Chick Fil A Franchise Startup Costs

- 01.45

Chick-fil-A at U.S. 183 and Braker Lane reopens August 12, giving ...
photo src: dining.blog.austin360.com

Chick-fil-A ( chik-fil-AY, a play on the American English pronunciation of "fillet") is an American fast food restaurant chain headquartered in the city of College Park, Georgia, specializing in chicken sandwiches. Founded in May 1946, it operates more than 2,200 restaurants, primarily in the United States. The restaurant serves breakfast before transitioning to its lunch and dinner menu. Chick-fil-A also offers customers catered selections from its menu for special events. Many of the company's values are influenced by its founder's Southern Baptist beliefs; all Chick-fil-A restaurants are closed for business on Sundays as well as on Thanksgiving and Christmas.


Becoming a Chick-fil-A franchisee is almost impossible - AOL Finance
photo src: www.aol.com


Maps, Directions, and Place Reviews



History

The chain's origin can be traced to the Dwarf Grill (now the Dwarf House), a restaurant opened by S. Truett Cathy, the chain's former chairman and CEO, in 1946. The restaurant is located in Hapeville, Georgia, a suburb of Atlanta, and is near the location of the now-demolished Ford Motor Company Atlanta Assembly Plant, for many years a source of many of the restaurant's patrons.

In 1961, after 15 years in the fast food business, Cathy found a pressure-fryer that could cook the chicken sandwich in the same amount of time it took to cook a fast-food hamburger. Following this discovery, he registered the name Chick-fil-A, Inc. The company's trademarked slogan, "We Didn't Invent the Chicken, Just the Chicken Sandwich," refers to their flagship menu item, the Chick-fil-A chicken sandwich.

The first Chick-fil-A opened in 1967, in the food court of the Greenbriar Mall, in a suburb of Atlanta. During the 1970s and early 1980s, the chain expanded by opening new franchises in suburban malls' food courts. The first freestanding franchise was opened April 16, 1986, on North Druid Hills Road in Atlanta, Georgia, and the company began to focus more on this type of franchise than on the food court type. Although it has expanded outward from its original geographic base, most new restaurants are located in Southern suburban areas. In October 2015, the company opened a three-story 5,000-square-foot restaurant in Manhattan that became the largest free-standing Chick-fil-A in the country at that time. As of 2016, the chain has approximately 1,950 locations. It also has 31 drive-through-only locations. Chick-fil-A also can be found at universities, hospitals, and airports through licensing agreements.

Since 1997, the Atlanta-based company has been the title sponsor of the Peach Bowl, an annual college football bowl game played in Atlanta on New Year's Eve. Chick-fil-A also is a key sponsor of the SEC and the ACC of college athletics.

The company expanded for the first time outside of the United States by opening an outlet at the Calgary International Airport in Calgary, Alberta, Canada in May 2014. This restaurant is located near the departure area for flights bound for the United States. However, per tradition, it is closed Sundays and Christmas Day.


Chick Fil A Franchise Startup Costs Video



Business model

Chick-fil-A retains ownership of each restaurant. Chick-fil-A selects the restaurant location and builds it. Chick-fil-A franchisees need only a $10,000 initial investment to become an operator. Each operator is handpicked and goes through a rigorous training program; the interviews plus training can take months and is not an easy process. Chick-fil-A states on their site:

"This is not the right opportunity for you if you:
- Are seeking a passive investment in a business.
- Want to sell property to Chick-fil-A, Inc.
- Are requesting that Chick-fil-A, Inc. build at a specified location.
- Are seeking multi-unit franchise opportunities."

This goes to show how vastly different it is to be a Chick-fil-A store operator rather than being part of a regular franchise opportunity. Since 2010, Chick-fil-A has led the fast food industry in average sales per restaurant, despite being open only six days a week, earning an average $4.8 million per restaurant in 2016 (Whataburger was second with $2.7 million per restaurant).


