Have you ever wondered who’s behind those delicious burgers and hand-cut fries at your local Five Guys restaurant? The popular fast-food chain that focuses on hamburgers, hot dogs, and french fries has an interesting ownership story that starts with a family.
Five Guys is owned primarily by the Murrell family. Jerry Murrell and his sons (Jim, Matt, Chad, Ben) are the main founders and owners. Meanwhile, Miller Investment Management holds a 20% stake, and some of Jerry’s friends own the remaining 5%.
The story of Five Guys begins in Arlington, Virginia, where Jerry Murrell and his four sons started the business in 1986. The “Five Guys” name refers to Jerry and his sons, who built the business from a single location into what would become one of America’s fastest growing restaurant chains.
Through the 1980s and 1990s, the family worked on perfecting their simple concept of fresh, made-to-order burgers with all the toppings you could want.
Key Takeaways
- The Murrell family owns 75% of Five Guys, with Jerry and his sons being the main founders who started with just one location.
- Five Guys expanded from a single restaurant to over 1,500 locations through franchising while maintaining family control.
- The restaurant chain is known for its made-to-order burgers, hand-cut fries, and commitment to fresh ingredients without freezers.
The Founding and Growth of Five Guys
Five Guys began as a family business that transformed from a single burger joint into a global fast-food powerhouse. Their journey shows how quality ingredients and consistent service can build a strong brand.
Establishing the First Location
Jerry Murrell opened the first Five Guys restaurant in 1986 in Arlington, Virginia. He started the business with his wife Janie and their sons, giving the restaurant its memorable name. The initial investment was around $70,000, but success didn’t come instantly.
The Murrells focused on making the best burger possible using fresh, never frozen beef. Their commitment to quality included hand-formed patties and fresh-cut fries cooked in peanut oil.
Despite modest beginnings, their reputation for delicious burgers grew through word of mouth. The original location became known for its simple menu, generous portions, and consistently tasty food.
Expansion and Franchising
For nearly 15 years, Five Guys remained a small, local chain with just five locations. In 2003, the Murrells made the pivotal decision to begin franchising.
This decision sparked incredible sales growth as the brand expanded rapidly across America. Five Guys became one of the fastest-growing restaurant chains in the US, expanding from just 5 stores to over 1,500 locations worldwide.
The ownership structure evolved as the company grew. While the Murrell family maintains majority control, Miller Investment Management, a Philadelphia firm, acquired a 20% stake in the business.
Brand and Menu Evolution
Despite massive expansion, Five Guys has maintained a remarkably consistent menu focused on core items:
- Burgers: Available with numerous free toppings
- Hot dogs: Served with the same topping options
- Sandwiches: Including grilled cheese and veggie options
- French fries: Famously hand-cut and cooked to perfection
The company takes special pride in their “perfect French fry” – made from potatoes sourced from specific regions and double-fried to achieve the ideal texture.
Five Guys has resisted the temptation to diversify their menu excessively. They don’t serve chicken sandwiches, salads, or desserts beyond milkshakes. This focus on doing fewer things exceptionally well has become a hallmark of their brand identity.
Ownership and Management Structure
Five Guys remains under the control of the Murrell family who founded the popular burger chain in 1986. The company has maintained its family-centered approach while expanding to over 1,500 locations worldwide.
Family Business and Leadership
Five Guys is named after its five founders – the Murrell family members including Jerry and Janie Murrell and their sons Jim, Matt, Chad, and Ben. Jerry Murrell, the patriarch, started the business with his sons and has remained at the helm of the company’s growth.
The family maintains active roles in the business operations. They’ve focused on creating high-quality burgers with fresh ingredients, which has become their signature approach.
The Murrells run Five Guys Enterprises, LLC, which is headquartered in Alexandria, Virginia. Their hands-on management style has helped preserve the quality and consistency across all locations.
Investors and Financial Backing
While the Murrell family maintains controlling ownership, Five Guys has attracted outside investment to fuel its expansion. The company began franchising in 2002, which helped accelerate its growth beyond the original Washington D.C. area.
Several private investment management firms have shown interest in the successful burger chain. Franchise locations have appeared in major cities like Boston and Austin, showing the broad appeal of the Five Guys concept.
The company’s net worth has grown substantially since its founding. Their restaurant holding company structure has allowed them to maintain quality control while expanding across the United States and internationally.
