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Question: Tom Ryan, founder of Smashburger, explains how he exploited a gap in the hamburger market between the value-oriented fast food burger joint and the more time consuming sit-down restaurant. Smashburger sells premium priced gourmet burgers in an inviting atmosphere with speedy service. A key challenge for Ryan was identifying the right balance between price and quality. Discuss the following,
- how does Smashburger's differentiation strategy allow them to charge premium prices?
- what is Smashburger's pricing strategy? (discuss the balance betwen price and quality), and
- what challenges did Smashburger face in the latest recession of 2008?.
Post your response. Your response should be a minimum of 150 words and no more than 250 words.
Video: Sm Bus Smashburger
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