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Five Guys

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COVER PAGE
Group 5
Strategic Management
Final Project Report - Five Guys
Table of Content
Five Guys’ Strategy Analysis - Final Report
Industry: Casual-fast restaurant in Canada
Company: Five Guys
Contact: Michael Oppedisano, from Asst. Controller at Bantam Restaurants
Part 1: Organizational Introduction
Five Guys has been a Washington, DC favorite since 1986 when Jerry and Janie Murrell offered sage advice to the four young Murrell brothers: “Start a business or go to college.” The business route won and the Murrell family opened a carry-out burger joint in Arlington, Virginia.
Their mission was to serve an unparalleled burger made with fresh ingredients, in a clean environment and with a reasonable price. In order to achieve their mission, they sought out the best ingredients: paid top price for meat, bought the most expensive bacon and used peanut oil to cook their burgers. The family drove the direct material costs higher unlike any other burger chain, but spent zero dollars on marketing or advertising. They believe that the best salesman is the customer and as Jerry Murrell’s says “treat that person right, he’ll walk out the door and sell for you.” Five Guys also differentiates itself with the crew system they have developed for their employees that is tied to a bonus pay based on performance. Every crewmember is well aware of his/her responsibilities and knows that the crew’s incentive pay will decrease or increase according to how well he/she fulfills her duties shown by the rankings they receive from weekly

audits. This system not only makes every employee position valuable, but also creates a family atmosphere among the workers. Five Guys paid out $7 million as an incentive pay to all the crews worldwide in 2011 and again the reason they are able to provide such a large amount and afford very frequent auditing is due to their...

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