Could Freddy's Frozen Custard & Steakburgers Rival Five Guys in the UK?

By UKFO Editorial · 10 September 2026

The UK burger market is fiercely competitive, with established giants and new entrants battling for market share. As Freddy's Frozen Custard & Steakburgers explores international expansion, can it carve out a niche against the beloved Five Guys?

The Great British Burger Boom: A New Challenger Approaches

The UK’s love affair with the ‘better burger’ shows no sign of cooling. For over a decade, American brand Five Guys has been a dominant force, transforming British high streets and consumer expectations with its premium-priced, customisable burgers and signature fries. Its success has been a case study in market entry, creating a new tier between traditional fast food and casual dining.

For prospective UK franchisees, this landscape is both tantalising and treacherous. The rewards for backing the right quick-service restaurant (QSR) concept are immense, but the market is crowded and unforgiving. Now, a new name is circling, poised for a British invasion: Freddy's Frozen Custard & Steakburgers. This Wichita-based chain, with its nostalgic Americana and unique product offering, has announced ambitious plans for UK expansion.

The central question for any savvy investor is stark: Could Freddy's genuinely compete with an established giant like Five Guys, and what does this potential clash mean for franchising opportunities in the UK?

Five Guys: The Reigning Champion of Premium Fast Food

To understand the challenge Freddy’s faces, we must first appreciate what Five Guys has achieved. Arriving in 2013, it defied sceptics who baulked at its high price point. Its success was built on a simple, powerful formula:

Uncompromising Quality: Fresh, never-frozen beef, hand-cut fries cooked in peanut oil, and a vast array of free toppings. The message was clear: this is a superior product worth paying more for.
Simplicity and Customisation: A deliberately limited core menu that puts the customer in control. This combination of simplicity for the operator and choice for the consumer is a powerful operational and marketing tool.
A Strong Brand Identity: The red and white chequerboard, the open kitchens, the sacks of potatoes, and the slightly chaotic, high-energy atmosphere are instantly recognisable. It feels authentic and confident.

In the UK, Five Guys has largely expanded through a mix of corporate-owned stores and large, well-capitalised multi-unit franchise partners. This strategy ensures rapid growth while maintaining stringent brand standards. For a new franchisee, breaking into this network is almost impossible. Five Guys represents the established peak, the brand that has set the benchmark for what British consumers are willing to spend on a burger and fries.

Enter Freddy's: The Steakburger and Custard Challenger

Freddy's Frozen Custard & Steakburgers is not just another burger joint. Its proposition is rooted in a different kind of American culinary tradition, one that harks back to the 1950s. Its unique selling propositions (USPs) are distinct and could be its greatest weapons in the UK market.

The core differences are threefold:

The Steakburger: Unlike the thick, juicy patties of Five Guys, Freddy's champions the ‘steakburger’. This involves pressing two thin patties of ground beef onto the grill, creating crispy, caramelised edges—a process known as ‘smashed’ burgers here in the UK. This offers a different texture and flavour profile.
Frozen Custard: This is the ace up Freddy's sleeve. Richer, denser, and creamier than traditional ice cream or soft-serve, frozen custard is a beloved American treat that is virtually unknown in the UK. It forms the basis of a whole dessert menu of ‘Concretes’ (custard blended with toppings) and sundaes, providing an additional revenue stream that Five Guys lacks.
The Nostalgic Atmosphere: Where Five Guys is modern and functional, Freddy's leans into a clean, bright, family-friendly retro aesthetic. This could appeal to a different demographic, particularly families looking for a complete dining experience rather than just a quick bite.

Freddy's has partnered with a UK franchise development consultancy, indicating a serious, strategic approach to market entry. They are actively seeking experienced operators, suggesting a multi-unit franchise model will be their preferred path, at least initially.

A Head-to-Head for the Prospective Franchisee

When evaluating this opportunity, a direct comparison is essential. Let's break down the key considerations for an investor looking at the UK QSR sector.

The Product Proposition

Five Guys offers a premium, satisfyingly greasy burger experience. Freddy's offers a crisper burger and a destination-worthy dessert. The question is which will resonate more. The UK has already embraced the ‘smashed’ burger concept through independent restaurants and smaller chains. Freddy’s could capitalise on this trend at scale. Furthermore, the dessert menu gives Freddy's a significant advantage in driving sales during off-peak hours and increasing the average spend per customer.

