The hamburger is a classic American staple, and burger consumption runs deep. Americans consume approximately 50 billion hamburgers annually, with the average American eating three burgers weekly. With such robust demand, launching a hamburger restaurant presents an attractive opportunity for aspiring business owners.
However, differentiating your hamburger restaurant proves challenging since most Americans seek the ‘standard’ burger experience rather than unique innovations. Consequently, many entrepreneurs opt for franchise partnerships with established burger chains instead of launching independent restaurants.
Numerous advantages come with opening a franchise restaurant – you gain brand recognition, benefit from purchasing economies of scale, and receive a proven business model. Most people view franchising as operating ‘for’ yourself while not going it entirely alone.
With numerous hamburger franchises available, evaluating all options before committing proves essential. We’ve identified top-performing hamburger restaurant franchises across key categories: highest revenue, fastest expansion, lowest startup costs, and franchisee satisfaction. This analysis should help determine which casual dining chain best aligns with your goals.
[Note: all data below is for franchise locations in the U.S. only – international locations are not included.]
Burger Franchise With the Highest Revenue: McDonald’s
The first fast-casual restaurant chain on our list likely won’t surprise you. McDonald’s generates the highest revenue among burger restaurants and ranks as one of the best franchises to own. Each McDonald’s location averages $2.8M annually in revenue despite having over 13,000 locations nationwide. According to company data, they sell 7.5 burgers every second!
McDonald’s is widely regarded as the original burger franchise and remains a franchising pioneer. The company established comprehensive business protocols for franchisees, covering everything from french fry cooking times to menu pricing strategies.
McDonald’s offers signature burgers ranging from veggie and chicken options to chicken sandwiches. However, they don’t serve turkey burgers or hot dogs. Founder Ray Kroc banned hot dog sales, even when other fast food chains offer them due to consumer demand.
Kroc’s reasoning centered on uncertainty about hot dog casings’ contents. As a McDonald’s franchise owner, you can only serve parent company-approved items.
McDonald’s offers limited creative freedom for restaurant operations. However, you’ll access a business model generating billions annually with near-universal brand recognition. This franchise suits those seeking business predictability and proven burger market success.
Important Info
| 2021 # of Locations | 13,438 | Av. Sales/Location | $2.8M |
| 2021 # New Locations | -235 | Total Set-Up Costs | $1M – $2.2M |
| Required Liquid Assets | $500,000 | Franchise Fee | $45,000 |
| Required Net Worth | N/A | Ongoing Fees | Average 10.7% of Sales |
Burger Franchise With the Fastest Growth: The Habit Burger Grill
When evaluating franchise opportunities, growth trajectory becomes crucial. Most investors prefer joining expanding companies rather than declining ones in the burger industry.
Established hamburger franchises with proven models face a challenge: they’ve already opened thousands of locations, limiting new expansion opportunities.
For rapid growth among premier hamburger franchises, consider the smaller chain Habit Burger. This California-based company strongly embodies the casual California lifestyle and flavor profile.
Habit Burger remains less recognized than competitors like McDonald’s, operating just 316 U.S. locations – with 223 concentrated in California alone. The company functions more as a California regional chain than a nationally recognized brand. Despite their current size, they’re expanding rapidly.
In 2018, they added 37 locations – nearly 18% growth – followed by 29 additional sites in 2019 for almost 12% growth. Beyond location expansion, the company increased sales by 23% in 2018. This aggressive growth makes Habit Burger an excellent opportunity for those seeking emerging chain partnerships.
[Note: In early 2020, Habit Burger was acquired by Yum Brands, Inc. So, anyone looking into this franchise should check that the franchising rules have not changed. Also, they have expanded outside the U.S., and have opened several locations in London]
Important Info
| 2022 # of Locations | 316 | Av. Sales/Location | $1.7M |
| 2022 # New Locations | 73 | Total Set-Up Costs | $1.2M – $1.4M |
| Required Liquid Assets | $90,000 – $120,000 | Franchise Fee | $35,000 |
| Required Net Worth | N/A | Ongoing Fees | 7% of Sales |
Burger Franchise With the Highest Franchisee Satisfaction: Wendy’s
Few burger restaurants embody classic American dining like Wendy’s. Founded in 1969, it’s among the oldest hamburger chains while maintaining its original ‘old-time’ culture – consistently emphasizing they ‘don’t cut corners’ when preparing quality fresh food.
They interpret this literally with their signature square burgers, and the company never freezes meat to preserve optimal freshness. This chain isn’t trapped in the past – they’ve also cultivated a legendary Twitter presence.
