Chick-fil-a's history extends back to 1946, when Truett Cathy opened his first restaurant, which was called the Dwarf Grill in Atlanta Georgia. It was not until 1963 that Truett invented the first original chicken sandwich. Four years later, in 1967, the first Chick-fil-a Dwarf House was opened in the Greenbriar mall in Atlanta. After that it wasn't until 1986 that the first "free standing" Chick-fil-a was opened in Atlanta. As of 2012 Chick-fil-a has a total of 1,600 restaurant locations, making them the second largest fast food restaurant chain in the U.S. (Chick-fil-a, 2012).
Over the course of years new items would be added to the menu; however the original Chick-fil-A sandwich would always be the leading sandwich. Since 1967 Chick-fil-A has become the second largest quick service restaurant in the United States. Currently, there are over one thousand seven hundred locations in thirty nine states. In 2012 sales reached four point six billion dollars, this was a fourteen percent increase since 2011. Chick-fil-A’s SWOT analysis Strengths *Established in the United States *1700 locations in 39 states *Successful advertising slogan: “Eat morchicken” *Well known for its chicken sandwich and other chicken products.
The final goal is to increase revenue, attract more new customers, to regain its competitiveness in the market. Although Jade Asian Restaurant has received press accolades, their business has issues need to be addressed immediately. Jade Asian Restaurant had been a popular Chinese cuisine destination for the first couple years after its opening. In the past few years, the popularity has decreased due to its inefficiency in service and food quality. In order to reach its goal of regaining the competitiveness in the industry, a restaurant management system must be implemented.
Founded in 1989, Boston Chicken positioned itself as a provider of home meal replacements. The firm relied heavily on regional developers to open new stores, leading to a growth rate of nearly 500% each year between 1991 and 1994. While some analysts praised this fast expansion, others questioned the profitability of the new stores and the firm’s ability to succeed in the future. Our group analyzed the company’s business strategy and accounting policies, finding that Boston Chicken was not as stable as it presented itself to be. 1.
Chick-fil-A is affected by numerous external forces which can challenge upper management’s ability to make Chick-fil-A one of China’s best quick-service restaurant”. Through intense strategic planning, based upon their vision, mission and corporate values, Chick-fil-A will be able to establish a unique position in a very competitive industry in China. The corporate purpose of Chick-fil-A, “To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A”, their commitment to family and the community, and their sound business decisions, will make Chick-fil-A profitable and fast growing quick-service restaurants in China. The fast food restaurant industry, which includes fast-service and fast-relaxed restaurants, is highly pieced with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees.
Therefore, Cathy developed a unique franchise opportunity that he deployed first to malls and then to stand alone stores based on his core values of conservatism, encouraging corporate social responsibility, and entrepreneurship (Cathy, 2013). It allowed others to cover the majority of the variable costs of running a restaurant, while he assumed much of the fixed costs of building the restaurant so he could retain more control than competitors. Unique Franchise Model After making it through a strenuous interview process, a person can become a Chick-fil-a franchisee or “Operator” for only $5,000 which is substantially lower than the industry average (Cathy, 2013).What Chick-fil-A gives up in terms of initial fees, it makes up for in other areas. In general, Chick-fil-A requires operators to cover between $250,000 and $900,000 for the location's variable costs such as inventory, as well as fixed costs such as equipment rental, insurance, location leasing fees, and other operation fees (Malloch and Grem, 2010). This allows the corporation to have minimal variable costs as most are covered by Operators.
The three main points I will compare the restaurants’ by is the fan base, the choices, the taste, and the prices. First off, McDonalds has more history and a much longer track-record than Chick-Fil-A does. McDonalds was founded in 1948, while Chick-Fil-A was founded in the early 1960’s. After being founded McDonalds quickly became famous for their 15 cent hamburgers. In seventeen years, McDonalds had 700 stores nationwide.
The firm needs more attention to a solid marketing effort including a website design and website launch and it needs to find alternate means of financing beyond its current sources. In 2003 and 2004, more than 52% and 60% of the customers felt that they paid more for the merchandise that the merchandise was worth. Kudler Fine Foods will employee a generic strategy of focus. Kudler Fine Foods will serve their niche market that is the gourmet chef and people that appreciate and are willing to pay for high quality, specialty, organic and locally grown foods. “A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer” (Pearce and Robinson, 2009, p.205).
* Meets the desire of Paul Livoria * Additional revenue source ( appendix 4) * Increasing franchising trend, 70% of restaurants in Dawkins are franchises * Takes advantage of population growth and high family disposal income in Dawkins * A strong motive for franchise managers to make their restaurants as profitable as possible * An opportunity to improve menu base on local demand, shared innovative ideas and success stories among franchisees that can help strengthened growth Cons * Risk of losing sandwich quality as managers might not comply to standard procedures or invest in people or maintenance * Additional cost of finding and monitoring company managers * In case of failure to comply to franchise agreement, terminating the contract can be costly and difficult * Increasing strict quality heath control in Dawkins and risk of losing franchises that do not adhere to these quality
Moreover, the articles tells us that, “Yum’s U.S. business notched a 6% increase in same-store in the third quarter ended Sept. 8, driven by Taco Bell”(Jargon).This proves that 13% gain in same-store sales. This is significant because the new Cantina Bowl products and tacos made with Doritos shells were behind the growth. Therefore, fast food restaurants are up scaling which contribute with America’s obesity problem. In conclusion, the reason for America’s obesity epidemic is that the fast food restaurants are giving the customers foods that are supersized. The articles above state the reason why and what caused the obesity problem.