Marketing at Chik-Fil-A
Student: Christopher Saghbini
Student Number: 300416444
Professor: Nour Khadri
Course Number: ADM1100
Table of Contents
Introduction………………………………………………………………………….…………….2
Restaurant Industry Overview……………………………………………………….……...…….3
Chik-Fil-A Company Analysis……………………………………………………….…...……….5
Marketing Analysis……………………………………………………………………...………...7
Conclusion………………………………………………………………...………...…………….9
Visuals………………………………………….………………………………………………...10
Bibliography……………………………………………………………………...……………...13
1
Introduction
What to Expect and Why
In this essay, I will discuss Chik-Fil-A and how they have grown to be one of the biggest
fried chicken restaurants in the nation. I will discuss the different methods and tactics used to
attract so many customers. I will discuss how they give back to their communities, their values,
and how they portray their company’s morals. I plan to make this useful for anyone in the
restaurant industry, new or old.
Chik-Fil-A has built a thriving business in the restaurant industry. Since opening in 1976,
they have consistently brought their profits up higher than their previous year. They have grown
into a billion-dollar organization. They go against many industry norms such as their 6-day
weeks.
My family has owned a fast-food restaurant for over 15 years. My father owned
Lorenzo’s for about ten years. After selling, he then worked for other places until he bought a
new spot. He bought Milano Pizza, where I worked with him about 15 years ago. He passed
away in 2016, and I took over running it to ensure my mother, siblings, and newborn baby at the
time were living well. I used this to allow my siblings the opportunity to go to school and not
have to worry about keeping the business going. In Milano’s, I have opened a few “ghost
kitchens” as well. I chose Chik-Fil-A because I feel it is relatable to my business, and I can see
comparisons as well as learn new methods to boost my own restaurant marketing strategies.
2
Restaurant Industry Overview
A Quick Overview of the Industry Chik-Fil-A is in
The food industry is very large and competitive. Aside from Chik-fil-A, there are many
significant competitors, such as McDonald’s and Starbucks in the U.S., Greggs in the UK,
Jollibee in the Philippines, Skylark Group in Japan, and many more. The U.S. has about 570,000
restaurants with a combined annual revenue of approximately $600 billion. To compete in this
business, restaurants are employing various methods, such as trendy menus, a focus on
convenience, and strategic pricing. There are many different Restaurant styles, full-service
restaurants (FSR), quick-service restaurants (QSR), cafeterias, buffets, and snack bars.
Some Information on Prominent Restaurants and Chains
McDonald’s operates over 38,000 restaurants in around 100 countries, with more than
90% managed by franchisees or affiliates.
Yum! Brands has many restaurants in its chain, including KFC, Pizza Hut, and Taco
Bell. In terms of locations, it is the largest fast-food operator in the world. McDonald’s is the
only other fast-food brand that outperforms Yum! Brands in global sales. Currently, Yum! Brands
is pursuing growth by expanding into Asia.
Starbucks is the world’s largest coffee retailer. Starbucks has around 30,000 coffee shops
in 80 countries around the world. They have expanded into selling products through grocery
stores and food service customers. It also gains revenue through brand licensing.
Darden Restaurants is on top for casual dining in the U.S. and Canada. It operates a
collection of chains, including Olive Garden, LordHorn Steakhouse, Eddie V’s, and The Capital
Grille. Offering mid-priced menu items, they can cater to families living in suburban areas.
Sales and Marketing
Restaurants in general have a very broad demographic. According to NDP Group, young
adults without children are most likely to be dining out. Young men tend to go for QSRs, Tourists
are more likely to go for FSRs, and households with children tend to order take-out.
Marketing and promotional strategies include online ads, TV, print, radio, and outdoor
advertising (benches, buses, etc.). Many franchises will contribute to a corporate advertising
fund. To gain traction from tourists, restaurants should try to develop good relationships with
hotels. Creating good relationships with nearby businesses can also be very beneficial, offering a
lunch day for the business. Some companies will also have a loyalty program that rewards
customers for frequent visits. This could be a points card or a stamped card.
3
International Insights
The global food service industry has had a 9.9% compound annual growth rate. This
forecasts the industry to grow to $4.4 trillion by 2028. According to Statista, the largest markets
by country are China, India, the U.S., and Japan. The fastest-growing regional markets are Latin
America, the Middle East, and Africa. China and India are great areas for expansion due to their
large populations. The U.S. is mainly dominated by domestic restaurants. But a few international
chains are emerging. Hong Kong-based Café de Coral has about 15 Manchu Wok locations in
North America, and the Philippines-based fast-food chain Jollibee is a growing chain in the U.S.
