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Assignment One

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Submitted By trece68
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Entrepreneurial Leadership
By Latrece Hart
Instructor: Dr. Etido Akpan
Business 508 – Contemporary Business
January 27, 2013

What started out as a simple beginning has become a successful venture. Jerry and Janie Murrell told their children they either had to go to work or go to college. Five Guys Burgers and Fries, named for the owners’ five sons, was the brain child of two parents, Jerry and Janie Murrell, whose two oldest sons decided they would rather run a business than go to college. They found the best way to compete in the fast food world would be to center their concentration on the food. It’s with this simplistic viewpoint that Five Guys has become one of the fastest growing chains in the fast food industry (Boone & Kurtz, 2012).
Determine How Five Guys’ Philosophy Sets It Apart From Other Fast-Food Chains Five Guys’ philosophy is simple. They want to sell the best quality burger of all fast food chains. In order to do that, their philosophy has been to stick to the basics. The menu remains the same, mainly burgers and fries. The burgers are fresh and handmade, never frozen. The French fries are hand cut as well (Burke, 2012). There are no freezers, only coolers. The customer can also see their burger being made once they place the order. The family has tried to add new menu items to their men, but quickly removed them from the lineup, deciding to stick with the formula that has kept them successful which is original burgers and fries. The décor of the restaurants is retro, red/white checkered. There are no fancy tricks or gimmicks, just a focus on the most important thing, the food (Garrett, 2010). What sets them apart is the belief that the best salesman is the customer. According to Murrell, he says “treat that person right, he’ll walk out the door and sell for you.” (Boone & Kurtz, 2012)
Analyze the Original Values for the Start-up Company and How It Remains Strong Today The owners of the Five Guys fast food chain share an important value and that is value of family. Because his sons did not want to go to college, Jerry Murrell used what would have been tuition money ($70,000) to fund the first burger take out of the chain in Arlington, Virginia and named the restaurant for his five sons. This was a good way to keep his family together and begin the business at the same time. To compare the value of family in the beginning to how Five Guys is today, one only has to look at the makeup of the company and see that each family member is still heavily involved in the restaurant. According to Burke, the family makes business decisions together. “All family members meet together every Tuesday at 1pm at the Lorton headquarters and make decisions together by unanimous vote.” They each own shares of the company which equals about 75% (Burke, 2010). In addition, Janie takes care of the financial side of the business. Matt and Jim travel the country visiting stores, Chad oversees training, Ben selects the franchisees, and Tyler runs the bakery. With all of the family involved in the success of the company from the very beginning, they’ve come together to ensure a success for themselves as well as the family.
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 Three factors that contributed to Five Guys’ success has been employee motivation, quality of the food, and the overall value of the company. The way they continue to motivate their employees is by conducting third party audits two times in each store every week. The first audit is a “secret shopper”. The secret shopper is actually a person who pretends to be a customer and rates the store on bathroom cleanliness, how courteous the team is, and how well the food was prepared. Then the second audit is a safety audit where a crew comes in to check the kitchen equipment. If the team scores well, they split $1000 among the team. A press release goes out to the stores announcing the winners (Welch, 2010). This helps to maintain quality service and clean stores. The quality of the food has contributed to the success of the stores. While other fast food chains have frozen items, Five Guys maintains fresh ingredients. They have remained loyal to their suppliers over the years. They buy fresh ground meat and real Idaho potatoes. They fries are hand cut and pre-soaked before frying. By maintaining only fresh ingredients, of course this raises the price, but there have been no complaints over the years about the price. They could sacrifice and use cheaper products, but they would be sacrificing taste (Melnick, 2011). The overall value of the company is the final contributing factor in the success of Five Guys. Once they entered into the franchise world, everyone thought the value of the business would take a dive. However, the opposite has occurred. The contracts the franchisees sign ensures the value to be consistent and that nothing changes so that when customers go to any Five Guys franchise, they will get the same quality food that tastes the same (Rosenwald, 2006). All of these factors have made Five Guys successful. They have remained and maintained who they are.
Assess How Ethical and Social Practices Are Part of The Five Guys’ Culture and Provide Examples to Support Your Choices Ethical and social practices are an integral part of the Five Guys’ culture. From an ethics standpoint, Five Guys makes the business transparent. Customers have access to the company’s policies on the Five Guys website. The policies are fully disclosed and Five Guys informs the customers on the webpage that each franchise follows these policies to ensure the wellbeing of their workers. From a social standpoint, any customer will be able to tell how connected Five Guys is to its customers. When you access the website, there are links to Facebook and Twitter. Five Guys has profile pages on both to stay connected with the customers to inform them of new developments and anything they would like to know. Also, Five Guys has a blog and gives the customers the ability to communicate with the company by asking questions and providing feedback on either the contact page of the website, via blog, or via Facebook and Twitter (Five Guys website). Five Guys has achieved success through their entrepreneurial leadership. Different factors have contributed to the success and sustainability of this business in an economy that has weakened over the years. They have acquired the ability to carve out a niche for themselves and provide the highest quality product, not changing their philosophy, and maintain their core values.

REFERENCES
Boone, L.E. & Kurtz, D.L. (2012 Update). Contemporary business (14th ed.) Hoboken, NJ: John Wiley & Sons
Burke, M. (2012). Five Guys Burgers: America's Fastest Growing Restaurant Chain Retrieved January 26, 2013 from http://www.forbes.com/forbes/2012/0806/restaurant-chefs-12-five-guys-jerry-murrell-all-in-the-family_2.html
Five Guys Holdings (2012, 01). Five Guys. Retrieved 01, 2013, from http://www.fiveguys.com/
Garrett, J. (2010). Five Guys Burgers and Fries: A Fast Food Success Story. Retrieved January 26, 2013 from http://www.helium.com/items/1932674-about-five-guys-burgers-and-fries
Melnick, J. (2011). The Runaway Hit. QSR Magazine. Retrieved on January 27, 2013 from http://www.qsrmagazine.com/qsr-50/runaway-hit?page=2
Rosenwald, M. (2006). Five Guys, Taking a Bigger Bite. The Washington Post. Retrieved on January 27, 2013 from http://www.washingtonpost.com/wp-dyn/content/article/2006/04/02/AR2006040200723.html
Welch, L. (2010). How I Did It: Jerry Murrell, Five Guys Burgers and Fries. Inc. Magazine. Retrieved on January 27, 2013 from http://www.inc.com/magazine/20100401/jerry-murrell-five-guys-burgers-and-fries_pagen_2.html

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