Latest News

Why regional burger chains grew faster than the big three

Technomic snapshot

Technomic measured U.S. sales growth between 2019 and 2025 and found regional burger chains outpaced the largest national brands. Key figures: Culver’s rose about 143% to $4.36 billion, In-N-Out climbed roughly 91.7% to $2.58 billion and Whataburger grew about 68.6% to $4.31 billion, while McDonald’s was up 36.2%, Wendy’s 16.5% and Burger King 8.5% (Technomic).

By the numbers

Key U.S. sales changes, 2019–2025 (Technomic):

Chain % change 2025 sales (approx.)
Culver’s +143% $4.36B
In-N-Out +91.7% $2.58B
Whataburger +68.6% $4.31B
McDonald’s +36.2%
Wendy’s +16.5%
Burger King +8.5%
Steak ‘n Shake -32.8%
Checkers -21.8%
Smashburger -30.8%
  • Top percentage winners: Culver’s, In‑N‑Out and Whataburger lead the list by a wide margin.
  • Top declines: Steak ‘n Shake, Smashburger and Checkers show the regional set is not uniformly advantaged.

Why regional burger chains are winning

The Technomic analysis points to measurable drivers behind the outperformance: higher average unit volume (AVU), disciplined unit expansion and strong local brand identity that builds customer loyalty.

David Henkes, senior principal at Technomic, says the gap has “widened considerably” as several regional operators both expand and lift AVU. In short, faster percentage growth for regionals is often a function of stronger per-store sales and carefully targeted new openings rather than sheer scale.

Design and branding experts add that scarcity and perceived authenticity help. Ravi Sawhney of RKS Design says regional concepts can “feel human rather than corporate,” and that scarcity “plays a powerful role” in creating emotional loyalty. That emotional connection translates into repeat visits and higher checks, which show up in AVU statistics.

Practically, the regional advantage often combines consistent menu execution, a distinct brand story and operations tuned to a specific market. Those elements let some regionals command premium pricing or higher frequency—two levers that move percentage growth faster than for national chains with much larger bases.

Not all regionals are winning

Technomic stresses the trend is selective. Several regional names posted sharp declines from 2019–2025, demonstrating that regional identity alone is not a guarantee of growth.

Examples in the dataset include Steak ‘n Shake (down about 32.8%), Smashburger (down about 30.8%) and Checkers (down about 21.8%). Technomic and industry observers attribute these declines to execution shortfalls such as aging formats, inconsistent quality, or underinvestment in core product and service—not simply regional status.

Those counterexamples underline the point that the regional premium is earned: format refreshes, consistent kitchen execution, and relevant marketing are required to convert local cachet into sustained sales gains.

Market impact and outlook

Technomic’s 2026 forecast indicates the strongest regional operators are likely to continue posting faster percentage growth than the largest national chains, assuming they maintain AVU and disciplined expansion. The research frames this as momentum rather than a guaranteed reversal of scale advantages.

For diners, the trend means more recognizable local options and greater national attention on regional menu formats. For operators, the practical lesson is to protect the brand attributes that drive loyalty while scaling—maintaining product consistency and community ties as unit counts grow.

For national brands, the takeaway is strategic: scale remains an advantage, but national operators should prioritize ways to make large systems feel personal and relevant in local markets rather than simply chasing menu copycats. As Sawhney put it, “Regional chains succeed because they feel personal. National brands succeed when they find ways to make scale feel personal as well.”

What comes next: Expect continued bifurcation. Top-performing regionals that can sustain AVU and operational consistency are likely to keep growing faster on a percentage basis; underinvested regionals risk further share loss. The competitive response from national chains will shape how persistent the gap becomes into 2026 and beyond.

FAQ

How much did regional burger chains grow vs national brands from 2019 to 2025?
Technomic’s analysis shows several regionals grew far faster on a percentage basis: Culver’s +143%, In‑N‑Out +91.7%, Whataburger +68.6% versus McDonald’s +36.2%, Wendy’s +16.5% and Burger King +8.5%.

Which regional chains led growth and by how much?
Culver’s led the group cited, up about 143% to $4.36 billion, followed by In‑N‑Out (~91.7% to $2.58B) and Whataburger (~68.6% to $4.31B), according to Technomic.

Does this mean national chains are declining?
No. National chains continued to grow in absolute sales but at lower percentage rates over this period. Technomic notes that percentage-based outperformance by some regionals does not erase the scale advantages of the big national operators.

Source: Analysis based on Technomic data reported by Fox News Digital. Original reporting: Fox News — Regional burger chains are beating fast-food giants in one key measure. Technomic data and quotes included per the referenced coverage.