Five Myths About Becoming a Chick-fil-A Franchisee | Chick-fil-A
photo src: thechickenwire.chick-fil-a.com


Advertising

"Eat Mor Chikin" is the chain's most prominent advertising slogan, created by The Richards Group in 1995. The slogan is often seen in advertisements, featuring Holstein dairy cows that are often seen wearing (or holding) signs that (usually) read: "Eat Mor Chikin" in all capital letters. The ad campaign was temporarily halted during a mad cow disease scare on January 1, 2004, so as not to make the chain seem insensitive or appear to be taking advantage of the scare to increase its sales. Two months later, the cows were put up again. The cows replaced the chain's old mascot, Doodles, an anthropomorphized chicken who still appears as the C on the logo.

Chick-fil-A vigorously protects its intellectual property, sending cease and desist letters to those they think have infringed on their trademarks. The corporation has successfully protested at least 30 instances of the use of an "eat more" phrase, saying that the use would cause confusion of the public, dilute the distinctiveness of their intellectual property, and diminish its value.

A 2011 letter to Vermont artist Bo Muller-Moore who screen prints T-shirts reading: "Eat More Kale" demanded that he cease printing the shirts and turn over his website. The incident drew criticism from Vermont governor Peter Shumlin, and created backlash against what he termed Chick-fil-A's "corporate bullying." On December 11, 2014, Bo Muller-Moore announced that the U.S. Patent Office granted his application to trademark his "Eat More Kale" phrase. A formal announcement of his victory took place on December 12, 2014, with Shumlin and other supporters on the Statehouse steps. His public fight drew regional and national attention, the support of Shumlin, and a team of pro-bono law students from the University of New Hampshire legal clinic.

After 22 years with The Richards Group, Chick-fil-A switched to McCann New York in 2016. Along with the cows, ads included famous people in history in a campaign called "Chicken for Breakfast. It's not as crazy as you think."


Costs and Stipulations of a Chick-Fil-A Franchise
photo src: www.thebalance.com



Own Your Future: Franchising and Licensing | Chick-fil-A
photo src: www.chick-fil-a.com


Related restaurants

The Hapeville Dwarf House

Truett Cathy opened his first restaurant, The Dwarf Grill - later renamed the Dwarf House - in Hapeville, Georgia, in 1946, and developed the pressure-cooked chicken breast sandwich there. At the original Chick-fil-A Dwarf Grill, in addition to the full-size entrances, there is also an extra small-sized front door. The original Dwarf House in Hapeville, Georgia is open 24 hours a day, six days a week, except on Sundays, Thanksgiving, and Christmas. The store closes at 10:00 p.m. on Saturday nights, and the day before Thanksgiving and Christmas and reopens at 6 a.m. on Monday mornings and day after Thanksgiving and Christmas. It has a larger dine-in menu than the other Dwarf House locations as well as an animated seven dwarfs display in the back of the restaurant. It was across the street from the former Ford Motor Company factory called Atlanta Assembly.

Dwarf House

Truett's original, full-service restaurants offer a substantial menu and provide customers a choice of table service, walk-up counter service or a drive-thru window. As of 2012, 13 Chick-fil-A Dwarf House restaurants were operating in the metro Atlanta area.

Truett's Grill

In 1996, the first Truett's Grill was opened in Morrow, Georgia. The second location opened in 2003 in McDonough, Georgia, and a third location opened in 2006 in Griffin, Georgia. Similar to the Chick-fil-A Dwarf Houses, these independently owned restaurants offer traditional, sit-down dining and expanded menu selections in a diner-themed dinner. In 2017, Chick-fil-A demolished several Dwarf House locations to replace them with Truett's Grill locations.


Costs and Stipulations of a Chick-Fil-A Franchise
photo src: www.thebalance.com


Corporate culture

S. Truett Cathy was a devout Southern Baptist; his religious beliefs had a major impact on the company. The company's official statement of corporate purpose says that the business exists "To glorify God by being a faithful steward of all that is entrusted to us. To have a positive influence on all who come in contact with Chick-fil-A."