Average Hourly Earnings & Annual Wage Increase Bureau of Labor
Statistics
Industry Employment Growth Bureau of Labor Statistics
Restaurants - Quarterly Update 10/14/2024. 2024. Fort Mill, South Carolina: Mergent.
4
Chik-Fil-A Company Analysis
An Overview of Chik-Fil-A and Their Values
Chik-Fil-A is a fast-growing chain in the fast-food industry. It specializes in fried chicken
and chicken sandwiches. It was founded by Truett Cathy in 1967. Cathy explained his mission in
a 2007 interview, stating, “To glorify God by being a faithful steward of all that is entrusted to us
and have a positive influence on other people” (Davis & Lucas, 2007). Chik-Fil-A is famed for
its Christian values. These values are what lead to its outstanding customer service. Its customer
service practices have even been featured in many parody videos where employees go to extreme
measures to make their customers happy (Crist, 2020). Some ways they do this are as simple as
replying to “thank you” with “my pleasure” and going the “second mile.” The “Second Mile”
refers to a passage from Matthew 5:41, where Jesus preaches to do more than is required. He
uses the example that if a Roman soldier orders you to carry something for one mile, offer to
carry it for two. PR Newswire mentions Chik-Fil-A, stating that it supports local communities,
makes charitable contributions, and supports community organizations. Keeping with its
Christian values and biblical policies, Chik-Fil-A has a 6-day week, closing its doors on
Sundays.
Chik-Fil-A Stats and Growth
It is quite outstanding that it can keep up with and surpass other competitors in its
industry. Not to mention the fact that it has far fewer locations than some competitors, like KFC.
Chik-Fil-A has over 3,000 locations in the U.S., Puerto Rico, and Canada, while KFC has over
25,000 in more than 145 countries. Yet, Chik-Fil-A surpasses KFC. Even back in 2009, while
KFC’s sales fell 6% to $4.9 billion, Chik-Fil-A grew 9% to $3.2 billion. Fast-forward to 2021,
and Chik-Fil-A had well surpassed KFC. It was ranked third among U.S. fast-food restaurants,
following McDonald’s and Starbucks (Statista, 2022). However, in a 2023 interview, Dan Cathy,
the Chik-fil-A chairman, stated that Chik-fil-A could surpass Starbucks in the next couple of
years (Tony Robins, 2023). Chik-Fil-A has achieved great organizational success, setting new
standards for efficiency, quality food, and customer service throughout the fast-food industry.
Owning, Franchising and Operating
Unlike most fast-food chains, which take the franchise model, allowing people to buy a
portion of the company and open a store themselves. Chik-Fil-A opens new locations themselves
and leases to people who are labelled as operators on a year-to-year licensing agreement. These
operators pay a $10,000 fee to get started. Then, they pay 15% of top-line revenues. They also
split the bottom-line profits with the corporation 50/50 (typically $250,000) (Dittfurth we al.,
2019). They don’t have to worry about purchasing expenses, down payment percentages, or
advertising fees (Gethardt et al., 2015). Operators also don’t have to worry about paying for
broken kitchen equipment or employee uniforms. Chik-Fil-A attracts thousands of Operator
5
applicants, but they only choose 1% of them (Manko, 2022). Operators go through several
months to years of interviews and on-the-job evaluations (Manko 2022).
Controversy
Chik-Fil-A has managed to strive, even after the controversy on gay marriage. Chik-Fil-A
chairman Dan Cathy was asked in a 2011 interview about his views on gay marriage. Cathy
stated that he believed in the “biblical definition of the family unit” (Hu, 2012). This led the
mayors of Boston, Chicago, and San Francisco to announce that they would not allow Chik-fil-A
to expand their franchise into their cities. The American Civil Liberties Union, however, notified
the mayors that this would be against the First Amendment (McClelland, 2012). Also in San
Francisco, there was a campaign against Chik-Fil-A for the comments opposing same-sex
marriage. Surprisingly, this did not ruin Chik-Fil-A, as they continued and continue to grow.
Conclusion
The founder of Chik-Fil-A was asked why they were so successful. He answered that the
company’s success came from its people. He states, that regardless of your industry, once you
establish that you are in the “People Business” then it almost doesn’t matter what you sell. It is
with this mindset that Chik-Fil-A has grown into a powerhouse in the fast-food industry. Along
with their teamwork, customer service, and tasty chicken, they also implement great marketing
which I will explain in the following pages.
