Burger chain thrives despite poor economy
Five Guys to open Mount Airy eatery
Note: This story ran in the April 16 edition of The Mount Airy Gazette
Daniel Espinoza is preparing to fire up the grill and open the doors of a new Mount Airy restaurant in the face of a recession that continues to depress industry sales.
"It is challenging to become a manager and open a new store now, but I am excited," said Espinoza, manager of the Five Guys hamburger restaurant set to open on East Ridgeville Boulevard at the end of April. "Our challenge as managers is to keep growing the business, keep opening more stores."
Yet Five Guys is in an "extreme growth mode," company officials say, and that is creating new jobs in Carroll County.
"There is no such thing as a recession-proof business," said Todd Levitt, owner of the franchising rights for Five Guys in Carroll and north Frederick counties. "But this is such a unique concept in the restaurant world that even in this type of economy it's a manageable and fun and successful business."
Levitt, who opened a Five Guys in Westminster in 2005 and another in Hampstead seven months ago, said sales in Westminster rose nearly 10 percent last year.
Securing funding for the Mount Airy venture, however, was challenging in the current financial markets.
"I had to take a fifth or sixth lien on my house to get the loan," Levitt said.
Workers from Hicks and Orr Construction in Rising Sun and their subcontractors, however, have nearly finished the renovation project to convert the former Coldwell Banker building in Mount Airy into store No. 430 for Five Guys. The renovation cost about $500,000 and took three months to complete, according to Five Guys information.
The Mount Airy site will be just one of 175 Five Guys restaurants slated to open this year.
Growing brand recognition is fueling the expansion, said Molly Catalano, director of communications for Five Guys nationwide. The privately held chain, with headquarters in Lorton, Va., opened its first restaurant in Arlington, Va., in 1986.
In February, GQ magazine cited the national expansion of Five Guys as the most exciting development in the country — more exciting than the development of four new hybrid cars in Detroit and the Obamas becoming America's first family.
At the same time, the soft commercial real estate market is helping Five Guys franchises lease ever-better locations.
And in the midst of the recession, consumers have actually increased their purchases from moderately priced eateries such as fast food restaurants and pubs, said Paul Hartgen, president and CEO of the Restaurant Association of Maryland.
"People won't be worried about the economy if they can find a very happy face behind the counter and they can find very good food on the table," said Eduard Saucedo, general manager of Five Guys restaurants in Carroll County.
Saucedo and Espinoza are currently searching for 45 very happy faces to work the counter and grills at the Mount Airy restaurant. Five Guys, they say, extensively trains new staff — who will be paid from $8 to $13 an hour — so they don't require all candidates to have restaurant experience. Instead, they look for candidates who are eager to make customers happy and who live in the community.
"We like to have local faces in the store. We want to give the Mount Airy neighborhood opportunities for work and maybe [those employees] can build a future with us," Saucedo said.
Saucedo explained that he joined a Five Guys crew just 3 years ago and now he oversees three restaurants. Espinoza joined a crew just two years ago and is about to manage his first restaurant.
"The good thing about this business and especially about this franchise is it brings opportunity to everybody," Saucedo said. "You have to be a hard worker, you have to show loyalty and you have to bring people quality food, quality service. But you can start on a crew and reach high positions quick."