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2012 Top 100 Movers & Shakers: Smashburger No. 1

May 3, 2012

When Smashburger opened its first unit in 2007, the better burger category was just beginning to emerge. Five years later, Smashburger is an industry leader and has moved both the better burger and fast casual segments forward in major ways.

David Prokupek, the chain’s chairman and CEO, called 2011 a “capstone year.” Not only did Smashburger increase sales 72percent over 2010, the company signed several international development deals and continued its US-based growth, opening in 12 new markets. If that wasn’t enough, the chain was ranked by Forbes magazine as America’s Most Promising Company, a testament to the company and consumer culture company executives have worked hard to develop.

“Our strategy from day one has been to build the number one brand in the better burger business,” Prokupek said. “We wanted to get the company as near to national as possible, and we have really been accelerating growth during the recession. The restaurants are full of energy and it’s been a good, winning strategy.”

In fact, while many restaurant chains were retracting during the recession, Smashburger, owned by private equity firm Consumer Capital Partners, showed no signs of slowing down. A testament to the comfort-food cravings consumers displayed during the downturn.

“I do think Smashburger was able to hit the ball at the right time because customers are coming from other fast casual or casual dining restaurants. Given that hamburgers are a comfort food and a favorite food of Americans, it was a really good time to grow,” Prokupek said.

International growth is definitely on the company’s radar as it announced several development deals in 2011 for Latin America, Canada and the Middle East.

“I think, just like in the states, burgers are a favorite food outside of the U.S. Also, just better fast food is not a U.S. trend,” Prokupek said. “What’s also exciting is the idea of fast casual is pretty popular around the world … and no one has yet really gone after it.”

Its international locations will start to open later this year in addition to the 50-70 new units stateside. Those U.S. openings include 15 to 20 new corporate stores in existing and new markets such as Chicago, Houston, Dallas, Los Angeles, Minneapolis, San Francisco, Boston and Washington, D.C. Meanwhile, additional international territories include Western Europe, South America and Asia.