Have you noticed your wallet feeling a lot lighter after a Five Guys run? You’re not alone. Social media is buzzing about shocking receipts from the popular burger chain. One viral post showed a single person’s meal coming in at a whopping $24! That’s right – just a bacon cheeseburger, small fries, and a soda. What used to be a slightly pricier but still reasonable burger joint has now entered what many are calling “luxury meal” territory. So what’s really going on with those rising prices?
Fresh ingredients cost more than frozen ones
When you bite into a Five Guys burger, you’re tasting beef that was never frozen. While most fast food places keep their patties in freezers for weeks or months, Five Guys sticks to fresh meat only. This might not seem like a big deal, but the price difference is huge. Fresh beef needs faster shipping, more careful handling, and has a much shorter shelf life. All these factors add up on your receipt. Plus, Five Guys needs more frequent deliveries to maintain their fresh-only policy, which means higher transportation costs.
The same goes for their other ingredients. Those mushrooms, onions, and tomatoes for your burger toppings? All fresh, not frozen or dehydrated like at other chains. Even their buns are delivered fresh rather than frozen. While this creates the taste that made Five Guys famous, it also means they’re more vulnerable to rising food costs. When produce prices spike due to weather or supply issues, Five Guys can’t just rely on their frozen backup supply – because they don’t have one. They either absorb the cost or pass it on to customers. Lately, it’s been mostly the latter.
Free toppings aren’t actually free
Remember how excited you were the first time you realized you could add as many toppings as you wanted at Five Guys without paying extra? That green toppings menu with over 15 options feels like hitting the burger jackpot. But here’s the thing – those “free” toppings are built into the base price of your burger. The business model works by charging more upfront for the burger, then letting you customize it however you want. So even if you only add lettuce and tomato, you’re still paying for the person in line behind you who’s loading up with mushrooms, grilled onions, jalapeños, and extra cheese.
This strategy worked fine when ingredient costs were stable, but with inflation hitting food prices hard, Five Guys has had to increase their base prices to cover all those “free” additions. Some customers have suggested they should switch to a model where you pay for premium toppings, but that would fundamentally change what makes Five Guys different from other burger chains. The unlimited toppings policy is part of their identity, even if it means charging $12+ for a basic cheeseburger before you even add fries or a drink.
Beef prices have gone through the roof
The biggest factor behind Five Guys’ price increases is simple: beef has gotten really expensive. The average burger price nationwide jumped to nearly $16 in 2023, up significantly from previous years. For Five Guys, which uses fresh beef and larger patties than most competitors, this hit has been especially hard. Several natural disasters have affected cattle production in recent years. Droughts in Texas and wildfires have reduced the overall cattle population, creating a supply shortage. When supply goes down but demand stays the same, prices inevitably rise.
There’s also been a trend of consolidation in the meat industry, with just four major companies now controlling most of the beef market. This lack of competition makes it easier for suppliers to raise prices without losing business. Five Guys uses two patties on their regular burgers, which means they’re hit twice as hard by beef inflation compared to places that use single patties. While they could switch to smaller patties or lower-quality meat to save money, that would compromise the quality they’re known for.
Peanut oil isn’t cheap
Have you ever wondered why Five Guys fries taste different from other fast food places? It’s because they’re cooked in 100% peanut oil instead of the cheaper vegetable or canola oils most chains use. Peanut oil gives the fries that distinctive taste and creates a crispier outside while keeping the inside potato-fluffy. But this cooking choice comes at a cost – peanut oil is significantly more expensive than other frying oils. A 35-pound container of peanut oil can cost restaurants twice as much as the same amount of standard fryer oil.
And Five Guys goes through a lot of oil. They change their frying oil more frequently than many competitors to maintain quality and taste. This means they’re not just paying more for the oil itself, but they’re buying more of it overall. Since the pandemic, cooking oil prices have been particularly volatile, with some restaurants reporting their oil costs doubling. These increases get passed along to customers, which is why that small order of fries now costs over $5 at many locations – a price point that was unthinkable for fast food just a few years ago.
