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WSJ: The Unconventional Franchise Model Behind Chick-fil-A’s Success
Posted on 11/30/21 at 11:09 pm
Posted on 11/30/21 at 11:09 pm
LINK
quote:
Chick-fil-A has built its rapid growth on the popularity of its chicken sandwich. But its unconventional approach to business has helped make it the third biggest fast-food chain in the U.S. WSJ gets an inside look at the strategies driving the Atlanta-based company’s success.
6
Posted on 11/30/21 at 11:13 pm to rickgrimes
Unconventional strategy: have nice employees with great attitudes and clean facilities. What a unique strategy for success!
Americans will put anything in their bodies / if they feel respected before doing so, they’ll buy the product.
Chick fil a has excellent customer service. The competition largely does not.
Americans will put anything in their bodies / if they feel respected before doing so, they’ll buy the product.
Chick fil a has excellent customer service. The competition largely does not.
Posted on 11/30/21 at 11:14 pm to rickgrimes
Posted on 11/30/21 at 11:18 pm to rickgrimes
Fast food that makes you feel morally superior. Genius marketing plan.
Works for Whole Foods too.
Works for Whole Foods too.
Posted on 11/30/21 at 11:19 pm to Obtuse1
The Company Man analysis is very interesting.
Chick-fil-a isn’t the golden ticket some think it is. In fact, Subway could be more profitable IIRC.
Chick-fil-a isn’t the golden ticket some think it is. In fact, Subway could be more profitable IIRC.
Posted on 11/30/21 at 11:21 pm to weagle99
Overhead costs for subway much lower.
Only need 2-3 employees while open.
Lower cost simpler menu.
Small store in a gas station or strip mall can do well
Only need 2-3 employees while open.
Lower cost simpler menu.
Small store in a gas station or strip mall can do well
Posted on 11/30/21 at 11:23 pm to catfish 62
quote:
Unconventional strategy: have nice employees with great attitudes and clean facilities. What a unique strategy for success!
That's the business model. And it's obviously great and highly successful.
But the franchise model for chick fil a refers to how they award/sell franchises to potential franchisees. A lot of people think it's a license to print money, but it's actually not. CFA corporate, iirc, takes half of your gross. They are also highly selective as to the people they give franchises to. I've heard a divorce is a deal breaker.
Posted on 11/30/21 at 11:41 pm to weagle99
quote:
The Company Man analysis is very interesting.
Chick-fil-a isn’t the golden ticket some think it is. In fact, Subway could be more profitable IIRC.
The two things that struck me were the low cost of franchising which brought a ton of applicants so they could be very picky. They also are required to be onsite almost fulltime so you can't own a string of a dozen like many fast-food franchisees do over time. You can make a good living but not a great living. It is possibly the only fast food joint where the service far exceeds the quality of the food.
Posted on 11/30/21 at 11:50 pm to Cosmo
quote:
Lower cost simpler menu.
I don't think so. Subway has wraps, bowls, pizzas, melts, salads, and 20 or so different sandwiches. Every one of them is made to order and customized. The CFA menu overall is significantly simpler.
I am not sure the average ticket per person is any cheaper at Subway than CFA either.
Posted on 12/1/21 at 12:08 am to Obtuse1
quote:
The two things that struck me were the low cost of franchising which brought a ton of applicants so they could be very picky. They also are required to be onsite almost fulltime so you can't own a string of a dozen like many fast-food franchisees do over time. You can make a good living but not a great living. It is possibly the only fast food joint where the service far exceeds the quality of the food.
I know the guy that brought CFA to lafayette
they required owners be educated, present and very family oriented
he had the Acadiana Mall store first, he worked there and ran it for decades, he applied for a standalone storefront and they rejected him several times. He finally got approval for Amb Caffery and built it, it has boomed everyday it has been open, blocking traffic.
He applied multiple times for a Hwy 90 Broussard store but they rejected his sites due to accessibilty and traffic issues (no frontage roads on 90). Big safety concerns.
When Louisiana Ave extension was proposed he got a store right off of I10. His sons have a store in Slidell and one in NOLA.
he was one of the first multi franchisees in their history
Posted on 12/1/21 at 12:20 am to supatigah
quote:
he was one of the first multi franchisees in their history
My understanding is that "you" only get one franchise as they want to spread the love. I could be wrong.
Posted on 12/1/21 at 5:16 am to rickgrimes
It's only unconventional to the heathens. Better food, better service, glory to God. Pretty simple recipe for success.
Posted on 12/1/21 at 5:45 am to catfish 62
quote:
Unconventional strategy: have nice employees with great attitudes and clean facilities. What a unique strategy for success!
Americans will put anything in their bodies / if they feel respected before doing so, they’ll buy the product.
Chick fil a has excellent customer service. The competition largely does not.
Yep, this is really it. Have decent food, good service, and clean facilities. See Bucees for another example. It's not hard at all.
Posted on 12/1/21 at 6:00 am to supatigah
quote:
no frontage roads on 90).
There’s a half assed frontage road from Southpark all the way to Morgan Avenue. The guy would’ve killed it there. Still would’ve been a traffic nightmare tho.
Posted on 12/1/21 at 6:17 am to rickgrimes
And puts lots of sugar in the breaded Snd fried products.
Posted on 12/1/21 at 7:33 am to rickgrimes
If only the "unconventional" were the conventional, our lives would be much more fulfilling. Give thanks.
Posted on 12/1/21 at 7:39 am to Geaux-2-L-O-Miss
quote:
My understanding is that "you" only get one franchise as they want to spread the love. I could be wrong.
There are a few franchisees with more than one location but it is rare.
Posted on 12/3/21 at 9:17 pm to Geaux-2-L-O-Miss
quote:
My understanding is that "you" only get one franchise as they want to spread the love. I could be wrong.
that is correct, he has over 30 yrs with CFA and an impeccable track record
Posted on 12/3/21 at 9:19 pm to tigerinthebueche
quote:
There’s a half assed frontage road from Southpark all the way to Morgan Avenue. The guy would’ve killed it there. Still would’ve been a traffic nightmare tho.
yeah they have strict traffic count requirements. building codes and safety requirements
nobody anticipated the Amb Caffery problems from their drive thru
Posted on 12/3/21 at 9:21 pm to Obtuse1
quote:
I don't think so. Subway has wraps, bowls, pizzas, melts, salads, and 20 or so different sandwiches. Every one of them is made to order and customized. The CFA menu overall is significantly simpler.
I am not sure the average ticket per person is any cheaper at Subway than CFA either.
You’re getting downvoted but you’re right on the money
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