Feeling surprised at Five Guys’ meal costs? You're not alone! But there's a reason for the price, and we’re diving deep into it!^^
The furore surrounding the price of a burger and fries at Five Guys has emerged once again, particularly after a viral receipt showcased a meal costing one diner a staggering £18.58 ($24.10). While many fast-food chains might lure customers with low prices, Five Guys has taken a different route. CEO Jerry Murrell justifies these higher prices, citing fluctuating food costs as the primary reason behind his pricing strategy. Murrell’s family business, operating since 1986, has garnered a loyal customer base largely due to their commitment to quality ingredients over flashy decor.
Understanding Five Guys’ Pricing Strategy
In a competitive market where many opt for cheaper options, Five Guys stands firm on its more premium pricing. According to Murrell, "Our food prices fluctuate. We do not base our price on anything but margins." He emphasizes that customer understanding is vital: if the cost of ingredients increases, so will the menu prices. This approach has certainly enraged some customers, as illustrated by the viral receipt that showcased the costs of their meal
- Bacon Cheeseburger: £9.83 ($12.49)
- Small Fries: £4.08 ($5.19)
- Regular Soda: £2.27 ($2.89)
Murrell highlights that if the price of mayonnaise triples, so will the burger prices. While some may scoff at this pricing strategy, it ensures that customers receive quality ingredients. As Murrell points out, "In life, you get what you pay for." This sentiment rings true, especially when considering the ingredients that make up the foundation of a delicious burger.
The Business Model That Works
With nearly 1,700 Five Guys locations worldwide and an impressive pipeline of another 1,500 in development, the brand showcases an effective growth strategy. Critics might comment on the high prices, yet the expansion speaks volumes about customer satisfaction and demand. The success of Five Guys can be attributed to their unique selling proposition involving premium meal offerings, combined with their insistence on quality over aesthetic appeal. As Murrell states, "From the beginning, I wanted people to know that we put all our money into the food. That's why the décor is so simple — red and white tiles. We don't spend our money on décor. Or on guys in chicken suits. But we'll go overboard on food."
Introducing the 'Classic Combo' Meal Deal
In response to customer feedback, Five Guys has unveiled a new option called the 'Classic Combo', priced at $12.99. This meal includes
- Little Burger or Little Cheeseburger
- Little Fry (Regular or Cajun)
- 16-ounce Beverage
This combo deal aims to cater to those who might find the traditional menu items slightly on the pricey side. With customer satisfaction at the forefront, Murrell stated, "Our loyal fans have requested a combo from us for a long time, and we are ready to give them this gift leading up to our 40th anniversary." The offering represents a way to engage with their loyal customer base while simultaneously evaluating potential menu expansion.
The Classic Combo is currently being trialed at 177 restaurants across the United States, allowing Five Guys to gauge customer response before a potential wider launch. Feedback will play a crucial role in how the meal is rolled out, making each mouthful a product of careful consideration and customer input.
Customer Engagement and the Future
Murrell’s approach extends beyond just food quality and encompasses customer relations. He believes the most effective salespeople are the customers themselves: "Treat that person right, he'll walk out the door and sell for you." Given the passionate fanbase, this philosophy appears to be working well. Recognizing the importance of feedback in evolving the menu and customer offerings, Five Guys exists as a case study on the success of family-run businesses in a fraught economic landscape.
The Verdict on Pricing
While hungry diners continue to react to the price of meals at Five Guys, it’s essential to understand the rationale behind that cost. From fresh ingredients to prioritizing customer experience, Five Guys remains committed to ensuring that every burger served meets customer expectations. With an expansive growth plan and new offerings like the Classic Combo, the chain is sure to stand the test of time, demonstrating that quality sometimes comes at a price. By investing in its core philosophy - serving great food rather than focusing on frills - Five Guys continues to thrive and expand, serving burgers that many say are worth every penny.