Introduction to Five Guys - Burgers And Fries

Five Guys
Introduction -
It was founded in 1986 in Arlington, Virginia, by Jerry and Janie Murrel and their sons,
the original five guys who made up the team. It was initially referred to as "Jerry and the Sons"
when it opened. After Jerry and Janie Murrell started the business, they had a fifth son, and now
all five sons are involved in running the Five Guys. Together, the brothers discarded the notion
of a wide range of options in favour of a more straightforward and simple burger
(DATAMONITOR, 2010). Non-frozen buggers made from ground beef and 80% lean are the
specialities of this establishment. In addition to slicing the potatoes and preparing the burgers at
home, fries are prepared daily.
Five Guys sells burgers for 7 - 9 Pounds, but they have a loyal following because of their
ingredients' high quality and freshness. Restaurants in higher-income areas, where customers
are primarily men, benefit from the menu's value pricing. As opposed to traditional advertising,
the company relies on word of mouth from its customers. One of Five Guy's core values is
exceeding customer expectations in the quality of its burgers and setting the bar higher for the
industry as a whole. What makes their business stand out in a world with burger joints on every
corner. Aside from serving delicious food in an inviting environment, Five Guy's also provides
excellent customer service. There are seventeen toppings on their hamburgers, and they are
made to order. The fries are made by hand and fried in peanut oil, providing various health
benefits. There is no marketing department at Five Guys because the company relies on
positive word of mouth from satisfied customers as the best advertising method, saving money.
New customers and franchisees come to the restaurant because of its immediate appeal and
the storefront's attractiveness.
As of this time, the chain has over 1700 restaurants worldwide and over 100 in the United
Kingdom. Carphone Warehouse Modul Sir Charles Dunstone is a sponsor of the UK company.
In 2013, the chain made its way to the United Kingdom, opening its first location in London's
Covent Garden. It took them only three years to become the UK's fastest-growing restaurant
chain and the nation's preferred fast food chain. In December 2018, the company reported a
pre-tax loss of 3.9 million pounds, but its operating profit in the UK increased to 5.8 million
pounds.

Five Guys Burgers and Fries provides restaurant-quality food at fast food speed.
Fresh ingredients are essential. Each restaurant receives raw materials and makes burgers and
fries on-site, nothing prepackaged or precooked. Five Guys' ability to customise orders is
another competitive advantage, and free toppings help achieve this. Five Guys Burgers and
Fries charge more due to customisation and quality. Customers can justify spending more on
burgers here because of customisation and quality.
Five Guys' core competency defines its order-initiation strategy. Five Guys is a make-to-order
restaurant. This strategy involves not stocking final goods and starting production only when
ordered. Each order is made from scratch to ensure freshness. This strategy lets them
customise orders. Make-to-order reduces inventory holding costs. No finished goods inventory
means no storage costs. "Raw materials" are the main cost. Production can only begin after
customer orders, so this strategy increases lead times.
Three keys to the franchise's success Five Guy's: Making high-quality food with simple
toppings, they wanted people to know they put all their money into the food. Their high quality
changes people's burger experiences. Second, quality is the key to any successful business. If
you provide great food and service, customers will return no matter how much you charge. And
treating employees in every position with value, which gives them the confidence to come to
work and provide excellent customer service. Customers become the best salesmen when
employees provide great service and food. Jerry Murrell valued his customers by treating them
right; they'll sell for you.
Internal Analysis
The operational processes and culture are the driving force for the internal operations of
the company. The company is only 31 years old but is very strong in the quick-service
industry.
Also, the internal environment consists of the staff employed at Five Guys. There are
different employee positions for the company. Along, with the staff, the culture of the
company is part of the internal environment of the firm. The mission statement "We are
in the business of selling burgers" (Five Guys, 2017), is integral to the internal
environment. During training employees learn the importance of making burgers to the
companies' standards.The different elements of the organizational culture also include
the work environment, ethics, values, expectations, and goals (Doyle, 2017).
Competitor analysis (Porter Five Force Analysis)

● Competitive rivalry is high. The company has many competitors such as
McDonald's, Burger King, and Jollybee for the burger segment in fast food.
● The threat of new entrants is very high, but the competitiveness of Five Guys is
low.
● The bargaining powers of the suppliers are mid-level. Since there is low product
differentiation; the company only uses specific suppliers to order their products.
● The threat of substitute products is high. Five Guys pricing can get very
expensive; which can cause customers to look for cheaper alternatives. Also,
there are not too many healthy products sold; which can also cause customers to
search for healthier options.
● The bargaining powers of the customers: It is high because the demands of
customers are always changing. As the needs of the customer change, Five
Guys Operations must meet the needs of their customers. There are many
competitors for Five Guys, and competitiveness in the market is high. The
company overall needs to set itself apart from the competition, so that customer
retention is high.
Segmentation -
Recommendation - Introduction to Vegan Burger in Five Guys
Plant-based burgers are gaining popularity globally, especially in the U.S. and U.K.
According to the Plant Based Foods Association, plant-based food sales soared
compared to the overall grocery. The global plant-based burgers market is expected to
reach $2.7 Bn by 2023 and grow significantly by 2025-2030. Future Markets Insights
(FMI) predicts the plant-based burgers market will grow by over 22% between 2025 and
2030.
Changing consumer preferences and a desire for healthy, sustainable food are driving
the plant-based burgers market. More consumers are ready to switch to plant-based
meat alternatives, encouraging companies to create new food options. Their efforts to
mimic meat-based burger patties should benefit the global market. Several plant-based
foods and beverage startups are pushing investments, a positive sign for the global
plant-based market.