Hamburgers are America’s favorite food.

Hamburgers are America’s favorite food.

Despite America’s infatuation with burgers,
however, there is considerable dissatisfaction with hamburger quality and value among consumers.

Many customers are not happy with what is available at marketleading fast-food outlets. They want a better burger, and they won’t hesitate to pay a higher
price to get one. Enter Smashburger.

Started just a few years ago in Denver, Colorado, Smashburger is now a rapidly expanding chain of more than 100 stores in 17 states. And all this growth
occurred during a severe economic downturn despite Smashburger’s average lunch check of $8. Many customers pay as much as $10 or $12 for a burger, fries,
and shake. The Smashburger video shows how this small start-up has pulled off a seemingly impossible challenge. After viewing the video, answer the
following questions.

1. Describe customer dissatisfaction with fast-food hamburger options. Why do people continue to consume burgers if they are not satisfied?

2. What effect does Smashburger’s premium price have on consumer perceptions? How did a restaurant with a premium-priced product and little track record
take off during a recession?

3. Is Smashburger’s success based on novelty alone or will it continue to succeed?

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