What a Burger Can Teach You About Strategy

I recently sat down with Adam Baker, Managing Partner of up-and-coming gourmet hamburger restaurant Larkburger based in Colorado.  Larkburger has quickly carved out a nice niche in the highly competitive quality quick serve space in spite of a host of competitors the likes of Red Robin, 5 Guys, Smashburger, as well as numerous local hang outs.  With so many selections, Denver has quickly become what I’d define as the center of the burger universe, and an incubator for new burger startups.

I’m no food critic, but I do love a good burger.  I have to admit our discussion got a little distracted when even the smell of the burger neared our table, but we had to stay on the subject at hand:  Larkburger.   A little history straight from the website:

In 1999, the “Larkburger” was first featured on the menu at renowned chef Thomas Salamunovich’s fine dining Larkspur Restaurant in Vail, Colorado. Overwhelmed by many years of popular response to the “Larkburger,” Thomas recognized that a perfectly prepared, all-natural gourmet burger would be appreciated beyond Vail – so in 2006, Larkburger, the restaurant, was born. 

Larkburger’s quick-casual footprint has grown to 6 restaurants, with plans to double the number of eateries in 2012.  So how, in the middle of a recession, in a capital constrained lending market, in a highly competitive market space, has Larkburger been able to grow?

First, at the core of the strategy is to build a consistent and recognizable brand.  The old adage, “do one thing and do it well” immediately comes to mind.  Larkburger aims for an uncompromisingly high level of quality and consistency in the food and the experience.  “Guests”, as Baker repeatedly referred to them, (as opposed to customers) can expect a varied but limited menu allowing Larkburger to achieve economies of scale, shorter employee training periods and a singular focus on consistency.

Second, and refreshing to hear in today’s business climate fueled by hype, Larkburger has taken a controlled approach to growth.  The company has made the strategic decision to operate company owned restaurants financed by equity.  This strategy supports the culture of controlling the quality and experience as the company culture is built, so as to not outstrip their ability to build their brand.

Underpinning the strategy are 4 company values:  Responsibility (environmental and personal), Respect, Innovation and, of course, Consistency.

Here’s the best part.  Larkburger is accomplishing all this in an environmentally friendly manner.  Their eco-friendly philosophy, Keeping it Natural, is centered around environmental responsibility and sustainability at every turn.  While many companies are scrambling to develop sustainability programs, Larkburger is integrating its program from the ground up, a difficult task when balancing the competing interests of an early stage company.  Check out these ingredients for Keeping It Natural:

• 100% natural ingredients (no preservatives or additives)
• 100% wind powered restaurants
• Cups, containers and utensils are biodegradable and composted along with paper and food waste from the restaurants.
• Canola oil is reused as auto fuel.
• The list goes on…

“Where will Larkburger be in 5 years”, I ask.  Baker chuckles and won’t reveal his hand.  “Bigger and better”, he says.

Much like the burger I had just polished off.

To learn more, visit www.larkburger.com