Franchising with Five Guys
Five Guys began offering franchise opportunities in 2003, which rapidly transformed the family burger business into a global phenomenon. Their franchise model emphasizes quality and consistency across all locations.
Franchisee Profile and Success Stories
The typical Five Guys franchisee is committed to maintaining the brand’s high standards. Franchise owners must meet specific financial requirements, including a minimum investment between $152,600 and $360,300 with an initial franchise fee of $25,000.
Many success stories highlight how franchisees have thrived within the Five Guys system. The company is known for its selective approach to choosing franchise partners. They look for operators who share their dedication to quality rather than just meeting financial criteria.
Franchisees benefit from the brand’s established reputation and proven business model. Most franchise owners report satisfaction with the support they receive from corporate headquarters, which helps maintain consistent operations.
Economic Impact of Franchising
The decision to franchise in 2002 transformed Five Guys from a small regional chain with just five restaurants in northern Virginia into a global brand with over 1,500 locations. This rapid expansion created thousands of jobs across numerous communities.
Five Guys franchises typically generate strong cash flow due to their simple menu and focus on core products. The company’s scalable model allows for relatively straightforward investment management compared to more complex restaurant concepts.
Within the restaurant industry, Five Guys has demonstrated remarkable resilience. Their focused approach to the food industry has helped franchisees weather economic downturns better than many competitors.
Investment returns for franchisees often exceed industry averages, though exact figures vary by location and market conditions. The brand’s continued expansion indicates the ongoing profitability of their franchise rights program.
Menu Highlights and Food Quality
Five Guys is famous for its simple but high-quality menu. The restaurant focuses on doing a few items exceptionally well rather than offering a wide variety of options.
Creation of the Best Burger
Five Guys burgers stand out because of their commitment to freshness. The patties are made from 100% ground beef that’s never frozen, giving customers a juicy and flavorful experience.
Each burger is hand-formed and cooked to perfection on a grill. Customers can choose from 15 free toppings to customize their burger exactly how they want it.
The philosophy behind Five Guys burgers is simple: quality ingredients create quality taste. They use only premium buns and fresh vegetables for their toppings.
The standard burger comes with two patties, though a “little” burger with just one patty is also available. This attention to quality has helped Five Guys earn its reputation in the “Better Burger” category.
Secret Behind the Perfect Fry
Five Guys’ french fries have a cult following of their own. They begin with fresh-cut potatoes that go through a rigorous preparation process.
The potatoes are cut daily in-store and undergo a special washing process to remove excess starch. This crucial step helps create the perfect texture – crispy on the outside and fluffy on the inside.
Five Guys cooks their fries in pure peanut oil, which gives them their distinctive flavor. The oil is cholesterol-free and has a clean taste that doesn’t interfere with the natural potato flavor.
Each batch of fries is cooked twice – first to pre-cook the inside, then again to crisp the outside. This double-frying method creates what many consider the perfect french fry.
Generous portions are part of the Five Guys experience, with each regular order famously overflowing from the cup into the bag.
Notable Achievements and Recognition
Five Guys has gained impressive recognition and achieved significant milestones since its founding in 1986. The burger chain has grown from a small family business to an international fast food powerhouse with a dedicated following.
Cultural Impact and Celebrity Endorsements
Five Guys has attracted many famous fans over the years. President Obama made headlines when he visited a Washington D.C. Five Guys location in 2009, bringing national attention to the chain. The presidential visit was even featured on NBC news.
Several NBA players have publicly expressed their love for Five Guys burgers. Shaquille O’Neal once mentioned he was a regular customer, while other basketball stars have been spotted at various locations.
Celebrity chef Gordon Ramsay declared Five Guys his favorite place to get a burger during a 2017 interview, calling their product “extraordinary.” This kind of high-profile endorsement helped cement Five Guys’ reputation for quality.
Awards and Rankings in the Fast Food Industry
Five Guys has consistently ranked at the top of burger chain surveys. For six consecutive years (2010-2015), the chain won the “Best Burger” title in the Zagat Fast Food Survey, beating much larger competitors.
In 2023, Five Guys received an honorable mention in the Excellence in Food Safety Awards, highlighting their commitment to maintaining high standards in their kitchens.
Consumer Reports has frequently placed Five Guys near the top of their fast food rankings. The chain earned the #1 spot for burger quality in several years, outperforming long-established fast food giants.
The brand has also been recognized for its business growth, making the Forbes list of fastest-growing small companies multiple times after their rapid expansion.
