Five Guys Case

The right way might be the long way but it always pays off. According to Weise (2011) “Five Guys Burgers and Fries was founded in 1986, what started as a modest burger shack in a Virginia strip mall has exploded into America’s fastest-growing restaurant chain, with five stores opening each week” (p. 71). The family wanted to have a product that was good in taste and simple to order and eat. The rapid growth of the fast food chain is the philosophy of strict guidelines, allowing franchisees to fully understand and execute the company’s business strategy.

Determine how Five Guys’ philosophy sets it apart from other fast-food chains? Five Guys’ philosophy is not similar to most fast-food chains. Murrell’s philosophy focuses on a quality product, a simple menu and clean and friendly environment with excellent customer service. The fast-food chain provides selected food but focuses on quality (Burke, 2012). As the company grew Murrell believed that the menu had to stay the same good burgers and fries (Burke, 2012). Five Guys Burgers are the best because the burgers are handmade from fresh beef patties not frozen and the fries are hand-cut never frozen (Burke, 2012). The fast-food chain does not use advertisements but believes quality food will encourage consumers to come back.

The company also does not use marketing but word of mouth to grow the business. Five Guys’ depends on positive word of month from pleased customer to lead other customer to the restaurant. The franchise grouses nearly $1.1 million a year. It is clear customer look forward to a restaurant that provides No. 1, quality food (Burke, 2012). The company offers a clean and friendly restaurant. Weise (2011) states, “ the walls are covered in crisp white and red tiles, the kitchen is open for everyone to see, and the menu doesn’t change” (p. 71).

Analyze the original values for the start-up company and how it remains strong today? The original values of Five Guys remain the same today. Murrell continues to support the belief that, friendly customer service, a quality product and a simple menu are the keys to success. The company’s corporate strategy of keeping things simple and strategy of word-of-month advertising has increased sales. Since 2003, the franchise has grown to more than 630 stores with plans to open 775 more by 2010 (Frumkin, 2010). In 2012, the company including franchises sales has earned $1 billion in profit, an increase from $950 million last year (Burke, 2012).

Enumerate three factors that contributed to Five Guys’ success in such a short time and what effect, if any, on these factors? Five Guys’