When you're hanging out with your friends and you all decide to go out to eat, what are the common restaurants that are discussed? Chick-Fil-A is usually among the first restaurants to be mentioned as it's known for its high quality chicken and its fast customer service. They have a relatively simple menu and their sandwiches have remained unchanged for over 50 years. As a customer, everyone is usually satisfied but what about as a franchise owner who wants to operate a Chick-Fil-A? Chick-Fil-A’s are a highly profitable business and can net anywhere between 100 and 200k a year.
Franchise Affordability
Unlike other franchises that require nearly $2 million in start-up costs, Chick-Fil-A franchisees typically only pay about $10,000 to $50,000 in franchise fees. Usually, the parent company pays for the full cost of establishing a franchise in a new area; thus, the $10,000 to $50,000 paid by the franchisee is a commitment fee to the franchisor. Because of the low start up costs, Chick-Fil-A's parent corporation keeps ownership of the franchise, receives 15% of sales, rent on the property, and 50% of the remaining pretax profits. This is an untraditional process among other restaurants; however, it has its benefits. Maintaining restaurant ownership allows Chick-Fil-A to keep the authority and flexibility to remodel stores, introduce new items, or change operators as needed.
High Quality Products
Compared to other restaurants, Chick-Fil-A is well-known for high-quality chicken sandwiches. Their simple menu allows them to focus on quality over quantity, allowing them to create fresh and delicious food. High quality is emphasized as one of their strategies involve breading the chicken on site. Chick-Fil-A goes the extra mile to provide the better quality and customer service that customers expect, leading to an increase in sales and therefore more profit.
Good Customer Service
To improve customers' dining experiences, the company guarantees that the restaurants are well-maintained and neatly organized. Staff members frequently say “my pleasure” and can be seen assisting anyone in need. Additionally, they may double or even triple-check your order to make sure they got it right, and some locations have arranged two drive-through lines to cope with demand.
Selective Screening
Because it only accepts roughly 70-80 franchise applicants out of the 50,000 that apply each year, the company is known as one of the most selective chains in the industry. Applicants are based on their previous work experience and their financial capacity. Chick-Fil-A's owners do not own or receive equity in the company. They are also not permitted to operate in more than one location.
Satisfied Workforce
Employees are frequently asked about their future career aspirations, which allows the management team to assist the employees in achieving their goals, even if it is not in the food business.
Since 1973, the corporation has given employees scholarship contributions totaling millions of dollars to help them pursue their long-term goals. As a result, individuals with interests that align with the company are motivated by opportunities to progress inside the organization. For example, the company promotes to director roles in areas like culinary operations, drive-thru operations, sanitation, and many more. Additionally, the average Chick-Fil-A team member gets paid roughly 14 dollars an hour which is 13% above the national average and is double Minimum Wage.
Although Chick-Fil-A's business model is unorthodox, there is abundant proof of its success. The majority of customers are satisfied, the majority of employees are well rewarded and satisfied, and the majority of franchise owners are satisfied. It truly is a win-win situation.
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