Talbot, David. 2012. The Real Debate Will Take Place on Facebook and Twitter. Cambridge: Technology Review,
Inc.
Parrish, Ashley M. V. 2023. "Culture and Values with a Side of Chick-Fil-A Sauce: Discovering the Secret Behind
Chick-Fil-A’s Organizational Success." Order No. 30815597, William James College.
"Which Restaurants Win with Millennials? Technomic Examines Distinct Foodservice Drivers." 2012.PR Newswire,
May 10.
York, Emily Bryson. "KFC's stunts make nightly news, but do nothing to stop sales slide; Chik-fil-A, Popeyes and
others gain ground as No. 1 fails to find coherent marketing message." Advertising Age, April 19, 2010, 2. Gale
Academic OneFile (accessed December 1, 2024).
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Marketing Analysis
An Overview of Chik-Fil-A’s Marketing Strategies
Relationship Marketing and Social-Cultural Environment
Chik-Fil-A takes on a more “Relationship Marketing” approach. They value their
relationships with their customers and the people over all else. As I’ve already said, they have
impeccable customer service. When business members were debating ways to open more ChikFil-A restaurants to stay ahead of competitors and grow bigger. Founder Truett Cathy put a stop
to this train of thinking, He banged his fist on the table and said, “Ladies and gentlemen, I am
sick and tired of hearing you talk about getting bigger! We need to get better! Because if we get
better, customers will demand we get bigger!’ (EntreLeadership, 2022, 38:44). This is when they
began to implement the “Second Mile Service” business model. They teach employees things
like running after a customer and giving them a straw they forgot for a milkshake. They have a
famous phrase, “my pleasure,” for when customers say thank you. They change words to add a
more welcoming atmosphere. They refer to customers as “guests.” They say “refresh” rather than
“refill” and “beverage” instead of “drink.” An employee stated how she genuinely enjoyed
serving her customers, saying she began to know many customers by name. These things help
greatly in their social-cultural environment. This was all to gain loyalty from customers and
create what they call “raving fans.” They say raving fans do three things: they come more often,
happily pay full price, and tell others about their experience. The Vice-President of Marketing,
David Dalyers, explains this as a mathematical-like model. Every customer is looking for great
value. The value is what the customer receives, divided by what they pay. Customers would want
a value that balances in their favour (EntreLeadership, 2020). Another method to improve the
customer experience was implementing frictionless transactions. To do this with their high
volume of customers, they had to improve their drive-through lines and kitchen appliances.
Political and Legal Environment
After the controversy following Chik-Fil-A chairman Dan Cathy’s interview in 2011,
stating his opposition to same-sex marriage, Chik-Fil-A made a response to the public outcry.
They stated that they believed that all people should be treated with dignity and respect and were
making the decision to stay out of policy debates on gay marriage (Hannon, 2013). Following
this, the liberal community did not fully boycott Chik-Fil-A. This created an opportunity to gain
support for their religious beliefs. Using this, many political conservatives used this to enforce
their own Christian beliefs and portray themselves as defenders of the Christian faith (Hannon,
2013). This created an expectation, as it became a new way to test the legitimacy of
conservatives’ Christian beliefs. This triggered a new “proper Christian” identity creation
(Hannon, 2013).
Technological Environment
7
Chik-Fil-A improved its technological environment by improving its drive-through lanes
to create efficiency. They also upgraded their kitchen appliances to keep up with the high level of
customers. They frequently update the menu to keep up with new trends. Such as introducing the
grilled chicken sandwich and other healthy alternatives.
Competitive Environment
They do well in their competitive environment. Surpassing KFC is proof of this. They
have brand, substitute and international competition with KFC. Both sell fried chicken and
chicken sandwiches. Chik-Fil-A also has milkshakes and beat KFC to the punch on introducing
the grilled chicken sandwich.
Khadri, Nour. “Week 11 -Ch-12-Marketing.” Intro to Marketing, uOttawa University, 2024
Parrish, Ashley M. V. "Culture and Values with a Side of Chick-Fil-A Sauce: Discovering the Secret Behind ChickFil-A’s Organizational Success." Order No. 30815597, William James College, 2023.
8
Conclusion
A Final Conclusion on Chik-Fil-A and its Marketing Approaches
It is clear that Chik-Fil-A has a system that works very well for them. They have
overcome controversy, stuck to their beliefs, do things differently than their competitors and care
greatly for their customers. Their relationship marketing approach seems to be paying off greatly
for them. I implore anyone looking to open a restaurant to look at their structure and take notes. I
plan to use lots of what I have learned here to help grow my family restaurant and any other
restaurant businesses I may open in the future. They have shown how putting customer
satisfaction paired with a great product is a foolproof recipe for success.
