VS Goliath: The Habit Burger vs Culver’s

The ‘better burger’ category of fast food has gained ground every year and is now roughly as popular as their traditional fast-food counterparts. The shift was born out of consumers who were tired of traditional fast-food burgers that looked nothing like the promotional materials. The ‘better burger’ is a step up in both price and quality while still maintaining the convenience of fast service. Culver’s has become one of the most popular options in this category and while they were once a small Wisconsin chain, they are now a goliath. Their custard and fresh butterburgers have captured consumers hearts, even at a time when restaurant prices have soared. Their competition for this week is The Habit Burger Grill. It is a little disingenuous to consider The Habit Burger an upstart, they have been around a long time, and they have quite a few locations. However, competition is stiff right now and The Habit Burger has some ground to make up if they want to catch the leaders. That potential for growth is why they have been purchased by Yum Brands.

Culver’s opened their first location back in 1984 in Wisconsin. The Culver family were mainstays in the restaurant business long before Craig Culver came up with his own restaurant idea. Wisconsin’s most famous export, dairy, was used in every aspect of the menu. Fresh butter was used to fry the burgers and fresh milk and cream was used to make their rich frozen custard. Craig got the idea for his custard from his frequent trips to Milwaukee, the unofficial custard capital of the U.S. Even famous Wisconsin cheddar was deep fried to make a unique side. Culver’s is a Wisconsin product, and the company remained exclusive to the state until 1995. Expansion was slow at first and then they opened their first location outside the Midwest in 1998. Culver’s Wisconsin export was a success, and the company began franchising all over the U.S. Now they have become a goliath with their unique ingredients, setting them apart from other ‘better burger’ brands.

The Habit Burger has actually been around for longer than Culver’s, the first location opened in 1969 in California. Back then it was known as Hamburger Habit. That original location was purchased by the Reichard brothers in 1980, and the name was changed to The Habit Burger Grill. The company grew slowly over those first few decades and only reached 17 locations by 2007. The company was purchased by a private equity firm and underwent a tremendous transformation. When The Habit Burger went public in 2014, it had grown to over 100 locations. The company continued to grow and remained public until 2020. It was then that Yum Brands, the world’s largest restaurant company, decided to purchase the brand for $375 million. Yum’s three other concepts, Taco Bell, Pizza Hut, and KFC made the burger segment the only major hole in their portfolio. The Habit Burger is the smallest of Yum’s companies and is quite different from the other fast-food concepts they own. Their charburgers and fresh ingredients set them apart from the competition as the brand represents the classic California burgers and shakes formula.

Yum Brands obviously sees tremendous potential in The Habit Burger and envisions the company rivaling the likes of Culver’s. It is also clear that the ‘better burger’ concept still has room for growth and consumers are looking for the freshest ingredients to satisfy their cravings. With both Culver’s and The Habit on the rise, who will be the next to challenge them?