Investment and Financial Performance
Five Guys has shown impressive financial growth since its founding, attracting significant investment from various financial partners.
The company’s strategic approach to revenue generation and smart partnerships has helped fuel its expansion from a small family business to a global brand.
Analysis of Five Guys’ Revenue Streams
Five Guys generates revenue primarily through restaurant sales, franchise fees, and royalties. The company’s focus on quality ingredients and minimal menu options has created a strong profit margin compared to competitors.
Their simple approach – burgers, fries, and drinks – keeps operational costs manageable while maintaining high customer satisfaction.
Store-level economics show that individual locations can generate between $1-1.5 million in annual revenue. The investment to start a Five Guys franchise typically ranges from $256,000 to $591,000, covering the initial franchise fee, equipment, signage, and seating.
Five Guys’ cash flow benefits from its unique business model where customers pay before receiving their food, creating immediate working capital. This approach helps maintain healthy cash reserves for continued expansion.
Strategic Financial Partnerships
Five Guys has built strategic partnerships with several key financial institutions to fuel its growth.
Miller Investment Management and Clear North Capital have invested in the burger chain, providing capital for international expansion.
The Murrell family originally owned Five Guys completely, but in 2016, they sold a 40% stake to BDT Capital Partners. This partnership helped accelerate the company’s global growth while keeping family members involved in operations.
The company also maintains relationships with commercial banking partners to support franchise development. While company performance remains crucial to the business, these strategic relationships have provided the financial foundation for Five Guys to expand from just 5 stores to over 1,500 locations worldwide.
Technology Integration and Online Presence
Five Guys has embraced technology to enhance customer experience and streamline operations. Their digital transformation includes partnerships with tech companies to facilitate online ordering and delivery, along with strategic social media campaigns to boost brand visibility.
Digital Ordering and Delivery Initiatives
Five Guys partnered with Olo Online Ordering to develop their digital ordering platform.
In 2011, Five Guys project manager Steven Teller worked with Olo CEO Noah Glass to implement a robust online ordering system that matched their commitment to quality.
The burger chain later expanded their digital footprint by teaming up with GoMobo to launch a mobile ordering system. This initiative helped drive revenue and meet growing customer expectations for convenience.
More recently, Five Guys adopted Flybuy technology to improve their pickup experience.
Steve Teller, Vice President of Digital Strategy at Five Guys, has overseen these digital innovations that keep the brand competitive in the fast food industry.
Social Media Influence and Marketing
Five Guys maintains an active presence across major social media platforms, where they showcase their simple menu and quality ingredients. Their distinctive red and white branding remains consistent online, reinforcing brand recognition.
Unlike many competitors, Five Guys relies heavily on word-of-mouth marketing rather than traditional advertising. Their social strategy focuses on authentic customer experiences and user-generated content.
The brand encourages customers to share their Five Guys moments online, creating a community of burger enthusiasts. This approach has helped them maintain their reputation for quality while growing their digital presence in the competitive food industry.
Real Estate and Location Strategy
Five Guys’ impressive growth from a small family business to an international brand relies heavily on strategic location choices. Their real estate approach focuses on visibility and accessibility to attract burger lovers.
Importance of Site Selection
Five Guys has a careful approach to choosing store locations. The company works with independent business owners to find spots with great visibility, plenty of foot traffic, and easy access. These factors are crucial for attracting customers and building steady business.
The real estate team, led by professionals like Glen Beesley, director of real estate and store development, evaluates potential locations based on specific criteria. They look for:
- High visibility from main roads
- Strong pedestrian traffic
- Accessible parking
- Proximity to shopping centers or commercial districts
In places like Northern Colorado, Five Guys selects locations that match the brand’s premium positioning while remaining accessible to their target customers.
Expansion into New Markets
Five Guys’ expansion strategy involves careful market selection and partnership with qualified franchisees. The company has grown to over 1,500 locations from its original 5 stores by methodically entering new markets.
In regions like Central and Eastern Europe, Five Guys expands through strategic partnerships. Recently, Monterock International acquired the Five Guys franchise rights for this region, showing the brand’s international growth approach.
Franchise groups like PSP Holdings develop Five Guys locations across multiple states, including North Carolina, South Carolina, and Georgia. This regional franchising approach allows Five Guys to expand while maintaining quality control.
Each new market entry involves analyzing local demographics, competition, and real estate availability to ensure the brand’s success in diverse locations.
