Burger Restaurant Industry in Klepp: Current Status and Outlook

Overview of the Burger Restaurant Industry in Klepp

Klepp has one registered burger restaurant, Dragon House As, operating in Kleppe. The company has 11 employees and reported sales revenue of NOK 5.8 million in 2025. The industry shows a gradual recovery after a significant decline during the pandemic, with annual sales growth of 3.8% from 2024 to 2025. The EBITDA margin stands at 1%, indicating margin pressure, but the company has a good average labor cost per employee (NOK 270,000) compared to the industry average.

Key Points:

• Low EBITDA margin (1%) compared to the industry average.
• Large variation in employee numbers over time (from 5 to 11 employees).
• Single-company structure (AS) is the only organizational form in the industry.

Sales and Employee Development (2016–2025):

Key Figures for 2025:

• Sales: NOK 5.7 million
• EBITDA: NOK 76,000
• EBITDA margin: 1.3%
• Gross margin: 70%
• Total debt: NOK 626,000
• Equity: NOK 681,000

Trend Analysis:

• Sales experienced a sharp decline of 29.3% in 2020, but has since recovered with an average annual growth of 11.4% from 2020 to 2025.
• Employee numbers dropped drastically by 50% in 2021, but have stabilized since.

Registered Companies in Klepp (2025):

Organizational Form Statistics:

• AS (1 company): 11 employees, NOK 5.8 M sales, NOK 76,000 EBITDA.
• No companies in organizational forms such as ANS or Property Association.

Observations:

• Dragon House As is the only company in the industry and has been operational since 1998.
• The company has not gone bankrupt, but has experienced significant variations in employee numbers and sales over time.

Distribution of Activity in the Municipality (2025):

Details for Kleppe:

• Dragon House As is the only company and operates at Jærvegen 504.
• The company has an average income per employee of NOK 585,500.
• Income per employee is higher than the industry average (NOK 270,000), but EBITDA per employee is low (NOK 7,700) compared to the industry average.

Outlook for Geography:

• The single company's location in Kleppe provides opportunities for local market share, but the lack of geographic variation may be a limitation for growth.

Bankruptcies and Operational Economics (2016–2025):

• Dragon House As has not gone bankrupt, but has experienced significant variations in operating results and employee numbers.
• Operational Economic Trends:
• EBITDA has been negative in several years, but has stabilized at NOK 76,000 in 2025.
• The gross margin has remained stable at 70%, but the operating margin has been low (1%) over time.

Operational Risk:

• Low EBITDA margin (1%) indicates margin pressure, but the company has a good average labor cost per employee (NOK 270,000).
• Large variation in employee numbers (from 5 to 11) can negatively affect operational economics.

Conclusion:

• The company has shown resilience after the pandemic, but must improve the EBITDA margin to ensure long-term operations.

Outlook for the Burger Restaurant Industry in Klepp

Trend Analysis and Opportunities:

• The industry has shown a gradual recovery after a significant decline during the pandemic, with annual sales growth of 3.8% from 2024 to 2025.
• Establishment Potential:
• The single company's location in Kleppe provides opportunities for local market share, but the lack of geographic variation may be a limitation for growth.
• Low bankruptcy risk and stable operations make the industry attractive for new players.

External Factors:

• Increasing interest in local food solutions can be an advantage for burger restaurants.
• Competition from other restaurants in Klepp (such as Peking Garden and Yummy Time) can be a challenge.

Recommendation:

• New players should focus on improving the EBITDA margin and leveraging local market share.
• Collaboration with existing companies can benefit both new and existing players.

Outlook for the Restaurant and Café Industry in Klepp

Comparison Between Burger Restaurants and Broader Industry (Restaurant/Café):

• Restaurant/Café Industry in Klepp (2025):
• Number of Companies: 23
• Sales: NOK 29.8 million
• Employees: 119
• Annual Sales Change: -12.6% from 2024 to 2025
• Annual Employee Change: -3.4% from 2024 to 2025

• Burger Restaurant Industry (2025):
• Number of Companies: 1
• Sales: NOK 5.7 million
• Employees: 7
• Annual Sales Change: +3.8% from 2024 to 2025
• Annual Employee Change: 0.0% from 2024 to 2025

Peer Analysis for Restaurant/Café Industry:

Conclusion:

• The restaurant/café industry in Klepp is larger and more diversified than the burger restaurant industry, but also has greater variations in sales and employees.
• The burger restaurant industry has shown better growth than the broader industry, but is still small in relation to the total market share.

Summary of the Analysis:

• The burger restaurant industry in Klepp has shown gradual recovery after the pandemic, with annual sales growth of 3.8% from 2024 to 2025.
• Dragon House As is the only company in the industry and has shown resilience, but must improve the EBITDA margin to ensure long-term operations.
• Outlook for New Players:
• The industry has growth potential, but competition from other restaurants in Klepp can be a challenge.
• Collaboration with existing companies can benefit both new and existing players.

Recommendation:

• New players should focus on improving the EBITDA margin and leveraging local market share.
• It is important to follow the development of the broader restaurant and café industry to identify potential collaboration opportunities and competitive pressure.

SmartGrunder can help entrepreneurs find suitable addresses in Klepp for the burger restaurant industry, based on local conditions and development trends.