The Owner of Fatburger Buys Organic-Focused Rival And Plots Expansion
With the burger business getting beefier, the owner of the Fatburger chain has added a healthier, organic option to its franchise menu to spread across the country.
FAT Brands Inc. has paid $10 million Falls Church, Virginia-based Elevation Burger, a fast-casual franchise founded 17 years ago that features burgers made with organic, free-range, grass-fed beef.
In addition to Fatburger, the Beverly Hills, California-based franchisor also owns Ponderosa and Bonanz Steakhouses, Buffalo’s Café, Buffalo’s Express, Hurricane Grill & Wings, and Yalla Mediterranean. After buying Elevation, the company’s number of franchised restaurants exceeds 400.
Burgers restaurants represent the biggest part of the entire restaurant industry, according to research firm IBISWorld. McDonald’s, Burger King, Wendy’s and other fast food places lead the way. But within the industry, there’s been major growth in so-called “better burgers," basically fancying up the staple with higher quality ingredients.
Elevation jumped on the trend in 2008 when it began franchising. It has 44 franchise locations in the U.S. and Middle East.
In its announcement, FAT Brands said the purchase brings resources and expertise that will help “propel Elevation’s forthcoming expansion,” which suggests it will likely be hunting for real estate.
“Elevation Burger’s slogan ‘Ingredients Matters’ aligns well with FAT Brands’ commitment in providing guests with fresh, authentic, tasty food,” Andy Wiederhorn, the company’s chief executive officer, said in a statement.
The franchise typically looks for space in the 1,200 to 2,200 square foot range. It likes high-visibility locations at the end of shopping centers. An operator's total investment can run in the neighborhood of $400,000 to more than $800,000.
