The fast-casual burger segment, like many other categories, finds itself in a difficult period amid inflation, a rough economy, and discerning consumers.
Quality and premium cues are still the hallmark of these chains. But the growing importance of value has pushed operators to rethink everyday affordability, menu news, digital engagement, and site selection to capture more visits.
Freddy’s, Smashburger, and Bobby’s Burgers are all fighting for market share in the space, but in different positions entering 2026.
Freddy’s is one of the largest players at nearly 600 locations. Last year, the company was acquired by investment firm Rhône Group for roughly $700 million after partnering with Thompson Street Capital Partners for four years.
The 190-unit Smashburger promoted Jim Sullivan to CEO last year and unveiled a new brand campaign and bold red and black logo. At a higher level, the chain is owned by Phillippines-based Jollibee, which decided to spin off its international operations into its own public entity in the U.S.
Bobby’s is relatively new to the space, having been founded in 2021. It had 11 locations as of early March.
Freddy’s CMO Erin Walter frames the segment as a challenge and an advantage. Burgers are ubiquitous, which means every concept is battling for a share of stomach. It also means consumers already understand the product, so differentiation has to happen in experience and execution, not education.
But Freddy’s isn’t afraid of competition. Walter argues the most capable brands use it as fuel to create repeatable operating strengths that can withstand macro turbulence, shifting consumer expectations, and new entrants.
The chain, founded in 2002, relies on three pillars—quality, cleanliness, and genuine hospitality. All fit squarely with what guests want today, which is an elevated product, but also one that is worth their dollars.
Walter says that heightened expectations, sparked during COVID and still hanging around, have become the baseline.
“It is interesting that even five, six years later, which is so hard to believe, the COVID effect is still kind of lingering, and I think now even more, guests’ expectations are higher than ever, and it should be,” Walter says.
The CMO comes to the same conclusion that others have, which is that value is no longer just about price point. It must be bundled with product quality, hospitality, convenience, and speed. Delivering anything less than the full package is no longer accepted by guests.
“Value doesn’t always mean price, and for us, we always talk about that,” Walter says. “It really is that experience and what you experience as a guest at Freddy’s.”
Still, Walter acknowledges that price itself has become a louder part of the conversation.
Freddy’s leaned into that reality this year with a move that would have felt unlikely for the brand a few years ago—an aggressive entry-level LTO price point used to garner attention. That item was the Smash Burger Taco, priced at $3.49.
The brand used this menu innovation to get customers in the door and emphasized in-store operations to bring customers back for more visits and further exploration of the menu.
For Walter, the key is that the headline price attracts a lot of visitors, but the in-store fundamentals keep them there and bring them back.
“When you get to the restaurant, the quality has to be amazing,” Walter says. “The hospitality has to be amazing.”
At Bobby’s Burgers, the focus is on chef-led execution and storytelling rooted in founder Bobby Flay, a well-known celebrity in the food space.
President Michael McGill sees better burger growth tied to culinary credibility and the trust that comes with it.
“The fast-casual burger segment remains highly competitive, but at Bobby’s Burgers, we’re seeing steady growth,” McGill says. “And for us, it’s really driven by our culinary creativity and credibility. Guests are really gravitating towards brands that deliver chef-driven quality, and we feel they do that at an accessible price point.”
The executive adds that momentum is also tied to where Bobby’s sells its burgers.
Airports, casinos, and other nontraditional venues have become meaningful battlegrounds, particularly when travelers want recognizable brands they can trust.
However, McGill emphasizes that these locations cannot become a watered-down version of the brand. Throughput, ordering clarity, and consistency are still important.
“Value, speed, customization, quality—we want to make sure that we’re focused on those, but not one at an expense to any of the others,” McGill says.
He adds that “Value today means delivering a premium experience that feels worth the spend, not simply being the cheapest option.”
One key to maintaining a premium position is menu innovation.
“Bobby is inspired by global flavors that have really influenced his innovation, and that’s really throughout his career,” McGill says.
In 2025, Bobby’s rolled out LTOs for the first time, using them to explore regional identities without drifting away from its core. Some examples include the Greektown Burger, Little Italy Burger, Buffalo Burger, and Wild Mushroom Bacon Burger. All are crafted with fresh, certified Angus beef and made to order.
Even with these LTOs, operational discipline prevents complications in the back of house.
“I think the simplicity on our menu as well really helped us maintain speed and consistency while still offering the personalization,” McGill says.
Smashburger recognized consumers’ economic struggles and responded with a permanent, everyday $4.99 value menu featuring core products like the All-American Burger, Deluxe Burger, and Americana Big Dog. “If you come into a Smashburger, you’re getting an actual premium product at a $4.99 price point,” says CEO Jim Sullivan.
The executive says the brand combines this value offering with quality storytelling—a combo he thinks is hard to match in the fast-casual burger segment.
“I think that there’s a lot of space for growth within the better burger category,” Sullivan says. “I think that we position ourselves a little different because we were built around the idea of great taste and great food.”
