September 28, 2023

Chick-fil-A is an American fast-food restaurant chain that was based in 1946 by S. Truett Cathy. The company operates around 2,860 restaurants across the United States with roughly 33{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} positioned in Texas, Georgia, and Florida.

Chick-fil-A’s enterprise mannequin focuses on serving tasty meals in a clear restaurant with excellent customer support. The corporate additionally creates worth for the client with its worker recruitment and franchise practices.

Franchise agreements

According to a Business Insider article, Chick-fil-A’s dominance within the aggressive American fast-food business is primarily right down to its distinctive franchise agreements.

Not like different corporations whose franchises might personal a whole bunch of eating places, Chick-fil-A franchisees can solely function one retailer.

This ensures that the franchisee offers with prospects instantly and is a member of the local people they serve. The corporate’s screening course of can be stringent, with just 0.4{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of franchise applicants accepted

Franchise homeowners are inspired to take part in group teams and occasions and are additionally answerable for worker recruitment.

This technique has enabled Chick-fil-A to ascertain a presence in native areas the place different corporations that open “faceless” franchises have struggled.

With just one retailer to handle, Chick-fil-A franchisees additionally take possession of their shops and work laborious to make sure they succeed.

Tasty fast-food

Chick-fil-A’s menu is much less diverse than some others within the business, however this permits the corporate to concentrate on cooking rooster effectively.

The method for making its signature rooster sandwich has not modified a lot since 1946 and, like McDonald’s, its menu objects are easy and straightforward to organize. 

To keep up the standard and freshness for which it’s recognized, Chick-fil-A rooster doesn’t arrive on the restaurant pre-cooked or crumbed.

The corporate additionally makes use of boneless rooster items which prepare dinner sooner and allow staff to spend extra time with the client.

What’s extra, the corporate marinates its rooster in pickle brine to ship a novel and juicy texture that stands out from the competitors.

Clear eating places

A 2018 survey discovered that Chick-fil-A restaurants were some of the cleanest eateries in the country.

Employees are required to stick to a strict day by day guidelines to make sure requirements are maintained, and when shops expertise quieter intervals, staff are redirected to cleansing jobs as required. 

Chick-fil-A makes a degree to maintain its loos clear – a standard sore level for patrons in eating places – and developed its “Secure Service” program to maintain diners secure and wholesome in response to the COVID-19 pandemic.

Customer support

Most corporations preach superior customer support, however comparatively few embody it in follow. After a survey of 20,000 customers, Chick-fil-A was voted as having the best customer service in the U.S. fast-food industry in 2021.

It was additionally ranked fifth general in over 160 classes amongst the likes of Disney and The Ritz-Carlton.

The corporate has developed numerous requirements to make sure customer support requirements are upheld throughout its franchises.

These embody small touches that aren’t sometimes current in a fast-food institution.

For instance, Chick-fil-A provides free meals, locations flowers on tables, and directs service employees to say “my pleasure” as an alternative of “you’re welcome”. 

Recruitment and employees retention

Chick-fil-A will solely recruit staff who share its ardour for customer support. The corporate’s extraordinarily selective franchisee recruitment course of can final for twelve months or extra with candidates required to attend as many as 20 interviews.

Whereas this will appear exhaustive, it has enabled the corporate to retain extra of its employees in an business sometimes characterised by excessive turnover.

Chick-fil-A additionally invests closely in recruiting and retaining frontline employees. To course of the colossal quantity of functions it receives, Chick-fil-A has automated facets of the method comparable to interview scheduling the place candidates can choose a time that fits them. 

As soon as employed, employees are provided profession development inside their restaurant along with a school scholarship program and group engagement alternatives. 

Chick-fil-A vs. McDonald’s Franchising Mannequin

Whereas development in opening new areas is far slower compared to the quick tempo, gamers like McDonald’s, the main focus is on ensuring the shop would achieve success.

