Entrepreneurial Leadership
BUS508
25 July 2013

Determine how Five Guys’ philosophy sets it apart from other fast-food chains.
“Do you want to flip burgers your whole life!” How many times has a parent said this? Even though this is usually said out of sarcasm this line of work has been very good for the Murrells. The founder and owner of Five Guys Burgers and Fries Jerry Murrell started with a business plan of keeping their business limited and simple and sticking by his philosophy of providing a quality product at a reasonable price in a clean environment. Five guys spends the most out of its competers to product a quality product. When Jerry Murrell began franchising he was just a small burger operation with an almost cultish following in Northern Virginia. Today, the business is, by some, estimated heading in the direction of the $1 billion in value mark.
Analyze the original values of the start-up company and how it remains strong today. During the early years the Murrells’ worked long and hard to prefect their product. And to this day Five Guys serves up made-to-order burgers with beef that’s never frozen and absurdly large servings of hand-cut fries. Murrell stated that each topping was a family decision and something that was taken very serious. Having accomplished creating a successful product the Murrells now focus on maintaining this quality by paying attention to detail. One way that the Murrells ensure that the product quality is maintained is by writing detailed franchise contracts. The details of the contract go as far as to state the number of bacon strips or pickles that are placed on the burger or as requested by the customer. Another valued preparation technique is that they toast their buns on a grill, even though a bun toaster is faster and cheaper, it doesn't give that caramelized taste that the Murrells value. The Murrells leave no bun unturned.
Enumerate three (3) factors that contributed to Five Guys’ success in such a short time and what effect, if any, external markets had on these factors. 1-The customer is the main source of advertising. The Murrells live by the motto of, treat people right and make them happy and they will sell for you. The Murrells also shun national advertising campaigns which they find fake. They rely on word of mouth advertising. When President Obama moved to the White House, a Five Guys staffer suggested sending him a T-shirt. “That’s cheap!” Murrell shot back. Playing coy worked, and soon Obama, trailed by TV cameras, stopped by a store and he ordered a cheeseburger with lettuce, tomato, fresh jalapeños, and mustard—a classic example of Five Guys’ formula that sells 2 million burgers a week and had them named Zagat’s “best fast food burger” for 2010. 2- From the onset one of Murrell’s business concepts was that he wanted people to know that a portion of the profits are rolled back into the product, not the décor. All stores are very simple in design and uniform, Red and white tiles, bags of potatoes on the floor and simple pictures on the walls. 3-One of the first factors of success was their fries. The delicious and plentiful serving of Idaho potatoes that are obtained north of the 42 parallel are a perfect example of the Murrells philosophy of not cutting corners.
Assess how ethical and social practices are part of the Five Guys’ culture and provide examples to support your choices.
Since the beginning the Murrell’s have always felt a social responsibly. One way that the company facilitates their social and ethical beliefs is by implementing various employee incentive programs which are designed to maintain the quality of the product while instilling a sense of ownership and responsibility in every employee. This sense of ownership is then translated into employee monetary incentive bonuses for stores that score well on quality audits.
Jerry and Janie Murrell and their sons are frequently questioned how they turned Five Guys into such a huge success. The formula probably includes a combination of their philosophy of quality, value of their customers and their ethical and social business practices. Someone once told Mr. Murrell that anyone can make money in the food business as long as you have a quality product, reasonable prices, and a clean place. Mr. Murrell took this statement to heart and into his business plan along with leaving no detail untouched and nothing is too small to receive attention.

References
Boone, L. E. & Kurtz, D. L. (2012 Update). Contemporary business (14th ed.). Hoboken, NJ: John Wiley & Sons.
"History". Five Guys Holdings, LLC. Archived from the original on July 19, 2011. http://www.fiveguys.com/history.aspx.
Rosenwald, Michael S. (April 3, 2006). "Five Guys, Taking a Bigger Bite". The Washington Post .http://www.washingtonpost.com
Noah Galuten (May 28, 2010). "CSPI Releases Its Annual List Of The Fattiest Foods In America". LA Weekly. http://blogs.laweekly.com/squidink/food-lists/fattiest-foods-extreme/. "Virginia Beach Best Food & Dining". HamptonRoads.com. Landmark Media Enterprises L.L.C. Archived from the original on August 27, 2007. http://home.hamptonroads.com/best/winners/directory07.cfm