Five Guys

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COVER PAGE Group 5 Strategic Management Final Project Report - Five Guys Table of Content Five Guys’ Strategy Analysis - Final Report Industry: Casual-fast restaurant in Canada Company: Five Guys Contact: Michael Oppedisano, from Asst. Controller at Bantam Restaurants Part 1: Organizational Introduction Five Guys has been a Washington, DC favorite since 1986 when Jerry and Janie Murrell offered sage advice to the four young Murrell brothers: “Start a business or go to college.” The business route won and the Murrell family opened a carry-out burger joint in Arlington, Virginia. Their mission was to serve an unparalleled burger made with fresh ingredients, in a clean environment and with a reasonable price. In order to achieve…show more content…
Part 2: External Environment Although Five Guys is present throughout North America, our main focus will be on the fast-food industry within Canada. In particular, Five Guys competes in the fast-casual subsegment, which consists of restaurants that offer both the convenience of traditional quick service restaurants (QSR) and the quality and experience of casual dining. The Canadian fast-food market was valued at $7.6 billion in 2011, and expected to grow by 16.2% to reach $8.8 billion in 2016 (MarketLine Advantage, 2011). Tim Horton’s, McDonald’s, and Subway have remained the three major players in recent years (Passport GMID, 2014). In order to have a better grasp of the industry structure, we will perform a Porter’s five forces analysis. First, the threat of substitutes is low. Fast-food restaurants differentiate themselves from alternative food options based on convenience and cost. The fast casual segment further distinguishes itself by adding the advantage of quality. On the other hand, the intensity of existing rivalry is high. The Canadian fast-food industry has numerous players, from large chains like McDonald’s to small independent fast-food restaurants. Since price is an important distinguishing factor, price competition is common, as can be seen

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