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Five Guys Analysis

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Five Guys is a fast casual restaurant chain that originated in Arlington, Virginia within the Washington Metropolitan Area (York). The chain sells mainly hamburgers, hot dogs and French Fries (York). Five Guys enterprises has grown from a single family owned restaurant to a franchise with 450 locations in thirty states (York). Five Guys opened its doors to Arlington, Virginia in 1986 (York). The restaurant was started by four brothers who were given the choice to start a business or go to college by their parents (York). The burger and fry shop drew in a ‘cult-like’ clientele base which demanded the opening of four additional locations in the Metro D.C. area between 1986 and 2001 (York). At that point, the family decided that they should expand beyond D.C. to give more people the opportunity to experience their food (York). In 2002, they opened franchise opportunities limited to D.C., Virginia, and Maryland, and in 2003 to the rest of the country (Five Guys Inc., 2008). Five Guys philosophy sets apart from other fast-food chains by their uniqueness or originality. Their concept is different and like very well was able to compete with other burger restaurants. Their philosophy is a simple minimalist menu of freshly prepared food, served nearly the speed of a fast-food establishment. The business plan for Five Guys since 1986 has been simple, sell high quality food in a clean and friendly environment with excellent customer service, while not cutting corners (York). The original values for the start and they remain strong today of Five Guys are: the customer knows best, every position at the company has value (employees), know what you’re good at and stick with it, quality is everything and employee incentives go a long way. Five Guys instead of advertising pumps money into making quality into the food (York). They rely on positive word of mouth from satisfied customers. This is possibly the most perfect form of marketing for your product and services, if done right (York). WOM provides a great advantage for a business. According to WOMMA Statistics show that when an individual talks about a given product or service the majority of the conversations are positive. More than likely if someone is talking about a product or services it’s a good thing. Furthermore, word of mouth spreads out and is the top driving force of purchase decisions. Five Guys uses the power of Word of Mouth by their quality, employee customer service, the décor is simply and generous. Five Guys gives these concepts to each customer that walks into their door which creates a unique experience that is memorable and talk-worthy. Five Guys make an experience that could create a story worth talk about. This drive of franchise growth was due to guest experience and the recommendations they make to friends, associates, and family (Lyster). This form of franchising has kept them strong today. A marketing strategy does not always need to be sophisticated (Lyster). A clear focused simple strategy can be just as effective. Case in hand, Five Guys identified a gap in the market for quality, within the industry. Uncompromising on quality has created high value for its customers (Lyster). A company does not have to be traditional and believe that average advertisement such commercials, radio, and etc. are the best market strategy (Lyster). Word of Mouth is actually the best way to generate loyal customers. With loyal customers your business will not fail, due to the fact your customers admire and care for your business (Lyster). However to generate good feedback from word of mouth your business must be trigger word of mouth and target influencers with a great experience. Uncompromising on quality ingredients has kept Five Guys ahead of its competitors (Lyster). The burgers are made to order, with all the ingredients sourced from reliable suppliers devoted to the company, many of whom there from the beginning (Lyster). There are no frozen elements to the process; fresh produce is the key to success (Lyster). The fries are hand cut, and there are specific guidelines for burger assembly – which is done in front of the customer to add to the Five Guys experience (Lyster).
The success of the Five Guys business model can be attributed to how they achieve value creation for each customer (Hanacek). The benefits the customer receives greatly outweigh the sacrifices they give in order to consume the product, generating a valuable experience for both the customer and the company (Hanacek). The customer receives an enjoyable outcome, while Five Guys in turn creates positive word of mouth. Quality, emotions, experience, time, money and opportunity are contributed factors to the Five Guys success in a short time (Hanacek). Quality is the element is vital, as the product is the spokesperson for the company, when customers leave Five Guys; the aim is given for them to have genuinely loved the product (Hanacek). The high quality of food does the talking (Hanacek). Emotions are when the customer receives the high level of positive feelings due to the great product and service (Hanacek). Positive emotions generated towards the Five Guys brand (Hanacek). Experience is when Five Guys offers the customer not only a great product, but an entire experience designed to put the customer first, exceeding the customers’ needs and wants (Hanacek). Time is Five Guys promotes itself as a casual dining establishment thus, it is not fast food. Each burger is made to order, taking a longer amount of time to prepare (Hanacek). There is not drive through because it would take too long to process the orders. For higher quality you would expect to pay higher prices, and this is the case at Five Guys (Hanacek). There are some customers who are put off by the price, however, these customers are not the target audience the company is reaching out to (Hanacek). The need for a business to be responsible for its actions is widely accepted. Businesses do not exist in isolation; they provide goods and services to people and make use of materials and labor supplied by people. Businesses have responsibilities to stakeholders to ensure their actions do not cause harm. The Five Guys, for example, has a responsibility not only to its customers, but also to the employee, shareholders, suppliers, community and competition etc. An organization’s customers play an important role in determining the products and services it will provide. Without customers, there would be no need for the organization. Then, of course, there are the staff, who provide the services to the customers. Food supply chain is the one of the stakeholder in Five Guy’s organization. The Five Guys organization works with suppliers to produce high standards of food. Five Guys has to compete to some other fast food restaurants, such as McDonalds, Wendy’s etc. The Five Guys organization is a good corporate citizen and works closely with local communities in the locations where it operates.
Proactive response is one of the four ways a management may choose to respond to environmental and social problems its activities have caused. Proactive responses have the highest degree of social responsibility. Organizations give responses before any issues addressed by the public and without any external pressures. They show a great interest in enhancing society welfare and very good social image. They integrate their interest with the public interest. Moreover, we always see the advertising that McDonald’s organization supports children’s campaigns. They always donate to sponsor kid’s programs. Sport is acknowledged by the junk food manufacturers as an effective means of reaching the crucial youth market. Thus, the organizations go out of their way to learn the needs of the different stakeholder groups. To sum up, social responsibility is an ethical or ideological theory that an entity whether it is a government, corporation, organization or individual has a responsibility to society. This responsibility can be “negative,” in that it is a responsibility to refrain from acting or it can be “positive,” meaning there is a responsibility to act. Five Guys success is based on its ability to meet and exceed the requirements of customers. The same focus on business efficiencies and customer satisfaction helps Five Guys environmental program to reaching a new level of environmental consciousness when the magical strength of the Five Guys brand. It is very important to undertake those economic, legal, ethical and discretionary responsibilities respectively by sequential to develop an international organization from small every business. That is why Five Guys is a one of the well-known organization in nationwide. It is clear to know how and why the corporation social responsibility important to be undertook by every organization.

REFERENCES
Five Guys Burgers and Fries http://www.fiveguys.com/

Five Guys Case Study: Maintaining Growth in Fast Food with a Simply Menu & Quality Focus. (n.d.).Retrieved from Business Source Complete database. (Accession No. 57735660)

Hanacek, A. (2010). Five stars for Five Guys. National Provisioner, 224(4), 8-8. Retrieved From Business Source Complete.

Lyster, M. (n.d.). Fast food restaurants. Retrieved from Regional Business News database. (Accession No. 52259123)

Murrell, J. (2010, August 27). Five Guys is simple successful: Fast-growing burger chain Sticks to basic, fresh food fit for a president. Retrieved from ProQuest National Newspapers database.

York, E. B. (n.d.). Five Guys Burgers. Retrieved from Academic database. (Accession No. 45505212)

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