[News Inside Companies] US Top 3 Burgers Five Guys and Shake Shack Face Off in Korea

Five Guys' cheeseburger. / Photo by Five Guys SNS capture

One of the top three premium burger brands in the U.S., 'Five Guys,' is entering the Korean market in partnership with the Hanwha Group. A similar brand in the market, Shake Shack, entered Korea in 2016. These two iconic East Coast American brands are set to engage in a fierce 'burger battle' in Korea.

According to a recent announcement by Galleria Department Store under Hanwha Group, Five Guys' first store in Korea will open next year. Five Guys is one of the top three premium burger brands in the U.S., alongside Shake Shack and IN-N-OUT (which is centered on the U.S. West Coast). The brand started in 1986 when financier Jerry Murrell opened a store in Arlington, Virginia, with his four sons. The name signifies the four men?a father and his four sons?working together.

After entering the franchise business in 2003, Five Guys opened over 300 locations across the U.S. within just a year and a half, becoming a well-known brand that no American is unfamiliar with. Last year, a survey conducted by marketing firm Harris Poll ranked Five Guys as the most popular burger brand among Americans.

Captivating American Taste Buds with Peanut Oil Flavor and Fresh Ingredients

The secret to its popularity lies in cooking with 'peanut oil' and using fresh ingredients. Five Guys fries everything?from burger patties to French fries?in peanut oil, giving their food a distinctive rich flavor. They even provide seasoned peanuts throughout the store as a complimentary appetizer before meals. The potatoes used are exclusively grown in Idaho, and the hamburger buns are produced in-house using a proprietary recipe.

Five Guys emphasizes the flavor of peanut oil to the extent that they provide seasoned peanuts in their stores. / Photo by Five Guys SNS capture

Another unique feature of Five Guys is the wide selection of toppings. Every burger includes various vegetables and sauces such as onions, lettuce, tomatoes, bell peppers, jalape?os, mushrooms, ketchup, and mustard, but customers can exclude any toppings they dislike when ordering.

Five Guys' main menu items, the cheeseburger and bacon burger, are priced around $10 to $11 (approximately 14,000 to 15,500 KRW) in New York. Adding French fries ($4) and a cola ($3) brings the total to at least $17 (about 24,000 KRW) per person. Including the sales tax of 4-10% depending on the state, the price becomes even higher. Considering the generally low cost of groceries in the U.S., this is quite a premium-priced meal. Despite this, the brand remains highly popular, boasting annual sales of $1.7 billion and nearly 1,700 global locations, making it a major corporation.

Will They Face Off Against East Coast Rival 'Shake Shack'?

The news of Five Guys entering Korea is particularly interesting in light of the success of Shake Shack, which was introduced by SPC Samlip Group in 2016. As of last month, Shake Shack has rapidly expanded to 23 locations nationwide.

Five Guys and Shake Shack have long been regional rivals in the U.S. Five Guys originated in Arlington, Virginia, in the Southeast, while Shake Shack is based in New York in the Northeast.

Shake Shack has already gained great popularity, establishing more than 20 locations in South Korea. / Photo by Shake Shack SNS capture

Fans often engage in debates over the two burger chains, and even the founders show awareness of each other. For example, in 2010, Shake Shack founder Danny Meyer opened the first Shake Shack store in Washington D.C., considered Five Guys' "backyard," stating, "If Washington residents stop by Shake Shack every time they eat Five Guys, we can secure our share."

While Five Guys emphasizes the rich flavor of burgers and fries cooked in peanut oil, Shake Shack highlights the harmony of fresh burger sets and milkshakes. Particularly, dipping fries into thick milkshakes is a signature Shake Shack experience already well known in Korea.

Attention is also focused on Five Guys' pricing in Korea. Shake Shack's 'Double' burger is priced between 10,000 and 15,000 KRW domestically. Adding fries (4,000?5,000 KRW) and a milkshake (6,200 KRW) brings the total to approximately 21,000 to 26,000 KRW. This is similar to the U.S. prices of Five Guys' menu converted into Korean won. Since both brands target similar consumer segments and are competitors, Five Guys' pricing in Korea is expected to be set close to the current price range of Shake Shack burgers in Korea.

This content was produced with the assistance of AI translation services.