Battle of the burgers

Daragh Kan says while there will always be new trends and cuisines, the burger will always be the classic food that resonates with everyone. Photo: Supplied

Burger joints seem to be opening on every corner these days. But when the dust settles, which ones are going to sizzle and which are going to melt?

Competition hots up

We don't do things half-arsed and we stick to what we're good at. 

Daragh Kan

When Melbourne's Daragh Kan launched his first Mr Burger truck in 2012, the city's love affair with burgers was in its infancy. Huxtaburger had only just opened, McDonalds was yet to launch its Create Your Taste menu and international players such as Carl's Jnr wouldn't be on the scene for another four years. Now it's a different story.

Josh Lefers says the burger sector may be competitive but it's not nasty. Photo: Supplied

"There's a huge amount of competition in the local market, without even looking at overseas players coming in," Kan says.

"The burger scene has become so competitive due to the nature of burgers themselves – they are something that everyone knows and enjoys.

"While there will always be new trends and cuisines, the burger will always be the classic food that resonates with everyone."

Kan used capital of $1 million to set up shop and now has eight food trucks plus six stores. Last financial year the chain turned over $5.28 million and with three new stores opening in Tasmania and more planned for Melbourne, the projected turnover for next year is $11.67 million.

"We don't do things half-arsed and we stick to what we're good at," Kan says.

"Because we have both trucks and stores, we're able to serve our customers almost anywhere they want."

The indie burger market

Grill'd paved the way for what operators call the "indie burger market", when it opened in 2004. The chain now has 110 across Australia and founder Simon Crowe was estimated to be worth an estimated $23 million in the BRW 2013 Young Rich List.

International competitors have caught a whiff of Australia's appetite for burgers and are keen to get a piece of the action. Carls Jnr plan to open 300 stores here and cult favourite In-N-Out Burger has staged successful pop-up stores. But the family-owned business has no plans to set up permanent restaurants in Australia, says Carl Van Fleet, In-N-Out's vice-president planning and development.

"We have done events like this before in other countries and they are just one part of our efforts to promote and expand our brand, as well as determine the best way to continue reaching out to customers around the world," he says.

"These events also help to protect the In-N-Out Burger brand in important regions like Australia. We do not have any immediate plans to open permanent restaurants there but these special events will help us make future decisions."

Aussie burger bars are heavily influenced by their US counterparts and many are titled accordingly. Royal Stacks, a reference to US burger chain Shake Shack, was opened by burger aficionado Dani Zeini in Melbourne this year.

Zeini also partnered with entrepreneur Josh Lefers to set up three Melbourne burger diners in three years: the Grand Trailer Park Taverna in 2014, Truck Stop Deluxe last year and Motorhome Majestic last month. The three stores have a combined turnover of more than $5 million.

Uniquely Aussie

Despite the obvious US touches, Lefers says home-grown alternatives are uniquely Australian.

"I love that in Australia we do it our way," he says.

"We aren't interested being told that beetroots don't belong in burgers. It's that sense of owning something unique to each country and to each restaurant that makes even the fundamental make-up of burgers a competitive space."

Lefers says the burger sector may be competitive, but it's not nasty.

"I think what I love about the burger community is that we are supportive of each other and this has been a new development that didn't really exist before," he says.

"I'm pretty sure McDonalds and Hungry Jacks weren't sharing posts and hanging with burger bloggers. I love and eat at so many places like Mr Scruff's, Brother Burger, Easey's and Royal Stacks.

"We all feed off each other."

Australia's burger industry has a yearly revenue of $4.2 billion, with a weak annual growth of 0.9 per cent predicted for the next five years, according to research firm IBISWorld.

Despite the gloomy forecast, 5 Boroughs owner Todd Clayton says burgers are here to stay.

"There's definitely no doubt it's a wave, but it's a sustainable wave," he says.

Clayton has been in the food industry for 35 years, including stints at McDonalds, Sizzler and Eagle Boys Pizza, and has just opened his second 5 Boroughs burger restaurant in Brisbane. He says consumers love the simplicity and versatility of burgers.

"The great thing about burgers is you can have them for breakfast, lunch and dinner."

Follow MySmallBusiness on Twitter, Facebook and LinkedIn.