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Five Guys' monumental Korean debut witnessed the sale of 15,000 burgers within a week, inciting a nationwide frenzy despite a brewing pricing controversy compared to its U.S. outlets.
The enthusiasm for Five Guys spread like wildfire across the country, reaching Seoul, Gyeonggi, Daejeon, Daegu, and Busan, drawing in customers from various regions. The allure of Five Guys was so strong that customers went to great lengths, even crossing the ocean from Japan, to savor the popular burgers. It is worth noting that Japan still does not have any Five Guys stores.
Amongst all the options, the Bacon Cheeseburger claimed the top spot in terms of popularity. Five Guys now accept reservations through an online application to enhance customer convenience. Operated by FG Korea, a subsidiary of Hanwha Galleria, Five Guys is well-established in South Korea.
However, amidst all the success, a controversy surrounding pricing has emerged. Before the launch, FG Korea held a press conference stating that prices in Five Guys stores in Korea are 13 percent cheaper than in the United States. However, after the opening of the Gangnam district store in Seoul, some online users claimed that the Gangnam store's prices were higher than those in some U.S. stores.
In response, FG Korea clarified the issue by explaining that pricing varies among Five Guys stores in the United States due to different state taxes and labor costs. Additionally, each franchisee has the flexibility to set their own prices. The company further emphasized that the pricing at the Gangnam store was determined after extensive discussions with the U.S. headquarters.
Apart from the controversy, the prices of Five Guys burgers in Korea are generally higher than Shake Shack's premium burgers launched in Korea last year. The cheapest Five Guys burger costs 13,400 won, while the Bacon Cheeseburger is priced at 17,400 won in Korea. French fries start at 6,900 won for the smallest size (Little), and shakes are priced at 8,900 won. Some industry insiders have criticized the pricing policy, suggesting that merely claiming lower prices compared to the United States may not be sufficient to attract customers in Korea.
Overall, the successful debut of Five Guys in Korea and the ongoing pricing controversy have generated significant attention and discussion.
Photo: Elodie AGODOR/Unsplash
