It all started in 1946 with Chick-fil-A, the maker of the world’s most famous chicken sandwich. With almost 80 years of experience, Chick-fil-A is the third-largest restaurant chain in the United States, just behind McDonald’s, KFC, and Starbucks. What made Chick-fil-A so successful? Today we will analyze the SWOT of the company to better understand.
Table of Contents
Chick-fil-A At A Glance
| Company Name | Chick-fil-A |
| Industry | Restaurant |
| Founded | May 23, 1946 |
| Founder | S. Truett Cathy |
| CEO | Dan Cathy |
| Headquarter | Atlanta, Georgia, U.S. |
| Annual Revenue | $11.3 Billion (FY 2019) |
| Website | www.chick-fil-a.com |
…
Chick-fil-A SWOT Analysis
Before reading the Chick-fil-A SWOT analysis, you need to understand what it is. SWOT analysis is an analysis of the most critical factors of a company, the strengths, the weaknesses, the opportunities, and the threats. The SWOT analysis is made by combining the first words of each factor. An adequately made SWOT analysis will give the reader a vast understanding of what the company is very good at and what needs to be done to be better. Plus, upcoming possibilities and shortcomings are also thoroughly addressed. Keep reading to learn more about Chick-fil-A and its strengths, weaknesses, opportunities, and threats.
Strengths of Chick-fil-A in SWOT Analysis
Each company has its power known as the core competencies. These are the traits or resources of the company that it uses against its competition. Hence, they are called the strengths of a company. Just like other companies, Chick-fil-A has a lot to talk about. The next section of the Chick-fil-A SWOT analysis will focus on the strengths of Chick-fil-A.
Product Loved by All: Chick-fil-A sells chicken-based products, and they are delicious. Chick-fil-A sandwiches are the priority of many people. Their menu also includes nuggets, waffle fries, and other delicious foods. No matter when you need the food for breakfast, lunch, or dinner, you will have something to cater to your tummy at Chick-fil-A. Furthermore, they offer sauces and salad dressings that are mouth-watering.
Effective Marketing Campaigns: Chick-fil-A has done some excellent marketing campaigns that have boosted its branding. A customer cares not only about the product but also about the brand’s image, and Chick-fil-A has created an outstanding one. One of its major campaigns is the “Eat Mor Chikin,” where rebellious cows seem to draw Eat More Chikin on billboards.
Top-Class Customer Service: When it comes to excellent customer service, Chick-fil-A is a solid example. Since the company’s inauguration, it has been committed to serving its customers the best possible experience. America’s Best Customer Service 2020, a collaboration between Newsweek and Statista, crowned Chick-fil-A the best Fast-Food Customer Service company in America. More than 20,000 customers participated in the survey and shared their preferences.
Weaknesses of Chick-fil-A in SWOT Analysis
Weakness can be a trait or a part of a company that is not as good as the strengths. In most cases, every company suffers in one or several areas. Those can be referred to as weaknesses and need additional attention and reinforcement. It’s not like Chick-fil-A has a lot of weaknesses, but some are indeed present. Now, in the Chick-fil-A SWOT analysis, we will discuss a few.
Low International Presence: One of the biggest food chains in the USA, they depend only on the market. If we consider their presence in the international market, the difference is staggering. Chick-fil-A only operates in Canada and the UK other than in the USA. In 2021, the CEO of Chick-fil-A, Andrew Cathy, announced that they are planning to expand the company in the Asian market.
Longer Waiting Time: Chick-fil-A’s customer service is among the best in the nation, but their work needs to be more effective. Due to the inefficiency in serving the customer, around 30% of the customers drive away just because the line is so long and the waiting period is so high. This is a problem because all the customers who left have an increased tendency not to return.
Absurd Franchise Conditions: One can just spend $10,000, and the company itself will sort everything to set up a franchise. But, that’s the easy part; what you don’t know that how much control they will have over you. Firstly, you will not get any equity in the business. Chick-fil-A will decide on the location as well as the restaurant. Besides, you cannot pass your franchisee to any of your further generations. These types of conditions are limiting the company from expanding even more, especially outside of the USA.
Opportunities for Chick-fil-A in SWOT Analysis
Away from the internal environment, let’s look at the external elements of a company. Opportunities are a part of the micro-environment of a company. They can be an economical or political condition of a company, policies, or the availability of resources. Companies are always aware of these possibilities and try to use them best. As one of the largest food chains in the world, Chick-fil-A would never want to miss any. In the next section of the Chick-fil-A SWOT Analysis, we will go deep to find the possibilities that the food company can exploit.
