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Five Guys Market Analysis

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Five Guys

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FIVE GUYS

Five Guys is a private owned restaurant chain that serves fast and casual food. The restaurant focuses on French fries, hot dogs, soft drinks, and hamburgers. Five Guys started in 1986 and with its headquarters in Lorton, Virginia. It has branches in more than 40 states in the US, as well as in six Canadian provinces. This paper aims to determine the business that Five Guys is in, run the rule on their primary competitors, perform the restaurant’s SWOT analysis, and finally give strategies for the hotel chain in the coming five years.

1. Business Case

Five Guys began in 1986 by the Murrells together with their 4 sons. Originally, the restaurant's name was Jerry and the sons. After beginning the business, Janie and Jerry Murrell had a fifth son, with all sons involved in running the business as the Five Guys. Together, the brothers did away with ideas of broad menus, favouring a more honest and solid bugger (DATAMONITOR, 2010). They pride themselves in offering non-frozen buggers, which are hand-patted from ground beef, and 80% lean. The fries preparation occurs daily including cutting the potatoes, along with in the house and fresh buggers. The restaurant created a cult following by word of mouth. Five Guys price their burgers at four dollars; yet manage to keep their clients coming back due to their appeal for high quality and fresh food. The pricing makes the restaurants enjoy increased success in areas with higher income that cater mainly to the male demographic. Rather than, depend on conventional advertising, the company relies on the customer’s word of mouth. The product’s immediate appeal and the restaurant’s storefront ensure that they secure new franchisees and customers.

One significant advantage that Five Guy’s business model holds is the simplicity of its menu. Instead of attempting to…...

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