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Chick-fil-A<br />

Headquarters<br />

5200 Buffington Rd., Atlanta, Georgia 30349 USA<br />

Tel: (404)765-8038 Fax: (404)765-8971<br />

www.chick-fil-a.com<br />

Ownership: Private<br />

Segment: Limited Service Chicken<br />

System Characteristics 2006 2005 2004<br />

U.S. Systemwide Sales ($000) 2,275,000 1,975,000 1,746,398<br />

Company-owned ($000) 1,960,000 1,690,000 1,466,975<br />

Franchised ($000) 315,000 285,000 279,423<br />

U.S. Number of Units 1,295 1,237 1,191<br />

Company-owned 1,090 1,039 991<br />

Franchised 205 198 200<br />

International Sales ($000) - - -<br />

International Units - - -<br />

Average Sales/Unit ($000) 1,795 1,645 1,677<br />

Concept Positioning |<br />

Chick-fil-A operates a chain of limited-service chicken restaurants, specializing in breaded chicken breast sandwiches, wraps,<br />

strips, nuggets and salads. Food at Chick-fil-A units is prepared almost exclusively from scratch at the unit each day.<br />

Operators may experiment with new items, subject to corporate approval. Regional tastes also may vary the moderately priced<br />

menu. Chick-fil-A appeals to a wide demographic of diners, from teens and adults to families with children. Its quick-service<br />

format draws customers on-the-go, typically shoppers, due to the chain’s presence in and around major suburban retail<br />

properties. Chick-fil-A Inc. owns the chain and operates a mix of corporate and franchised stores. While the majority of units<br />

are company-owned, Chick-fil-A is offering licenses and profit-sharing options to franchisees.<br />

Most stores are located in shopping malls. Several size prototypes are used with the average measuring 1,410 sq. ft. An ideal<br />

size is 1,600 sq. ft. with a 50-seat dining area. In malls with more than 1 million sq. ft., the 1,800-sq.-ft. store, seating 72<br />

customers, is frequently used. Units have little storage space; deliveries of supplies are accepted daily or three times a week.<br />

New freestanding units, with 3,600 sq. ft. and seating for 90, feature a natural light core with an inside playground and a drivethru<br />

window. The company also has a double drive-thru prototype for freestanding units. The company has begun an<br />

aggressive expansion in nontraditional markets including college campuses, school lunch programs, supermarkets, hospitals,<br />

airports, etc., whether the unit is freestanding or kiosk and cart operations.<br />

CFA also operates Chick-fil-A Dwarf House restaurants, a family-dining concept that has often served as the testing ground for<br />

Chick-fil-A operations. A gradual expansion of the concept began in mid-1991. Units offer all the menu items available at<br />

Chick-fil-A units as well as specialties like Hot Brown, a chicken casserole topped with cream sauce, bacon strips and paprika,<br />

burgers, steak and made-to-order breakfast combinations.<br />

S. Truett Cathy, the operator of a chain of Dwarf House coffee shops outside of Atlanta, introduced Chick-fil-A's signature item<br />

at the 1962 Southern Hotel and Restaurant Convention. Its first chain location opened in 1967 in Atlanta. In 1997, the<br />

company opened its first Truett’s Grill, a 50's-themed concept located in Morrow, GA. It was named in honor of Cathy and his<br />

50 years in the restaurant business. Chick-fil-A has targeted central Florida and the western U.S. as its two top growth<br />

markets, with an expansion goal of 65–70 new units in these areas.<br />

©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />

Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />

published.<br />

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