smashburger's CEO has been actively rebuilding the brand over the past 12 months, aiming to restore its premium position and consumer relevance. This transformation has led to a significant swing in average daily traffic and sales.
The company is focusing on disciplined growth through franchising, with plans to add 15 new restaurants in the current year, 13 of which will be non-traditional locations like military bases and airports. The CEO believes Smashburger could add 1,000 traditional U.S. units and an additional 1,000 to 1,500 non-traditional locations without cannibalization, expecting to achieve positive net unit growth between 2026 and 2027. Up to 12 new locations are planned for 2026.
Smashburger has also streamlined its menu, focusing on operational excellence and simplified execution, as seen in its summer lineup and previous seasonal offerings. A new $4.99 value platform has successfully driven increased average check by encouraging guests to order multiple value entrées without detracting from core menu item sales. Additionally, while the CEO emphasized the best food experience is in-restaurant, third-party delivery accounts for a stable 30 percent of revenue.
The CEO also touched upon the broader restaurant industry's challenges, including the cyclospora outbreak. This outbreak, affecting various restaurants, has coincided with a difficult year for the lettuce industry, seeing retail prices for iceberg lettuce jump nearly 20 percent between January and June, and all fresh lettuce prices up 33 percent year-over-year. As of July 27, 6,707 laboratory-confirmed cyclospora cases have been reported by the CDC.
