The paper performs an analysis of the Five Guys chain of restaurants taking into consideration the company's philosophy that separates it from other businesses. It identifies several factors that led to the success of Five Guys business. It examines other issues including ethics and social practice, supply and demand, and market structures.
Entrepreneurial Leadership
Entrepreneurship is a field of business that greatly depends on the ideas and input of the business person who is venturing in the business (Kates, 2011). Five Guys chain of store is one such organization that has set itself apart as a force to reckon with due to its incomparable beliefs and philosophies of doing business.
When five guys chain of restaurants was started in 1986 by Janie and Jerry Murrel and their sons, it started out as just a small venture of making and selling burgers. The business has grown to such heights that it is one of the leading local business enterprise in the country (Greenberg, McKone-Sweet & Wilson, 2011). When asked as to what has contributed to this tremendous success that they have achieved, the owners of the enterprise confirmed that it is the philosophy by which they run the business. This philosophy that Five Guys uses is quite simple but very effective. It focuses on the quality of product and customer satisfaction to all customers (Kates 2011). They believe that if you treat the customer well, when he gets to the outside he will sell for you. That is to say that word of mouth by the customers is their main technique of marketing themselves.
Five Guys started out as a one-store enterprise and started to franchise in 2002 with five stores in place. Then the enterprise was not worth much but by 2012, the business had opened up to 570 stores both in the United States and Canada. It also enjoys credits worth over 100 million dollars with various organizations and it is enjoying very high returns in sales.
Five Guys is not only just unique because of the philosophy it holds but rather because of some very significant key factors that have contributed to its fast rise into a multinational enterprise. These factors include realizing that it is not the about the pricing of the commodity that makes it sell but it is the quality (Kates, 2011). Five Guys' burgers are specially made from fresh and healthy ingredients. They use beef that is has just been freshly ground and other additional toppings such as mustard, mayo, onion, lettuce, tomato, green pepper and grilled mushrooms. Additions of source are optional for customers. There is no addition of any artificial flavors. They also do a special kind of fries that is done using peanut oil hence the unique taste. This quality burger just leaves the mouth of every customer watery thus the popularity of Five Guys foods. With high quality products, no matter the price they will always sell.
One other key factor is the management of the restaurant. When Murrel started out, he partnered with a well-known star in the field; Mark Moseley who was franchising at Fransmart hence his star power was much influential in the success of Five Guys. He worked as the director of franchise for Five Guys.
Another key factor that contributed to the rise of the business to its status of success is that of the quality of service offered. Right from the menu across to the attendants, there is quality in everything that Five Guys offers. The menu is simple and straight forward, despite the pressure from the customers and interested parties to increase the services it offers, they have kept their menu simple and easy. This makes it easy for the customers to just order by the number of what they want from the menu. The quality of service is very much complementary to that of the quality of food. However, without effective employees, the business would not have been so successful (Thornberry, 2006). The service delivery speed is very fast and thus customers do not feel inconvenienced having to wait to be served. They are always attended to on time. This wins the trust of every customer especially those who do not have the luxury of time to spend waiting.
For any person or organization to be successful, discipline is a key ingredient (Walker & Lundberg, 2007). In this view, social ethics and culture has played an equally significant contribution to the success of Five Guys. Such is the reason as to why they adhere strictly to certain laws as outlined in the acts governing international labor as well as social codes of conduct. They do not employ slaves or illegal immigrants in their course of business. They hence respect human rights as well as labor laws (Schwartz, 2011). As they acquire their supplies, they ensure that the suppliers are fully compliant with all local, state and international laws that govern business.
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