Chick-fil-A: Foundation, Growth, and Marketing Strategies Analysis

This presentation provides a comprehensive overview of Chick-fil-A, examining its origins with the Dwarf House, its rapid growth to become the third-largest restaurant chain in the United States, and its unique business model. The presentation covers the company's history, including the introduction of the chicken sandwich and its expansion. It also explores Chick-fil-A's market position, annual profit turnover, and competition with other leading fast-food chains like KFC. The presentation highlights the company's innovative marketing strategies, such as community involvement, customer service, and the unique practice of closing on Sundays. It also includes statistics on revenue, franchise growth, and customer satisfaction, providing a detailed analysis of the factors that have contributed to Chick-fil-A's success in the fast-food industry. The presentation concludes by discussing Chick-fil-A's potential to become the world's largest food chain.

Running head: MANAGEMENT
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Name of the Student
Name of University
Author’s note

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Note card 1
We change the world, and ourselves, by our response to unexpected opportunities” – S. Truett
Cathy (1921-2014)
 Chick-fil-A (CFA) has been reported as the third largest restaurant chain in Unites States
of America, operating more than 2300 restaurants operating in 47 states.
 CFA is famous for its chicken sandwich
 CFA was founded by S. Truett Cathy.
 The origin of the chain is from Dwarf House, situated in Hapeville , Georgia, a suburb of
Atlanta
 CFA outlets are closed on Sundays
Note card 2
 As per the reports of the QSG magazine, it has been found that in 2014, Chick-fil- A’s
average sales per restaurant had been &3.1 million.
 CFA is the most fastest growing food chain

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 The company follows innovative marketing strategies. Emphasis is put on arranging
shared programs, like provision of free meals to the ones those who are in need.
 CFA has the most convenient drive through system

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Outline
Persuasive speech
Thank you very much indeed for giving this opportunity to place my opinion in this
forum. Before, jumping in to the information, I would like you to utilize your imagination and
think hoe it would you feel, if you’d spent a cozy evening with a favorite friend of yours , with a
couple of chicken Sandwiches, accompanied by a glass of cola. I know that the thought is pretty
tempting, but this time, it is related to the topic, which I would be discussing. While I was
rummaging through my study modules to find out a suitable topic for this discussion, in company
of a chicken sandwich and coffee, the sight of the KFC outlet through my window drew my
attention. How about talking about KFC? I hope everybody is well aware of its recent launches.
While, I was brainstorming through the websites to collect about the market value, I came across
the interesting history of Dwarf House and its members. Truly, I was overwhelmed by the
history of how, a small approach expanded and how the humble approach of Mr. Cathy won the
heart of the customers.
Today I will discuss about Chick –fil-A, the third largest America fast food restaurant
chain, whose specialty is the chicken sandwiches. In the world of other food chains like KFC,
chick –fil- a restaurants are found to have been selling three times as much as the KFC outlets.
My speech will mainly cover themes like:
 Foundation of Chick-fil-A /Dwarf house
 Market of Chick-fil-A

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 Annual profit turnover
 Current competition with the other leading food chains
My presentation would also cover some interesting facts like how was it founded and why
are they closed on Sundays and still became one of the fastest growing fast food chain. We will
also explore the humble and the interesting beginnings of Chick –fil- A and his Dwarf house.
Looking at each of these themes in turn, I will start with the history behind the foundation
of the chick-fil-A. The history of the foundation of the fast food chain Chick-fil-A can be dated
back to 1940, when the founder S. Truett Cathy opened the Dwarf house. Two decades after
introducing the country’s first chicken sandwiches, the recipe was also used to introduce the first
Chick-Fil-A in Atlanta in the year 1967 (Khan, 2014).
However, do you know, from where did Chick-fil- gets its catchy name from?
Chick-fil-A did not get its catchy name off the bat. Before the introduction of the name,
there was Dwarf house in Hapeville. However, the menu of Dwarf house was confined to
hamburgers and steaks (Mishler, 2012). There are about 12 Dwarf house restaurants in United
States. The monotonous hamburgers were replaced by the chicken sandwiches (Chick-fil-
A.com). In the year 1964, the founder was approached by a local poultry supplier, which used to
produce too many chicken breasts. Cathy came up with fast food cooking process for offering his
lunch patrons a new option called as “chicken sandwich”. The Dwarf house was a classical style
diner style restaurants (Khan, 2014). The restaurant is small and is actually much bigger than its
four walls. Surprisingly, the Dwarf house still serves its original chicken Sandwich. It is similar