Cathy's beliefs are also responsible for one of the chain's distinctive features: all Chick-fil-A locations (corporate owned and franchised) are closed on Sundays, as well as on Thanksgiving and Christmas. Cathy states as the final step in his Five-Step recipe for Business Success "I was not so committed to financial success that I was willing to abandon my principles and priorities. One of the most visible examples of this is our decision to close on Sunday. Our decision to close on Sunday was our way of honoring God and of directing our attention to things that mattered more than our business."

In an interview with ABC News's Nightline, Truett's son Dan T. Cathy told reporter Vicki Mabrey that the company is also closed on Sundays because "by the time Sunday came, he was just worn out. And Sunday was not a big trading day, anyway, at the time. So he was closed that first Sunday and we've been closed ever since. He figured if he didn't like working on Sundays, that other people didn't either." The younger Cathy also quoted his father as saying, "I don't want to ask people to do that what I am not willing to do myself."

Their website states, "The Chick-fil-A culture and service tradition in our Restaurants is to treat every person with honor, dignity and respect -regardless of their belief, race, creed, sexual orientation or gender."

Chick-fil-A's reputation on being closed on Sundays extends to non-traditional locations. In addition to countless shopping malls and airports, a Chick-fil-A location at Mercedes-Benz Stadium in Atlanta will be closed on Sundays despite its main tenant, the Atlanta Falcons, playing most of their home games on Sundays. The location will be open when the Falcons have a Monday night or Thursday night home game, as well as non-Sunday home games of Atlanta United FC and other events at the stadium. On Sundays, the digital signs will be flipped and concessionaire Levy Restaurants will sell nonbranded food and drinks at the location.

Same-sex marriage controversy

In January 2011, the media reported that Chick-fil-A was co-sponsoring a marriage conference with the Pennsylvania Family Institute (PFI), an organization that has opposed same-sex marriage legislation. Chick-fil-A clarified that "one of our independent Restaurant Operators in Pennsylvania was asked to provide sandwiches to two Art of Marriage video seminars". The WinShape Foundation, a charitable organization founded by Truett and his wife, also stated that it would not allow same-sex couples to participate in its marriage retreats.

Chick-fil-A has donated over $5 million, via WinShape, to groups that oppose same-sex marriage. Of this, more than $3 million was donated primarily to Christian organizations whose agendas included positions that oppose same-sex marriage, with the money donated between 2003 and 2009. A total of $1.9 million was donated in 2010 to groups such as the Marriage & Family Foundation, Exodus International, and the Family Research Council (FRC). That year, the FRC, which received $1,000 was listed as an anti-gay hate group by the Southern Poverty Law Center. WinShape has also contributed to Christian groups including the Fellowship of Christian Athletes and Exodus International, the latter is noted for supporting ex-gay conversion therapy. In response, students at several colleges and universities worked to ban or remove the company's restaurants from their campuses. On January 28, 2013, Shane L. Windmeyer, the leader of Campus Pride, suspended their campaign.

In June and July 2012, Chick-fil-A's chief operating officer Dan T. Cathy made several public statements about same-sex marriage, saying that those who "have the audacity to define what marriage is about" were "inviting God's judgment on our nation". Several prominent politicians expressed disapproval. Boston Mayor Thomas Menino and Chicago Alderman Proco "Joe" Moreno said they hoped to block franchise expansion into their areas. The proposed bans drew criticism from liberal pundits, legal experts, and the American Civil Liberties Union. The Jim Henson Company, which had a Pajanimals kids' meal toy licensing arrangement with Chick-fil-A, said it would cease its business relationship, and donate the payment to the Gay & Lesbian Alliance Against Defamation. Chick-fil-A stopped distributing the toys, claiming that unrelated safety concerns that had arisen prior to the controversy. Chick-fil-A released a statement on July 31, 2012, saying, "We are a restaurant company focused on food, service, and hospitality; our intent is to leave the policy debate over same-sex marriage to the government and political arena."

