BurgerFuel to add Sydney to its menu

BurgerFuel began with a single store in 1995 and now has 15 outlets. Picture /Carolyn Robinson

BurgerFuel plans to get its gourmet burger chains sizzling across the Tasman, with a store to open in Newtown, Sydney, by the end of the year.

The Auckland-based company is also tipping New Zealand franchises to reach 40 late next year, from the current 15.

Managing director and founder Chris Mason said that after 10 years the brand was at "tipping point" where magnetism and familiarity with it would be enhanced by more stores.

"The momentum carries you through. The more you open, the faster you get in this game. You're building a bigger infrastructure and you just tend to be able to exponentially grow."

A further 17 sites had been earmarked in Sydney for franchises to be rolled out "as quickly as possible".

That would make BurgerFuel number two in Sydney's gourmet burger market. "But if we leave it too long we'll miss our opportunity to go in there and try to be number one," Mason said.

Mason opened the first store on Auckland's Ponsonby Rd in 1995. The chain is now jointly owned with Josef Roberts, the transtasman chief executive of Red Bull.

The stores produce 35,000 burgers a week.

With prices averaging $8.50, BurgerFuel initially rivalled the 17-year old Burger Wisconsin chain in the gourmet burger market.

However, with large hamburger chains Wendy's, Burger King and McDonald's now offering healthier burgers, competition has intensified.

Mason was unsure whether higher petrol prices had put people off paying more for a hamburger.

"We're experiencing great growth and we've got happy franchisees. Perhaps if petrol prices were not as high we might be going better. I can't really tell.

"There's this whole $10 ceiling thing that's been hard to break through but we're finding it easier and easier now. I think $20 is now where that $10 used to be 10 years ago."

Although the short-term focus was on Australasia, Mason believed there was potential to build a global brand.

He has his sights on the US next, planning to tackle that through joint ventures with bigger players.

"We might be delusional but we'll give it a go."