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Entrprenuerial Leadership

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Submitted By jfrails
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Entrepreneurial Leadership
Jaikenna Frails
Professor Gary Shelton
BUS 508 Contemporary Business
October 27, 2013

In 1986, Five Guys Burgers and Fries opened its first location in Arlington, VA. Jerry and Janie Murrell’s four sons did not want to go college so they advised them to open a business instead. They decided on a burger and fry establishment but it would be much different from the rest. Five Guys mission statement simply states, “We are in the business of selling burgers”. Their goal is to “sell the best quality burger possible. To sell the best burger possible, we focus on Quality, Service, and Cleanliness.” (Byrne, Charlie) Five Guys is not your typical fast food chain. The philosophy for most fast food chains is to make good tasting food the quickest and cheapest way possible. This was they can sell their food for lower prices. You will never find a dollar menu at Five Guys. You get what you pay for and Five Guys believes in quality food. Their beef is lean and always fresh, never frozen. Their potatoes come fresh from Idaho and their buns are made fresh daily in a bakery and toast to perfection on the grill. Five Guys burgers are made to order with 17 different fresh toppings to choose from when placing your order. Quickness is not a concern at Five Guys like other fast food places. In fact, they use to have a sign post that stated, “If you’re in a hurry, there are a lot of really good hamburger places within a short distance from here.” (Welch, Liz) “More than 20 years after the first restaurant, the menu remains virtually unchanged despite pressure from franchises to add items”. From the start, Five Guys wanted to keep their menu simple but just make those few items on their menu the best way possible. Five Guys put all of their finances into food. They do not spend much on the décor of the restaurant but they keep it clean enough where you could eat off of the floor if you wanted to. They also have never spent any money on marketing and advertising. The customer is their salesman and word of mouth for their product. Five Guys main value at startup was fresh food and they have never compromised that belief throughout the growth of their company. The original goal for Five Guys was to focus on Quality, Service, and Cleanliness. These are also the three factors that have contributed to Five Guys’ success in such a short amount of time. Five Guys does not put a price tag on quality. They bring their customers the best even though it may cost more. Customers may pay more but usually there are not any complaints after they taste the food. The quality keeps them coming back for more. Another factor is the service. Five Guys employees are extra friendly and polite to their customers. They also pay attention to every detail of the customer’s order to make sure it is exactly right and neatly put together. Five Guys also offer free peanuts to waiting customers to help ease the wait times. Cleanliness is also very important to the Five Guys establishment. For example, I went to Five Guys for the first time in Savannah, GA after the Fourth of July fireworks show. The line to get in was outside the door. When I finally did make it in, the first thing that I noticed was how clean it was especially with the huge crowds pouring in. The staff was all around cleaning faster than the customers could mess it up. I really did appreciate that part of the service and my food was absolutely perfect. At first I was thinking, “This is expensive for fast food”, but I have been there plenty of times since then regardless of the price. No matter what is going on in the economy, Five Guys never ever compromises their ethical or social practices to provide good quality food and service to its customers. If they have to pay more for ingredients, they just have to charge more but they never go away from their original values. At first they were reluctant about franchising just because it would be harder work to ensure that quality was up to par in all locations. One thing that they do to guarantee that their values were being upheld is send a third party auditor (secret shopper) to each location, twice a week. The staff do not know when this person will come. This person checks for cleanliness first then goes into the back to make sure the food is of standard and it is being prepared correctly. If the location passes its inspection, the whole crew gets a monetary bonus so it gives the employees an extra incentive to want to do a great job. Here is how Jerry Murrell responded when asked, “What does the Five Guys Tradition mean to you?” He stated, “Quality. Being fanatical about the quality of food and the products you buy. Not trying to save money on food costs. I get real upset when I find a franchisee [penalizing] a manager because of food costs. If you’re not throwing food away, you’re not running a good shop, I figure. When food is on grill too long or fries are not used in short time, throw them away. If roll is not perfect, throw it away. If you fry too much bacon, throw it away, and don’t pay managers on food-cost savings. If you pay your managers on food-cost savings then the customer is most likely the one to pay. No one is perfect, so a burger might sit on the grill too long or fries might be overcooked. Crew members should feel confident that they’re allowed to throw those bad items away and not feel nervous about getting in trouble for wasting an item.” And when asked “Which is more important to making the Five Guys model work—the people or the system?” He responded, “Both are very important, but people are most important. We believe in spending all of our advertising dollars on employee-incentive systems.” (Murrell, Jerry)

References
Byrne, C. Retrieved Oct 26, 2013, from http://www.earlytorise/a-mission-statement-that-gets-right-down-to-business/
Liz, W. Inc.com. How I Did It: Jerry Murrell, Five Guys Burgers and Fries. Retrieved Oct 26, 2013, from http://m.inc.com/?incid=33744
Yu, R. (2009, 8). USA TODAY: Latest World and US News - USATODAY.com. Fast-growing Five Guys burger chain sticks to basic, fresh food - USATODAY.com. Retrieved Oct 26, 2013, from http://usatoday30.usatoday.com/money/companies/management/entre/2009-06-07-fast-food-hamburger-franchise_N.htm
Scott, S.P. (2007,). Quick-Service and Fast Casual Restaurant News and Information - QSR magazine. Five Guys Burgers and Fries Founder Jerry Murrell - QSR Magazine. Retrieved Oct 26, 2013, from http://www2.qsrmagazine.com/articles/interview/104/jerry_murrell-3.phtml Home| Five Guys Burgers and Fries .About Us| Five Guys Burgers and Fries. Retrieved Oct 26, 2013, from http://www.fiveguys.com/about-us.aspx

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