In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the BurgerFi franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a BurgerFi franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of BurgerFi’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average, high, and low gross sales for the First, Second, Third, and Fourth Tiers of BurgerFi Restaurants that were open and operating throughout 2014
Section I – Background Information
BurgerFi, which has only been around since 2011, is on a roll. The young “better-burger” chain put up big numbers for 2014 and is looking to keep the momentum going for 2015.
The chain logged a record year in 2014, both in earnings and new units. BurgerFi, short for Burgerfication of the Nation, added 31 new locations for a total of 63, representing a 97 percent increase over 2013, and moved into 12 new markets (a 120 percent increase over 2013) for a total of 22 markets. BurgerFi’s 2014 systemwide gross sales of $66.4 million was up 114 percent from 2013.
“Since launching in 2011, we have continued to out-perform ourselves year after year, and we are thrilled about our record-breaking numbers in 2014,” CEO Corey Winograd said in a press release in January 2015. “We are committed to providing consumers fresh, quality, all-natural options in their favorite foods, and we are foreseeing an even more promising 2015.”
In 2015, the chain expects to nearly double in size for the second straight year, with 50 to 60 store openings plus more expansion into new markets. Currently, BurgerFi has about 75 U.S. locations, and locked in its first international development agreement in March 2015. Franchisee EFIT SA DE CV plans 40 restaurants in Mexico City and surrounding areas in the next five to seven years, the first opening in the fall of 2015.
BurgerFi Launched With ‘Never Ever’ Pledge
BurgerFi co-founder John Rosatti was inspired by the popularity of all-natural burgers at his full-service restaurants. He and co-founder Lee Goldberg started the chain with two locations in South Florida in 2011.
The chain, which falls somewhere between a typical fast-food burger joint and a full-service restaurant, launched with its “Never Ever Program” to assure customers that it would never use steroid, antibiotics, chemicals, additives or growth hormones.
The chain uses 100 percent natural Angus beef patties on its burgers and prides itself on natural, fresh ingredients. Also among the prepared-in-house items are vegetarian quinoa burgers, Vienna- and Kobe-style hot dogs, handmade french fries and onion rings, natural sugar-cane sodas and frozen custard. The chain also has a variety of gourmet toppings, craft beer and wine and gluten-free menu options.
Sustainability is a priority at BurgerFi, which uses recycled materials in its seating, recycles peanut oil to make biodiesel fuel and saves water by using three-compartment washing sinks, among other sustainability practices.
BurgerFi Tops List of Fast-Growing Chains
A study from Technomic published in March 2014 put BurgerFi on the top of a list of the five fastest-growing restaurant chains in the U.S. that record sales of less than $200 million. The chain logged sales of $45 million in 2013, representing a gain of 178 percent over the previous year.
Among other awards, the chain was No. 2 in Restaurant Business Magazine’s Future 50 in June 2015, was named as one of the Top Brands of 2014 by Fast Casual Magazine, and was placed on the 2014 Next 20 list by Nation’s Restaurant News in August 2014.
First LTO Offering
BurgerFi debuted its first limited-time menu item, the Summer BBQ Burger, in July 2015, featuring two Angus beef patties layered with barbecue pork and covered with coleslaw, white cheddar and American cheeses and pickles, on a buttered and toasted potato bun. The burger is available through Aug. 8.
Section II – Estimated Costs
- Please click here for detailed estimates of BurgerFi franchise costs, based on Item 7 of the company’s 2015 FDD.