Dive Brief:
- Five Guys is expanding its catering services across 800 stores nationwide through a partnership with ezCater, according to a press release.
- EzCater offers services to workplaces, allowing them to order various meals, from small group bundles to larger build-your-own bars. The Five Guys deal offers employees to customize burgers, hot dogs and sandwiches.
- Five Guys has been adopting more technology to enhance its off-premise experience. In November, it was among the first chains to adopt a new Flybuy and Deliverect integration that allows for reduced wait times and a smoother guest experience for pickup and delivery.
Dive Insight:
Five Guys’ catering expansion could be a good opportunity for the chain, especially since ezCater has seen a 16% jump in orders for burgers on its platform, Cindy Klein Roche, chief growth officer at ezCater, said in a statement. Five Guys already offers catering on its website, with a 15-sandwich minimum and 16-hour lead time at select locations.
Organizations have also been increasingly turning to catered meals to incentivize more hybrid employees to come into the office. Catering also is typically among the more profitable channels, as these meals are usually pre-ordered, allowing for chains to pre-plan labor needs.
Creating a robust catering program could help Five Guys further attract franchisees. As of Dec. 31, 2024, the chain had 361 franchised agreements as well as 48 franchised restaurants and 22 company-owned restaurants projected for 2025, according to the chain’s franchise disclosure document. Five Guys had 1,558 domestic locations as of 2024, a 5% increase since 2022 when it had 1,477 units. Most of its 2024 units (945) are franchised, with the remaining company-owned.
Other chains, including Del Taco, Dave’s Hot Chicken, Bojangles and Taco John’s, have partnered with ezCater within the last few years.