Smashburger cofounder Tom Ryan says lines between fast casual, fast food, and casual dining have blurred in the past five years. To him, this creates opportunity if brands are willing to compete “up, down, and sideways” rather than staying stuck in a narrow positioning lane.
Ryan views affordability as a consumer value that is reshaping every segment. He sees it as a macro force that brands ignore at their peril.
He describes Smashburger’s approach as a three-part framework: premium burger innovation, a permanent $4.99 tier, and experimentation with adjacent platforms that broaden the occasion set.
“I think we’re really well-positioned to talk about the future,” Ryan says. “I think we play the high end really well, so our strategy is to own the innovation and the continuity around premium burgers and to innovate that and bring new cool stuff to the marketplace, have a permanent $4.99 tier that lets people in that mode use this all the time, and then play with new platforms that seem to be on trend.”
Smashburger deploys tests to understand whether certain items are keepers, rotational plays, or “take it away and bring it back” drivers. Ryan uses the example of mac and cheese, which is under a microscope to see “what its legs look like and what its depth looks like,” Ryan says.
Adequately fulfilling consumers’ desires is a continuous learning process. Last year, Freddy’s implemented the largest core menu update in company history and reduced its LTO frequency. The chain later realized it needed more news to maintain momentum.
Walter’s takeaway is that core menu strength can drive profitable trade-up, but LTO energy can create buzz, FOMO (fear of missing out), and marketing content.
This helped shape the 2026 plan. Walter says influencer activity will be larger this year, especially as Freddy’s tests items that skew younger, including beverages.
Walter describes an innovation process that begins with consumer insight and rigorous testing, then moves through a cross-functional system that avoids kitchen disruption and protects operations. Additionally, Freddy’s opened a new Training & Innovation Center at its headquarters in Wichita, Kansas. The brand uses this venue to pilot menu innovations and technology.
“We have an amazing chef on staff, Rick Petralia,” Walter says. “He’s amazing, and it all starts with the data. It all begins with the consumer and what they say. What do they want?”
She also acknowledges the internal hurdle of introducing something that looks “off menu” for a burger brand.
The Smash Burger Taco became a proof point, not just for guests but for franchisees who needed to see evidence before embracing a new format. She admits that some franchisees likely thought, “Have they lost their minds?”
But success gives Freddy’s room to experiment.
“It lets us get a little bit funky,” Walter says.
Bobby’s uses a different kind of creative latitude.
The brand can lean into Bobby Flay’s name as a built-in awareness driver, then rely on operations and menu quality to convert that trial into loyalty.
“I think the great thing for our brand is everybody knows Bobby Flay,” McGill says. “And Bobby has credibility and has decades of experience and is recognized for that.”
He also mentions that Bobby’s doesn’t try to chase every social trend. The brand prefers influencer partnerships that fit the concept and help it enter new markets with local credibility.
“We selectively collaborate with influencers in ways that align with the brand and elevate the guest experience,” McGill says.
Technologies—such as digital menu boards, kiosks, and back-of-house systems—play a major role in maintaining throughput as more orders move through digital channels.
As off-premises grows, brand protection becomes a priority too, according to McGill.
“The thing that we’re really, really focused on is that we’re doing [digital sales] without diluting the in-store experience as well,” the executive says.
Freddy’s has seen meaningful progress on its digital journey. The chain didn’t have an app when Walter started four and a half years ago. It now has the infrastructure to scale, with personalization as the next frontier.
Walter believes Freddy’s is “still on the ground floor” when it comes to app awareness. The objective is to gather sharper data and send targeted messages, not a one-size-fits-all approach.
“We’re doing a nice job,” she says. “We have all the right people, partnerships in place, but that segmentation and that personalization is, I think, for 2026 going to be one of our biggest wins.”
Meanwhile, Freddy’s, Bobby’s, and Smashburger each foresee unit growth on the horizon.
As of press time, Smashburger has announced a new location in Huntersville, North Carolina, in partnership with longtime franchisee BeBurgers LLC. The operator has two other restaurants in the greater Charlotte market and has been part of the system for more than six years.
In 2025, Freddy’s opened 51 restaurants in the U.S. and Canada. As of January 2026, the fast casual had 580 locations systemwide, with another seven units scheduled to open in the first quarter. The brand also signed 22 multi-unit development agreements covering more than 100 restaurants across the U.S. and Canada.
Last summer, Bobby’s hired Patrick Cunningham as chief development officer to lead expansion. It also signed a multi-unit agreement in Arizona and opened locations in Raleigh-Durham International Airport and Muckleshoot Casino Resort in Washington. Internationally, the chain inked a 65-unit agreement to grow in Canada. In February, it announced the signing of its first Canadian lease.
All three appreciate the work franchisees do to make all of their strategies, menu movements, and unit growth possible.
“We couldn’t do this without our franchise partners, and they’re just really special,” Walter says. “And of course we can have our disagreements, but for the most part, they know that our team is very much focused on their success and vice versa.”
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