5Guys is a well-known American fast casual restaurant chainfocused on hamburgers, hot dogs and French fries. It hasgrown rapidly in the past 20 years and now has more than 1500 storelocations. Its menu, especially its bacon and cheeseburgers, are well regarded, and have received numerous awards andmentions. In fact, the chain has something of a cultfollowing. Suppose 5Guys is considering offering aplant-based, non-meat burger using a “Beyond Meat” patty in itsU.S. stores. The goal of introducing such a meatlessburger alternative is to increase 5Guys’ sales revenue.
The textbook describes various growth strategies firms mayadopt. A well-known framework for assessing growthopportunities is the “product/market expansiongrid.” Your task is to identify which of the fourstrategy options in the matrix (grid) best matches with 5Guys’proposed meatless burger. Briefly explain why thestrategy you selected is better than the other possibleones. Begin your answer with the name of thatstrategy.
4 strategy options
- Market penetration.
- Product development.
- Market development.
- Diversification.
