Chik-Fil-a Case Analysis

drawframe CASE ANALYSIS Principals of Management celestial latitude 11, 2008 Abstract Chick-fil-a restaurant is a family owned chain. Truett Cathy has been in the restaurant business for 62 years and flat has 1,400 restaurants in 37 states including Washington D. C. textual matterbibliography-mark . As of 2007, Chick-fil-As reached sales of $2. 64 billion which showed an progression of 16. 09% increase in sales from 2006 textbibliography-mark . Table of Contents I. Introduction and Background Abstract .. 2 II.Literature revaluation.. 4-7 A. Major look for area one History of Chick-fil-A4 B. Major search area two Mission Statement. . . 4 C. Major research area three lift Analysis. .. 5-7 D. Major research area four Industry Environment.. 7 E. Major research area five Financial Analysis7 E. Conclusion . 7 III. References . . . 8 Literature Review History of Chick-fil-AIn the small Atlanta suburb of Hapeville in 1946, Truett Cathy opened the Dwarf Grill and later named it Dwa rf House. In 1961, Good Brothers Poultry offered Cathy to come up with a white-livered sandwich that met up to airline size requirements. He then invented the original Chicken Sandwich in 1964 when his regular customers eventually told him We like it. Dont change it again. textbibliography-mark When he was deciding on the name to blanketing mark, he thought about the whiner filet he used. He then shortened it with a capital A at the end to stand for top quality.In 1967 he opened up his first mall restaurant in the Greenbrair Mall in Atlanta. In 1973, he offered $1000 squad member scholarships for his employees to further their education. In 1982 it was the 1st fast food chain nationally to sell chicken nuggets. In 1992, Georgia Tech and Clemons University were the first Universities to pay a Chick-fil-a restaurant on campus. According to Truett Cathys biography that I looked up on his website, he has been in the restaurant business for 62 years and now has 1,400 restaurants in 37 states including Washington D. C. textbibliography-mark . Mission Statement Be Americas Best Quick-Service Restaurant textbibliography-mark . *S. W. O. T. ANALYSIS* Strengths Name Brand Recognition Chick-fil-A officially opened in an Atlanta mall in 1967. In 1995, Chick-fil-A introduced the infamous renegade cows known for the Eat Mor Chickin campaigns. textbibliography-mark . Customer ServiceChic-fil-A, prides itself on pleasing the customer, and it shows. Anytime I hold up ever visited any Chic-fil-A restaurant, I convey been served with the greeting ending in my pleasure.They have won 30 customer service awards in the past 12 years, and among those the Business Week/J. D. Power has awarded them top 25 Customer Service Champs textbibliography-mark . Employee Retention Regarding the Closed on Sunday Policy, Chick-fil-A mentioned in a press release online there must(prenominal) be something special about how Chick-fil-A feels about its pile. I do believe that being close d on Sundays gives their employees the opportunity to spend quality time with their families and/or go to church.Community pastime Chic-fil-A does non stop with the employee or the customer, they in any case help charities such as the Chick-fil-A Kyle Petty Charity tug Across America which raises money for various children hospitals. Nutritio_n _With chicken being the main thing on the menu, Chick-fil-A uses trans-fat and cholesterol free peanut oil to deep fry their chicken and French fries. They also have 10 menu items that have 10 or fewer grams of fat textbibliography-mark . Weaknesses _Closed on Sunday Policy_ Although Mr.Cathy prides himself and does not regret the Closed on Sunday Policy, this is still a potential day to perplex revenues. In 2007, sales reached $2. 64 billion textbibliography-mark , and I can only imagine how a good deal sales would be if they were open on Sunday. Religion at work Since Mr. Cathy has such strong Christian beliefs, some people who are n ot religious may find that intimidating or unskilful to work for. For example, in October of 2002, Chick-fil-a was slapped with a lawsuit for violating the Civil Rights Act of 1964 textbibliography-mark .The lawsuit came after Aziz Latif was blast one day after training in which his attorney claims that the following events took place _Everyone said a prayer, one at a time, to Jesus Christhe saidWhen it came to our client, who is Muslim, he didnt avow anything. There was an awkward silence. Then eventually the next person started praying to Jesus Christ. The next day he was fired. textbibliography-mark _ I could not find the verdict of this trial, but this is one way that religion at work can be a weakness to the company.Only selling chicken Chick-fil-A sells only chicken which is another weakness. By not offering beef, pork, or fish Chick-fil-A is not expanding their target market to the people who choose not to eat chicken. The people who choose to eat these other meats are lo st customers that could have been potential customers had they offered them these other products. Opportunity Growth In 2007, Chick-fil-A had much than 1,380 restaurants in 37 states, and with a extraordinary $5000 sub-lease franchise opportunity, I do not see this number getting any smaller any time soon.Innovation Chick-fil-A has definitely grown since their one mall restaurant. They now have approximately 375 major mall restaurants, 728 stand-alone locations, 29 drive-thru-only restaurants, 11 Chick-fil-A Dwarf House Restaurants, and 2 50s diner-themed Truetts Grill Restaurants textbibliography-mark . Education Chick-fil-A also has several employee scholarship programs available that date all the way back to 1973. They have offered more than $23. 5 million to over 23,300 employees. The scholarships are the Team Member Scholarship program, S.Truett Cathy Scholar Awards, and also the WinShape Foundation. This to me says that they want valuable team members who can bring new idea s to the table, and not have to outsource for more educated personnel to fill the shoes of the high command positions. Threats Lower Priced Fast Food Restaurants warmness Variety Restaurants C. Industry Environment Chick-fil-A is a fast food chain constantly striving to be the top of its game. Although it only serves chicken on the menu and is closed on Sundays, it has no problems holding up with its competitors in revenue. *D. Financial Analysis*As of 2007, Chick-fil-As reached sales of $2. 64 billion which showed an advantage of 16. 09% increase in sales from 2006 textbibliography-mark . E. Conclusion In conclusion, I think Chick-fil-A is a in(predicate) family owned restaurant chain. I believe that an egger entrepreneur could make a big returns from its initial franchise startup cost of $5,000. I believe that Truett Cathy is a generous owner who gives back to the community. I have learned a lot from this case study and would probably start my own Chick-fil-A restaurant if I had the money at this time. References