Brand Shoutouts
How two brothers who borrowed money from their mom to buy a Santa Barbara burger stand in 1980 built what Consumer Reports called 'the best tasting burger in America' — now scaling to 377 locations under Yum! Brands.
By Justin K. Sellers · 8 min read · February 28, 2026
When Brent Reichard started working at The Hamburger Habit in 1976, he was 16 years old flipping burgers on Goleta Beach in Santa Barbara, California.
Four years later, he and his brother Bruce borrowed money from their mom and bought the place.
That was 1980. One location. A charburger stand on a beach that most people visited once a year.
For 27 years, the Reichard brothers built slowly. They opened a second location in 1996. Then expanded to 17 units across Southern California. No rush. No venture capital. Just obsessive focus on chargrilling burgers over an open flame — the technique that would eventually beat In-N-Out in national taste tests.
In 2007, KarpReilly acquired a majority stake and began franchising. By 2014, Habit Burger went public with 109 locations. Then in March 2020, Yum! Brands — parent company of KFC, Taco Bell, and Pizza Hut — acquired the brand for $375 million.
Today: 377 locations across 14 states plus international, $1.8M AUV, and an East Coast expansion strategy backed by a company that operates 49,000 restaurants in 145 countries.
That's not a flash-in-the-pan concept. That's 45 years of chargrilled consistency — the same kind of founder discipline that shaped Chick-fil-A into one of QSR's most valuable brands.
[FAQ_SECTION]
Brent Reichard got his first job at The Hamburger Habit in 1976 at age 16. He fell in love with the burger business.
Four years later, Brent and his brother Bruce borrowed money from their mom and bought the restaurant.
"The brothers knew that the secret of a truly great burger was in the details, so they rebuilt Habit burgers from bottom to top." — Mental Itch (2025)
What they changed: Fresh, locally sourced produce at peak ripeness. Daily-baked buns from a local bakery. Perfectly seasoned beef grilled warm and toasty over an open flame.
For 27 years, the Reichard brothers ran a small, family-owned California chain. They opened their second location in 1996 — 16 years after buying the original. By 2007, they had 17 locations across Southern California.
Then KarpReilly stepped in with capital and franchising expertise. The brothers sold a majority stake but kept their eight Santa Barbara County locations. That kind of PE acquisition without destroying founder culture is rare — and by most accounts, it worked.
When Yum! acquired Habit Burger in March 2020, the Reichard brothers finally retired in March 2022, selling their remaining eight locations — including the original Goleta location — to Yum! Brands. After 42 years, they hung up the spatula.
Fresh burgers made to order, cooked over an open flame using a stainless steel charbroiler with a cast iron grill insert. The process sears in smoky flavors and creates a distinctive char that customers notice immediately.
Beyond burgers: sushi-grade chargrilled ahi tuna sandwiches, grilled tri-tip steak sandwiches, fresh salads including the Santa Barbara Cobb, tempura green beans (named #1 green bean dish by The Daily Meal), and hand-spun milkshakes.
In July 2014, Consumer Reports named Habit Burger "the best tasting burger in America" — beating In-N-Out, Five Guys, Shake Shack, and every other major chain.
Fast-casual quality with quick-service speed. Premium ingredients, made-to-order, at a price point below full-service restaurants. According to the company, approximately 50% lunch, 50% dinner daypart mix. Digital sales hit 38% in Q4 2024.
The growth trajectory tells the story: 1 location in 1980. 17 locations by 2007. 109 at IPO in 2014. ~260 when Yum! acquired in 2020. 377 today — 316 corporate, 61 franchise.
Current footprint spans a West Coast stronghold (California, Arizona, Utah, Nevada, Idaho, Washington) with an East Coast beachhead in Florida, Maryland, Massachusetts, New Jersey, North Carolina, Pennsylvania, South Carolina, and Virginia. International presence in China (7 locations) and Cambodia (4 locations).
The Yum! Brands advantage is infrastructure: access to 49,000 restaurants across 145 countries, capital for expansion, an established franchise network, and purchasing power.
"There's lots of white space for us to fill in on the East Coast and in between our West Coast stronghold and the East Coast footprint that we have. The concept can work anywhere; we're just trying to build it out smartly and make sure expansion restaurants are successful." — Shannon Hennessy, CEO (2025)
Company target: 2,000 locations globally.
If you're interested in bringing this concept to your market, connect directly with their franchise development team.