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to any other diner, with long counters, waitresses, high stool and the chef had been cooking the
same menu since 1946.
One of notable thing, is that all the Chick-fil-A restaurants are closed on Sundays. The
rationale behind this, is that Cathy, after working in 24x7 open restaurants, understood that, it
necessary to provide a Sunday off for all the employees. She wanted the employees to rest for
one day and choose to worship if they like to . This reflected that Truett Cathy had a very special
place for in his heart for the employees and had always helped them to succeed.
Truett Cathy, the founder of Chick-fill-a had understood the need of making marketing
human. According to him, “We should be about more from just selling chicken, we need to be a
part of the customer’s lives and the community in which we tend to serve”. Today, I would
reflect upon some facts that made this chicken chain, number one in the industry.
Informative speech
I would like to share some statistics about the current turnover of the company. As per
the reports of the QSG magazine, it has been found that in 2014, Chick-fils- A’s average sales
per restaurant had been &3.1 million, which indicates towards the growth of one of the greatest
fast food chain. According to the Franchise Disclosure document it has been found that the total
revenue had increased 13.7 % to $ 3.0 billion in comparison to $2.6 billion in the year 2017.
Solid revenue gains has been reported in all the categories (Gostick & Elton, 2012). As of
December 31, 2018, the chick-fil-A had franchised 1,989 companies and company-operated
Chick-fil-A restaurants in comparison to 1,882 locations in 2017, a 107 locations has newly
recorded. Of the domestically franchised restaurants, that are present in the malls, the medium

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annual sales volume has been found to be $ 1,833,131 and the average sales volume has been
found to be $2,213,929 (Venkatesan, 2018). Undoubtedly, the success and the popularity of
Chick-fil-A have skyrocketed as the revenue generated by the company is much more than any
other restaurants in the town. The company had set its paws in almost 50 states. It can be
estimated that the company is about to become the third-largest fast food chain in near future,
probably in the coming two years and are likely to surpass Wendy’s , Burger King and Taco Bell
(Venkatesan, 2017).
The popularity of Chick-fil-A is due to the combination of its excellent food and
customers services. This food chain had ranked first among the other food chains, as per the
restaurant –customer surveys, with the customers raving about the cleanliness of the restaurant,
prompt and convenient services and the hardworking employees. Success of Chich-fill-A can be
traced in part of the peculiar business model of the food chain business. One of the most
noteworthy thing is that, the company only accepts 0.4 % of the franchisees (Venkatesan, 2017).
The operators do not get any equity in their business and can only open in one location. The
customer service for the company had admitted that one of the major reason for the success is the
chicken chain’s “Re-colonisation process”- a public recommitment for the quality involving
training of the employees and focusing on the boosting of the customers services (Venkatesan,
2017).
Chick-fil-A applies some of the best strategies for marketing. The operators of Chick-fil-
A puts up host creative programs for serving the communities. Some of the interesting events
like the Halloween Parties, Football Boaster events are hosted by the company. They also ensure

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serious community commitments of the military appreciation event. Genuine gifts are given to
the communities and the customers.
One of noteworthy step is the “shared table program” that gives surplus food to the
shelters and feeds victims after a natural calamity or crisis. The main marketing philosophy of
the company is the human dimension.
From the personal history of Mr. Cathy, it has been found that, since 1973, Chick-fil-A
had given more than $35 million scholarships to the Chick-fil-A team members for continuing
their higher education.
While there are several strategies and range of discounts provided by the restaurants.
Chick-fill-A had come up with innovative strategies to attract the bulk of customers. The
company encourages the fans to camp out in front of its new locations the day before they open
ad promises to give the first 100 customers free Chick-fil-A for a year. In United States, there are
chick-fil-A stores except Alaska, Hawaii and Vermont. One of the notable thing is that opening
chick-fil-A is very easy and cheap, but the competition is high. Considering trend of Chick-fil-
A , it can be anticipated, that one day it might turn out to be the world’s largest food chain.

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References
Chick-fil-A.com. History. Access date: 31.7.2019. Retrieved from: https://www.chick-fil-a.com/
Emery, B. G., Hodges, B., & Tiger, A. (2017). Simulating the impact of mobile ordering at
Chick-fil-A. Journal of Marketing Development and Competitiveness, 11(1).
Gostick, A., & Elton, C. (2012). All in: How the best managers create a culture of belief and
drive big results. Simon and Schuster.
Khan, M. A. (2014). Salter, C. (2013). Chick-fil-A’s Recipe for Customer Service. Fast
Company. Restaurant franchising: Concepts, regulations and practices. Apple Academic
Press.
Mishler, M. (2012). Eat More Chicken and Lead More People: Perceived Measures of Servant
Leadership at Chick-fil-A.
Venkatesan, R. (2017). Executing on a customer engagement strategy.