Is the ‘burger boom’ turning into a burger bust?

Love it or hate it, burger chain Byron has been a key yardstick in casual dining in the UK since 2010, appealing to families and millennial professionals alike. The ‘posh burger’ chain has formerly exceled at riding the UK’s casual dining and fast casual wave. However, headwinds in the sector are making the chain look increasingly vulnerable to the pressures of the fickle casual dining sector.

The chain is currently up for sale, following a run of poor results and is expected to receive bids of around £25m. This represents a dramatic fall in value since 2013, when the company was purchased for £100m by investment company Hutton Collins, owner of pan-Asian chain Wagamama.

According to Sky News, around a third of Byron’s 70 sites are reportedly either loss-making or only narrowly scraping a profit. Locations in Gateshead’s Metrocentre and Manchester’s Corn Exchange are earmarked for closure already as of November 2017 despite being in prime, high-traffic locations in both these cities.

Go deeper with GlobalData

Reports
Foodservice Market Size and Trend Analysis by Profit Channel (Resta...

Premium Insights

The gold standard of business intelligence.

Find out more

Byron’s fate echoes that of Handmade Burger Co. earlier in 2017, the difference being that Handmade Burger was bought out of administration and scaled back operations, closing around a quarter of locations. Byron is a larger chain with 70 sites in comparison to handmade Burger’s 23, and may struggle to scale back operations in the same manner. Gourmet Burger Kitchen, Byron’s closest rival in the sector, has also seen a run of poor results since being bought by South African company Famous Brands in 2016, including a loss of around £900,000 in the first six months of 2017, according to City AM.

The clear conclusion that can be made is that the dining sector is beginning to move on from high-priced burgers; foodservice consumers appear to be bored of Byron, GBK and Handmade Burger’s offering. Other operators should pay attention.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Verdict Food Service.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.