25 July 2013
Entrepreneurial leadership is organizing a group of people to achieve a common goal. This paper will take a look at how Five Guys’ philosophy sets it apart from other fast-food chains, analyze the original values for the start-up company, how it remains strong today, enumerate three (3) factors that contributed to Five Guys’ success in a short time and what effect, if any, external markets had on these factors while assessing how ethical and social practices are part of this corporate culture.
The Five Guys philosophy that if you're going to sell hamburgers and french fries in a restaurant industry that is crowded with hamburger-french-fries chains, you'd better do hamburgers and french fries better than anyone else.
In these economic times of do more with less the owners of the Five Guys restaurant chain have obtained great success by keeping it simple. This simplicity ...view middle of the document...
-Every position at the company has value and this is shown thru performance based monetary incentives
-Know what you are good at and stick with it-make burgers and fries
-Quality Is Everything
"The magic to our hamburgers is quality control," Murrell says. "We toast our buns on a grill – a bun toaster is faster, cheaper, and toasts more evenly, but it doesn’t give you that caramelized taste. Our beef is 80 percent lean, never frozen, and our plants are so clean, you could eat off the floor. The burgers are made to order. That’s why we can’t do drive-thru’s – it takes too long. We had a sign: “If you’re in a hurry, there are a lot of really good hamburger places within a short distance from here.” People thought I was nuts. But the customers appreciated it."
The owners’ philosophy of better hamburgers and french fries is one that seems to have set them apart from the other major hamburger chains if growth rate and profits are indicators. It seems that the idea of doing it better has worked. And doing it better had been done by treating customers as if they are needed by you, serving hot, fresh not over processed or frozen foods, and by making every customer a sales person for your product. Another supporting feature that supports the concept of doing it better is the human capital element. It has been said that a business is only as good as it’s employees. Again Five Guys has grasped this concept and embraced it by placing value on every employee through various employee programs. This concept of recognizing the value of human capital is done by developing a sense of ownership and responsibility in every employee. This sense of ownership is then translated into employee incentive bonuses for stores that score well on quality audits.
Sell a really good, juicy burger on a fresh bun, make perfect French fries and do not cut corners. These were the basic values that started Five Guys over twenty years ago and these ideas still contribute to the ongoing success of the company today. For without the foundational values of product freshness, product quality, cleanliness and quality service the business would likely falter.