Chick-Fil — A is a quick service restaurant. In this industry, almost all firms are by definition low cost providers, but they each seek to differentiate their offering in unique ways. Chick-Fil — A is the #9 competitor in this industry with over $5 billion in annual sales. The company is the #1 chicken chain, ahead of KFC, which had $4.3 billion in sales (QSR, 2014). The company focuses on chicken sandwiches, which also puts it into competition with a number of sandwich and burger chains that also offer a similar product. Chick-Fil — A is strongest in the Southeast region, whereas many other competitors are national in scope. The company is growing as the result of its strategy and its domination of the chicken business.
There are a number of strengths on which Chick-Fil — A relies. To be successful in quick service, any company needs to be organized and efficient in its restaurants. Margins are slim, and customers demand a consistent product that is ready very quickly. Chick-Fil — A performs well in this regard, and its products are well-received in the marketplace. The company also has a strength in advertising, especially the famous campaigns where anthropomorphic cows are used to promote the idea that people should eat more chicken. This is a play on the company’s main point of differentiation vs. burger companies, and is also a rather black form of humor.
Chick-Fil — A also has a core region of strength in its native Southeast. It is the largest chicken chain in America already, but in this region its dominance is exceptional. Having such a strong base allows the company time to build its strategy elsewhere gradually, knowing that it can finance expansion from profits gained in its home market. All of these strengths combine to deliver the highest gross per store of any fast food restaurant. Chick-Fil — A turns over $2.8 million per store, higher than McDonalds or Panera Bread (its two closest rivals in this metric) and much, much higher than KFC or any other chicken chain.
Chick-Fil — A is an exceptionally well-run company; it performs well. There are not that many weaknesses. This might be an opportunity point out that the Baptist culture has caused the company controversy, but the financial effects of that controversy are uncertain. The controversy over same sex marriage has not really slowed down the chain’s growth, even if theoretically this could limit the company’s appeal in many markets it might otherwise want to expand into. It is probably also worth pointing out that contrary to conventional wisdom, Chick-Fil — A closes on Sundays. This is a day when it could be earning from its asset, but is not, something no other fast food company would consider. But again, the numbers do not support the idea that any of this is a weakness — they still make more money per store than any other company.
QSR. (2014). The QSR 50. QSR Magazine. Retrieved April 3, 2015 from http://www.qsrmagazine.com/reports/qsr50-2014-top-50-chart
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