Visit Franchise Page"All food was well made with fresh ingredients. Atmosphere is very good. Restaurant very clean. The quality of the food was better than some sit down restaurants. I had the $6 special and it was amazing for the price." — TripAdvisor, Lexington, SC (September 2025)
On the Experience:"Red Robin has been snatched bald! Habit Burger Grill has THE best burger out of all the spots I just tried. The char cheeseburger with American cheese and bacon was a solid burger. Also got an order of onion rings with ranch dip and it was really good, def recommend this." — Yelp, New York (2025+)
"Nikole, Julio and the kitchen crew were super welcoming and attentive! Food was fresh and service was top tier. This is the best Habit in the valley, hands down!" — Yelp, Chatsworth, CA (2025+)
Pattern: Customers consistently mention chargrilled flavor, fresh ingredients, friendly service, and cleanliness. Based on available reviews, East Coast locations (New Jersey, South Carolina, Florida) appear to be performing well with reviews matching West Coast standards."Excellent lunch! All food was well made with fresh ingredients. Atmosphere is very good. Restaurant very clean. The quality of the food was better than some sit down restaurants." — TripAdvisor, Lexington, SC (February 2026)
27 years of family ownership (1980-2007) before PE acquisition. Another 7 years building infrastructure (2007-2014) before going public. Then 6 more years (2014-2020) before Yum! Brands acquisition. In our view, most brands rush to franchise — Habit Burger spent 40 years proving the model works.
2. Chargrilled Differentiator That Wins Taste TestsConsumer Reports named them best tasting burger in America — beating In-N-Out, Five Guys, Shake Shack, and every major chain. That's third-party validation from one of America's most respected consumer publications. The chargrilling creates a flavor profile that's difficult for competitors to replicate on flat-tops or fryers.
3. Yum! Brands Infrastructure Without Losing IdentityAccess to 49,000 restaurants, purchasing co-ops, franchise networks, and capital. But Habit maintains its California identity, made-to-order model, and open-flame cooking. When CEO transitions destabilize legacy QSR brands, Yum!'s approach of preserving brand DNA while adding infrastructure suggests how corporate ownership can work.
4. Strong Unit Economics$1.8M AUV. Total investment: $1.4M-$1.8M (before TIA). Franchise fee: $35,000. Royalty: 5.5% of gross sales. Marketing fee: up to 4.5%.
Required net worth: $3,000,000. Required liquidity: $1,000,000.
5. East Coast Proof of ConceptLocations in New Jersey, South Carolina, Florida, Virginia, North Carolina, Pennsylvania, Massachusetts, and Maryland are operating across the East Coast. Customer reviews from East Coast locations suggest quality matching West Coast standards — fresh ingredients, chargrilled flavor, friendly service.
In a market where California burger concepts rarely translate East of the Rockies, Habit Burger stands apart. Here's what makes this different:
The Opportunity:- West Coast proof: 377 locations, $1.8M AUV, 45 years of brand equity - East Coast validation: Successful locations across 8 Eastern states - Yum! Brands backing: Capital, franchise network, purchasing power, operational expertise - Chargrilled differentiator: Named best tasting burger in America by Consumer Reports - Premium positioning at QSR-like value: Chargrilled quality at fast-casual speed - Multiple revenue streams: Balanced lunch/dinner mix, 38% digital sales - Proven leadership pipeline: CEO Shannon Hennessy bringing "same magic, more margin" approach
Who This Is Built For:Experienced multi-unit, multi-brand operators looking to enter the premium burger segment with a proven West Coast brand expanding East. The Yum! Brands franchise network gets first priority on territories. If you're already operating KFC, Taco Bell, or Pizza Hut — this is your opportunity to diversify into fast-casual burgers with infrastructure support. The culture and retention fundamentals that drive operator success apply here: Habit's service consistency across 377 locations shows the systems are working.
[DEEP_DIVE_CTA url="/article/habit-burger-deep-dive/"] Want the full story? - Real customer challenges (inconsistent execution, wait times at peak hours) - Unit economics breakdown: $1.8M AUV vs Five Guys, Shake Shack, and Smashburger - Why chargrilling limits throughput compared to flat-top competitors - East Coast expansion risks (brand awareness, supply chain, labor market differences) - Who this concept is built for (and who should look elsewhere) [/DEEP_DIVE_CTA]
We never ask brands for permission before publishing. Our job is independent analysis, not marketing material. If something in this piece doesn't match your experience — good or bad — that's valuable information for the operator community.
Sponsors get placement, not editorial control. We write what the research shows.
This companion article draws on the same source base as our Habit Burger Deep Dive.
Key limitations remain:
We don't know Habit Burger's net franchisee profitability after Yum! Brands royalties and marketing contributions.Disclosed $1.8M AUV shows top-line performance, but operator take-home after all fees and costs isn't publicly broken down.
We don't know how Habit Burger's chargrilled cooking method affects labor costs and throughput compared to flat-top competitors.The cooking method is a differentiator, but its operational cost implications versus speed-focused competitors like Smashburger or Five Guys aren't publicly documented.
We don't know whether Yum! Brands' conversion strategy (converting existing restaurants to Habit Burger) produces comparable unit economics to new builds.Conversion economics may differ significantly from ground-up construction, but comparative performance data isn't available.
