Five Guys Digital Marketing Strategy

Jason Geier, Michael Averbeck, Matthew Barker, Sarah Comunale, Callie Peters, Ni Ye, Kevin Spencer

Five Guys History– 1986: The first Five Guys location opens in Arlington, VA.– 1986 - 2001: Five Guys opens five locations around the DC

metro-area and perfected their business of making burgers... and starts to build a cult-like following.

– 2002: Five Guys decides DC metro-area residents shouldn't be the only ones to experience their burgers and start to franchise in Virginia and Maryland.

– 2003: Five Guys sells out of franchise territory within 18 months and starts to open the rest of the country for franchise rights.

– 2003 - Present: Five Guys expands to over 1,000 locations in 47 states and 6 Canadian provinces.

Five Guys Random Facts• There are over 250,000 possible ways to order a burger at

Five Guys• Use only fresh ground beef.• There are no freezers in Five Guys locations, just coolers.

Nothing is ever frozen.• Use only Peanut oil.• The company is the fastest-growing fast food chain in the

United States, with a 32.8% sales increase from 2010 to 2011

Demographics• Gender

– Male: 75%– Female: 25%

• Age– 18-39

• Income– $35,000 or greater

Current Marketing

• Word of Mouth– Let the food do the talking

• Spend minimal amount of money on marketing

Website

Facebook

Twitter

Fast Casual Restaurants

• Distinguishable• Clustering

● Fast growing segment

The Future of Fast Casuals• Sales forecasted to show an increase of 10.5% in

2013• 9% of consumers have increased the number of times

they visit fast casual restaurants compared to 2012• 26.7% growth predicted from 2013-2018

Fast Casual Marketing• National TV ad campaigns ineffective• Use social media to access millennials

Fast Casual Marketing Techniques

• Out-of home advertisements• Sweepstakes/contests• Retail items• Social media interaction• Sponsorships• Cause and charitable programs• Local community involvement• Freebies to stimulate trial use• Coupons and loyalty programs instead of

discount pricing

Fast Casual Marketing

• BOGO, printed coupons, and daily specials encourage visits to fast casuals

Chipotle: Visual Marketing• Does not focus on menu items or discounts• Focuses on supporting farmers and fresh

food• TV ad campaign in 2011 • Summer 2013 follow up • Scarecrow game

Chipotle: Social Media Marketing

• Adventurrito– 20 day promotion of daily puzzles – Social media also used to give hints

Chipotle: Loyalty Program• Invitation only• 5,000 members as of Aug 2012 who receive

benefits• Program will eventually be open to all

Noodles and Company: Out of Home Marketing

• “Your World Kitchen” campaign in April 2013

Noodles and Company: Out of Home Marketing/Social Media

• Fresh Vegetables Masterpieces photo contest on Facebook in April 2013 (#NoodlesSpring)

Smashburger: Freebies

• Gave away a free Classic Smash to anyone with the last name “Burger” or variation thereof to celebrate National Burger Day on May 28, 2013

#OneOfTheGuys

• Twitter Campaign to bolster twitter community involvement– Twitter is the best channel to keep with Five Guys’

“secret marketing” strategy already established.– Will hopefully gain “verified” status by reaching 100k

followers.

• 1-2 times a week, Five Guys will announce a phrase• Repeated to cashier in-store to receive discount/benefit• Interactive way to gain involvement from audience while using

Twitter as the medium to draw people into the store.• “Exclusive” feel, consumer feels special.

#OneOfTheGuys

#OneOfTheGuys” Example Posts

Secret Word: Peanut Oil

“Everyone loves our fries. Say “peanut oil” to the cashier to receive a free LARGE upgrade today only! #OneOfTheGuys”

Secret Word: Presidential Burger

“Every customer gets special treatment at Five Guys. Say “Presidential Burger” to the cashier & get 15% off the presidential burger today! #OneOfTheGuys”

#OneOfTheGuys” Example Posts

Secret Word: “Variety is the slice of life!”