Increase Global Footprint: We have already mentioned how much Chick-fil-A relies on the US market. In 2019, the restaurant chain was the third largest in the United States in terms of sales. This shows that the company has immense potential to hit the international market. If the company has been so successful in the US market, it can exploit all the possibilities of the global market as well, especially in China and India. Additionally, focusing on the European market can also bring a lot of revenue.
Healthy Food Menu: Chick-fil-A is a fast food shop, and we all know fast food is not a healthy option. Day by day, people are getting more and more health conscious, and therefore, they tend to look for healthier alternatives to add to their everyday diet. This change in customer preference can open a new window for the restaurant chain. The company can add more beneficial, no fried food products to its menu to capture health-conscious customers.
Increase Offerings: Chick-fil-A already offers tasty foods. However, if you compare the menu with McDonald’s, Chick-fil-A offers fewer products. For example, aside from nuggets and chicken sandwiches, McDonald’s also sells Filet-O-Fish, and the McRib, something that Chick-fil-A doesn’t provide. This can be an excellent opportunity to expand the options on the menu for Chick-fil-A.
Threats for Chick-fil-A in SWOT Analysis
The external environment is not always the best buddy of a company. Sometimes, it can turn out to be an absolute nightmare. Political instability, economic recession, natural disasters, etc., can break a business. Hence, threats need to be prioritized. In the Chick-fil-A SWOT Analysis, we will look at some of them.
Rise of Cost: In 2022, the world will see massive inflation. By June 2022, inflation reached a staggering 9.1%, the highest gain in the past 40 years. Necessary goods such as food are seeing an alarming rise. The current condition will surely increase the production cost of Chick-fil-A. Now, Chick-fil-A’s menu is already more expensive than its competitors, and as the production cost is expected to rise, the price of the product will see a significant increase. This is a considerable threat as customers may move to less pricey options from the competitors.
Supply Issues: In January 2022, overcast reported that Chick-fil-A is facing supply issues regarding their sauces. To cover the shortage, Chick-fil-A decided to provide only one source per item to cover the deficit, something the die-hard fans didn’t like. There is no doubt that the scenario illustrates the company’s dependence on suppliers and its potential for trouble.
Controversies: In 2019, Chick-fil-A was slammed in the face for its anti-LGBTQ controversies. That year, the company donated money to several causes, including youth education and homelessness. However, issues arose as Chick-fil-A didn’t contribute to any charity taking a stance for the LGTBQ community. The LGTBQ community protested and caused the company to close its first restaurant in the UK.
Chick-fil-A SWOT Analysis Overview Template
Conclusions & Recommendations for Chick-fil-A
To achieve top positions, Chick-fil-A can use expert advice to begin its journey.
- Take a strategic move to expand globally to increase the global footprint. Primarily focus on capturing the Asian and European markets.
- Bringing more healthy offerings to the menus that the customer is moving to a healthy lifestyle can still be a recurring customer for the restaurant chain.
- Bring more food varieties in the menu to beat the competition.
- Reduce the production cost to maintain the food prices in the inflating market.
- Stay away from controversial and political issues and keep the brand image clear.
- Streamline franchisee conditions to attract more investors, which will increase the company’s expansion radically.
FAQs for Chick-fil-A SWOT Analysis
What is Chick-fil-A’s competitive advantage?
Chick-fil-A’s competitive advantage lies in its exceptional customer service, consistent quality, and distinctive menu, including the popular chicken sandwich. Their strong company culture also contributes to their edge.
What are Chick-fil-A’s weaknesses?
Chick-fil-A faces challenges related to limited menu diversity, occasional controversies around social issues, and regional restrictions on operating hours, which can affect potential revenue.
Who is Chick-fil-A owned by?
AChick-fil-A is a privately held company owned by the Cathy family, with Dan T. Cathy serving as the CEO. The family has maintained strong control and influence over the business since its inception.
Being US’s third largest restaurant chain, Chick-fil-A has reached the top level of success. To get to the top, the company has made several excellent decisions to make that happen. And to remain at the top, Chick-fil-A should continue making decisions to fight this dynamic market. We believe this Chick-fil-A SWOT analysis has all the necessary information that the company can use to make the most effective and efficient decision.
