Despite the chain’s global fan base, the team is aware they are building the brand from scratch in an Australian market that has at times shown resistance to US operations. Getting people through the door is the first step; the next one is keeping them inside.
In a competitive and crowded burger market, Five Guys has sought to differentiate itself on two key pillars: freshness of ingredients and a unique pricing structure.
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Five Guys works with local producers to build out supply chains in each market. There are no freezers or microwaves; burger buns are baked fresh and delivered four times a week. Sourcing the potatoes (Dutch innovator) was a whole operation unto itself. “McDonald’s had a monopoly on the market,” said Keelan. Five Guys has had to order potatoes three years in advance to guarantee supply from local farmers. Fries are hand cut every day and double-fried. The mayonnaise recipe is manufactured by Heinz, but developed exclusively for Five Guys with a higher fat content.
At $19.99 for a cheeseburger (two patties) or $16.90 for a “little cheeseburger” (one patty), it’s priced on the more premium end. Built into the price is unlimited access to a range of 15 toppings.
Not everyone is familiar with the concept. “I see it happen all the time in Europe,” says Bearden, who is visiting Sydney for the Martin Place store opening. “People will come up, they’ll look in the shop window, and they’ll see the prices, and they’ll turn around and walk off.”
The hyper-customisation strategy means cashiers can struggle to make recommendations; there is no ‘signature burger’. “We don’t do it,” said Bearden. “The unique thing is whatever you create.”
Five Guys differentiates its offer by emphasising freshness and hyper-customisation of its burgers and milkshakes.
There is evident pride in the fact that Five Guys’ menu has remained virtually unchanged since it was founded nearly four decades ago. The flip side is the chain is very strict, to the point of inflexible, about what gets added to the menu, which is identical in every country. It took 18 years for milkshakes to be added. Chicken, an affordable and popular protein for nearly every fast food chain, has not been permitted.
The stringent playbook presents an interesting challenge in so many global markets. On the one hand, the DIY concept means customers get the burger they want every time; on the other, there’s next to no room to accommodate for local palates. Australians are a discerning lot and tend to eschew the more-is-more approach, says Bearden, and love…
