Dive Brief:
- Smashburger has named a new CEO, Jim Sullivan, who has served as president of the Jollibee Foods-owned brand since February, according to a Tuesday press release.
- As CEO, Sullivan, who was originally hired by the brand as chief development officer, will focus on speeding up franchised development, with a particular focus on non-traditional units at airports and colleges.
- Smashburger has worked over the past year to remake its menu and branding and to halt the gradual decline of its unit count.
Dive Insight:
Earlier this summer, the burger brand launched a new limited-time value menu, the $4.99 all-the-time menu, to improve its ability to compete with other value-focused fast casual and QSR chains.
The chain also recently opened a location in the Detroit airport. According to the announcement of Sullivan’s promotion, the Detroit location marks a return to unit growth for the chain, which saw its store base slide from 360 units when it was acquired by Jollibee in 2018 to 204 today.
Richard Shin, CEO of Jollibee Group International, said that Sullivan already has “laid the foundation for a more focused brand that is delivering better food, a stronger guest experience, and renewed momentum across the system.”
Smashburger is far from alone in targeting non-traditional development this year. Wahlburgers, which lost a large chunk of its store base when its Hy-Vee partnership ended, recently opened a location in the Detroit airport. Fat Brands has said that non-traditional units, such as a store in an airport employee cafeteria, will be a strategic growth pillar going forward.
Under Sullivan, Smashburger will reinvest in its in-restaurant experience, according to the press release. This strategy too is aligned with restaurant industry trends, as chains as widely divergent as Starbucks, Subway and Cava use changes to their restaurant interiors to add to a holistic, experiential value perception.