The Target Audience and Brand

Five Guys often attracts a younger, urban crowd and office workers willing to spend £15 on a lunch. Its loud music and no-frills seating are part of its edgy appeal. Freddy's, with its wider menu including hot dogs and its focus on desserts, feels inherently more family-orientated. This could allow it to thrive in suburban retail parks and town centres where Five Guys might struggle to find its core demographic, opening up different and potentially more affordable property opportunities.

The Franchise Model and Investment

This is where the analysis becomes most critical for a prospective franchisee. While Five Guys is a closed shop, Freddy's represents a ground-floor opportunity. However, this comes with its own risks and rewards.

A franchisee for a new-to-market brand like Freddy's will likely be a pioneer. The initial investment will be substantial. A modern QSR fit-out can run from £250,000 to over £750,000, depending on the site's size and condition. On top of this, you must factor in:

The Initial Franchise Fee: A significant one-off payment for the rights to the brand, training, and initial support. For a major US brand, this could be in the range of £30,000 to £50,000 per unit.
Ongoing Fees: Typically, a royalty fee (a percentage of gross turnover, often 5-8%) and a marketing levy (another 1-3%) are paid to the franchisor continuously.
Working Capital: Funds needed to cover initial stock, staff wages, and operational costs before the business becomes profitable.

Securing franchise finance from UK banks will require a robust business plan. Lenders will want to see clear evidence of the brand's potential and the operator's experience. The lack of a UK track record for Freddy’s means the quality of the disclosure pack and the financial projections provided by the franchisor will be scrutinised intensely.

Navigating the Crowded British High Street

It would be naive to frame this as a simple two-horse race. The UK's fast-casual market is fiercely competitive. Freddy's will not only be competing with Five Guys but also with:

Shake Shack: Another major US player with a similar premium positioning and a focus on quality and custard-based desserts.
Homegrown Chains: Brands like Honest Burgers and Byron have built loyal followings with their own distinct take on the gourmet burger.
The Top End of Fast Food: McDonald's and Burger King are continually improving their premium offerings, providing a cheaper, more convenient alternative.

Any franchisee must consider the immense pressure on property, staffing, and supply chains in the UK. The success of a Freddy's franchise will depend heavily on securing A-grade sites at viable rents and managing rising food and labour costs—challenges the franchisor's support system must be equipped to handle.

Due Diligence: Your Non-Negotiable Checklist

For those experienced operators excited by the Freddy's proposition, a rigorous due diligence process is paramount. As the UK operates without a mandatory Franchise Disclosure Document (FDD) system like the US, the onus is on you, the investor, to ask the tough questions.

Your investigation must include:

The Franchise Prospectus: Demand a comprehensive information pack. Scrutinise the financial projections. Are they based on US results or adapted for the UK market? How have they accounted for UK rents, business rates, and VAT?
Training and Support: What is the quality and duration of the training? Crucially, will there be a UK-based support team on the ground to assist with launch and ongoing operations? A US-based team on a different time zone is not good enough.
Territory and Site Selection: How will territories be carved out? Will you get an exclusive area? What support does the franchisor offer in identifying and securing a suitable property?
Professional Advice: Engage a solicitor who is a specialist in UK franchise law to review the franchise agreement. Consult an accountant with franchise experience to validate your business plan and the franchisor’s financial models.
Franchisor Credibility: Is the franchisor a member of a reputable body like the Quality Franchise Association (QFA)? This demonstrates a commitment to ethical franchising practices.

The Verdict: A Sizzling Opportunity for the Brave?

Could Freddy's compete with Five Guys in Britain? The answer is a qualified yes. It possesses a proven model, a strong brand identity, and, most importantly, a differentiated product offering that could carve out a substantial niche.

The steakburger and frozen custard combination gives it a unique edge, and its family-friendly appeal could unlock different real estate and demographic opportunities compared to its rivals. For the right franchisee—an experienced, well-funded, multi-unit operator—this represents a rare chance to get in on the ground floor of what could be the UK's next big QSR success story.

However, the path is fraught with challenges. The market is saturated, and the operational pressures are intense. Success will hinge on flawless execution, prime site selection, and the quality of the UK franchise support system. This is not an opportunity for a first-time franchisee. It is a calculated, high-stakes venture that demands deep pockets and even deeper due diligence. The battle for the British burger crown is about to get a whole lot more interesting.