I did the food cost math. Here's what I found.
For the longest time, there’s been internet drama about Five Guys charging twelve bucks or more for a cheeseburger. Reddit threads. TikTok rants. That viral receipt showing someone paid $24 for a Five guys burger, fries, and a drink.
So I decided to do what apparently nobody else bothered to do: actually calculate the food cost and see if the menu price is justified. For this, I will use the FoodCostChef Calculator, and I was happy to find I already had most of the ingredients in my file.
Spoiler alert: the math checks out. But let’s walk through it.
First, Let’s Give Credit Where It’s Due
Before we tear into the numbers, look at what Five Guys actually does well. Super simple menu. Fast service. Fresh beef that’s never frozen. Clean stores. They know exactly what they’re doing when it comes to systems.
This isn’t some half-assed operation slinging frozen patties. These guys have their act together.
Spoiler alert: the math checks out. But let’s walk through it.
The Burger We’re Costing Out
I’m working with my local Five Guys here in Scarborough, Ontario. The double cheeseburger rings in at $12.89 CAD. That’s Canadian money, friends – so if you’re reading this from the States, adjust accordingly.
Here’s what goes into it:
The Patties
- Two patties at 3.3 ounces each = 187 grams total
- Fresh, never-frozen ground beef
- Supplier is Schweid & Sons – premium stuff
Now here’s something interesting. I initially thought they might use lean beef, but that’s wrong. For smash-style burgers, you need that fat content. Five Guys burger uses 80/20 – a medium grind. That extra fat is what makes the burger juicy, and because of the flat grill process, they can cook these patties with no added oil. The grease from the meat itself does that work.
Switching from lean to medium ground beef in my calculation? Significant savings right there.
The Cheese
- Two slices of Kraft American-style cheese (the thick deli slices, not the singles)
- I found comparable Kraft Ribbon Slices at Costco Business Centre
The Bun
- Sesame seed bun, soft and slightly sweet
- Their proprietary recipe is basically “one ingredient short of being cake” according to one of their managers
The Toppings. This is where Five Guys gets interesting. They offer 15+ free toppings. Unlimited. No extra charge.
So I loaded this thing up with some of the more expensive options:
- Grilled mushrooms: 20g cooked weight
- Grilled onions: 20g cooked weight
- Jalapeño slices: 8g
- Dill pickles: 15g
- Ketchup: 15ml
- Yellow mustard: 10ml
- Mayonnaise: 15ml
This is basically what I’d order. And honestly, building this recipe was making me crave one of these heart-stoppers.
The Base Recipe Factor
One thing worth mentioning for any operators reading this: the grilled mushrooms and onions aren’t just raw product thrown on a burger. They’re cooked down. That means shrinkage.
I built these as base recipes in my costing system:
- Raw mushrooms and onions start at 1000g
- After cooking in oil with seasoning, you get about 500g yield
- That’s 50% shrinkage you need to account for
This is the kind of detail that separates accurate food costing from guesswork. If you’re just pricing raw weight, you’re lying to yourself.
The Final Numbers
After plugging everything into the FoodCostChef Calculator, here’s what we get:
| Item | Cost |
|---|---|
| Ground Beef (80/20), 187g | $2.31 |
| Cheese Slices, 2 | $0.51 |
| Sesame Bun | $0.47 |
| Grilled Mushrooms, 20g | $0.33 |
| Grilled Onions, 20g | $0.09 |
| Jalapeños, 8g | $0.08 |
| Dill Pickles, 15g | $0.10 |
| Mustard, 10ml | $0.03 |
| Ketchup, 15ml | $0.07 |
| Mayonnaise, 15ml | $0.10 |
| TOTAL FOOD COST | $4.11 |
Menu price: $12.89
Gross profit: $8.78
Food cost percentage: 31.9%
If you bump that price up to $13.89 for delivery (which is pretty standard), the food cost drops to 29.6%.
Is 32% Food Cost Good or Bad?
Here’s where the context matters.
32% is on the higher end for fast food. McDonald’s and other quick-service chains typically run 25-28%. But Five Guys isn’t really competing with McDonald’s – they’re fast-casual, which runs higher food costs in exchange for better quality perception.
More importantly, look at that gross profit: almost nine bucks per burger.
When you’re clearing $8.78 in gross profit on every double cheeseburger, and you’re pumping out volume all day long, the business model works. Five Guys franchise locations average $1.2-1.7 million in annual revenue with 15-20% net profit margins.
The math works.
So Is It Expensive?
Yeah, it’s expensive. Nobody’s arguing that.
But here’s what you’re actually getting:
- 6.6 ounces of fresh, never-frozen beef (double a typical fast-food burger)
- Premium supplier, not commodity meat
- Made to order, not sitting under a heat lamp
- 15+ free toppings – load it up however you want
- Hand-cut fries cooked in peanut oil
Consumers going to Five Guys know what they’re paying for. They’re choosing value, flavour, and freshness over cheap. They’re obviously willing to pay more for this style of fresh burger.
And at 32% food cost? They’re actually getting a deal.
So stop the bitching.
The Real Question For Operators
You can see exactly how Five Guys makes money. The formula is right there.
But here’s the question for you: how are YOU going to price your burger? And more importantly, how are you going to differentiate in the market?
There’s always a lot of things to consider when you’re in business. It’s not as easy as saying “I can make a better burger!”
Oh really? Good for you. Now let’s see you make money doing it.
The Recipe Breakdown
For anyone who wants to run their own numbers, here’s the complete recipe I used:
Five Guys Double Cheeseburger (Loaded)
| Ingredient | Amount | Unit |
|---|---|---|
| Ground Beef (80/20) | 187 | grams |
| Kraft Cheese Slices | 2 | slices |
| Sesame Seed Bun | 1 | each |
| Grilled Mushrooms | 20 | grams (cooked) |
| Grilled Onions | 20 | grams (cooked) |
| Jalapeños, sliced | 8 | grams |
| Dill Pickles, sliced | 15 | grams |
| Ketchup | 15 | ml |
| Yellow Mustard | 10 | ml |
| Mayonnaise | 15 | ml |
Key Takeaways
- Five Guys isn’t scamming anyone. 32% food cost is textbook for fast-casual dining.
- The “free toppings” aren’t actually free – they’re built into the burger price. Smart marketing.
- Fresh never-frozen beef costs more. That’s a choice Five Guys made, and customers pay for it.
- Volume makes up for tighter margins. When you’re clearing $8+ gross profit per burger and doing serious volume, the model works.
- Know your own numbers. Whether you’re running a restaurant or just trying to understand the industry, food cost percentage is the metric that matters.
Got a menu item you want me to cost out? Drop it in the comments. I’m always looking for the next breakdown.
And remember: it’s only good food if the math works. Five Guys? Their math is working just fine.
Want to run your own food cost calculations? Check out the FoodCostChef Calculator – professional recipe costing without the monthly subscription.
