Five Guys
ENTREPRENURIAL LEADERSHIP
The Five Guys Story
Jeanne M. Catalano
Strayer University
Authors Note
This paper was prepared for Bus 508 Contemporary Business
Taught by Professor Dr. Nayak
Passion, creativity, and the desire for the Benjamin ignites the flame in which entrepreneurship grows. One such man, Jerry Murrell gave his kids an option: college or run a business, and thus, Five Guys and a Burger was formed in Arlington, Virginia. (Boone, 2012, p. 78). Like all other small businesses’, Jerry faced obstacles such as competition, supply and demand, and capturing market share all while trying to maintain an ethical and socially responsible business. Jerry has maintained this success by following one simple recipe for success: burger and fries (“Five Reasons,” 2010). This simple concept along with his 5 rules of the business: best salesman is the customer, every position has ownership, know what your good at and stick to it, quality is everything, and employee incentives has catapulted Five Guys into over 16 years of business. (“Five Reasons,” 2010). Since 1986, despite the recession, the beef crisis, and competition, Five Guys have not only sustained their business but have almost doubled in size. Over the years, Jerry has stood by his original value to just sell burgers and fries and execute it well (Joiner, 2012). His philosophies have remained strong and his success can be attributed to three main factors: Product specialization, human resources, and branding. Product specialization, has given Five Guys the competitive differentiation they need in the market. Burgers are made to order and fresh never frozen with up to 15 free toppings (Boone, 2012, p. 78). This leads to over 250,000 burger combinations (FGH, 2012). Under FAQ’s they only use 80/20 chuck ground beef for quality and cow fat is absent. They always cook their burgers well done to ensure a consistent juicy flavored product across the board that meets health code standards (FGH,
The Five Guys Story
Jeanne M. Catalano
Strayer University
Authors Note
This paper was prepared for Bus 508 Contemporary Business
Taught by Professor Dr. Nayak
Passion, creativity, and the desire for the Benjamin ignites the flame in which entrepreneurship grows. One such man, Jerry Murrell gave his kids an option: college or run a business, and thus, Five Guys and a Burger was formed in Arlington, Virginia. (Boone, 2012, p. 78). Like all other small businesses’, Jerry faced obstacles such as competition, supply and demand, and capturing market share all while trying to maintain an ethical and socially responsible business. Jerry has maintained this success by following one simple recipe for success: burger and fries (“Five Reasons,” 2010). This simple concept along with his 5 rules of the business: best salesman is the customer, every position has ownership, know what your good at and stick to it, quality is everything, and employee incentives has catapulted Five Guys into over 16 years of business. (“Five Reasons,” 2010). Since 1986, despite the recession, the beef crisis, and competition, Five Guys have not only sustained their business but have almost doubled in size. Over the years, Jerry has stood by his original value to just sell burgers and fries and execute it well (Joiner, 2012). His philosophies have remained strong and his success can be attributed to three main factors: Product specialization, human resources, and branding. Product specialization, has given Five Guys the competitive differentiation they need in the market. Burgers are made to order and fresh never frozen with up to 15 free toppings (Boone, 2012, p. 78). This leads to over 250,000 burger combinations (FGH, 2012). Under FAQ’s they only use 80/20 chuck ground beef for quality and cow fat is absent. They always cook their burgers well done to ensure a consistent juicy flavored product across the board that meets health code standards (FGH,
References: Boone and Kurtz. (2012) Contemporary Business. Hoboken, New Jersey: John Wiley and Sons. Burke, Monte. (2012, July). Five Guys Burgers: America 's Fastest Growing Restaurant Chain. Forbes Five Guys Holdings. (2012). About Us. Retrieved on April 26, 2013, from: http://www.fiveguys.com/ 5 Reasons Why Five Guys is a Big Success. (2010). Retrieved April 25, 2013, from: http://www.inc.com/ss/five-guys-burgers-and-fries#1 Hirsch, Claudia. (2013, April). Repeat: Reality Check: U.S. Meat Prices Gains Restrained So Far Joiner, Lottie. L. (2012, August). Five Guys found simple recipe for success: Do it right. USA Today. Retrieved April 26, 2013, from: http://usatoday30.usatoday.com/money/economy/story/2012-07-29/five-guys-ceo-jerry-murrell/56541886/1