In reality, the preliminary charge requested from franchisees is manner decrease in comparison with McDonald’s ($10,000 vs. $45,000):


Whereas the entry charge is decrease, working Chick-fil-A franchisees should pay a 15{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} royalty charge.

As the corporate explains within the franchise disclosure doc as 15{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of franchised restaurant gross sales, fewer quantities charged to franchisees for gear leases and enterprise providers charges, and 50{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of web income.

Briefly, the Chick-fil-A franchising mannequin has the next options:

  • It doesn’t require a web value, in comparison with different franchising operations comparable to McDonald’s, because it’s the corporate that undertakes the bills to open up a brand new restaurant.
  • The franchising charge (entry charge) is simply $10,000, in comparison with, as an illustration, McDonald’s $45,000 charge.
  • Nonetheless, the franchisee has to pay 15{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of the web gross sales and 50{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of the web gross sales.
  • This is sensible because the franchisor and never the franchisee is the proprietor of the enterprise, the place the franchisee primarily operates the enterprise.
  • Subsequently, the Chick-fil-A franchising operations look extra like a sequence mannequin, whereas it skews its playbook to find the precise folks to function the enterprise. In reality, of the candidates, only a tiny percentage of these make it as much as turn into franchisees.

Key takeaways:

  • Chick-fil-A’s enterprise mannequin focuses on serving tasty meals in a clear and healthful restaurant with excellent customer support.
  • Chick-fil-A’s franchisee recruitment course of is exhaustive and stringent, with solely 0.5{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of functions profitable and people restricted to working one retailer. This ensures that franchisees are lively members of their local people and signify the corporate in probably the most favorable mild. 
  • Chick-fil-A’s enterprise mannequin can be constructed on a easy menu of high quality rooster that doesn’t arrive pre-cooked or crumbed. The corporate’s easy menu objects are straightforward to organize which frees up extra time for workers to work together with prospects.

Learn Subsequent: Franchising Enterprise Mannequin

Linked Case Research

McDonald’s Enterprise Mannequin

McDonald’s is a heavy-franchised enterprise mannequin. In 2021, over 56{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of the whole revenues got here from franchised eating places. The long-term aim of the corporate is to transition towards 95{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of franchised eating places (in 2020 franchised eating places had been 93{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of the whole). The corporate generated over $23 billion in revenues in 2021, of which $9.78 billion from owned eating places and $13 billion from franchised eating places. 

Starbucks Enterprise Mannequin

Starbucks is a retail firm that sells drinks (primarily consisting of coffee-related drinks) and meals. In 2018, Starbucks had 52{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of company-operated shops vs. 48{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of licensed shops. The revenues for company-operated shops accounted for 80{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} of whole revenues, thus making Starbucks a sequence enterprise mannequin. 

IKEA Enterprise Mannequin

IKEA, as a model comprising two separate homeowners. INGKA Holding B.V. owns IKEA Group, the holding of the group. On the identical time, that’s held by the Stichting INGKA Basis, which is the proprietor of the entire Group. Thus, IKEA Group is a franchisee that pays 3{f10ba277e26ee0da6e8a6380f29182ae775b609dba81c65fa54042a9e792c5ab} royalties to Inter IKEA Techniques. 

Fundamental Free Guides:

Associated Enterprise Mannequin Varieties

Platform Enterprise Mannequin

A platform enterprise mannequin generates worth by enabling interactions between folks, teams, and customers by leveraging community results. Platform enterprise fashions often comprise two sides: provide and demand. Kicking off the interactions between these two sides is likely one of the essential components for a platform enterprise mannequin success.

Market Enterprise Mannequin

A market is a platform the place patrons and sellers work together and transact. The platform acts as a market that can generate revenues in charges from one or all of the events concerned within the transaction. Often, marketplaces could be labeled in a number of methods, like these promoting providers vs. merchandise or these connecting patrons and sellers at B2B, B2C, or C2C degree. And people marketplaces connecting two core gamers, or extra.