“Say ‘variety is the spice of life’ to the cashier today to get a free extra patty on your Five Guys burger! #OneOfTheGuys”

#OneOfTheGuys” Example Posts

Secret Word: Cheese Fries

“Say ‘cheese fries’ to the cashier to make your regular order of fries into (secret menu) cheese fries for free! #OneOfTheGuys”

#OneOfTheGuys” Example Posts

Secret Word: “I’m A Fanatic!”

“It pays to show Five Guys how much you care! Say ‘I’m a fanatic’ to the cashier to get a free fountain drink today! #OneOfTheGuys”

#OneOfTheGuys” Example Posts

Secret Word: Cajun Style

“Some like it hot! Say ‘Cajun Style’ to the cashier to get 15% off your order today! #OneOfTheGuys”

#OneOfTheGuys” Example Posts

Key Benefits:

● Increased involvement with twitter community.● Increased in-store foot traffic.● Increased knowledge of Five Guys with

introduction of “secret menu” items and info about the company.

● Relatively low-cost per incentive per consumer.

#OneOfTheGuys”

Digital Benefits:

● Incorporation of Twitter feed in the app will get more people to use the app.

● Increase in followers will eventually lead to “verified” account, giving people more trust in the company.

● Incentivized participation/reaction to tweets.

#OneOfTheGuys”

Creative Side of MarketingIn order to have a digital presence, Five Guys will have to update their digital look and upkeep their digital presence. Two things are necessary for this:

● Employing a graphic designer● Hiring an employee to run the social presence for

the company

Creative Side of MarketingWith a graphic designer/digital on payroll, Five Guys will now have:

● A uniform look to their Facebook/Twitter once a template and layout is created for each.

● Pre-made templates for Facebook/Twitter blast regarding our campaigns

● A professionally designed logo for #OneOfTheGuys to go on contest t-shirts

Creative Side of MarketingWith an employee to run their social media sites on payroll, Five Guys will now have:

● Someone to regulate what is posted on Facebook/Twitter

● A uniform feel to all of their social media sites● Constant posting to keep the Facebook/Twitter

relevant on on customers Feeds

Twitter PrizesHow to enter• Tweet that day’s secret word with the

hashtag #OneOfTheGuys• Need your location enabled on your

tweet.

Prize Levels

Regional• Shirts/merchandise• Visa Gift CardsGrand Prize

• Trip to the Super Bowl

New Design for App• New login page• Connect with other

accounts

New Design for App• Message notice• Edit groups

New Design for App

• Login everyday process• Get prize with Day 15/30

New Design for App

• Consumers design own burgers• Edit the name of their collection

New Design for App

• Order-online page redesign• Add more option

New Design for App

• New information for new stores

New Design for App

• See others snapshot• Share yours

New Design for App

• Directly see news on apps

• Delete option

New Design for App

• Same as FB groups• Delete option• Share yours

New Design for App• Only can see five guys

members login account• Secret words page

New Design for App• Sliding with your fingers• Special meal on Holiday• Have to go to store to

get secret words

New Design for App• A winner everyday• Shake phone to see

winner• Expire everyday

New Design for App

• Secret word page• Once a week• Tweet it

Budget Obtained for Campaign• Stores average about $350,000 in sales per year• 1000 stores nationwide = $350 million annually• 2% - 5% spent on the promotion• Budget: $7 - $17.5 million

Discount Costs• Store average $350,000 per year• $29,000 in monthly sales• 15% increase in sales from promotion• New monthly sales: $33,000• 10% in freebies = $3330 per month/$10,000 for

3 mos• 1000 stores = $10 million in discounts

Prize Costs• $1000 Visa gift cards to 10 winners in each of 4

regions in each of 3 months.• $1000 x 10 x 4 x 3 = $120,000 in monthly

winners• Grand Prize = $40,000 (super bowl tickets plus

expenses)

Annual Sales Increase• 15% increase in monthly sales = $4500• $4500 x 3 months x 1000 stores = $13.5 million

Total Campaign Costs• $10 million in discounts

– $160,000 in prizes– $100,000 App redesign– $100,000 Marketing creative

• $10.36 million in expenses• 3% of annual sales

Gains from Campaign• $13.5 million increase in sales• $10.36 million in expenses• $3.14 million revenue gain