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Emerging Burger Chain Focuses on Underserved Neighborhoods with Cost-Effective Growth Strategy
StormBurger, a growing Los Angeles-based cheeseburger chain, is expanding by repurposing second-generation restaurant spaces, particularly in underserved, lower-income neighborhoods. Following the opening of its first location in December 2024, the company has signed two additional leases and is actively scouting for more sites across Los Angeles.
By converting vacant fast-food properties, StormBurger avoids the challenges of securing new development approvals, which have become increasingly difficult in cities like Santa Monica and Koreatown, where drive-thru moratoriums favor high-density, mixed-use developments.
A STRATEGIC APPROACH TO GROWTH
StormBurger’s first location, a 1,100-square-foot former Church’s Chicken in Inglewood, was renovated over 17 months before launching in December. The space, located near a high-performing Popeyes generating $7.8 million annually, was redesigned to prioritize kitchen operations, eliminating indoor seating in favor of pickup and ordering windows.
The drive-thru-only model is central to StormBurger’s strategy, reducing costs and enabling faster expansion. Founder Mike Storm, a former Hooters franchisee, has focused on low-cost, high-volume operations, offering affordable burgers while driving profits through beverage, fries, and onion ring sales.
COMPETING FOR DRIVE-THRU LOCATIONS
The fast-food industry has shifted towards smaller dining spaces, with many chains reporting that 70% of sales now come from drive-thru and third-party delivery orders. This has increased competition for pre-approved drive-thru sites, as larger brands with extensive resources and permitting expertise dominate the process.
Despite these challenges, StormBurger has secured a second location in Long Beach and is finalizing a third lease in Compton. The company is also eyeing expansion in Downey, Northridge, Panorama City, Van Nuys, and West Adams, prioritizing areas with dense populations and high foot traffic.
INVESTMENT AND FUTURE GROWTH
StormBurger’s early success has attracted new investment, with Jonathan Foster, CEO of Angeles Wealth Management, recently increasing his stake in the company.
Industry experts believe the brand has the potential to scale significantly, with senior retail advisor Michael Pakravan comparing it to Raising Cane’s, the fast-growing chicken chain.
“Moving into a former Burger King with an existing drive-thru is a major advantage,” said Pakravan. “It allows them to expand much faster than waiting for new construction, which can take up to 30 months.”
CHALLENGES IN SECURING SPACES
Securing second-generation restaurant spaces is not without hurdles. At its Inglewood location, StormBurger’s landlord—a family trust—refused to invest in renovations or offer free rent during construction, requiring the company to cover costs out of pocket.
Experts advise that food and beverage brands carefully evaluate second-generation spaces, as shifting neighborhood demographics, labor markets, and rental costs continue to reshape Los Angeles’ retail landscape.
Still, with sales at the first location exceeding expectations, StormBurger is optimistic about its long-term growth prospects, continuing its mission to provide quality, affordable food in communities often overlooked by major fast-food operators.
