Supply Chain World - Volume 7, Issue 3 - 34

food & beverage five guys

the company's use of technology allows it to react to
real-time data and creates a competitive advantage over
others in the industry.
"A lot of competitors do not measure and adhere to the
cold chain requirements as closely as we do," he states,
noting that this helps Five Guys ensure that its quality
is never compromised. "Maintaining visibility of our
trucks at all times is key to ensuring we stay proactive if
anything deviates from spec."
"Catching a temperature discrepancy en-route gives
us the capability to have the carrier make adjustments
live in the field and avoids shipments being rejected
upon delivery," he adds. "This not only avoids potential
claims and losses but also ensures inventory levels are
not disrupted."
Five Guys also has implemented FoodLogiQ, a new
platform that gives visibility to safety and quality issues
in its worldwide operations. For example, if one of its
locations receives the wrong goods or if a truck is late,

Consistent Quality

When Five Guys opens a new location, it makes sure to keep the experience
consistent with what a customer would find in another of its locations. "The
Murrells want the whole experience to be identical," Jason Lee says.
"Our view deviates from the strategy that many food chains have in trying
to tweak things to match local tastes," he explains. "Five Guys wants to stick
to their guns and deliver the same high-quality consistent taste regardless of
which one of our stores you are in. They want their hometown customers'
experience to be replicated worldwide."
This is not always easy for a company that has goals of opening locations
in eight to 10 countries each year. The company can only accomplish this
by keeping a close eye on its demand and inventory levels with longer
lead-times across waters. "This is something you have to monitor on a daily
basis," Lee says.
The company also regularly ships products from legacy suppliers in the
United States overseas to the Middle East and Asia-Pacific. However, "We're
able to source local items in Europe," he notes. "The capabilities are there."

the platform makes sure that issue is reported to the
appropriate person.
"It's a proven tracking system for a wide breath of
issues experienced at the store level," he says, noting
that Five Guys also uses FoodLogiQ to house documents
related to certifications, third-party audits and inspections. "We use it as a data repository."

New Additions
As the number of competitors to Five Guys continues
to rise, the company has enhanced the level of delivery
services made available to its customers to maintain
market share. Initially Five Guys was hesitant to begin
offering new delivery services due to fears of compromising quality.
"Any time our product leaves our stores and is given
to a delivery service, it sits in the hands of an unrelated
party, and the quality is put at risk," Lee says. "We don't
want our customer's first experience to be tainted, or a
loyal customer's consistent expectation to be broken,
because it was affected in transport by an unrelated
third-party."
Accordingly, Five Guys has addressed this risk and
adjusted to changing customer demands by investing in
packaging changes that enhances freshness and using
tampering proof systems to ensure food safety. These
packages also help make Five Guys' operations more
green. "We want to stay ahead of all the environmental
sustainability initiatives," Lee says.
"As a company, we want to prioritize being environmentally conscious," he asserts. "This is an initiative
addressable not just in the United States, but all throughout the world."
For example, various regions in which Five Guys
maintains operations have passed restrictions limiting
or banning the use of plastic. To adjust, the company
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Supply Chain World VOLUME 7, ISSUE 3

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Supply Chain World - Volume 7, Issue 3

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