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Visuals
Richards, Katie. “Chicken With a Beef: The Untold Story of Chick-fil-A's Cow Campaign.” Food Industry News,
2016. https://www.adweek.com/brand-marketing/chicken-beef-untold-story-chick-fil-cow-campaign-171834/
Naillmonmay, Buffy, “The Most Mouth-Watering Chik-Fil-A Marketing Campaigns of All Time.” (Mashed, 2023)
https://www.mashed.com/334746/fast-food-chicken-tenders-ranked-from-worst-to-best/
10
Naillmonmay, Buffy, “The Most Mouth-Watering Chik-Fil-A Marketing Campaigns of All Time.” (Mashed, 2023)
https://www.mashed.com/334746/fast-food-chicken-tenders-ranked-from-worst-to-best/
“New York City’s First Full-Service Chik-Fil-A Restaurant Opening Oct. 3.” (PR Newswire, 2015).
https://www.prnewswire.com/news-releases/new-york-citys-first-full-service-chick-fil-a-restaurant-opening-oct-3300149774.html
11
“Chick-fil-A has a comprehensive marketing strategy, reaching consumers via traditional advertising, social media,
local community activities, and the Chick-fil-A One App.” Chik-Fil-A: (Wordpress)
https://cowfan.wordpress.ncsu.edu/reaching-consumers/
“Chick-fil-A has a comprehensive marketing strategy, reaching consumers via traditional advertising, social media,
local community activities, and the Chick-fil-A One App.” Chik-Fil-A: (Wordpress)
https://cowfan.wordpress.ncsu.edu/reaching-consumers/
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Bibliography
Parrish, Ashley M. V. "Culture and Values with a Side of Chick-Fil-A Sauce: Discovering the Secret Behind ChickFil-A’s Organizational Success." Order No. 30815597, William James College, 2023.
https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/dissertations-theses/culture-values-withside-chick-fil-sauce/docview/2915522965/se-2
Talbot, David. The Real Debate Will Take Place on Facebook and Twitter. Cambridge: Technology Review, Inc,
2012. https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/other-sources/real-debate-will-takeplace-on-facebook-twitter/docview/2820808699/se-2
Waid, John. "Sales Culture Eats Strategy for Breakfast." HMC Sales, Marketing and Alliances Excellence
Essentials, 11, 2018, https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/magazines/salesculture-eats-strategy-breakfast/docview/2158032697/se-2
York, Emily Bryson. "KFC's stunts make nightly news, but do nothing to stop sales slide; Chik-fil-A, Popeyes and
others gain ground as No. 1 fails to find coherent marketing message." Advertising Age, April 19, 2010, 2. Gale
Academic OneFile (accessed December 1, 2024). https://link-galecom.proxy.bib.uottawa.ca/apps/doc/A224708844/AONE?u=otta77973&sid=bookmark-AONE&xid=3d89adc8.
"Which Restaurants Win with Millennials? Technomic Examines Distinct Foodservice Drivers." PR Newswire, May
10, 2012. https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/wire-feeds/which-restaurants-winwith-millennials-technomic/docview/1011978357/se-2
. Restaurants - Quarterly Update 10/14/2024. Fort Mill, South Carolina: Mergent, 2024.
https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/reports/restaurants-quarterly-update-10-142024/docview/3116644115/se-2
Richards, Katie. “Chicken With a Beef: The Untold Story of Chick-fil-A's Cow Campaign.” Food Industry News,
2016. https://www.adweek.com/brand-marketing/chicken-beef-untold-story-chick-fil-cow-campaign-171834/
Naillmonmay, Buffy, “The Most Mouth-Watering Chik-Fil-A Marketing Campaigns of All Time.” (Mashed, 2023)
https://www.mashed.com/334746/fast-food-chicken-tenders-ranked-from-worst-to-best/
“New York City’s First Full-Service Chik-Fil-A Restaurant Opening Oct. 3.” (PR Newswire, 2015).
https://www.prnewswire.com/news-releases/new-york-citys-first-full-service-chick-fil-a-restaurant-opening-oct-3300149774.html
“Chick-fil-A has a comprehensive marketing strategy, reaching consumers via traditional advertising, social media,
local community activities, and the Chick-fil-A One App.” Chik-Fil-A: (WordPress)
https://cowfan.wordpress.ncsu.edu/reaching-consumers/
Khadri, Nour. “Week 11 -Ch-12-Marketing.” Intro to Marketing: (uOttawa University, 2024).
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