Why Smashburgers Are Everywhere

Summary by Krater

An analysis of the smashburger trend in Los Angeles, examining how independent spots like Proudly Serving, Ban Ban Burger, Bungraze, and For The Win are outperforming traditional fast-food chains on customer retention and average order value.

From the video

Answers: Why are independent smashburger shops outperforming major fast food chains in Los Angeles?

• smashburger market trends in Los Angeles
• independent burger joints vs fast-food chains
• customer retention and same-store sales in fast food
• business models of fast-casual burger restaurants
• real estate and lease strategies for burger chains
• menu expansion and product simplification in fast food

What it concludes

• Customer retention at major fast food chains like McDonald's, Burger King, and Wendy's has plummeted while independent smashburger concepts thrive.
• Real estate and rent represent McDonald's highest-margin revenue stream, making store count growth crucial to their business model.
• Fast-food giants struggle to innovate or pivot quickly due to franchisee pushback, complex supply chains, and operational rigidity.
• Independent smashburger spots in Los Angeles succeed by focusing on quality ingredients, simple menus, and curated neighborhood environments rather than low prices.
• Operating multiple locations successfully requires delegating control and trusting trained staff to maintain quality standards across all stores.