Five Guys owner has revealed why their food is so expensive after a customer's receipt went viral on social media.
A disgruntled diner recently took to social media to vent their shock over the price of a meal at the popular burger chain.
They shared a picture of the receipt which showed that a bacon cheeseburger cost $12.49, small fries were $5.19, and soda came in at $2.89, setting them back a whopping $24.10.
“I was expecting about $12 to $15 per person for Five Guys. $22 (without tip) just seems to cross a line. What is the right amount these days?” they wrote in a follow-up post.
While Five Guys is known to be pricier than many other fast food chains, its CEO and founder Jerry Murrell believes the cost is completely justifiable, and he’s got a simple explanation for it.
Murrell, who started the family-run business in 1986 and named it after his five sons, has long defended the company’s higher prices.
“Our food prices fluctuate,” Murrell told Inc Magazine. “We do not base our price on anything but margins.”
According to Murrell, the fast food chain adjusts its prices based on what it costs them to buy ingredients. “We raise our prices to reflect whatever our food costs are. So, if the mayonnaise guy triples his price, we pay triple for the mayonnaise!" he said, adding: "And then we’ll increase the price of our product."
Despite some customer frustration, the pricing strategy works - Five Guys now operates nearly 1,700 locations worldwide, with another 1,500 in development.
For those feeling the pinch, there may be some good news for customers in the US.
In January, Five Guys introduced a new “Classic Combo” meal deal, which is being tested in 177 restaurants across the States. The deal includes a Little Burger or Little Cheeseburger, a Little Fry (regular or Cajun), and a 16-ounce drink for $12.99.
Murrell acknowledged that customers have been asking for a combo meal for years, and the company is finally testing the idea.
“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,” Murrell said.
If the trial run is successful, the Classic Combo could expand to more locations and maybe even make its way to other countries like the UK, where customers are just as eager to save money.
Murrell concluded that Five Guys has always taken a no-frills approach to its restaurants, focusing on quality over gimmicks.
“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,” Murrell told Inc Magazine.
He told Inc Magazine that the "best salesman is our customer," adding: "treat that person right, he'll walk out the door and sell for you."