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Chick-Fil-A is closed every Sunday.
Despite being open 52 less days each year, they generate more revenue per location than ANY restaurant in the world.
Their success is no accident. Here's how they did it 👇
Despite being open 52 less days each year, they generate more revenue per location than ANY restaurant in the world.
Their success is no accident. Here's how they did it 👇
Truett Cathy entered the restaurant industry in 1946 after returning home from World War II.
His first restaurant was a small diner in Atlanta called "Dwarf House", named bc of it's small size and limited seating.
His first restaurant was a small diner in Atlanta called "Dwarf House", named bc of it's small size and limited seating.
In the early 1960's, he was approached by a poultry supplier who had excess chicken after fulfilling a large order.
Cathy had been looking to revitalize his menu, so he accepted the offer and began experimenting..
Cathy had been looking to revitalize his menu, so he accepted the offer and began experimenting..
After hundreds of trials, he perfected the formula for the original chicken sandwich:
A breaded chicken breast, 2 pickles, a buttered + toasted bun, made using a pressure cooker and peanut oil.
@ChickfilA says they "didn't invent chicken, just the chicken sandwich".
A breaded chicken breast, 2 pickles, a buttered + toasted bun, made using a pressure cooker and peanut oil.
@ChickfilA says they "didn't invent chicken, just the chicken sandwich".
The sandwich was a hit, and Cathy knew he had to open a restaurant dedicated to it.
With the trademark for "Chicken Filet" already taken, he settled for "Chick-Fil-A", and opened the first location in an Atlanta mall in 1967.
With the trademark for "Chicken Filet" already taken, he settled for "Chick-Fil-A", and opened the first location in an Atlanta mall in 1967.
The restaurant took off as he expected, leaving one question left to answer:
How to expand?
His 2-part strategy has dictated Chick-Fil-A's success for decades 👇
How to expand?
His 2-part strategy has dictated Chick-Fil-A's success for decades 👇
1. Fund stores using profits only
This mentality stemmed from Cathy's experience during The Great Depression.
"Back then, you bought something if you had the cash to buy it. With debt, you have to worry about it"
They have virtually zero debt on their balance sheet to this day
This mentality stemmed from Cathy's experience during The Great Depression.
"Back then, you bought something if you had the cash to buy it. With debt, you have to worry about it"
They have virtually zero debt on their balance sheet to this day
2. Franchisee Selection + Requirements
Much has been written about Chick-Fil-A's unique franchise offering.
Unlike other fast-food franchises that cost millions of dollars, a Chick-Fil-A franchise costs just a $10,000 fee.
Why? Chick-Fil-A fronts the bill for everything else!
Much has been written about Chick-Fil-A's unique franchise offering.
Unlike other fast-food franchises that cost millions of dollars, a Chick-Fil-A franchise costs just a $10,000 fee.
Why? Chick-Fil-A fronts the bill for everything else!
There's pros & cons to this for franchisees, but the low barrier allows CFA to cast a wide net for potential operators.
Today, CFA receives 60K applicants annually, only accepts ~80 (0.13%), and:
• Limits franchisees to 1 store only
• Requires each store to be actively run
Today, CFA receives 60K applicants annually, only accepts ~80 (0.13%), and:
• Limits franchisees to 1 store only
• Requires each store to be actively run
The competitive process + limitations creates the outcome Chick-Fil-A wants:
Only PASSIONATE applicants become franchisees.
Armed with a great product, franchisees trigger a beautiful domino effect that gets customers to come back every time.
Only PASSIONATE applicants become franchisees.
Armed with a great product, franchisees trigger a beautiful domino effect that gets customers to come back every time.
➡️ Passionate franchisees motivate their employees
➡️ Employees provide the "my pleasure" service Chick-Fil-A is known for
➡️ The great customer experience combined with a tasty product drives repeat visits
➡️ Employees provide the "my pleasure" service Chick-Fil-A is known for
➡️ The great customer experience combined with a tasty product drives repeat visits
55 years into the journey, the Chick-Fil-A domino effect is accelerating:
• Opening 100+ restaurants annually 🚀
• Highest avg rev per location in the world 🚀
• Top satisfaction rating among big brands 🚀
• 3rd highest total revenue despite thousands less locations 🚀
• Opening 100+ restaurants annually 🚀
• Highest avg rev per location in the world 🚀
• Top satisfaction rating among big brands 🚀
• 3rd highest total revenue despite thousands less locations 🚀
This is the result of a deliberate expansion strategy that prioritizes the customer experience + profitability at each restaurant.
Many other franchises focus on expanding locations at all costs.
Many other franchises focus on expanding locations at all costs.
Why don't others copy Chick-Fil-A's approach?
Because it takes TIME. Slower, controlled growth isn't sexy..
But it will win in the long run.
Because it takes TIME. Slower, controlled growth isn't sexy..
But it will win in the long run.
If you liked this thread, I tweet about franchises & the entrepreneurs behind them.
Give me @franchisewolf a follow to catch them in your feed.
Here's one on the downfall of Quizno's:
Give me @franchisewolf a follow to catch them in your feed.
Here's one on the downfall of Quizno's:
I also write a 2x/week newsletter breaking down new franchises:
workweek.com
workweek.com
TL;DR
Chick-Fil-A:
✅ Perfected their product
✅ Grows with little to zero debt
✅ Selects only passionate operators
It's resulted in the highest average unit volume of any restaurant worldwide, and continues to grow each year.
Chick-Fil-A:
✅ Perfected their product
✅ Grows with little to zero debt
✅ Selects only passionate operators
It's resulted in the highest average unit volume of any restaurant worldwide, and continues to grow each year.
P.S.
Here's a hilarious video that exaggerates Chick-Fil-A's unreal level of customer service
Here's a hilarious video that exaggerates Chick-Fil-A's unreal level of customer service
Discovery: Chick-Fil-A's elite level sauce is a mix of 3 other condiments:
Another interesting factoid:
Chick-Fil-A does a "First 100 Campout" for new restaurants.
AKA they encourage fans to camp out in front of a new location the day before they open, and they reward the first 100 customers free Chick-fil-A for a year
Chick-Fil-A does a "First 100 Campout" for new restaurants.
AKA they encourage fans to camp out in front of a new location the day before they open, and they reward the first 100 customers free Chick-fil-A for a year
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