Chick-Fil-A Business Analysis

Introduction

We will consider the fast food restaurant chain of Chick-Fil-A. The company specializes in quick service boneless chicken breast sandwiches and chicken nuggets. They were founded in 1946 by Mr. Truett Cathy in Hapeville, GA just outside of the Atlanta area (Chick-Fil-A Fact Sheet, 2015). The company has over 1900 locations with over 1300 being stand-alone restaurants (Chick-Fil-A Fact Sheet, 2015). They operate in 42 states and the District of Columbia and generated over $6 billion in revenue in 2014 (Chick-Fil-A Fact Sheet, 2015). Data from Encyclopedia.com credits Chick-Fil-A franchises with employing over 40,000 people. Chick-Fil-A’s Cathy is credited with inventing the boneless chicken breast sandwich and for being a
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I’m a big fan of Chick Fil A, I love their food but just as importantly they are a pleasant establishment to visit and I think this is proven by the customer loyalty they have earned.

They attract better quality employees by closing on Sunday’s. In the Miller (2008) article “Cathy believes that shutting down on Sundays attracts employees who are oriented toward faith and family…he wants his employees to devote themselves to Chick-fil-A, but not at the expense of something greater.” Chick Fil A is listed as one of the top companies to work for (Miller-Merrel, 2014). It appears they benefit financially and in customer loyalty as well. In a Lippincott Brand Study that looked at the experiences of over 30,000 customers and over 1,000 brands, the general market’s perceptions of a company, taking into account the three human characteristics of authenticity, empathy, and vitality. Chick Fil A rated second highest in the restaurant
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According to Carol Tice in her Forbes article, Chick Fil A is number one in revenue per store ($2.85 million) for all fast food chains in the U.S. ahead of giants like McDonalds, Chipotle and Whataburger. According to Business Insider Chick Fil A more than tripled national sales of KFC with less than half the stores. Finally, in an industry known for high employee turnover, the company has outpaced the competition by almost 50% among hourly employees (60 % for Chick fil A compared to the industry average of 107%) and franchise operators remain with the company at a rate of 95% (Conner, 2010.)

Conclusion

In closing Chick Fil A is a tremendously successful company that lives out their core values every day. They have a culture of giving back to the community in very meaningful and lasting ways. They don’t fire and forget; they invest time, money and energy in many communities. This is a critical part of their identity as a corporation.

We discussed their family friendly work environment and how it is an important way they support the community, especially for their employees who are parents. The company has a high loyalty rate with its franchise owners and with their hourly employees, far exceeding industry averages. This is a testament to how they treat their employees with loyalty and