New burger chain debuts in Victor next week

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Next week Smashburger—a Denver-based fast casual burger concept—will open for the first time in the region, marking its 13th location in New York.

The franchise will open March 9 at 190 Cobblestone Court Drive in Victor, Ontario County.

Brothers Brad and Drew DeGrazia have plans to open at least five locations in Rochester in the next eight years and 23 locations in Western New York.

The brand focuses on fresh ingredients, including certified Angus beef burgers that are “smashed” on the grill, officials said.

“The quality and taste of Smashburger was top of the line,” said co-owner Brad DeGrazia. “Just getting people to try other things and enjoy our food is really what’s exciting to us.”

Opening a franchise is a familiar process for the DeGrazias, who have opened nine Moe’s Southwestern Grill franchises in Rochester since 2004. This venture, however, is the first time they will introduce a concept to a market.

They helped Moe’s grow from 70 locations to more than 600 nationwide, officials said.

“Over the past few years (we have been) wanting to diversify outside of Moe’s and do other concepts,” he said. “When we came across Smashburger we thought it was a perfect fit for us and for the market.”

The Victor site has 30 employees, and the owners believe that on average the additional locations will each add 30 jobs as well.

The next target is Henrietta. The brothers are solidifying a lease agreement and aim to open the second location this year.

Other areas that are being considered include Greece, Webster and Pittsford.

“The biggest challenge by far is finding the proper real estate,” Brad DeGrazia said. “You definitely want to make sure you’re in the right places where people are going to be. A lot of our target areas are currently suburb locations where you get both a work population and you also have a family population where you can have a good mix of day and night traffic.”

The company, part of Smashburger Servicing LLC, has 360 locations worldwide in 35 states and seven countries. It was launched in 2007.

“Smashburger is a strong competitor among the new, upscale, fast casual burger chains,” said Robert Barbato, formerly the owner of Don’s Original locally and professor of management in the Saunders College of Business at Rochester Institute of Technology. “This is a growing market that offers consumers a high-quality alternative to struggling fast food chains like McDonald’s and Burger King. “Smashburger will share the market with Red Robin, Five Guys and Wegmans Burger Bar, and continue the trend toward casual yet upscale eateries that appeal to millennials.”

The goal for the DeGrazias is to open a new location in the region every five to six months for the next eight years.

“One of the biggest things for us is the fact that we are starting a new brand here locally,” said Brad DeGrazia. “There’s going to be a lot of room for people to grow within the company.”

The owners looked at many concepts before deciding on Smashburger. The company’s established reputation, quality of product and infrastructure made an impact on them, they said.

“We were definitely looking at multiple things,” said Drew DeGrazia. “Smashburger has more of a following then the (other concepts) that are coming out—they’re a little more established—so their infrastructure is a little bit better and people might know a little more what Smashburger is.”

Smashburger brings a quality product to Rochester, and its closest competitors cannot match it, Drew DeGrazia said.

“We felt like it wasn’t a market that had really been captured here,” he said.  “(There is) just more variety (and) higher quality products. We are using 100 percent Angus beef. (The burgers are) smashed fresh, (we have) salads and sides, which include veggies and lots of chicken products and of course milkshakes.”

Local chains should take note, Barbato said.

“It will be interesting to see how this trend will affect local, established chains like Bill Gray’s, Tom Wahl’s and Don’s Original,” he said. “Those local chains are sustained by loyal customers who have been patrons for many years, but younger consumers are more attracted to the menu and vibe of competitors like Smashburger and Chipotle. The good news for our local chains is that Smashburger doesn’t offer a fish fry on Fridays.”

3/4/2016 (c) 2016 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email [email protected].