Bigger portions mean bigger prices
Anyone who’s been to Five Guys knows their definition of “small” fries is different from most places. Order a small and you’ll get a cup filled with fries plus that extra scoop they dump in the bag. The regular size is enough to feed a small family. These generous portions have been part of the chain’s appeal, but they also mean more ingredients per order. While other chains have secretly reduced portion sizes to maintain profit margins (a practice called “shrinkflation”), Five Guys has mostly kept their portions the same size but increased prices to compensate.
The same goes for their burgers. A regular Five Guys burger uses two patties, not one. That’s about 1/3 pound of beef per burger before cooking. Compare that to many fast food places using 1/10 pound patties, and you can see why Five Guys burgers start at a higher price point. When you’re serving almost three times as much meat per burger as some competitors, your prices are going to reflect that difference. Some customers have switched to the “Little” burger option (with just one patty) to save money while still getting the Five Guys experience.
Labor costs have increased dramatically
Making burgers and fries might seem simple, but Five Guys has always employed more staff per location than many fast food competitors. This is partly because of their made-to-order approach – nothing sits under heat lamps waiting to be served. Each burger is made fresh when you order it, which requires more hands on deck. In recent years, fast food workers have been pushing for (and often getting) better wages and benefits. The days of minimum wage for all fast food jobs are largely gone in many areas, with starting wages now typically several dollars above minimum wage.
The labor market has also tightened, making it harder for restaurants to find and keep good employees. Higher wages, more benefits, and better working conditions are all necessary to attract workers in today’s economy. While these improvements are good for workers, they do increase operating costs for restaurants. Five Guys has had to raise prices to cover these higher labor costs while maintaining their level of service and food quality.
Global events have disrupted food supply chains
While it’s easy to focus on what’s happening inside Five Guys restaurants, many of their price increases are due to global events beyond their control. The war in Ukraine disrupted grain supplies, which affected everything from burger buns to cattle feed. When it costs more to feed cows, beef prices go up. Those same grain disruptions made cooking oils more expensive too. The pandemic caused lasting supply chain problems that are still being resolved, creating shortages and price spikes for many food items.
Weather patterns have also been more extreme in recent years, with droughts, floods, and storms affecting crop yields. This impacts both produce prices and beef prices, as cattle ranchers face higher costs and lower yields. For a restaurant chain committed to fresh ingredients, these supply disruptions hit particularly hard. While some restaurants might switch suppliers or ingredients to find better deals, Five Guys has largely maintained their quality standards, which means accepting higher costs and passing them on to customers.
All fast food is getting more expensive
It’s worth noting that Five Guys isn’t alone in raising prices. Almost all fast food chains have gotten more expensive in the past few years. McDonald’s has seen an 11.5% increase in the cost of a burger, fries, and drink from 2021 to 2022. Chick-fil-A and Domino’s have also raised prices significantly. The difference is that Five Guys started from a higher price point, so their increases feel more dramatic. When a McDonald’s meal goes from $6 to $7, it’s noticeable but not shocking. When a Five Guys meal goes from $15 to $24, it crosses a psychological barrier for many customers.
What we’re witnessing is a broader shift in the fast food industry. The era of the $5 value meal is largely over, replaced by $10-15 combos even at traditional fast food places. Five Guys has always positioned itself as a step above conventional fast food, offering a premium product at a higher price point. Now that price point has moved from “a bit expensive for fast food” to what many would consider casual dining prices. For some customers, this shift has changed Five Guys from a regular treat to an occasional splurge.
So next time you’re hit with sticker shock at Five Guys, remember there’s a perfect storm of factors behind those prices. Fresh ingredients, bigger portions, quality oil, rising beef costs, labor improvements, and global supply issues have all contributed to the new reality of $20+ burger meals. The question now is whether customers will continue to pay these higher prices or if Five Guys will need to rethink their approach to stay competitive in an increasingly expensive fast food landscape.
