Hopdoddy recently introduced a wagyu smashburger. | Photo courtesy of Hopdoddy
Given the inflation-weary consumers drifting away from the fast-casual space in fiscal 2025, being “less down” in traffic was worthy of celebration. That’s why Hopdoddy CEO Jeff Chandler is feeling particularly good about ending the year with traffic growth of just under 1%.
“I’m really happy with that number,” said Chandler in an interview with Restaurant Business. “It shows we’re doing it in the right way.”
By that, he means the fast-casual, better-burger brand has not been building traffic with marketing gimmicks and buy one-get one offers, he said. “We definitely zigged where others zagged.”
Fundamentally, what has worked is offering a higher-quality, more consistent product, said Chandler.
And having a bar, it should be noted.
Hopdoddy’s have a full bar in a “unicorn casual” setting. | Photo courtesy of Hopdoddy.
“Value equals the quality of the experience divided by price,” he said. “A lot of people will lower the denominator, price, to make value higher. We’ve chosen to invest in the numerator.”
But Hopdoddy has also kept price increases to a minimum.
The chain did take a 2.78% menu price hike last year to address higher beef costs, he said. It had to be done.
But the positive traffic indicates guests see Hopdoddy as a good value, considering the quality of the product, Chandler said.
Now the chain, which this week is scheduled to open its 50th location (in San Antonio, Texas), is ready to accelerate growth.
Austin, Texas-based Hopdoddy, which operates in eight states, opened five restaurants last year. This year, Chandler expects to open five to seven.
Then the pace will pick up, with eight to 10 planned for 2028 and 10 to 12 in 2029. Chandler said he would like to get to a pace of opening 14 to 16 per year. All units are company owned.
Owned by private-equity firm L Catterton, Hopdoddy acquired the 24-unit chain Grub Burger in 2021, and converted 20 of those locations to Hopdoddy. Four units were shuttered before the sale or their leases expired.
It took about two years to fully digest that chain, said Chandler. “A lot of resources over those two years plus were devoted to conversions and rebranding,” he said.
Now Hopdoddy is looking at airports, working with a broker to crack that market, and perhaps other nontraditional locations.
Chandler said the chain has also been working on building its off-premise business.
Typically, about 30% of Hopdoddy’s sales volume is to go. But the chain opened a unit in Austin that had a little pickup window (it was previously a Freddy’s Frozen Custard location). Dubbed Little Doddy, the unit now does about 60% of sales off premise. Guests order ahead and use the pickup window, which adds a layer of convenience that Chandler said will now likely shape future growth.
Pickup windows have been added to two more locations, and the chain may add more as it grows, he said.
But don’t look for Hopdoddy to do traditional drive-thru. In a perfect world, the fastest a meal of burgers, fries and shakes could be cooked to order would be six minutes and 38 seconds, Chandler said. But in reality, ticket times are more like under 10 minutes.
And that’s just too long for guests to wait in a drive-thru line.
In units, guests can sit and start nibbling on fries while they wait for their burgers or bowls.
“About 70% of our business is still on premise, and that’s where the best of Hopdoddy shows up,” said Chandler.
Hopdoddy is known for its made-to-order burgers, both thick-patty and smashburgers, including meats ranging from wagyu beef to grass-fed, pasture-raised bison. There’s also a line of fried chicken sandwiches. All burgers can be served as a bowl.
Fries are served in a big bowl to be sharable, and Hopdoddy also features crispy brussels sprout leaves that can be “tossed and sauced” like the fries, with truffle, hot honey and sage, or served with green chile queso.
The concept is also known for having a full bar, with hand-shaken margaritas and other cocktails, along with beer and wine.
Guests order at the counter, but “red apron” team members work the dining room to get refills on drinks.
Chandler describes it as “unicorn casual,” falling somewhere between fast casual and casual dining. Units are about 2,800- to 3,600-square feet, and the chain has an average unit volume around $3 million, Chandler said.
Hopdoddy in McKinney, Texas. | Photo courtesy of Hopdoddy.
Quick-service burger chains faced challenges last year as consumers demanded more value. But better-burger concepts fared pretty well, including Shake Shack, Steak n Shake, Five Guys and Habit Burger.
Likewise, Chandler said Hopdoddy is in a “really good place” with its capital and debt partners, who are bullish on growth, he said.
“We’re hitting good critical mass with the number of restaurants and cash flow, and are almost at a tipping point where we can grow at pace without additional capital,” he said.
