Environmental Analysis
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Chick-Fil-A is the third largest quick-service restaurant chain in the United States. Founded in Atlanta, GA, the chain is based on faith-based business principles which has helped the organization to become very successful. Today, they have more than 1,040 restaurants in 34 states and Washington, D.C.(restaurant.org). The company slogan, “Eat mor chikin” “We Didnt Invent The Chicken, Just The chicken sandwich” which is advertised using cows, encourages the consumer to eat more chicken instead of beef which is geared to healthy eating. In 2006 the company reached $2.275 billion in chain wide sales which is a 16 percent increase from 2005.(Chick Fil A Pressroom, 2007)
Founder S. Truett Cathy attributes his success to adhering to his beliefs in faith based principles in values on the job. Chick-fil-a is one the only restaurants that are closed on Sundays because he wanted his employees to be able to have the opportunity to worship, spend time with family and friends and enjoy a day of rest. Most franchises are open to serve on Sundays, however this is a unique ingredient that is added to their business which makes the company stand alone in this area. Chick-fil-a founder also believes that they are successful because they put people before profits and climbed with care and confidence. Although, they have been successful and profitable they still have to be creative with products in order to stay competive with some other leaders in the fast food industry.
for that particular product.
Challenges and Opportunities
Since there has been a rise in the fast food industry Chick-Fil-Acould highly capitalize the opportunity. With the fast paced world today, working late hours, busy schedules, extracurrilar activities, long commutes to and from school and work, the need for the industry has increased and will grow steadily. The intense competition will be racing against pricing, service, nutrition and quality. Years ago Chick-Fil-A would have benefited from a comment that Oprah Winfrey made. That caused many of her followers to stop eating beef which created a huge demand for poultry eaters. Depending on the needs of the consumer Chick-Fil-A could be a dissadvantage because it doesnt have a variety menu when it comes to meat. Most children would prefer a cheeseburger and a happy meal which could change the audience of customers. In order for Chick-Fil-A and other restaurants to be profitable and competitve they have to consider what each other are doing and what the consumer wants.
Tables
Table 1-Fast food Spending in the United States
Annual United States Spending on Fast Food
$ Billions
Corporate Owned Restaurant
Total in 5 yr period
$674 billion
Note: Data cited from National Restaurant Association (National Restaurant Association, 2007).
Table 2-Nutrition
Chicken Sandwiches Compared
Fast Food Restaurant
Serving Size
Calories
Total Fat
Saturated Fat
Trans Fat
Carbs
Sodium