Community Results

A community impact is a phenomenon through which as extra folks or customers be a part of a platform, the extra the worth of the service provided by the platform improves for these becoming a member of afterward.

Uneven Enterprise Fashions

In an uneven enterprise mannequin, the group doesn’t monetize the consumer instantly, but it surely leverages the info customers present coupled with know-how, thus have a key buyer pay to maintain the core asset. For instance, Google makes cash by leveraging customers’ knowledge, mixed with its algorithms bought to advertisers for visibility.

Consideration Service provider Enterprise Mannequin

In an uneven enterprise mannequin, the group doesn’t monetize the consumer instantly, but it surely leverages the info customers present coupled with know-how, thus having a key buyer pay to maintain the core asset. For instance, Google makes cash by leveraging customers’ knowledge, mixed with its algorithms bought to advertisers for visibility. That is how consideration retailers make monetize their enterprise fashions.

Wholesale Enterprise Mannequin

The wholesale mannequin is a promoting mannequin the place wholesalers promote their merchandise in bulk to a retailer at a reduced value. The retailer then on-sells the merchandise to customers at a better value. Within the wholesale mannequin, a wholesaler sells merchandise in bulk to stores for onward sale. Often, the wholesaler sells direct to the patron, with grocery store big Costco the obvious instance.

Retail Enterprise Mannequin

A retail enterprise mannequin follows a direct-to-consumer method, additionally referred to as B2C, the place the corporate sells on to remaining prospects a processed/completed product. This means a enterprise mannequin that’s largely local-based, it carries increased margins, but in addition increased prices and distribution dangers.


A B2B2C is a selected form of enterprise mannequin the place an organization, quite than accessing the patron market instantly, it does that by way of one other enterprise. But the ultimate customers will acknowledge the model or the service supplied by the B2B2C. The corporate providing the service would possibly acquire direct entry to customers over time.

Crowdsourcing Enterprise Mannequin

The time period “crowdsourcing” was first coined by Wired Journal editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Although the follow has existed in some type or one other for hundreds of years, it rose to prominence when eCommerce, social media, and smartphone tradition started to emerge. Crowdsourcing is the act of acquiring information, items, providers, or opinions from a bunch of individuals. These folks submit data by way of social media, smartphone apps, or devoted crowdsourcing platforms.

Open-Core Enterprise Mannequin

Whereas the time period has been coined by Andrew Lampitt, open-core is an evolution of open-source. The place a core a part of the software program/platform is obtainable without spending a dime, whereas on high of it are constructed premium options or add-ons, which get monetized by the company who developed the software program/platform. An instance of the GitLab open core mannequin, the place the hosted service is free and open, whereas the software program is closed.

Open Supply vs. Freemium

Open supply is licensed and often developed and maintained by a group of impartial builders. Whereas the freemium is developed in-house. Thus the freemium give the corporate that developed it, full management over its distribution. In an open-source mannequin, the for-profit firm has to distribute its premium model per its open-source licensing mannequin.

Freemium Enterprise Mannequin

The freemium – until the entire group is aligned round it – is a development technique quite than a enterprise mannequin. A free service is supplied to a majority of customers, whereas a small proportion of these customers convert into paying prospects by the gross sales funnel. Free customers will assist unfold the model by phrase of mouth.

Freeterprise Enterprise Mannequin

A freeterprise is a mixture of free and enterprise the place free skilled accounts are pushed into the funnel by the free product. As the chance is recognized the corporate assigns the free account to a salesman throughout the group (inside gross sales or fields gross sales) to transform that right into a B2B/enterprise account.

Franchising Enterprise Mannequin

In a franchained enterprise mannequin (a short-term chain, long-term franchise) mannequin, the corporate intentionally launched its operations by conserving tight possession on the principle property, whereas these are established, thus selecting a sequence mannequin. As soon as operations are operating and established, the corporate divests its possession and opts as an alternative for a franchising mannequin.