Entrepreneurial Leadership: Five Guys

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Table of Contents

Introduction
How the Five Guys Philosophy is Different from other Fast- food Chains
References

Introduction

Five Guys grew from a minute family eatery to an exceptionally huge American restaurant chain. It is worth pointing out that the company does not invest in any principal marketing strategies.

On the contrary, there is a keen focus on comprehending the client’s needs and how the needs can be catered for consistently. The company was established in 1986. The original restaurant was based in Virginia, Arlington. Within no time, Five Guys was recognized as Washington D.C.’s area pearl (Longenecker et al, 2011).

Janie and Jerry Murrell presented two choices to their sons; to either enroll for college or initiate a business. The four sons preferred starting a restaurant. Their parents were the supervisors. By the year 2001, the family was operating five restaurants. Moreover, the company started giving franchise chances in the year 2002.

Presently, more than twenty six years after initiation, the company has one thousand locations in the entire nation. The company is also planning to initiate an additional one thousand five hundred locations (Singer & Piluso, 2010).

This paper aims at highlighting how the philosophy at Five Guys differs from other fast- food chains’ philosophies. In addition, the factors that contributed to the rapid growth and success, social and ethical practices, strengths, and original values will be discussed.

How the Five Guys Philosophy is Different from other Fast- food Chains

Quality is everything

The company invests greatly in quality. The buns are usually toasted on a grill, which is quick, less expensive, and produces even toasting. Lean and unfrozen meat is provided, and the plants are fresh and clean. Moreover, burgers are made on order (Flamholtz, 2011).

Employee incentives

A majority of the companies dedicate their revenues towards advertisements and marketing. On the contrary, Five Guys acquires 1.5 percent profit from franchisees. In addition, it offers bonuses to the best crews. This ensures the company’s profitability.

Recipe for success

The company focuses on selling perfect and juicy burgers, exceptionally fresh buns, and perfect French fries. The company has stuck to the same business plan since initiation and has five secrets to its success.

The customer is the best salesman

Once a customer is treated well and leaves satisfied, he informs others about the company and its products. The company aims at creating the impression that all its money goes into providing perfect products. In this regard, the company does not invest in décor and impressive suits for the employees. On the contrary, these are exceptionally simple. However, the company has a keen focus on food (Ekvall & Arvonen, 1994).

Every position possesses a value

The management emphasizes that the clients should have a sense of accountability and ownership. The company has auditors and pays the employees depending on their performance. The company advocates for accountability among the employees.

Know your best and stick to it

The company is humble and listens to the customer’s requests. The company has tried other products such as coffee and chicken sandwich. It specializes on what it is best at; hamburgers and fries.

Original Values and Strength

Five Guys has maintained consistent values since the beginning. The company invests in high quality and fresh ingredients. In this regard, the company has identified influential and credible suppliers. Supplies are made on a daily basis. The second principle is high quality customer service. Five Guys ensures that all the clients are served professionally and with utmost courtesy.

All customer requests are handled promptly and complaints are solved with crucial understanding and humility. The company ensures that cleanliness is maintained in all departments (Boone & Kurtz, 2012). For several years, Five Guys has been dedicated to offering clients with only the best.

Factors that Contribute to Success and Effects of External Markets on the Factors

It is worth emphasizing that the company invests in a relatively simple business plan. It ensures provision of high quality food. Five Guys has exceptional customer care services and ensures a very friendly and clean environment.

The company strives to maintain the original values it had from the beginning, which have enabled the company to remain strong. The values are the customer’s importance, worthiness of employees, knowing what the company does well and specializing in it, employee incentives, and quality, which have promoted the company’s survival.

Social and Ethical Practices as Part of the Culture

Five Guys always ensures a friendly environment. The company benefits from the customers’ positive comments. It knows that this is the most effective marketing strategy as opposed to dedicating huge sums of money towards advertising. Satisfied customers always spread the positive word, which brings in more customers.

Five Guys ensures that all customer complaints are handled promptly. There are hardly any complaints. Customers are also given an opportunity to voice their suggestions. This ensures that the products match the customers’ requirements. The company makes products on order basis. This ensures that the ingredients used match the customer’s preferences.

References

Boone, L. E. & Kurtz, D. L. (2012). Contemporary business (14th ed.). Hoboken, NJ: John Wiley & Sons.

Ekvall, G., & Arvonen, J. (1994). Leadership profiles, situation and effectiveness. Creativity and Innovation Management, 3(3), 139-161.

Flamholtz, E. G. (2011). The leadership molecule hypothesis: implications for entrepreneurial organizations. International Review of Entrepreneurship, 9, 1-23.

Longenecker, J. G., J William Petty, I. I., Palich, L. E., & Hoy, F. (2011). Small business management: Launching & growing entrepreneurial ventures. London: South-Western Pub.

Singer, J., & Piluso, J. (2010). Five tools to prepare for future discontinuities. Strategy & Leadership, 38(1), 17-21.

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