Five Guys beginning philosophy is to serve limited menu that includes just Burgers, fries, hot dogs and drinks, the best part is no science experiments are involved, like the burgers are 100% percent beef, fresh never frozen and hand puttied and the potatoes hand cut and deep fried in Peanut oil. The management is focused not only on food but also the overall restaurant cleanliness, employee attitude and paying rewards and bounces versus employee’s outstanding performance is number one to get employee buy-in.…
Chipotle Mexican Grill is a famous restaurant in the United States. Restaurant industry is considered to be unattractive field based on Porter’s five forces. Foremost, the threat of entry is high in restaurant industry because the customer switching costs is low and it does not require intensive capital investment as auto industry does. Most restaurants purchase raw food materials in bulk, which creates supply-side economies of scale. Though some restaurants have suppliers that provide organic food or special sauces, considering the restaurant industry as a whole, the power of suppliers is moderately low. The reasons are that the number of suppliers is as many as the restaurants and the switching costs are low for buyers. The power of buyers is relatively high because the survival of the restaurants depends on how frequent the customers visit. If a restaurant does not have some royal customers, it will eventually be squeezed out of the business. Moreover, the threat of substitutes is high since customers have other options to get foods besides going to a restaurant. For example, some people prefer homemade meals while other people would like to consume frozen pizza or premade salads from grocery stores. The last force is rivalry and it is intensive among all restaurants. Different restaurants take different strategies to attract customers, such as new food innovation, services improvement and customer royalty program.…
Five Guys’ ingredients keeping their business strategy simple (menu just burgers and fries) while carry out quick and essential cooking procedures (no timers in the kitchens, fries must be shaken fifteen times, no more, no less), burgers are press down just once this keeps the juice in them so they won’t be dry. The five Guys’ ingredients can be somed-up as being apart of it’s philosophy is to concentrate on just a few things and do them right. (Hart, 2010) Weise, from Business Week (2011) stated the family had opened five lcoation around DC metro-area between 1986-2001. Welse, a columnist for Inc.com (2011), says they decide to take the leap and franchise in 2002 after much nudging. In the first two years they sold the rights to 300 stores, which the franchises run as independent businesses but according to Five Guys’ standards.…
In my opinion what makes Five Guys’ Burgers and Fries different from other fast food chains are the following characteristics:…
Success can be defined as the achievement of something desired, planned, or attempted (2013). Some say success it’s only a mere standard we strive for in order to compensate for the things we don’t have. However you may define success obviously everyone wants to live the American dream. With over 570 locations in the United States alone (Kurtz, 2012), I think it’s safe to say The Five guys fast food chains has surly discovered the key to success. Five guys have endured immaculate success not only because they have great burgers, but also because they have a philosophy that sets them apart from the competing fast food chains.…
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 philosophy of Five Guys is simple: fresh ingredients never frozen. There are no freezers only coolers in their restaurants. They have no drive-thru window and do not deliver. This sets them apart from many other restaurants. They are not your typical burger joint. Everything is made on premises at each individual franchised location. Most burger places are fast food, with a drive –thru window, and many options of their menu. However; Five Guys just wants to make burgers and fries. They keep a simple menu to ensure quality of food. They know they can make a great burger and are not interested in making a mediocre chicken sandwich just to put more on the menu. Five Guys also has simple advertising and décor, unlike their competitors that spend millions on fancy advertising. Jerry has said,…
McDonald’s was able to increase their net income by almost 80% from 2007 to 2008 thanks in large part to their global modify their menus to meet the local consumer’s diet needs such as offering vegetable patties and pushing their chicken menu in India, where cows are worshipped and not eaten. Even McDonald’s is not immune to decline sales and slow economic growth however, as was evident in 2006 when the company was forced to cut costs by 40% in China to reverse declining sales (David, 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.…
Wendy's offers a variety of fast food. The food selection ranges from hamburgers, French fries, salads, chicken, potatoes, and chili. Wendy's income is based on the sale of fast food. The demand of Wendy's service is highly elastic. A change in price will affect demand for products. Wendy's market structure is an oligopoly and has two main competitors; McDonalds and Burger King. In an oligopoly, the market is dominated by a few large producers of a homogeneous or differentiated product. Because of their "fewness," oligopolies have considerable control over their prices, but each must consider the possible reaction of rivals to its own pricing, output, and advertising decisions (McConnell & Brue, 2005). Since there are many substitutes, Wendy's has to be willing to keep their prices and quality of food relative to competitors.…
In-N-Out Burger’s customer-driven marketing strategy is very effective. They know that to have satisfied customers they must have happy, and motivated employees. In-N-Out pays their employees very well compared to other burger chains salaries and offers multiple benefits for all of its workers. This keeps the employees happy, which in turn, makes the customers feel good about eating there (Principles 33-34). In-N-Out Burger needs to deliver superior value to their customers by constructing and integrating a marketing plan. This plan incorporates a supply and distribution system that is unique to the industry. Many of In-N-Outs competitors have a complex distribution service with food products coming from factories all over the country. In-N-Out has always kept their menu simple, by never changing it. They keep company owned distributors close to their stores, they use only fresh foods, and none of their ingredients are prepared in a factory (Principles 33). Customers value this business strategy, which is what In-N-Out wants to create higher customer satisfaction.…
Competitors in the hamburger segment of the fast-food industry employed a number of strategies to prepare for the anticipated decline in hamburger demand. Most diversified their offerings with breakfast and developed new concepts such as drive-through-only units and home delivery. In addition to the anticipated decline in hamburger demand, there were several other pressures facing the industry. The first was changing demographics. Second, experts pointed out that many localities had become saturated with fast-food restaurants. Third, the cost of media advertising had risen dramatically making it difficult for smaller chains to afford this tool for increasing customer awareness. Last, because American consumers remained health conscious, they would continue to demand innovative product offerings that were both convenient and nutritious.…
In Food, Inc., union organizer Eduardo Pena says, “We want to pay the cheapest price for our food. We don’t understand that it comes at a price.” A family who never has time to cook was interviewed in this film. Because they leave their house at 6 in the morning and return 10 at night, they would just go to fast food restaurants and buy most of their meals from there. However, on weekends when they go to the supermarket, they compare the price of the healthy foods and think to themselves “we can get two or more hamburgers with this price”. This shows that people are…
Being a consumer’s preference is crucial to continued success. The market for menu offerings can change based on what’s in season, what’s popular and how a restaurant advertise and promote their goods. For example, promoting a “tasty” bar-b-que chicken sandwich during the summer would persuade customers to try the new menu item, which would increase the demand curve.…
The price of Mos Burger is relatively high compared with McDonald¡¦s. However, as it is in the introductory stage, people are less sensitive to price. Hong Kong people value new products and are willing to pay high price to try something new and unique. Moreover, Mos Burger has very clear relative advantage over its competitors. These all allow skimming pricing strategy to be adopted. Below is the comparative pricing of burgers from McDonald¡¦s and Mos Burger:…