Response

In response to the controversy, former Arkansas Governor Mike Huckabee initiated a Chick-fil-A Appreciation Day movement to counter a boycott of Chick-fil-A launched by same-sex marriage activists. More than 600,000 people RSVPed on Facebook for Huckabee's appreciation event. On August 1, Chick-fil-A restaurants experienced a large show of public support across the nation with the company reporting record-breaking sales. A consulting firm estimated that the average Chick-fil-A restaurant had 29.9 percent more sales and 367 more customers than it did on a typical Wednesday.

Report of policy change

In September 2012, The Civil Rights Agenda (TCRA) announced that Chick-fil-A had "ceased donating to organizations that promote discrimination, specifically against LGBT civil rights." Chick-fil-A officials did state in an internal document that they "will treat every person equally, regardless of sexual orientation." In a letter from Chick-fil-A's Senior Director of Real Estate, the company states, "The WinShape Foundation is now taking a much closer look at the organizations it considers helping, and in that process will remain true to its stated philosophy of not supporting organizations with political agendas."

According to Chicago Alderman Proco "Joe" Moreno, Chick-fil-A has a statement of respect for all people regardless of sexual orientation in an internal document called Chick-fil-A: Who We Are. A document released by Chick-fil-A on September 20, 2012, does not mention any organizations opposed to same-sex marriage as being part of Chick-fil-A's donation base. WinShape Marriage will continue to be supported financially, with a stated focus on couple retreats to strengthen marriages.

According to Focus on the Family's website, CitizenLink.com, "Chick-fil-A and its charitable-giving arm, the WinShape Foundation, did not agree to stop making donations to groups that support the Biblical definition of marriage in exchange for being allowed to open a franchise in Chicago." Mike Huckabee stated that he "talked earlier today personally with Dan Cathy, CEO of Chick Fil-A about the new reports that Chick Fil-A had capitulated to demands of the supporters of same sex marriage. This is not true. The company continues to focus on the fair treatment of all of its customers and employees, but to end confusion gave me this statement." The statement provided by Chick-fil-A was posted on Huckabee's website.


Own Your Future: Franchising and Licensing | Chick-fil-A
photo src: www.chick-fil-a.com


Recipe changes

Though Chick-fil-A has always used trans-fat free processes in its chicken sandwiches, anticipating the dietary concerns of consumers, in 2008, it became the first fast-food restaurant to become completely trans-fat free.

In 2011, food blogger and activist Vani Hari wrote a post titled "Chick-fil-A or Chemical Fil-A?" on her website, FoodBabe.com. She noted that Chick-fil-A sandwiches contained nearly 100 ingredients, including peanut oil with TBHQ. In October 2012, Chick-fil-A invited Hari to meet with company executives at its Atlanta, GA headquarters. In December 2013, Chick-fil-A notified Hari that it had eliminated the dye Yellow No. 5 and had reduced the sodium content in its chicken soup. The company also said that it is testing a peanut oil that does not contain TBHQ and that it would start testing sauces and dressings made without high-fructose corn syrup in 2014.


New York Citys First FullService ChickfilA Restaurant Opening Oct ...
photo src: thechickenwire.chick-fil-a.com


Plan to raise its chickens without antibiotics

According to the Food and Drug Administration, antibiotics used in livestock, many of which are also used to treat humans, have contributed to the rise of dangerous bacteria. In December 2012, the FDA announced plans to phase out certain antibiotics in the food production industry.

In February 2014, Chick-fil-A announced plans to serve chicken raised without antibiotics in its restaurants nationwide within five years. Chick-fil-A is the first quick service restaurant to set forth a plan and commit to serving only poultry raised without antibiotics.

Source of the article : Wikipedia



EmoticonEmoticon

 

Start typing and press Enter to search