This classic burger chain enjoys popularity with customers while earning the highest ranking among burger franchises on the Franchisee Satisfaction Survey by Franchise Business Review. Their elevated ranking stems from multiple factors, particularly the comprehensive support provided to franchisees.
For instance, Wendy’s franchisees join a supply chain co-op securing lower equipment and supply costs. The Franchisee Advisory Council represents franchisee interests to corporate leadership.
The company demonstrates community commitment through the Dave Thomas Foundation for Adoption® and environmental responsibility by pledging 20% energy usage reduction by 2025. Wendy’s represents an excellent choice for prospective hamburger franchise owners prioritizing workplace satisfaction.
Important Info
| 2022 # of Locations | 6,949 | Av. Sales/Location | $1.6M |
| 2022 # New Locations | 238 | Total Set-Up Costs | $2M – $2.5M |
| Required Liquid Assets | $2M | Franchise Fee | $40,000 |
| Required Net Worth | $5M | Ongoing Fees | 8% of Sales |
Burger Franchise With the Lowest Start-up Costs: Five Guys
The final burger chain on our list also champions fresh, never-frozen beef – Five Guys Burgers and Fries. Five Guys serves hand-formed hamburgers cooked exclusively in peanut oil. Founded in 1986 by brothers in Arlington, VA, the company launched franchising in 2003 and has experienced substantial growth since.
Over 1,700 Five Guys locations operate nationwide, rapidly establishing recognition as a prominent burger chain among Americans. The company even sells branded merchandise – T-shirts, bags, and Christmas ornaments – for fans wanting to showcase their loyalty.
Beyond size and growth, Five Guys offers among the most affordable hamburger franchise startup costs. Estimated total investment ranges from $306,000 to $716,000, averaging approximately $511,000. While substantial, this represents significantly less than competitors like McDonald’s, which requires $1M to $2.2M.
Franchisees must maintain $250,000 in liquid assets and demonstrate at least $500,000 net worth to qualify for Five Guys ownership. Given these startup requirements, Five Guys suits individuals who’ve achieved considerable financial success and seek substantial business investment opportunities.
Important Info
| 2021 # of Locations | 1,700 | Av. Sales/Location | $1.3M |
| 2021 # New Locations | 400 | Total Set-Up Costs | $306,000 – $716,000 |
| Required Liquid Assets | $250,000 | Franchise Fee | $25,000 |
| Required Net Worth | $500,000 | Ongoing Fees | ~6% – 8% of Sales |
Other Burger Franchises to Consider
Burger King
Burger King ranks as the second-largest burger chain in the U.S., established in 1954 in Miami, Florida. Since opening its inaugural restaurant, Burger King has expanded to 7,257 U.S. locations and 18,700 worldwide.
Burger King pioneered meatless burgers, with a menu featuring onion rings, signature large burgers, and quality offerings. Opening a Burger King franchise requires $500,000 in liquid assets and $1 million net worth.
MOOYAH Burgers
MOOYAH Burgers specializes in french fries, real ice cream shakes, vegan black bean burgers, and natural Angus beef burgers. The company began franchising in 2007, requiring between $400,000 and $900,000 investment.
Elevation Burger
Founded in 2002, Elevation Burger became America’s first complete organic burger brand. Their franchises serve hamburgers made with grass-fed organic beef, french fries cooked in organic oil, and cage-free chicken while utilizing energy-efficient equipment. Owned by FAT Brands, investment requires approximately $400,000.
Wayback Burgers
Also known as Jake’s Wayback Burgers, this fast-casual chain serves classic burgers alongside chicken tenders, salads, and milkshakes. Franchise investment ranges from $350,000 to $450,000.
Jack in the Box
Jack in the Box features 13 different signature burgers, though their tacos remain their signature product. Established in 1951, the company operates 163 corporate-owned restaurants and 2,055 franchise locations as of 2021. Franchise participation requires a minimum $1.5 million investment.
Bibliography
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- Taylor, Kate. “The Parent Company of KFC and Taco Bell Is Acquiring Habit Burger Grill, a Burger Chain with a Cult Following.” Business Insider, Business Insider, 6 January 2020, https://www.businessinsider.com/yum-brands-to-acquire-habit-burger-parent-company-2020-1.
- “Franchise FAQs.” Wendy’s, Wendys.com, 2019, https://www.wendys.com/franchise-faqs.
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- “About Us.” Five Guys Burgers and Fries, FiveGuys.com, 2019, https://five-guys-gear.myshopify.com/pages/about-us.
- “Burger King” https://www.rbi.com/English/brands/default.aspx#:~:text=The%20original%20HOME%20OF%20THE,100%20countries%20and%20U.S.%20territories.
- “Jack in the Box” https://www.statista.com/statistics/321481/number-of-jack-in-the-box-restaurants/
