Regional burger chains are making significant gains in the U.S. fast-food market, challenging national giants with a focus on quality and customer loyalty, industry data shows.

California-based In-N-Out Burger experienced roughly 10 percent growth in domestic sales last year, ranking second only to Shake Shack among U.S. burger chains. Meanwhile, Wisconsin-based Culver’s and Texas-based Whataburger have risen to become the fifth and sixth largest burger chains in the country by sales, according to the market research firm Technomic.

Despite operating with fewer locations and smaller marketing budgets than major chains like McDonald’s and Burger King, these regional brands attribute their steady traffic to higher food quality and strong service rather than discounting. Julie Fussner, CEO of Culver’s, which runs more than 1,000 restaurants across 26 states, emphasized customer service and menu variety as key differentiators.

The broader U.S. hamburger market, valued at about $11.3 billion, is facing sluggish growth, with fast-food burger chains seeing only 1.5 percent sales growth last year—the slowest among the major restaurant segments tracked by Technomic. While fast food traditionally attracts consumers during economic downturns, rising menu prices have challenged these chains’ ability to maintain consistent customer traffic, leading many brands to introduce $5 meal deals and other promotions.

Consumer surveys suggest that while regional chains may not lead on price or speed, they earn higher marks for food quality and overall satisfaction. Steve Hanshaw, a frequent Whataburger customer from Texas, expressed a preference for paying more for a quality burger instead of seeking bargains.

Whataburger was founded in 1950 in Corpus Christi, Texas, with the intention of serving large, flavorful burgers. The chain now generates over $4 billion annually with locations in 17 states and is expanding rapidly, aiming to open about 60 new restaurants this year. CEO Debbie Stroud credits the brand’s loyal following to its quality and customizable menu options.

National chains are also working to enhance their offerings. Burger King revamped its Whopper sandwich and plans further menu updates informed by customer feedback. McDonald’s launched upgraded burgers in 2023 and recently announced plans to improve food quality, including using fresh beef in more locations, alongside efforts to enhance service and restaurant ambiance.

Unlike national competitors, regional chains have avoided heavy reliance on discounts. Culver’s has scaled back promotions, finding customers less responsive after prolonged exposure, and instead offers a range of portion sizes and prices for its signature ButterBurger. Fussner reported a 5 percent increase in traffic at Culver’s so far this year.

Scott Redler, co-founder of Freddy’s Frozen Custard and Steakhouses—ranked 13th nationally—highlighted value as a top consideration for better burger brands, with price being less critical than quality.

Many regional chains remain privately owned and family-operated, prioritizing brand character over rapid expansion. In-N-Out, governed by the Snyder family, has deliberately restrained growth to maintain quality control. Chief Operating Officer Denny Warnick said the company chose to slow expansion in 2010 to ensure standards could be upheld by its management teams.

Similarly, Whataburger’s Stroud described their approach as “healthy growth,” balancing location density, opening pace, and sustainable economics.

Customers like Arley Harriman, a retired advertising executive from Wisconsin, praise Culver’s for its service, cleanliness, and menu items such as cod sandwiches and custard ice cream. “Culver’s restaurants are always busy,” she noted, underscoring the appeal driving these regional chains’ success.