Entrepreneurial Leadership

Entrepreneurial Leadership

Five Guys Burgers and Fries: Ingredients for Success

BUS 508 – Contemporary Business

Strayer University

July 28, 2012

Quality versus low prices has been a well know debate in the Business world for years. The opinion of what is quality is very subjective and may be defined differently among various people. Customers may measure the quality of a product or service based upon various specifications or compares them to similar products and services produced by their competitors. Producers may measure the quality of a product or service simply on the degree in which the product or service is effectively produced. All of this must be taken into consideration when developing a business strategy for the start up of a new business venture.

In 1986 when Jerry and Janie Murrell founded the first Five Guys, Jerry felt he would need to concentrate on the quality of their product and the satisfaction of their customers in order to be able to compete with other experienced fast-food chains. Jerry Murrell’s business plan was very simple “Sell a really good, juicy burger on a fresh bun. Make perfect French fries. Don’t cut corners” (Welch, 2010). Jerry also made the decision not to spend money on advertising. He stated that they were going to use their food to market the products. The Best Salesman is the customer (5 Reasons Why Five Guys is a Big Success). “Treat that person right, he’ll walk out the door and sell for you,” Murrell says (5 Reasons Why Five Guys is a Big Success). Murrell wanted his customers to know that he spent money on quality products. The Murrell family also does not spend a lot of money on the décor of their restaurants. The décor is kept very simple and has been compared to a military canteen or a 1950s dinner (Yu, 2009).

Through the years Five Guys has keep their menu simple, served the same quality food and kept their décor simple. This philosophy has set them apart from other...