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The chief of Betty’s Burgers’ parent company believes the premium burger chain will outcompete pricier rivals such as Grill’d as it seeks to open 30 to 40 new stores a year despite a weakening economy, and kickstart environmental initiatives under new private equity owners.
Nishad Alani, the boss of Retail Zoo, which operates food chains Betty’s Burgers, Boost Juice, Cibo Espresso and Salsas, said consumers sought “affordable indulgence” in times of uncertainty.
Betty’s Burgers at ICC Darling Harbour, Sydney.Credit:Peter Rae
“You go to some of the fast-food players – they’ve kind of given up on the whole eating experience, they’ve completely gone takeout, delivery and drive-thru, that’s all they want to do. But that’s not what the core consumer wants to do,” Alani said.
Australia is approaching a spending cliff as festivities of the Christmas and New Year period wear off. With the cost of living hitting 20-year highs, Australians are expected to spend less on luxuries and non-essential goods.
Despite this, Alani said people would remain hungry for establishments more upscale than fast food and believes Betty’s Burgers is poised to do better than other premium burger chain competitors such as Grill’d. Grill’d’s cheapest burger is $12.50, 60 cents more expensive than Betty’s at $11.90, a small sum that Alani said would make a difference to discerning diners.
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“We think we provide a better service, a better guest experience, better value, and again, this is up for debate – a better product,” said the Retail Zoo boss, who has taken a swipe at competitors before.
Betty’s Burgers was founded in 2014 in Queensland’s Noosa and has grown to 54 stores. It was one of the few beneficiaries of the pandemic lockdowns, increasing sales through high takeaway volumes.
This month, Sydney-based private equity firm Adamantem Capital signed the papers to acquire a 70 per cent stake in Retail Zoo, making it the company’s third private equity owner in a decade. Retail Zoo has been owned by Boston-based Bain Capital, which also owns Virgin Australia, for nearly a decade after buying it from The Riverside Company in 2014. Adamantem has valued the business at $350 million.