What are the burgernomics of fancy fast food?

The Economist explains

What are the burgernomics of fancy fast food?

Jun 27th 2013, 23:5

 

BURGERNOMICS is a subject close to The Economist’s heart. Such is our appetite for it, in fact, that we have published our Big Mac Index, which uses a Big Mac to compare the relative strengths of different currencies, since 1986. But this week the mouth-watering combination of economics and burgers has been newsworthy for a different reason, after George Osborne, the steward of the British economy, tweeted a picture of himself in his office eating a £10 ($16) take-away burger provided by Byron, a chain of fancy burger restaurants. Such posh burgers, it turns out, can also cast light on the economic state of play. So what are the burgernomics of fancy fast food?

Britain is in the grip of burger mania. Byron is just one of several chains of upmarket burger joints to have sprung up in recent years. It opened in 2007 on Kensington High Street in London, and now has 32 branches. Another chain, Gourmet Burger Kitchen, has 59 restaurants in Britain. Two American burger chains, Shake Shack and Five Guys, will open their first branches in Britain next week. All offer fancier fare than McDonald’s, but are cheaper than dining at a full-service restaurant. And that is the basis of their appeal, as cash-strapped Britons—who enjoy eating out but have less to spend in these times of austerity and economic weakness—look for restaurants that are easier on the wallet.

The burgernomics of fancy fast-food also favour restaurant owners. Burger joints have short, simple menus, which makes it quicker, easier and cheaper to deliver consistently good food. The relatively small number of ingredients reduces waste and makes it easier to buy in bulk, reducing costs. People eat quickly, which means faster turnover: Honest Burgers, which has two outposts in London, can turn its tables five times at lunch and eight times at dinner. Many burger outfits started out as “pop up” restaurants, a cheap way to test products and establish a loyal customer base before renting an expensive property.

What of the political economy of posh nosh? Mr Osborne is already an unpopular figure because of his cuts to government services and welfare payments. Perhaps he relished the idea that an image of him eating a burger would make him look like a hard-working man of the people, but instead his burger’s upmarket origins have merely reinforced the impression that he is out of touch with ordinary people. Nick Clegg, Britain’s deputy prime minister, also admitted this week to having made a recent visit to a branch of Byron’s, at the request of his children. The prime minister, David Cameron, has wisely kept quiet on the now-contentious subject of burgers. Mr Osborne’s late-night take-away has thus provided a handy, if unwitting, encapsulation of Britain’s political and economic situation—and a further example of how the humble burger can make economic analysis more digestible.