This article was produced independently. The brand profiled did not participate in, review, or approve this research prior to publication. All claims are sourced from publicly available materials and cited accordingly.
QSR Research Hub is an independent publication. We receive no compensation from any brand featured in our Brand Shoutouts.
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Subscribe to QSR Research Hub1. Noozhawk. "Habit Burger Co-Founder Brent Reichard Savors Best-Taste Honor." August 5, 2014. Brent started age 16 in 1976. https://www.noozhawk.com/the_habit_burger_bestowed_with_best_taste_honor/
2. edhat. "Original Habit Grill Founder Sells Remaining Local Restaurants." Consumer Reports best burger July 2014. June 8, 2023. https://www.edhat.com/news/original-habit-grill-founder-sells-remaining-local-restaurants/
3. Franchise Times. "Yum Brands Purchases The Habit Burger for $375M." IPO 2014, 111 restaurants. September 27, 2021. https://www.franchisetimes.com/franchise_times_cover_stories/yum-brands-purchases-the-habit-burger-for-375m/
4. Yum! Brands. "Yum! Brands Completes Acquisition of The Habit Restaurants, Inc." March 18, 2020. $375M acquisition. https://www.yum.com/wps/portal/yumbrands/Yumbrands/news/press-releases/yum+brands+completes+acquisition+of+the+habit+restaurants
5. edhat. "Original Habit Grill Founder Sells Remaining Local Restaurants." 14 states, international locations listed. June 8, 2023. https://www.edhat.com/news/original-habit-grill-founder-sells-remaining-local-restaurants/
6. Downtown Ventura. "The Habit Burger Grill." Reichard brothers rebuilt burgers from bottom to top. March 13, 2023. https://downtownventura.org/business/food-drink/the-habit/
7. Mental Itch. "The History of Habit Burger." Daily-baked buns, local produce, chargrilling details. July 18, 2025. https://mentalitch.com/the-history-of-habit-burger/
8. QSR Magazine. "Yum! Brands Completes $375M Deal for The Habit." Menu variety, daypart mix, operations. July 7, 2023. https://www.qsrmagazine.com/news/yum-brands-completes-375m-deal-habit/
9. edhat. "Original Habit Grill Founder Sells Remaining Local Restaurants." Reichard brothers retirement March 2022. June 8, 2023. https://www.edhat.com/news/original-habit-grill-founder-sells-remaining-local-restaurants/
10. MoneyInc. "20 Things You Didn't Know About Habit Burger." Charbroiling technique, equipment details. November 12, 2021. https://moneyinc.com/habit-burger/
11. Habit Burger & Grill. Menu and brand overview. Chargrilled burgers, fresh daily-baked buns, no freezers or microwaves, made-to-order. Available at habitburger.com.
12. Franchise Times. "Yum Brands Purchases The Habit Burger for $375M." Bendel quote, 260 units at acquisition, franchisee priority. September 27, 2021. https://www.franchisetimes.com/franchise_times_cover_stories/yum-brands-purchases-the-habit-burger-for-375m/
13. West Coast Franchise Law. "Yum! Brands Acquires Habit Burger." 49,000 stores, 145 countries, 2,000 location target. March 12, 2020. https://westcoastfranchiselaw.com/insights/yum-brands-acquires-habit-burger/
14. Nation's Restaurant News. "CEO Shannon Hennessy's plan for The Habit Burger Grill: 'Same magic, more margin'." East Coast expansion, digital sales, Yum resources. February 4, 2025. https://www.nrn.com/restaurant-executives/ceo-shannon-hennessy-s-plan-for-the-habit-burger-grill-same-magic-more-margin-
15. TripAdvisor. "Habit Burger & Grill, Lexington." Customer reviews September 2025, February 2026. https://www.tripadvisor.com/Restaurant_Review-g54315-d26857498-Reviews-Habit_Burger_Grill-Lexington_South_Carolina.html
16. Yelp. "TOP 10 BEST Habit Burger Grill in New York, NY." Customer reviews 2025+. https://www.yelp.com/search?find_desc=Habit+Burger+Grill&find_loc=New+York,+NY
17. Yelp. "Habit Burger & Grill, Chatsworth." Customer service reviews 2025+. https://www.yelp.com/biz/habit-burger-and-grill-chatsworth?start=40
18. Habit Burger & Grill. "Franchise Information." Total investment $1.4M-$1.8M (before TIA), franchise fee $35K, royalty 5.5%, development incentives, 61 franchised locations vs. 316 corporate. Note: Based on 2023 FDD filing. Prospective franchisees must obtain the current FDD directly from Habit Burger Franchising LLC to verify whether investment requirements have changed. https://www.habitburger.com/franchise/franchise-information/