Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Home › Business › Retail

Smashburger hungry to grow

Chain plans 20 locations by end of this year, eyes 500 nationwide

By Joyzelle Davis, Rocky Mountain News (Contact)

Published May 8, 2008 at 8 p.m.

Text size  

Poll

Where do you satisfy your burger cravings?


  • See the results »
Brian Sandoval smashes a burger onto the grill at the Smashburger in Greenwood Village. To make one of its burgers, the restaurant uses Angus ground beef formed into balls that are flattened when placed on the hot grill, which sears the meat and seals in the juices as it cooks.

Photo by Darin Mcgregor / The Rocky

Brian Sandoval smashes a burger onto the grill at the Smashburger in Greenwood Village. To make one of its burgers, the restaurant uses Angus ground beef formed into balls that are flattened when placed on the hot grill, which sears the meat and seals in the juices as it cooks.

Diners have lunch at Smashburger in Greenwood Village, one of four locations in the Denver area.

Photo by Darin Mcgregor / The Rocky

Diners have lunch at Smashburger in Greenwood Village, one of four locations in the Denver area.

More Retail

More stories »

Map my 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 on Colorado Boulevard 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.

Smashburger's already open restaurants and planned Front Range locations will all be company-owned. Outside Colorado, the company plans to partner with a handful of large, existing franchise operators - who perhaps are already running multiple pizza or full-service restaurants and want to get into the burger business.

"They could help us open 50 or 100 restaurants in a part of the country where they have expertise," said David Prokupek, managing partner and chief investment officer at Consumer Capital. "We're not looking to do one-off, mom-and-pop kind of" expansion.

Investors purchased Icon Burger as a launch pad, but it was rebranded and updated by the new investors and turned into Smashburger.

Rick Schaden and his dad, Dick, owned three Quiznos restaurants when they purchased the entire 18-store chain for an undisclosed sum in 1991. They quickly grew Quiznos into 5,000 locations worldwide, primarily owned by franchisees. Quiznos makes its money by selling franchise rights, collecting franchise fees and selling food to those locations.

Schaden last year stepped aside as Quiznos CEO, handing it over to former Burger King CEO and turnaround expert Greg Brenneman. Schaden remains chairman of the privately held Quiznos.

Smashburger isn't the only fast-casual restaurant chain to pick up on the build-your-own premium burger trend. Virginia-based Five Guys Burgers and Fries plans to open four stores along the Front Range this year.

Santa Monica, Calif.-based The Counter, which claims to offer about 312,000 possible burger combinations, is on a nationwide expansion tear as well. The Counter plans to open its first Colorado location in August at Park Meadows mall's new outdoor plaza.

At the same time, burger stalwarts McDonald's, Wendy's and Burger King are stepping up their ingredients to counter their upstart competitors, said Darren Tristano, executive vice president of Technomic, a food industry consulting firm.

"With burgers, you can have 100 different varieties - you can change the protein, the bun or the toppings and it's a different product every time," Tristano said. "We're also really starting to see a move to premium meat, which is leaner and healthier."

Smashburger, which offers chicken in addition to its one- third and half-pound burger lineup, has an average check of $8.50. The Counter offers a wider range of gourmet ingredients, including apricot sauce, caramelized onion marmalade and Gruyere cheese, with a higher average check of $12.50.

Smashburger's backers think the restaurant's lower price point gives it an advantage, particularly at a time when consumers' budgets are pinched.

"Basically, we have a $5 hamburger," Prokupek said. "Even in tough times, there are plenty of people who will enjoy a $5 hamburger, even as a trade down from an $8 hamburger."

Isn't the conventional wisdom that you're never supposed to smash your hamburger while cooking?

"Not true," said Tom Ryan, managing partner and chief concept officer at Smashburger owner Consumer Capital Partners, who previously led concept development for Quiznos and, before that, the worldwide menu at McDonald's.

"What you're not supposed to do is smash a burger that's already on the grill, and that's more of a technique for char-grill where stuff actually cooks out. A big part of the magic in our taste profile is we put raw balls of Angus burger on the grill and then smash it, and what that does is seal all of the juices in - that original hot temperature sear. Water and everything else has no place to go but up and permeate right back through the burger."

Comments

  • May 9, 2008

    6:47 a.m.

    Suggest removal

    DougH writes:

    Sounds like an upscale Rockybilt, what is old is new again. They always smashed a ball of the beef directly on the grill.
    All that is needed now is the famous Rockybilt sauce to be in burger heaven.

