Disclosure
Five Guys targeted 30% food costs by raising prices, never cutting quality
“The kids didn't know why we were raising the prices, but we would always say food costs would stay around 30%. Whatever we gotta do, if we gotta raise prices, we raise prices. And we said, if we have to worry about price, we don't want to be in this business.”
Disclosure
Five Guys funded early expansion using gross revenue share agreements
“We'd say, give us 5000 dollars, we'll give you a certain percentage of the Gross. Not, never the profit, because there was always too many ways to get cheap people that way. So I said, we'll give you a certain percentage of the gross. We'll give you the money …”
Insight
Murrell: Hidden real estate locations proved genuine customer demand
“And we said, well, if we can put it where, you know, it's hard to find, but if we can get people coming there, then we know we got something.”
Disclosure
Murrell: Five Guys would rather raise prices than exceed 30% food costs
“We would always say, food costs would stay around 30%. Whatever we gotta do, if we gotta raise prices, we raise prices. And we said, if we have to worry about price, we don't want to be in this business.”
Insight
Murrell: Five Guys perfected operations for 17 years before franchising
“Most franchisers start off to franchise. We didn't start off to franchise. We had no idea we were going to do that. We started off to build a family business, and we put 17 years into it, and we figured out how to do it right. So when it came time to franchisi…”
Assertion Contradicted
Murrell: Five Guys sold 3,500 U.S. franchises within two years
“And I think within a year and a half, or two years, we sold 3500. We sold the whole United States.”
Insight
Murrell tested food viability by picking hidden, low-rent locations
“Well, if we can put it where, you know, it's hard to find, but if we can get people coming there, then we know we got something.”
Assertion Supported
Five Guys refined its restaurant model for 17 years before franchising
“Most franchisers start off to franchise. We didn't start off to franchise. We had no idea we were going to do that. We started off to build a family business, and we put 17 years into it, and we figured out how to do it right. So when it came time to franchisi…”
Assertion Contradicted
Five Guys sold 3,500 U.S. franchise locations within two years
“And I think within a year and a half, or two years, we sold 3500. We sold the whole United States.”
Disclosure
Jerry Murrell and his family still own 75% of Five Guys
“We own about 75% of the company, me and my family.”
Assertion Not checkable as stated
Murrell: Five Guys opened its first location with just $35,000
“Our first story put 35,000 dollars in it.”
Assertion Not checkable as stated
Murrell: Five Guys was profitable from its very first day
“And we made money from our very first day, and we were breaking even, and we were paying our rent.”
Assertion Not checkable as stated
Murrell: Five Guys' original potato supplier is now a multimillionaire
“Now he's become a multimillionaire because we buy all our potatoes from him.”
Assertion Not checkable as stated
Murrell: Five Guys initially paid seven times McDonald's price for buns
“We were paying about seven times For a hamburger bun as McDonald's was then.”
Disclosure
Murrell: Early investors got a cut of gross revenue, not profit
“We'd say, give us 5000 dollars, we'll give you a certain percentage of the gross, not never the profit, because there was always too many ways to get cheap people that way.”
Assertion Supported
Murrell: Five Guys has built ~1,400 stores and sold out all US territory
“We've got about 1400 of them built out now, but all the territory in the United States is gone.”
Disclosure
Murrell: The Murrell family still owns 75% of Five Guys
“We own about 75% of the company, me and my family.”
Assertion Supported
Five Guys corporate owns roughly 450 US stores and 50% of 60 European stores
“Out of the, out of about 14, 1500 restaurants, we have a joint venture in Great Britain and France and Germany where we own With our partner, half. That's about 60 stores. And then over here, we own about 450 out of the 1400.”
Disclosure
Murrell: High school friends who bought early Five Guys stock became millionaires
“When I started Five Guys, I let three or four of my buddies that I went to high school with buy stock in my company, because I thought it would be a great thing for them, because they didn't have money. A little bit, they had a little bit of money, but not muc…”
Insight
Murrell: Mastering basic services like burgers, drinks, or haircuts guarantees steady income
“In fact, my mom used to say, if you can make a good hamburger, or serve a good drink, or give a good haircut, you'll always... Have something to do, yeah. Have an income.”
Disclosure
Thrasher's French Fries inspired the simple Five Guys menu model
“There must have been 20 places selling boardwalk fries, but only one place had a long line, and that was Threshers. It was, the line was a hundred feet long all day long. So me and the kids, that got into our mind, like, you know, hamburgers, fries, keep it si…”
Assertion Not checkable as stated
Jerry Murrell launched the first Five Guys in 1986 with $35,000
“Our first throw, we put 35,000 dollars in.”
Assertion Not checkable as stated
Five Guys broke even and was profitable from its first day
“And we made money from our very first day, and we were breaking even, and we were paying our rent.”
Assertion Not checkable as stated
An exclusive potato contract made an Idaho farmer a multimillionaire
“A guy named Rick Miles was a small potato dealer out there, so we got a hold of him. And we said, would you sell us potatoes? We did not know at the time that he was small. Now he's become a multimillionaire because we buy all our potatoes from him.”
