How Chick-fil-A Rose to the Top of the U.S. Chicken MarketBuying a Franchise

How Chick-fil-A Rose to the Top of the U.S. Chicken Market

Chick-fil-A's growth and dominance in the U.S. chicken market are driven by its distinctive franchising model, its commitment to values and its consistent expansion efforts.

By Chris IrbyCopy Editor
8:08AM 10/21/24

Chick-fil-A has earned a reputation as a top player in the U.S. chicken market, standing out in a fiercely competitive industry dominated by fast-food giants. Known for its signature chicken sandwich and exceptional customer service, the brand’s rise is marked by strategic franchising, consistent unit growth and a relentless focus on its core values. This article explores how Chick-fil-A’s history and franchising model have propelled it to the top of the chicken market.

The Origins of Chick-fil-A

Chick-fil-A’s story begins in 1946 when founder S. Truett Cathy opened a diner called the Dwarf Grill in Hapeville, Georgia. Cathy’s original restaurant was well-known for its southern comfort food, but it wasn’t until 1964 that Cathy developed his signature chicken sandwich — a menu item that would eventually become Chick-fil-A’s claim to fame.

In 1967, Cathy opened the first Chick-fil-A restaurant in Atlanta’s Greenbriar Mall, introducing his chicken sandwich to a larger audience. From the very beginning, Cathy emphasized two key principles that would define the brand for decades: quality food and excellent service. These founding values became the bedrock of Chick-fil-A’s success, setting it apart in an industry more often characterized by speed and convenience.

Chick-fil-A’s Strategic Franchising

What truly accelerated Chick-fil-A’s rise to the top of the U.S. chicken market was its unique franchising model. Chick-fil-A stands out in the world of fast food by taking an unorthodox approach to franchising. The company retains full ownership of its restaurants, with franchisees — referred to as Operators — managing the day-to-day operations. This allows Chick-fil-A to maintain tight control over brand standards while empowering individual Operators to thrive.

Chick-fil-A also sets itself apart by requiring a lower upfront investment compared to other franchises. Potential Operators are selected through a highly competitive process, with only a small percentage of applicants being approved. Once approved, franchisees pay an initial fee of $10,000 and share profits with Chick-fil-A, making the franchise model affordable yet highly selective.

This approach to franchising has contributed to the brand’s remarkable consistency in both quality and service, helping it gain a loyal customer base across the U.S. Furthermore, Chick-fil-A’s practice of closing on Sundays — a rarity in the fast-food industry — has reinforced its commitment to values over profits, further endearing it to customers.

Chick-fil-A’s Expansion and Unit Growth

Chick-fil-A’s ability to scale rapidly is another key factor in its dominance of the U.S. chicken market. The brand has seen consistent growth in the number of locations, especially in the last two decades. Chick-fil-A had  fewer than 1,000 locations in 2000 but has since grown to over 2,900 restaurants. This represents an impressive expansion, with the company opening hundreds of new units year-over-year.

In fact, Chick-fil-A’s unit growth is among the fastest in the industry. Between 2018 and 2023, Chick-fil-A added roughly 200 new units each year, focusing on markets in the Southern U.S. while steadily expanding to the West Coast and beyond. The brand has been particularly strategic in choosing high-traffic, high-visibility locations such as shopping malls and urban centers, ensuring that each new restaurant is set up for success from day one.

Chick-fil-A’s growth extends beyond the U.S. as well. In 2019, the brand expanded internationally, opening its first location in Toronto, Canada. With further plans to grow globally — including expansion into Asia and Europe in 2026, Chick-fil-A continues to build on its domestic success.

Chick-fil-A’s Year-Over-Year Financial Performance

Chick-fil-A’s consistent expansion has been accompanied by strong year-over-year financial performance. The company’s average sales per unit are among the highest in the fast-food industry; Chick-fil-A’s 2023 Franchise Disclosure Document showed that a single franchised restaurant could earn upwards of $8 million annually. Despite operating fewer days than competitors due to its Sunday closures, Chick-fil-A regularly outperforms other fast-food chains, including McDonald’s, in average revenue per restaurant.

This impressive financial growth has been fueled not only by new unit openings but also by a steady increase in same-store sales. From 2010 to 2020, Chick-fil-A reported double-digit growth nearly every year, with only slight dips during the height of the COVID-19 pandemic in 2020. The brand’s ability to adapt to changing consumer preferences, such as the shift to mobile ordering and drive-thru services, has played a significant role in its continued success.

The Future of Chick-fil-A’s Dominance

Looking ahead, Chick-fil-A shows no signs of slowing down. The brand’s ongoing expansion plans, including a renewed focus on international markets, suggest that Chick-fil-A is well-positioned for continued growth. Furthermore, the company’s commitment to innovation — from introducing new menu items like the Grilled Chicken Sandwich to improving digital ordering systems — will likely keep it ahead of competitors in the fast-food space.

Chick-fil-A’s rise to the top of the U.S. chicken market is the result of a well-executed strategy built on franchising, values-driven leadership, and consistent unit growth. By maintaining a strong focus on quality, service, and community, Chick-fil-A has cemented its place as a leading brand not only in the chicken market but also in the wider fast-food industry. As the company continues to grow, its unique approach to franchising and customer care will likely remain the driving forces behind its success.

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