Smashburger Hamburger Chain Hungers For Growth

Scripps News:

After growing Quiznos from a regional Colorado toasted sub shop to the nation’s second-biggest sandwich restaurant chain, Rick Schaden and his team are focusing on the next food frontier: burgers.

Smashburger, which Schaden’s Consumer Capital Partners launched with a single store in Denver less than a year ago, plans to grow to 20 locations by the end of this year and eventually expand to 500 across the country.

While burgers have been a staple of the fast-food industry for about 60 years, Smashburger’s founders are betting that consumers are hungry for a twist. The chain features Angus beef burgers smashed on a flat-top grill, served on a toasted and buttered bun in a space-age diner environment that offers tap beer alongside Haagen-Daz milkshakes.

“We talked to a lot of consumers, and it became very apparent that there was a big niche in the marketplace,” said Tom Ryan, managing partner and chief concept officer at Consumer Capital. “There are a lot of people looking for that perfect balance of great food, everyday affordability and the ability to get in and get out of a nice place.”

Smashburger, which has four locations in the Denver area, plans to expand through a combination of company-owned stores and franchise agreements. Smashburger hopes to sidestep the franchising troubles that plagued Quiznos, which is facing lawsuits from franchisees complaining about high food costs and operating requirements.