As first reported by Sky News, the telecoms billionaire Sir Charles Dunstone is seeking new investors to take a big stake in Five Guys Europe, the casual dining brand he launched in Britain more than a decade ago.
Sir Charles’s investment vehicle, Freston Ventures, has retained investment bankers at Goldman Sachs to identify a buyer for a chunk of the burger chain, which employs about 6,000 people in the UK.
This weekend, City sources said a stake of up to 50% in Five Guys Europe was likely to be made available to bidders, although all options are expected to be considered.
Teaser documents have been circulated by Goldman Sachs to potential bidders in recent weeks, with large buyout firms said to be among those interested.
One insider said that based on its projected earnings, the entirety of Five Guys Europe could be worth in the region of £600m.
The investment process has been facilitated by a deal that Sir Charles is understood to have reached to acquire the 50% stake in Five Guys Europe owned by the Murrell family, which established the business in Arlington, Virginia, in 1986.
Under that deal, Five Guys Europe will pay a royalty fee to the US brand-owner for its future use.
Sir Charles brought the business to Britain in 2013, after striking a deal with the Murrell family following a family holiday in New York.
Its first UK site opened in Covent Garden, central London, before hitting 100 outlets six years later.
The chain now trades from close to 300 stores in the European territories in which it operates, which include France, Germany and Spain.
In the UK, it has 177 outlets, while including the US business it boasts more than 2,000 stores across 26 countries.
Five Guys Europe employs about 9,000 people across the Continent, and has plans to expand into countries including Italy and Portugal.
Goldman is said to have been picked for the Five Guys Europe mandate after overseeing the recent disposals of stakes in Wingstop, the fried chicken chain, to investor Sixth Street in a £400m deal; and the Indian restaurant group Dishoom, which was backed by private equity firm L Catterton in a transaction worth about £300m.
The launch of the process comes with the hospitality sector on edge ahead of the budget amid fears of further rises in business taxes aimed at helping the Treasury fill an estimated £30bn fiscal black hole.
Last year’s budget saw Rachel Reeves hike employers’ national insurance contributions, prompting employers in the hospitality and retail industries to warn of mass job cuts and business collapses in its wake.
Since then, a string of casual dining businesses have fallen into administration, including, most recently, Pizza Hut UK operation.
Other well-known chains, including Cote and TGI Fridays, have changed hands in the last few months.
The pandemic sounded a death knell for many casual dining businesses, particularly in the gourmet burger segment of the market, where Byron Burger has been through several insolvencies in recent years.
Five Guys Europe’s performance has bucked that trend, however, and now accounts for a large share of the UK’s premium burger sector. They recently completed a £185m debt refinancing, which placed its borrowings on a longer-term footing amid the challenging climate for restaurant operators.
Despite the demands of running a rapidly expanding company, Choudhary has learned to find balance, something he didn’t always have. These days, he’s an early riser, front-loading his weekdays with office work before spending afternoons on-site visits and store builds.
Evenings are reserved for football and gym sessions, and weekends are kept for family. “Sunday lunch at my mum’s house—that’s the recharge,” he says with a smile.
Among his proudest milestones is winning an international franchise of the year award earlier in his career, besting competitors across 30 markets, but he’s just as proud of The Sushi Co’s present trajectory. He said: “It’s been incredible to watch it grow. And we’re only getting started.”
When asked what advice he’d give his younger self, Choudhary was quick to reply: “Learn to walk before you run. There are no shortcuts. Move with care, build the right team, and think everything through.”
For prospective franchisees eyeing entry into the booming sushi space, The Sushi Co is currently welcoming applications.
Choudhary says: “We’re looking for experienced QSR and business professionals ready to invest in a proven, fast-growing concept. This is one of the fastest-growing sectors in the casual dining market, and we’re here to lead it.”
As The Sushi Co expands across the UK, Choudhary is showing that scale doesn’t have to mean compromise. With handcrafted sushi at its core and a franchise model built on training, quality, and support, he’s not just growing a brand, he’s setting a new standard for what fast-casual dining can deliver.
