Five Guys Business Analysis

Topics: Franchising, Fast food, Hamburger Pages: 3 (1149 words) Published: June 25, 2011
Five Guys is a fast casual restaurant chain that originated in Arlington, Virginia[->0] within the Washington Metropolitan Area[->1]. The chain sells mainly hamburgers[->2], hot dogs[->3] and French Fries[->4]. Five Guys enterprises has grown from a single family owned restaurant to a franchise with 450 locations in thirty states. Five Guys opened its doors to Arlington, Virginia in 1986. The restaurant was started by four brothers who were given the choice to start a business or go to college by their parents. The burger and fry shop drew in a ‘cult-like’ clientele base which demanded the opening of four additional locations in the Metro D.C. area between 1986 and 2001. At that point, the family decided that they should expand beyond D.C. to give more people the opportunity to experience their food. In 2002, they opened franchise opportunities limited to D.C., Virginia, and Maryland, and in 2003 to the rest of the country. (Five Guys Inc, 2008) ØFranchise -- A franchise is a legal agreement that allows one organization with a product, idea, name or trademark to grant certain rights and information about operating a business to an independent business owner. In return, the business owner (franchisee) pays a fee and royalties to the franchisee. ([->5]) A big role in the decision played the uniqueness or originality of Five Guys. Their concept was different and liked very well. Five Guys was able to compete with other burger restaurants in the area and make a good profit. Their formula for success: a simple, virtually minimalist menu of freshly prepared food, served at nearly the speed of a fast-food establishment. Franchising is a quick and easy way to expand your business without having to put up your own capital as the franchisee will put up the money. Franchising also strengthens your brand and credibility. In 2001 Five Guys had 5 locations open and all were very popular so franchising the company was most likely a logical decision....
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