Some People Are Upset Once They Learn Which Company Owns Habit Burger & Grill. Here's Why

The year is 1969, and you're in the beautiful beach town of Santa Barbara, California. After a morning of surfing at Campus Point, you stop at the newly opened The Habit to grab a burger for 24 cents. Fast-forward over 50 years, and you can still stop at this fast-casual burger chain (but you have to shell out a bit more for your meal). With a slightly different name, Habit Burger & Grill still exudes a laid-back vibe and serves up "fresh, feel good food." But, under new ownership, some longterm patrons feel that certain elements, including food quality, has shifted.

In March 2020, Yum! Brands, the massive corporation behind KFC, Pizza Hut, and Taco Bell, acquired Habit Burger for approximately $375 million. Despite the acquisition, the Habit continued to be managed as an independent brand. Customers have always appreciated Habit for its commitment to quality and flavor, and its local California roots. However, many feel that since corporate ownership took over, those qualities have eroded. Others simply don't like that a corporation with a portfolio of 50,000 restaurants now owns a once-local chain.

For context, the growth of Habit Burger & Grill has traditionally been slow and organic. The second location didn't open until 1997 in Ventura, another beach town just 30 minutes south of Santa Barbara. By 2007, there were 17 locations throughout California. Then, a private equity firm called KarpReilly acquired majority ownership and began franchising the small restaurant chain and expanding more aggressively.

Although The Habit can't really be considered a local chain anymore, there is a lot to love about it. It was even ranked as USA Today's best fast casual restaurant in 2025. The Charburger — well-seasoned burgers that have been grilled over an open flame — is the chain's most loved menu item. It also has some nice diversity on the menu to cater to different crowds, including a loaded Cobb salad, a veggie burger, tempura green beans, and ahi tuna sandwiches. The main complaints are not exactly about the restaurant's food, but more so that it has not been able to maintain quality and consistency at every location.

Since Yum! Brands' purchase, Habit Burger & Grill has skyrocketed to more than 380 locations across 14 states. In 2024, it ranked in fourth place for Yelp's fastest-growing restaurant brand with a 29% increase. The same research piece demonstrated the restaurant as the fastest-growing brand in Arizona and South Carolina, so it's certainly no longer tied to just California or the West Coast. This has not gone unnoticed by customers. Many lament that the food quality has gone down since new ownership, the prices have increased, and it seems like the restaurant is cutting corners. It's often a fine balance between expanding for continued growth and prioritizing quality — something that another California favorite, In-N-Out, has done incredibly well.