The founder of Five Guys once said, “If you can give a good haircut, or if you can serve a good drink at a bar, or if you can serve a good hamburger, you can always make money.” Five Guys has proven this true.
This fast food restaurant has made a significant mark on the UK’s fast food scene, characterised by its relentless commitment to quality and freshness. From a modest burger outlet in Arlington, Virginia, to over 1,500 locations globally, Five Guys stands as a testament to successful franchise expansion.
This article delves into Five Guys’ history, operational model, and franchising steps in the UK. Let’s dive in.
The History of Five Guys Ownership
Five Guys was founded in 1986 by Jerry Murrell and his four sons, the name reflecting the family core of the business.
The concept was simple: offer burgers and fries cooked to perfection with no compromises on the quality of ingredients. This ethos of using fresh, high-quality ingredients and cooking meals to order became the cornerstone of the brand, distinguishing it from competitors who rely on frozen patties and pre-prepared components.
Growth and Expansion
The decision to franchise in 2003 marked a significant turning point for Five Guys. By then, the brand had fine-tuned a compelling business model prioritising product quality and customer service.
This shift led to rapid expansion, with Five Guys opening over 300 outlets across the United States in just six years. In 2013, Five Guys took its successful model overseas, opening its first UK store in London.
Now, Five Guys operates 166 franchises in the UK alone.
The Five Guys Business Model
The Five Guys Business Model
A clear, compelling business model has been crucial in scaling Five Guys while maintaining quality and service standards.
Commitment to Freshness
Ingredient freshness is non-negotiable at Five Guys.
The chain’s commitment includes using only fresh ground beef and fries from freshly cut potatoes. This insistence on quality extends throughout the supply chain, ensuring that each location delivers the same tasty, high-quality food that customers expect.
Simplified, High-Quality Menu
The Five Guys’ menu is intentionally limited, focusing on burgers, hot dogs, and fries. This simplification allows meticulous attention to detail and consistency across all outlets, a key factor in customer satisfaction and brand loyalty.
By focusing on doing a few items exceptionally well, Five Guys ensures a standout culinary experience in a market crowded with more complex menus.
Focus on Customer Experience
Customer experience is another pillar of the Five Guys business model. Stores feature an open kitchen design, allowing customers to view their food being prepared.
The restaurant’s interiors are kept simple and clean, focusing on red and white tiles. Furthermore, the brand is known for its customer-centric service, including generous portions of fries and complimentary peanuts while waiting.
How to Buy a Five Guys Franchise in the UK
Opening a Five Guys franchise involves several steps, each designed to ensure that franchisees are well-prepared for success.
Five Guys Franchise Cost
The first step for prospective franchisees is a thorough financial evaluation. The initial investment for opening a Five Guys franchise in the UK typically includes a franchise fee of £25,000, with total start-up costs ranging from £300,000 to £500,000, depending on the location and size of the restaurant.
These costs cover kitchen equipment, interior decor that matches the brand’s specifications, initial training, and the first few months of operating capital.
Complete Franchise Application and Approval
Candidates must complete a detailed application form on the Five Guys UK franchise website.
The application process includes a financial disclosure, a detailed business plan outlining the prospective location, target market, and operational strategy, and personal background information.
Secure Funding
Once approved, franchisees typically need to secure funding. This money can be through personal assets, bank loans, or third-party lending. Five Guys does not provide direct financing but can recommend accredited lenders who are familiar with the franchise model.
Training and Store Setup
Approved franchisees undergo a comprehensive training programme that spans several weeks. This includes hands-on experience at an existing Five Guys location.
The training covers everything from daily operations to customer service, food safety, local marketing, and staff management.
Grand Opening and Ongoing Support
The final step is the grand opening, for which Five Guys provides additional support in marketing and operations to ensure a successful launch.
After the opening, franchisees continue to receive ongoing support from the Five Guys operations team, which includes regular audits, continuous training updates, and marketing and advertising assistance to help maintain the brand’s quality and service standards.
Discover Comparable Five Guys Franchise Opportunities
As appealing as Five Guys is, the high franchise fee and specific qualifications make it out of reach for first-time franchisees.
Don’t stress. Instead, focus on climbing the franchise ladder. At Franchise Local, we offer several fast-food franchises across various budgets. A few of our options include:
Together, we can navigate the exciting world of franchising and grow your business portfolio strategically and sustainably. Each franchise you operate brings you closer to owning a top-tier outlet like Five Guys.