Short one today.
Five guys built one of the biggest burger chains in America based on one thing:
It was the best burger you’ve ever had.
They didn’t focus on locations, delivery apps, loyalty programs, drive-thru speed, any of it. The whole pitch was quality.
Which, for nearly 20 years, was enough. A legendary product built 1,900 restaurants.
But now they’re in the quality trap.
When your entire identity is "we have the best product," you can't suddenly pivot to logistics, or convenience, or price wars. So when the market shifts and customers start valuing speed, delivery, or a $5 combo, you can be stuck running a playbook that no longer works.
McDonald's can do that stuff. Chipotle can. Five Guys can't.
And it’s hurting. Five Guys has closed 14 locations across seven states this year already.
The thing that makes you unbeatable today can make you immovable tomorrow.
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One moneymaker link
People are bad at admitting how much luck factors into everything.
The founder of Five Guys got lucky.
He didn’t run the restaurant on spreadsheets or unit economics. He just said: we're going to make the best hamburgers, charge a fair price, and the rest will figure itself out.
But a great burger only takes you so far. Location, timing, Obama choosing to stop by… those help.
It’s very easy to mistake luck for talent. But the best entrepreneurs I know are very good at telling the difference.
The best book I've read on this is Fooled by Randomness by Nassim Taleb. An excellent guide to decision-making in a very complicated world.
Good luck out there.
Michael
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