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Five Guys - Case Study Example

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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…
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Five Guys
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Download file to see previous pages Originally, the restaurants 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; favoring a more honest and solid buggers (DATAMONITOR 2). They pride themselves in offering non-frozen buggers, which are hand-patted from ground beef, and 80% lean. The French 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 woo more customers using new products, they prefer to serve clients with well done chips and buggers. The company has shown a desire to keep expanding (Janowitz 4). The company has opened one hundred and sixty three branches in thirteen states. It intends to add at least seventy new restaurants. The company also looks for franchise candidates, whom they evaluate by their general experience in business, degree of personality fit with the restaurant, cash flow, and net worth. Their business involves approximately two thousand five hundred square foot urban or suburban spaces. The restaurant business has also acted as effective anchors for other restaurants, educational facilities, cinemas, and grocery stores.
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