Chick-fil-A’s Success and Expansion Strategies

Chick-fil-A is one of the most successful fast food restaurant establishments in the country. With over 1,300 locations in 37 states in the Southern U. S. , they continue to grow the brand by expanding to new territories (Chick-fil-A Company, 2009, para 1). In 2008 Chick-fil-A has seen a 12. 17 percent sales increase over the chain’s 2007 performance and a same store sale increase of 4. 59 percent (Chick-fil-A Company, 2009, para1). Throughout the years Chick-fil-A has come up with many innovative ideas to continue expanding business and satisfying their loyal customers.

One of the ideas was to offer different types of restaurant set-ups to cater to customer’s needs. The different restaurant set-ups include mall/in line, stand-alone, drive-thru only outlets, dwarf houses, Truett’s grills, licensed non-traditional outlets (franchises) and satellite/lunch-counter. After proper research of different geographical locations the writer has decided to buy into a chic-fil-A franchise zoned in the Columbia County, Grovetown area. Executive Summary Chick-fil-A’s mission is “to be America's best quick-service restaurant at winning and keeping customers” (ChristiaNet, 2009, para 2).

We will strive to be the premier fast food franchise of its kind in the North East market with future goals of expanding into our European territories. Our goal is to keep one step ahead of the competition by offering a clean environment, dynamic customer service, and overall quality products and services. Chick -fil-A's purpose statement reveals the heart of the company: “That we might glorify God by being a faithful steward in all that is entrusted to our care, and that we might have a positive influence on all the people that we might come in contact with” (ChristiaNet, 2009, para 2).

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We want our customers to experience the highest level of satisfaction there is to offer during their visit at our franchise. We will deliver a quality controlled atmosphere with efficient state-of-the art appliances, and provide extraordinary customer service so that every customer will benefit from our success. Identify the marketing segment for the product and explain why this segment was selected; The location selected to launch the Chik-fil-a franchise will be in Columbia county centrally located in Grovetown. This area was selected because of its potential profitability. Potential profitability is a function of the current market size, its anticipated growth, current and anticipated levels of competition, and customer behavior and expectations (lacobucci, 2010 ). Columbia County’s rapid growth has transformed this county from a rural neighbor of Augusta to the major suburban county in the second largest metropolitan area in Georgia (Columbia County, 2009, para 1). There are many reasons for their rapid growth - a growing and diversified job market, a premier school system, affordable land, open spaces lending an air of the countryside, and a stable, conservative county government.

Columbia County is predominantly residential and includes a highly-skilled workforce. According to Federal census figures released over the past decade, Columbia is the region's fastest growing county. However, there are still some improvements needed for the revolving community. As stated above Grovetown is a city on the move, constantly reinventing itself to appeal to a variety of residents. However, there are improvements needed that would make the Grovetown area more marketable. Currently there aren’t enough eating places in close proximity to residents living west of the county which is considered Grovetown.

There is only one Mexican and Chinese restaurant, a McDonald’s, Subway, and KFC in the community. Surrounding areas offer a larger variety of fast food and dining restaurants but the closest Chic-fil-A is about 10 miles away from the Grovetown area. There are currently only six chik-fil-A locations throughout the city of Augusta which is not considered many at all. That is going to give the entrepreneur a huge advantage at start-up that there is not many other chik-fil-A’s close by and throughout the city. Being that Chick-fil-A is America’s number one choice of fast food, the others don’t stand a chance.

Discuss the target market and why these customers will be targeted; The target market will include residents living in the Grovetown/Harlem area and also the army base, Ft. Gordon located approximately 2 miles from the Gate 2 Grovetown entrance. Military personnel make up the vast majority of residents living in the Grovetown area. Ft. Gordon also serves as a training base for new soldiers coming into service so there is a large market segment being targeted. Ft. Gordon only has a Blimpe’s, Popeye’s, Burger King, Godfather’s pizza, Chinese, and Huddle House. Based on the current market, Chik-fil-a will have a huge competitive advantage.

With sickness rapidly attacking the bodies of young and older adults healthier alternatives are taken into consideration. Exercise with a combination of healthier diets is now a priority of much of America. Chik-fil-a will be one of the healthier alternatives that Grovetown will welcome hole-heartedly. What’s better than to start your morning with a custom cup of coffee and a low calorie breakfast sandwich? Adding the franchise here will attract morning employees heading to work, 3rd shift workers heading home from work, and many customers in between are most likely to choose Chick-fil-A over McDonald’s and Subway on any given day.

