If you don’t have a competitive advantage, don’t compete.
- Jack Welch
Can you think of a more competitive market than fast food restaurants? I have not been able to come up with one. This blog will show how Five Guys Restaurant provides for competitive growth in a very competitive market segment.
Five Guys has been a Washington, DC favorite since 1986. It was then that the parents offered the brothers the option of college or starting a family run business … as the story goes. The business option won and the carry out burger business was launched in Alexandria, Virginia.
During the 1980’s and 1990’s they perfected their trade with expansion in the area and adding the eat-in the restaurant feature. In 2003, they were finally convinced to franchise and their business has continued to grow on the national scale.
What is the secret of this small business’ growth, you ask?
It is not rocket science, but it is a hard lesson for many businesses to learn (especially small businesses). The question businesses in highly competitive markets need to answer is the following:
How do you make a difference to someone who has infinite choice?
Five guys … just another fast food restaurant? Not so fast … consider their value discrimination:
Always fresh beef, never frozen
Fresh cut (from real potatoes) French fries. If you have visited a restaurant, you noticed the bags of potatoes in a visible portion of the establishment.
Burgers are cooked by hand, not a machine
Many options for burger fixings and potatoes
Still fast service
So the answer to the question of Five Guys success in a highly competitive market?
Build and maintain competitive advantages around what your target customers are looking for.
What are some of your business’ competitive advantages that you would share?
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