Question

Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations - one that is or may soon be near this Wendy's?

A. Burger King
B. In-N-Out Burger
C. McDonald's
D. Five Guys Burgers
E. Smashburger

Answer 1

D) Five Guys Burgers

Step-by-step explanation:

Five Guys Burgers is the fastest growing fast food chain in the US, although that can be explained due to its relatively small size compared to other huge chains like McDonald's, Burger King or Wendy's. It currently operates 1,500 restaurants around the world (most in the US) and plans to open 1,500 more in the next few years.

Its greatest advantage is that is offers a differentiated service and its relative small size allows it to be more flexible. Its website also gets a lot of online traffic.

The combination of all these factors means that they have a lot of potential to grow and gain a higher market share.