  • May 9, 2008

    6:53 a.m.

    Suggest removal

    RAverill writes:

    Smashburgers taste good and a number of combinations are available to meet your mood, but in my opinion are not worth their cost.They are on par with Red Robin which also are good.

    The best hamburger and the best value in my opinion are GoodTimes Mighty Deluxe. Their use of natural beef (formally Coleman) have exceptional flavor and are just the right size. The onions they use also are never bitter and always have a great flavor.

  • May 9, 2008

    7:26 a.m.

    Suggest removal

    acm writes:

    I love my SmashBurgers. I've been frequenting the Colorado Boulevard store since it opened. But SB has changed the menu, and I can no longer get the burger I love! I miss the shredded lettuce and the Blue Cheese dressing. How can you take away my Blue Cheese dressing??!?!?!

  • May 9, 2008

    8:06 a.m.

    Suggest removal

    sharkybill writes:

    Smashburger is too expensive and the food is mediocre. For the same money I would go to Noodles & Co. for lunch. There are so many other good places to get a hamburger in the Denver area. Smashburger is also a very uncomfortable place to sit and eat.

  • May 9, 2008

    9:17 a.m.

    Suggest removal

    dannylu writes:

    I've been to the counter, they have the best burgers by far. Oprah named it one of the ten best burgers in the country.

  • May 9, 2008

    9:26 a.m.

    Suggest removal

    CaptainObvious writes:

    I finally dragged my hungry self to the Colorado Blvd store, and it's a good burger for a fast food joint. A notch above Fat Burger, and a few above McDs and BK and the like. But if you've got the time to sit down and order off a menu, the Cherry Cricket is still the place for the best burger in the area.

  • May 9, 2008

    11:50 a.m.

    Suggest removal

    Diff writes:

    The key -FRESH prepped on location food - not frozen half pre cooked and shipped in - get it - REAL FOOD.

    But that is hard to franchise and hard to keep consistent - I wish them luck and will make a point to try one soon-

    I am a fan of Quizno's so SB should be fairly good as well

  • May 9, 2008

    12:22 p.m.

    Suggest removal

    Technoscribe50 writes:

    After visiting Smashburger on the recommendation of a friend, I am truly amazed that this run-of-the-mill burger joint was named Best Burger by WestWord and that the RMN deemed it necessary to devote ink and space to telling us now they're going to expand. Maybe we should take the article as a warning. On my visit, I was under impressed by the tepid, or shall I say completely bored, wait staff, entree presentation and the outlandish prices for basically mediocre fare. Granted, I'm probably older than most of the fast food crowd that hangs out at this establishment, but come on, have at least a basic understanding of what constitutes good food and service. Oh yeah, I'm sure the Health Department will be interested in the level of cleanliness displayed in the photo that ran with this article. Hint: Managers expect a visit.

  • May 9, 2008

    12:26 p.m.

    Suggest removal

    mrfxx writes:

    Interesting that DougH references the Rockybilt burgers - The Rocky had an article about the earlier in the week - complete with a couple of "recipes" for the sauce - maybe he could whip up his own. The article is: "Ask!: Little hamburgers have big following" at
    http://www.rockymountainnews.com/news...

  • May 9, 2008

    12:38 p.m.

    Suggest removal

    journocomment writes:

    This story would have benefited from a box listing the chain's locations. Why run a story about the place and then not tell readers where to find it?

  • May 9, 2008

    1:22 p.m.

    Suggest removal

    Justin_Opinion writes:

    Technically, you can't seal in the juices when you sear meat. Since meat is not smooth by nature, it is impossible to get 100% of the meat to come in contact with the grill, thus giving places for juice (which is really melting fat) to escape.
    For the truly best burger in town, I recommend Spanky's Roadhouse on East Evans.

  • May 9, 2008

    1:42 p.m.

    Suggest removal

    MikeaLoeb writes:

    What would it take to get an In 'n Out Burger in Denver? Or what about a Tommy Burger?- Best chili cheese burger EVER!

  • May 9, 2008

    2:19 p.m.

    Suggest removal

    CaptainObvious writes:

    Man I wish we could get In 'n' Out burgers here, but the owners have refused to expand beyond California and Arizona.

  • May 10, 2008

    9:46 p.m.

    Suggest removal

    tchoupitoulas writes:

    Taylor's Refresher in San Francisco and St. Helena California.....hands down the best burgers and Garlic Fries known to man.