The Unconventional Franchise Model Behind Chick-fil-A’s Success

Hey, Nick here! In this newsletter, I curate insights and timeless principles on how to build great products. You’ll improve your product skills with every issue.

Here’s a video for you today…

The Unconventional Franchise Model Behind Chick-fil-A’s Success

It’s no accident Chick-fil-A is the third largest fast food chain in the US by sales. They are consistently ranked at the top of customer satisfaction lists and have one of the most iconic fast food items. Even though most product manager roles are for digital products, here are 4 insights on how Chick-fil-A got to where they are today.

1. Differentiated product

Chick-fil-A grew with the popularity of its signature product, the chicken sandwich. The founder, S. Truett Cathy, found a pressure-fryer that could produce a chicken sandwich in the same amount of time as a burger. This was a new technique for a common food item.

Having a differentiated product isn’t enough, customers need to enjoy the product. We can even see a nod to having a differentiated product in their corporate slogan, "We Didn't Invent the Chicken, Just the Chicken Sandwich.”

2. Become exceptional at a few things

Chick-fil-A doesn’t have the revolving door of menu items that exist at other fast food chains. They mastered the craft of cooking their chicken sandwich in 1967 and haven’t changed the recipe since. They’ve become outstanding at the items they offer and have slowly added when they’ve mastered the next item.

3. Conservative growth

The demand for Chick-fil-A locations is much higher than the current supply. They open stores at a much slower rate compared to their peers. They are very methodical with their location and talent selection for opening new stores. Due to their controlled growth and high demand for their product, they are far ahead of competitors in revenue generated per store.

Customer service is still a top priority for them, so they’ve implemented processes to help with their high demand and lower store count. They send out team members to cars in the drive through line to help alleviate the congestion. 

4. Operators develop people and teams

Chick-fil-A has over 8,000 applicants each year to become an operator of a franchise, but ~150 are accepted. This is a lower acceptance rate than any college in America. There is an extensive process that can last 12-18 months before an operator can run their own location.

The two key attributes Chick-fil-A looks for in an operator is someone that can develop people and teams. The average Chick-fil-A has over 100 employees that need to be managed. Due to their conservative growth, the operator is expected to be very hands on with their location and people. It isn’t uncommon for the operator to be there before opening and after closing. They need to lead by example, which sets the tone for their teams.

Link to the full video by the Wall Street Journal.

End Note

Thank you for reading. If this was shared to you, you can subscribe here.

For bite-sized product tips in your twitter feed, follow @ProductPersonHQ.

Have a great day,

Nick