Entrepreneurial leadership: characteristics and practices

Five Guys was founded in 1986 by Jerry and Janie Murrell and their sons, all five of whom are part of the business. In 1986-2001 Five Guys opens five locations around the DC metro-area and perfected their business of making burgers. Now, over 20 years after Five Guys first opened, there are over 1,000 locations nationwide and over 1500 units in development. Five guys continue to receive media attention and have grown a cult-like following around the world (www.fiveguys.com). In this assignment, the following questions will be answered as to how Five Guys continues to be a success and why customers continue to flock to their restaurant:

Determine how Five Guys' philosophy sets it apart from other fast-food chains.

Analyze the original values for the start-up company and how it remains strong today.

Enumerate three (3) factors that contributed to Five Guys' success in such a short time and what effect, if any, external markets had on these factors.

Assess how ethical and social practices are part of the Five Guys' culture and provide examples to support your choices.

5. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Determine how Five Guys' philosophy sets it apart from other fast-food chains.

Fives Guys' philosophy that sets them apart from every other fast food restaurant is due to Jerry Mitchell's establishment focuses on the quality of the product and customer satisfaction to both internal and external customer. In his own word's Jerry Murrell says "Treat the person right, he'll walk out the door and sell for you," which basically means the reason that they are a success is due to the way they treat their customers which in turns brings in more customers on the basis of "word of mouth."

Five Guys demonstrate customer satisfaction and quality of the product through the following:

Customers' hamburgers are made to order and have a choice of 17 different toppings for burgers.

Motivated employees through bonuses if store audits are passed.

Every store gets fresh bread every morning

Meat for burgers is 80% lean is always fresh never frozen.

Plants are clean to the point that you can eat off the floor.

Potatoes for fries are from northern Idaho, where they grow more slowly, solid, & tasty and are soaked in water so when boiled & fried the fries form a seal in order to be fried a second time.

Five Guys places emphasis on the quality of customer and quality of food and the above attributes within the company demonstrates that.

Analyze the original values for the start-up company and how it remains strong today.

From the beginning five guys wanted people to know that their money went to providing quality food. For that reason they do not spend much money on advertisement due they knew that the customer would bring more customers to their establishment. Five Guys Burgers and Fries also believe that the customer is always first and was founded on family values and humble beginnings which is the reason for the restaurant's success. The relationship that the establishment has with its employees and customers is one of a home like atmosphere that is filled with togetherness, understanding, and respect for all who come to eat at their establishment. This can be shown because the original person hired to bake the bread for their first store, was made a partner in the firm. Appreciation of the customer, employee, and the quality of the food is the basis of what this restaurant stands for.

Enumerate three (3) factors that contributed to Five Guys' success in such a short time and what effect, if any, external markets had on these factors.

First of all, the family initially experimented with serving coffee and chicken which failed so decided to stay with the original burger and fried formula that first brought them success. Second of all, Five Guys feels that best salesman is the customer as well as they believe in being honest with both the customer and employees. From an employee standpoint being accountable for your own establishment, making sure that it runs smoothly, and the quality of customer service and the product is the reason why customers continue to flock to Five Guys. There is not a high turnover rate at Five Guys, because they make sure that not only the customer is important, but the employees as well. Five Guys makes a customer feel that he/she is always right and pride themselves in making sure that each and everyone is satisfied. Finally, Five Guys is committed to selling a really juicy burger on a fresh bun and make sure that the burgers are made to order every time a customer walks in their establishment.

Assess how ethical and social practices are part of the Five Guys' culture and provide examples to support your choices.

Murrell founded the company with his wife and sons in 1986 and for 16 years ran a handful of local stores in the Washington (DC) area, perfecting limited menu and building devotion to the local community. Murrell and his sons also have opened numerous stores and because of this have given opportunities for people & community to obtain employment and be a part of wonderful family oriented establishment. Making sure that the employee feels a sense of ownership and accountability shows that Five Guys does not micro manage its employees and want them to make their own decisions when it comes to the restaurant. Five Guys has made such a great name for itself that even President Obama stopped by, which basically means that the establishment supports and are big supporters when it comes to politics.