Conduct a SWOT (strengths, weakness, opportunities and treats) analysis for the company; SWOT Analysis Chick-fil-A is a unique position of competition. We compete against neighborhood fast food chains such as McDonald’s, KFC, and Subway. However, there is really no threat against America’s preferred fast food restaurants, Chik-fil-a. Offering numerous low calories, fat free items, Chick-fil-A has the best competitive advantage. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in quality and price.

When it comes to nutrition, McDonald’s falls short of the victory over Chick-fil-A. However, McDonalds wills serve as our most stiff competition. In addition to hamburgers, fries, and soft drinks, McDonalds offer grilled chicken sandwiches, an array of salads, Fruit 'n Yogurt Parfaits, Apple Dippers with Low Fat Caramel Dip, juice, 1% low fat milk, and, at many restaurants, soups (McDonalds Nutrition, 2009, para 5). It has helped McDonalds tremendously; however, Chik-fil-A’s healthier choices are a bit more pleasing to the taste buds.

On the other hand, Subway has proven to have a nutritional advantage over Chick-fil-A but the quality of service or product does not add up to exceed it’s customer base. KFC has surely stepped up their competitive edge by comparing their items to its competitor analyzed by its calorie value. If you go to the KFC website it displays the meal choices and calorie values of McDonalds, Subway and Dunkin Donuts against its new grilled chicken meal. Chick-fil-A was not one of the selected fast food components that KFC could compare itself to. Chick-fil-A’s main strategy is to focus on providing a quality controlled tmosphere for the customer with extraordinary customer service while gaining loyal customers.

McDonald’s is focusing on growing market share with a disciplined pricing strategy to provide great tasting food at an affordable price (McDonalds Media Center, 2009, para 3). Chick-fil-A understands that the customer drives the business and that most important is to satisfy the customer through superb customer service by offering extensive training to their employees. The writer can attest that competitor’s such as McDonalds, KFC, and Subway can all use improvement in this area. Another competitive edge is our involvement within the community.

We will always oblige to be a sponsor for any charitable activities going on in our community. Chick-fil-A and McDonalds are heard more in the media providing programs and sponsorships for their employees and charity events. The residential outlets are continuing to grow tremendously in Columbia County offering Chik-fil-a great opportunities and sponsorship possibilities. Describe the market position for your product and service. A quality that distinguishes chik-fil-A from there fast food competitor’s is it’s commitment to the customer and as a result they have been honored with three Customer service based awards.

Product quality is another area that has an effect on the volume of business. If customers are accustomed to receiving quality produced products they are motivated to buy from the supplier because they know what they can expect each time. That is important element in fast food chains. Who wants to drive away from the restaurant with cold food? Complete turn off for the customer and it is sure to leave a bad taste in their mouth for this particular restaurant. In surveys conducted by Marketing and Research Counselors, Inc. Chick-fil-A’s core menu products, including the Chick-fil-A Chicken Sandwich, Chick-fil-A Chicken Nuggets and Chik-fil-A Chick-n-Strips, have consistently ranked number one in their respective categories (Chick-fil-A: Food, 2007). So chik-fil-a will provide the market with products that are favorable by much of America. The “Eat Mor Chikin” campaign has increased the chain’s sales five-fold. The chain has turned the theme into a fully integrated marketing program, which includes store point-of-purchase materials, promotions, radio and TV advertising, and clothing and merchandise sales (Chick-fil-A: The Cows, 2007, para 1 ).

Chick-fil-A’s marketing presence is here to stay. The company currently has more than 1,380 restaurants in 37 states and Washington, D. C. and enjoyed an aggressive expansion year, opening 80 new restaurants in 2007 (Chick-fil-A Company, 2007, para ). It’s just a matter of time before this company takes its business global and leaves its competitor’s in the wind. Product/Services America loves Chick-fil-A because it can fit into almost any healthy diet through moderation and balanced menu choices. The Chick-fil-A menu offers 10 menu items with 10 or fewer grams of fat.

Foods are also cooked in 100 percent refined peanut oil which is naturally trans-fat and cholesterol free (Chick-fil-A: Food, 2007). So not only are the “eat mor chikin” products delicious, but nutritious as well. Chick-fil-A’s current marketing plan is a huge success. Chock-full a sponsors many events including the Chick-fil-A Bowl, the Atlantic Coast, Southeastern and Big 12 Conferences and Chick-fil-A Kyle Petty Charity Ride Across America sponsorships have introduced new audiences to the brand (Chick-fil-A, 2009, para 6).

The company participates in many charities around town and always seen in the community volunteering time and making a difference. For the most part prices do not change within a 12 month period. Products offered coincide with all Chick-fil-A locations, however, services vary. We take pride in offering our customers the best service so we will honor product prices that are currently held at the corporate offices.

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