Five Guys Is Closing More Locations, and Its $25 Meals Put Pressure on the Chain

Five Guys has built its reputation around fresh burgers, overflowing fries and a premium fast-food experience, but that reputation comes with a price that is becoming harder for some customers to accept. A burger, fries and drink can easily push a customer’s bill above $20, while current menu examples show that a full meal can approach $25 to $30 before tax or additional fees. At the same time, the chain has experienced multiple U.S. restaurant closures in 2026, adding to concerns about how higher operating costs and cautious consumers are affecting the business.

At Least 14 Locations Have Closed or Are Closing in 2026

At least 14 Five Guys locations across seven states had closed or were scheduled to close during the first half of 2026, according to reporting based on local records and company location information. California has been particularly affected, with closures or planned closures in places including Tracy, Bakersfield, Rancho Mirage, Valencia, Whittier, City of Industry, Merced and Hanford. Other affected states have included Florida, Illinois, Iowa, Louisiana, Georgia and Nebraska.

California Closures Were Linked to Financial Hardship

Four California locations in Whittier, City of Industry, Merced and Hanford were identified in state filings as closing between late May and early July. The filings cited financial hardship, while the closures were expected to eliminate 55 jobs across those four restaurants. California restaurants have faced particularly high labor and real-estate costs, adding another layer of pressure for operators already dealing with higher food and other business expenses.

Five Guys Is One of the Pricier Burger Chains

Price has become an important part of the Five Guys conversation because the chain generally costs more than many traditional fast-food competitors. Current U.S. menu examples show burgers and hot dogs ranging from roughly $9 to $17, fries around $7 to $11 and milkshakes around $8, although prices vary by location and ordering method. A regular cheeseburger, regular fries and a drink can approach $29 in some current delivery-menu examples, making the chain’s premium positioning especially noticeable to budget-conscious diners.

Customers Are Becoming More Careful About Restaurant Spending

The closures are occurring as restaurants across the country contend with consumers who are becoming more selective about spending money outside the home. Industry data cited by Fast Company showed fast-food traffic down 1.2% year over year during the first quarter of 2026, even though net sales increased 2.1%. For a chain with relatively high menu prices, weaker customer traffic can create additional pressure when diners decide that a more expensive burger is not worth the cost.

The Chain Is Not Simply Disappearing

Despite the closures, Five Guys is not undergoing a nationwide retreat from the restaurant business. Its latest franchise disclosure document showed 1,583 locations across the United States and Canada at the end of fiscal 2025, representing a net increase of 25 locations during the year. The company also had 286 U.S. franchise agreements signed for locations that had not yet opened as of December 31, 2025, showing that expansion remains part of its strategy.

Five Guys Closed 31 Stores in 2025

The company’s latest disclosure also revealed that 31 U.S. stores closed during 2025, even though the overall U.S. and Canadian footprint increased. Five Guys ended fiscal 2025 with 970 franchised locations and 613 company-owned restaurants across the two countries. The same document projected 37 new locations for 2026, including 30 franchised restaurants and seven company-owned stores, illustrating how individual closures can occur alongside overall expansion.

Five Guys Is Testing Ways to Make Meals Feel More Affordable

The company has begun testing a Classic Combo at select U.S. restaurants that pairs a Little Burger or Cheeseburger with a Little Fry and a regular drink for a set price. Five Guys also offers a Make It A Meal option at participating locations, allowing customers to add fries and a drink to qualifying menu items. The chain says prices vary by location, but the introduction of these bundled options suggests that value has become an important part of the customer conversation.

Promotions Have Shown There Is Still Strong Customer Interest

Five Guys saw an extraordinary response to its 40th birthday buy-one-get-one promotion in February 2026, with some restaurants running out of products and closing early. The company apologized after the promotion overwhelmed some locations and said it was working to replenish supplies, while later efforts included additional promotions and incentives for customers. The episode demonstrated that customers remain interested in the brand when the price proposition becomes more attractive, even as everyday menu prices remain a concern.

The Price Problem Could Shape Five Guys’ Next Chapter

Five Guys continues to have a large restaurant network and plans for additional locations, but its higher prices leave the chain particularly exposed when consumers become more cautious about discretionary spending. The closures show that not every location is equally sustainable, while the company’s continued expansion indicates that management and franchisees still see opportunities in markets where demand supports the premium price. For customers, the central question is increasingly whether the taste, fresh ingredients, large fries and customization are worth paying substantially more than they would at a conventional fast-food chain.