This is also an example of a new strategy used to capture higher market share in the industry, in which companies are force to come up with, constantly, due to the intensive competitive characteristic of the fast food industry. (Hussein, Et all. 2011) c) Dedication: At Five Guys they take their time to prepare everyones meals according to their particular preferences even though it demands extra time and dedication. It is this dedication and time what separates them from common fast food chains where time is measured and food is already prepared or frozen, thereby losing its original flavor. (Burke, Monte. 2012) d) Their type of Marketing: Based on what Jerry Murrell said about treating the customer right and he will sell for you. (Campbell. 2011), I believe that the Five Guys Burgers and Fries focus their marketing on customer service and the word of mouth. While others expend a lot of money in marketing, they take certain amount of money and encourage their employees to earn it by successfully complying with the companys standards of customers satisfaction. (Welch. 2010)
Analyze the Original Values for the Start-up company and how it remains strong today. The Values of Five Guys Burgers and Fries for start-up were: a) Make good food with good Ingredients: Michael Murray (Manager of Five Guys Burgers and Fries at Mabry Village location) said We are not a fast food restaurant we are a casual dining place where we offer 100% fresh food, we have no freezers. (Odish. 2012). They consider their food good because by working with fresh ingredients they can keep the original flavor and its value. (Heffern. 2002). Things like frying their potatoes with peanut oil as a way to reduce cholesterol and control the consumption of fat, is a considerable way to differentiate them from the fast food industry. As it is described in the vol. 8 of SJ Magazine, the fries are hand-cut; the potatoes sticks keep their skin and are soaked in water then partially cooked and sunk into hot peanut oil in order to get the golden brown color.
They then come up crispy, creamy, sweet and are seasoned with salt or Cajun spice mix and shaken in a cup that is placed in a paper bag. (Palermo.2007) About the meat, this magazine also mentions that it is different because it is crunchy at the edges and tender inside (SJ Magazine, 2008, Vol. 8) which happens because the meat is prepared from fresh ground beef, not frozen. Also, the bread is made every day from the same bakery and distributed to the closest stores. The owner of one of these bakeries was once an employee of the Five Guys Burgers and Fries until the Murrell family made him part of their business. Taking this into account, the bread will have the same quality for every store. (Sailors. 2011) a) Family oriented business type: The Five Guys Burgers and Fries treat their employees with respect and also encourage them to keep the values of the business by expending 1.5% of their revenues in bonuses for their best employees instead of expending 3% on marketing. Michael Murray also said: They come and visit us, they know who we are. (Odish. 2012).
Furthermore, in my opinion, the fact that the Murrell family keeps the control of the franchises by making the rules the same for everyone has busted their success. Wherever you go, you will find the same quality of food and the same flavor. The aim to make franchising work on their terms. (Rosenwald. 2006). Janie Muller explains the way her family sees and manages their business when she said: We are a family and we have gone in this journey together. (Rosenwald. 2006). Jerry Murrell also explains that it is important to have the employees feel a sense of ownership and accountability (Wiley Plus, 2012). This behavior toward the employees is also a good strategy because when the employees feel that they are treated like partners, they act with consideration and respect for the business and the one those who have given them the opportunity. a) Quality and Care: Overall, these qualities have made of The Five Guys Burgers and Fries special and different from others in the fast food chain. Whoever cares for its customers received appreciation in return Murrell said (Welch.2010).
Encouraging their employees to keep their stations clean, auditing them twice a week from two different third parties, guarantees that the employees will comply with their duties not only for responsibility but also for bonuses. Enumerate three factors that contributed to Five Guys Burgers and Fries success in such a short time and what effect, if any, external markets had on these factors. Rogers (1995) refers to innovation as a new idea by someone and diffusion as a process through which an innovated idea is delivered, however Schumpeter, (1939); Tidd, Besant, and Pavitt, (1997) explain that Innovation is a process that includes the creation of a new idea into a product or process that is marketable. (Hussein, et all. 2011). The three factors that have contributed to their success in a short time would be: a) No extra charge for the toppings, 3 refills for their 24 oz. drinks, Customers get to eat peanuts while they wait for their meal to be done. (No cut corners). (Sailors.2011) b) High performance in customer service which produces good word of mouth and eliminates the need for marketing. (All of the money goes into the food).
(Wiley Plus) c) Fresh food for the consumer and incentive for their employees to maintain a good customer service standard. (Quality). Five Guys has perfected the art of the burger, by keeping its beef fresh [never frozen] and cooking your meal while you wait. (Palermo.2008).This is the way many people picture the Five Guys and their business. How external market has influence on the Five Guys success would be the differentiation between the types of products the rest of the market provide (fast food chains), and the way Five Guys does it. We carry the burger alternative to fast food said Todd Stalling. (Michael Rosenwald. 2006). Assess how ethical and social practices are part of the Five Guys culture and provide examples to support your choices. The fast food industry is everyday more competitive due to a large number of fast food chains joining the market and expanding with new ideas. That is why information, ethic, and quality, are important issues.
However, some studies have demonstrated that in certain regions some of these issues are more important than others. For example, in Malaysia the information of the product can influence on the consumers preferences and therefore, on their shopping behavior, so packaging, for Malaysians, is very important rather than innovation or advertisement. (Hossein; et all. 2011). This competition in the fast food industry has forced companies to develop marketing strategies to approach and capture higher market share. (Hossein, Et All.2011). But, innovated ideas and products are still failing because they havent reach the right target or found the right channels of communication to get to the right customer. That is where certain companies like the Five Guys have successfully broken the schema of modern marketing buy focusing on the conventional word of mouth.
To be able to choose the word of mouth as a marketing strategy, the company must be sure that its products and services have no equal comparisons with other companies, Five Guys show this confidence when they put out a board indicating that there is good fast food around the corner if you are in a hurry. (Liz Welch. 2012). The Five Guys Team basically believes that once you treat a person right, that person will do the marketing for you and that is why they also focus on putting all of the money in the food instead of dcor or marketing.
For example, they only use potatoes from Idaho, where they grow slowly and therefore, more solid. They also based their prices on the margins, the price is raised or lowered to reflect their costs. For instance if the tomatoes are scarce and the price is high they will raise the price of the burger instead of eliminating the tomatoes or minimizing the amount of it. (Welch.2010) As explained above, their ethic in keeping quality of their product is so strong that they even made sure that all of the franchises are regulated by the same policy of quality, before they sign a contract with any franchise buyer. The Business Plan is sell a really good, juicy burger on a fresh bun, make perfect French fries, and do not cut corners. (Sailors Jimmy. 2011)
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