Five Guys CEO Jerry Murrell Bonus: A Lesson in Leadership and Employee Appreciation
When Five Guys’ 40th birthday promotion spectacularly backfired, most CEOs would have opted for a carefully crafted apology and moved on. But Jerry Murrell, the 82-year-old founder of the beloved burger chain, took a different approach – he wrote checks. A total of 1,500 checks, amounting to a $1.5 million bonus for his employees. And his reasoning? He was, in his own words, worried about his safety.
“I didn’t want anybody shooting me in the back or anything after the first day, because we really screwed it up,” Murrell joked in a candid conversation with Fortune. “We had no idea that we were going to get that kind of response.” This anecdote perfectly encapsulates Murrell’s quick wit and genuine concern for his team, a combination that allowed him to navigate a logistical nightmare with remarkable grace.
The BOGO Birthday Blunder
The chaos began on February 17th with a Buy-One-Get-One (BOGO) deal to celebrate Five Guys’ 40th anniversary. The response was overwhelming. Stores quickly ran out of food, employees were stretched to their limits, and lines snaked out the door. The chain acknowledged the issue in a press release, stating, “You visited our restaurants in overwhelming numbers, and we weren’t ready for you. We didn’t meet our own standards, and that’s not something we take lightly.”
Rather than deflect blame, Murrell took full responsibility. He apologized to his employees first, then to the public, and promised a “40th After Party” to rectify the situation. The second attempt, held between March 9th and 12th, was much smoother, thanks to better preparation.
A Bonus Born of Guilt (and Gratitude)
Murrell, who confessed he’s never been a fan of promotions (“I always think it’s funny when people go to sales”), was stunned by the BOGO’s success. “I thought maybe increased sales like 20% or something—that was like 130%,” he exclaimed. Feeling responsible for the initial chaos, he decided to reward the frontline crew who had worked tirelessly to manage the crowds. He distributed $1,000 per store, totaling $1.5 million in bonuses.
But the generosity didn’t stop there. After the successful “After Party,” he felt compelled to reward his team *again*. “They worked so hard that I thought, now I better give them a bonus.”
More Than Just a Bonus: A Company Philosophy
This $1.5 million bonus wasn’t a one-time gesture. It reflects a deeply ingrained philosophy at Five Guys. The company donates 20% of sales from in-store community events to local organizations and actively encourages corporate and franchise participation in charitable initiatives like Big Brothers Big Sisters of America. Franchise owners consistently contribute to their communities through the company’s fundraising program.
When asked about his actions, Murrell humbly brushed it off with a joke, recounting a humorous dream about St. Peter and a spelling bee with a McDonald’s executive.
A Family Legacy
Five Guys remains a privately held, family-run business. Named after Murrell and his wife Jamie’s five sons, the next generation is already heavily involved. “We got 14 grandkids and 11 great grandkids, and I think nine or 10 of the grandkids are in the business too, so they seem to like the business. Looks like it’s going to carry on the way we have built it,” Murrell shared. He attributes the company’s success to simple luck and fortune.
Jerry Murrell’s response to the 40th birthday promotion debacle is a powerful example of leadership, employee appreciation, and a commitment to doing the right thing – even when it means sacrificing a new fur coat for his wife. It’s a story that resonates far beyond the fast-food industry.
