Chick-fil-A makes more money per restaurant than any other fast-food chain.
With 2600+ restaurants, it's the King of being closed on Sunday.
Opening a restaurant only costs $10,000, but it's hyper-competitive.
Here's a breakdown of their unconventional franchise model 🧵
With 2600+ restaurants, it's the King of being closed on Sunday.
Opening a restaurant only costs $10,000, but it's hyper-competitive.
Here's a breakdown of their unconventional franchise model 🧵
0. @ChickfilA was founded in 1967.
Before Chick-fil-A, there was the Dwarf House, which founder Truett Cathy opened in 1946 in Hapeville, GA.
Ironically, the Dwarf House’s focus was on burgers and steaks. There are still 12 Dwarf House restaurants across the U.S.
Before Chick-fil-A, there was the Dwarf House, which founder Truett Cathy opened in 1946 in Hapeville, GA.
Ironically, the Dwarf House’s focus was on burgers and steaks. There are still 12 Dwarf House restaurants across the U.S.
1. Current state of Chick-fil-A
YTD Chick-fil-A is up 20%.
Chick-fil-A is the third largest US restaurant chain by domestic sales.
YTD Chick-fil-A is up 20%.
Chick-fil-A is the third largest US restaurant chain by domestic sales.
2. History of Chick-fil-A
Truett Cathy developed a faster way to cook boneless chicken using a pressure cooker and peanut oil.
"It's perfect and so we've kept that locked away in a vault and will continue to use that same recipe" -Chick-fil-A Exec
Truett Cathy developed a faster way to cook boneless chicken using a pressure cooker and peanut oil.
"It's perfect and so we've kept that locked away in a vault and will continue to use that same recipe" -Chick-fil-A Exec
3. Commitment to quality
The original chicken sandwich is the same today is in 1967 a breaded breast of chicken and two pickles both placed on a buttered, toasted bun chicken
Chick Fil A's name is a take on chicken fillet with a capital A at the end, symbolizing top quality.
The original chicken sandwich is the same today is in 1967 a breaded breast of chicken and two pickles both placed on a buttered, toasted bun chicken
Chick Fil A's name is a take on chicken fillet with a capital A at the end, symbolizing top quality.
4. Their Focus on simplicity
They like to say it's simple.
So they want to keep customers knowing what's on that menu, to be to easily decipher what they want.
Consistency is really important too.
They like to say it's simple.
So they want to keep customers knowing what's on that menu, to be to easily decipher what they want.
Consistency is really important too.
5. Rankings
The American Customer Satisfaction Index has been dominated by Chick-fil-A.
It often rates very high even though the service in the drive thru can be slower.
The American Customer Satisfaction Index has been dominated by Chick-fil-A.
It often rates very high even though the service in the drive thru can be slower.
6. Ordering process
Chick-fil-A restaurants use a practice known as upstream ordering, where an associate will take an order while customers are in line.
You will see workers out in the drive-thru with tablets vs. having to mumble your order into a speaker box.
Chick-fil-A restaurants use a practice known as upstream ordering, where an associate will take an order while customers are in line.
You will see workers out in the drive-thru with tablets vs. having to mumble your order into a speaker box.
7. Franchise model
They use a different franchise model than most other fast food chains.
Unlike most chains where the franchise covers most of the costs of opening the restaurant, Chick-fil-A owns all it's locations
They also select the locations and build the restaurants.
They use a different franchise model than most other fast food chains.
Unlike most chains where the franchise covers most of the costs of opening the restaurant, Chick-fil-A owns all it's locations
They also select the locations and build the restaurants.
8. Applying to be a Chick-fil-A franchise owner
Out of the more than 8000 applicants Chick-fil-A receives annually, the company only selects about 130 new operators a year.
That's an acceptance rate lower than Stanford's.
That's an acceptance rate lower than Stanford's.
9. Cost of opening a Chick-fil-A franchise
Chick-fil-A franchisees need only an initial investment of $10,000.
That's much lower than the startup cost for a McDonald's franchise, which requires a $45,000 franchise fee as well as $1.3 to $2.3 million of additional investment.
Chick-fil-A franchisees need only an initial investment of $10,000.
That's much lower than the startup cost for a McDonald's franchise, which requires a $45,000 franchise fee as well as $1.3 to $2.3 million of additional investment.
10. Chick-fil-A footprint
Chick Fil A's footprint was mostly in the southeast, but today they can be found across the country.
They have about 2600 restaurants throughout the US. They're also located in Canada and they are opening in Puerto Rico.
Chick Fil A's footprint was mostly in the southeast, but today they can be found across the country.
They have about 2600 restaurants throughout the US. They're also located in Canada and they are opening in Puerto Rico.
11. Growth of Chick-fil-A
They are opening about 100 stores a year right now.
Compared to a lot of other chains, that is still slow.
For comparison, Chipotle is opening ~200 restaurants a year.
They are opening about 100 stores a year right now.
Compared to a lot of other chains, that is still slow.
For comparison, Chipotle is opening ~200 restaurants a year.
12. Corporate culture at Chick-fil-A
Founder Truett Cathy's Christian faith played a major role in the company's strategy.
But, you don't have to be a Christian to work there.
Chick Fil A's are never open on Sundays, so workers can attend Church and rest.
Founder Truett Cathy's Christian faith played a major role in the company's strategy.
But, you don't have to be a Christian to work there.
Chick Fil A's are never open on Sundays, so workers can attend Church and rest.
13. How employees are expected to treat customers.
Part of Cathy's values are reflected in how employees are treated and how they're expected to treat customers.
Chick-fil-A has long asked employees to greet customers warmly with a smile, even if it's just a small interaction.
Part of Cathy's values are reflected in how employees are treated and how they're expected to treat customers.
Chick-fil-A has long asked employees to greet customers warmly with a smile, even if it's just a small interaction.
14. Chick-fil-A on going public
The executives say it will never go public.
They don't see a real benefit for them in going public.
They've grown conservatively so they don't need a lot of investors or extra cash to go into building new stores or new businesses.
The executives say it will never go public.
They don't see a real benefit for them in going public.
They've grown conservatively so they don't need a lot of investors or extra cash to go into building new stores or new businesses.
Wrapping it up:
• Chick-fil-A is what McDonald's used to be
• Their customer service plays a huge part in their success
• They have a thoughtful (and competitive) approach to expansion
• Average startup costs for a Chick-fil-A are much lower, but much more competitive, too
• Chick-fil-A is what McDonald's used to be
• Their customer service plays a huge part in their success
• They have a thoughtful (and competitive) approach to expansion
• Average startup costs for a Chick-fil-A are much lower, but much more competitive, too
That's a wrap!
If you're hungry now, so am I.
PS - if you like this:
1. Follow me @andymewborn for more breakdowns like this.
2. RT the first tweet above
Cheers!
If you're hungry now, so am I.
PS - if you like this:
1. Follow me @andymewborn for more breakdowns like this.
2. RT the first tweet above
Cheers!
Source:
youtube.com
youtube.com
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