Chick-fil-A Surpasses Rivals To Claim Top Chicken Chain Title in the U.S.

With its high potential revenue and $10,000 point of entry, a Chick-fil-A franchise sounds like the perfect investment opportunity. So, what’s the catch?

By Luca Piacentini1851 Franchise Managing Editor

8:08AM • 10/14/24

Chick-fil-A has steadily climbed to the top of the U.S. chicken chain industry, outpacing long-established brands like KFC and Popeyes. The fast-food giant has redefined the chicken segment with its unparalleled customer service, a simple yet effective menu and an exceptional business model. By 2023, Chick-fil-A secured a 45.5% market share in the chicken fast-food sector, a significant leap from its previous share of 38.3% in 2022. This dominance, combined with annual sales that outshine even McDonald’s locations, highlights Chick-fil-A’s powerful hold over the market.

What makes Chick-fil-A’s rise even more remarkable is its efficiency. Despite having fewer than 3,000 locations — considerably less than many of its competitors — the chain consistently earns more revenue per store. On average, a Chick-fil-A restaurant generates $8.7 million annually, a testament to the brand’s customer loyalty and high operational standards. With its focus on chicken and a streamlined menu, Chick-fil-A has built an empire that other fast-food giants are eager to emulate.

How To Buy a Chick-fil-A Franchise

While Chick-fil-A’s success is apparent, becoming a franchisee, or “Operator,” with the brand is notoriously difficult. The process is not only highly selective but also competitive — so much so that being accepted as a Chick-fil-A franchisee is statistically harder than gaining admission to Harvard.

The Selective Franchisee Selection Process

Chick-fil-A is strategic in every aspect of its business, including the selection of its franchisees. Out of approximately 60,000 applications the brand receives each year, only about 1% are approved. The company seeks operators who align with its values, such as making positive contributions to the community and demonstrating financial stewardship. Additionally, prospective franchisees must live in the local market where they plan to operate, underscoring Chick-fil-A’s commitment to local ownership and involvement.

Importantly, Chick-fil-A franchisees are expected to be hands-on with the day-to-day operations. This opportunity isn’t suitable for those looking for a passive investment or to expand their portfolio with multiple brands. Operators must commit to full-time availability and embody the brand’s values of hospitality and service.

Navigating the Interview Process

For those fortunate enough to advance in the selection process, the next step is a rigorous interview. Chick-fil-A places significant emphasis on character, leadership skills and business acumen. The interview process often involves contacting references, including friends, family and former employers, to verify the applicant’s qualifications and suitability.

If selected, the prospective Operators will receive the franchise agreement, which includes critical legal and financial details. It’s highly recommended to review this document thoroughly with a franchise lawyer and speak with current and former Chick-fil-A Operators to gain insights into what running the business entails.

Training and Opening Day

Once approved, franchise Operators undergo an intensive, multi-week training program designed to prepare them for every aspect of operating a Chick-fil-A restaurant. The training covers topics like hiring and managing staff, delivering the brand’s signature customer service and running daily operations efficiently.

Chick-fil-A makes the process of opening a new location smooth for its Operators by handling the majority of startup logistics. The franchisor selects the location, rents necessary equipment and manages the build-out. Once the restaurant opens, Operators can expect to be greeted with high demand, as Chick-fil-A locations are notoriously busy from day one.

Cost and Profit Structure

Opening a Chick-fil-A franchise is surprisingly affordable compared to other fast-food brands. The franchise fee is just $10,000, and unlike most other franchises, Chick-fil-A covers all upfront costs related to building and opening the restaurant. However, the brand’s profit-sharing model is more stringent: Chick-fil-A takes 50% of the profits and charges a 15% royalty on sales.

Despite this steep profit-sharing structure, Chick-fil-A franchisees typically see substantial returns. Chick-fil-A units consistently earn more per location than competitors like McDonald’s and Wendy’s, making it a highly lucrative investment for those who pass the rigorous selection process.

Overall, while buying a Chick-fil-A franchise is no small feat, the rewards are considerable. For the few who make it through the highly competitive process, Chick-fil-A’s comprehensive support and established brand reputation provide a solid foundation for long-term success.

To learn more about franchising with Chick-fil-A, check out these related 1851 Franchise articles:

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