Chick-fil-A MGMT 320 Project


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Fall 2012
Management 320: Leading & Managing Teams by Dr. Len McKendrick
Loyola University Chicago

Corporate Social Analysis on Chick-fil-A including 17-year financials, environmental stewardship, corporate social responsibility, and leadership assessment.

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Chick-fil-A MGMT 320 Project

  1. 1. Corporate SocialResponsibility Analysis: Project Manager Marie Holada Team MembersMayra Gomez, Matthew Cruz, Mitch Goebel, Alix Gilmore, Jacob Hostetler November 30th, 2012 1
  2. 2. Table of ContentsAbout Chick-fil-A 3 Mission Statement17-Year Sales Summary 4 Current QSR Rank Projected SalesEnvironmental Stewardship Assessment 5Corporate Social Responsibility Assessment 6COO Dan Cathy Leadership Assessment 7Team Beta Assessment of Dan Cathy 8Summary 10Works Cited 11 2
  3. 3. About Chick-fil-A• Fast food chain founded in Hapeville, GA in 1946 by S. Truett Cathy• Led by COO and President Dan Cathy• 1,600+ restaurants in 39 states (mainly South & Midwest)• Corporate culture heavily influenced by Christianity (i.e. stores closed on Sundays) Mission Statement "Be Americas Best Quick-Service Restaurant" 3
  4. 4. 17 Year Sales Summary Current QSR Rankings**With current trends in sales, Chick-fil-A is projected to overtake KFC when 2012 QSR Rankings are reported. 2012 Projected Sales: Two Independent Methods 4
  5. 5. Environmental Stewardship Performance Assessment• Implementation of EnerG2 coolers and freezers Good• Energy and Water retrofits for 900+ restaurants by year end 2012 Good• Converting company’s print projects to Forest Stewardship Council certified printers Satisfactory• Constructing LEED Gold certified restaurants Exceptional• Expanding foam cup recycling program to 500+ restaurants in 2013 Satisfactory• Reduced Chick-fil-A Bowl landfill waste by 12 tons Satisfactory – Saved 359 gallons of oil and 24,850 gallons of water• Overall Assessment: Good 5
  6. 6. Corporate Social Responsibility 8 out of 10 subject matter experts cite Chick-fil-A as a “do well and do good” corporation.• “Starting today, Chick-fil-A® is taking another step in continuing to address the issue of childhood obesity by debuting one of the nation’s most nutritious kid’s meals.” – (Better Business Bureau verified)• “President and chief operating officer Dan Cathy infuses everyone from franchise owner- operators to teenagers earning $9 an hour with his passion for service and his conviction in its intrinsic worth – to the individual as well as the company.” – Chuck Salter, Senior Writer, Fast Company• “As a franchisee I control 100% of marketing budget – sponsor little league teams, spend the money locally, on events that create an emotional connection, food donations, etc.” – Lauren Silich, Owner Operator, Chick-fil-A Water Tower• Random Acts of Kindness: “every cashier has a card saying RAK so they can comp meal or give you little cow or t-shirt if it seems you’ve had a bad day.” – Lauren Silich, Owner Operator of Chick-fil-A Water Tower 6
  7. 7. Leadership Assessment 17 out of 20 subject matter experts rate Dan Cathy’s performance as either “good” or “exceptional.”• “In fact, [Dan Cathy’s outspokenness] might have been one of the smartest marketing moves of the year.” – Charlie Gaudet, Marketing Analyst, Predictable Profit• “Dan is a visible and eager ambassador of the Chick-fil-A brand. Seriously, the man is so engaging he could sell chicken to a vegan.” – Jim Rohm, Success• There was a lot of talk that this (referring to the anti-gay comments) would hurt Chick-fil-A, but it actually helped the brand.” – Jeff Davis, president of Sandelman• “Dan has a huge focus on customer service. His leadership is centered on customer service as a differentiator and leadership development within Chick-fil-A. Mainly because the franchisee model: little capital buy in because they want someone who is ‘seemingly normal’ to be able to own/operate. I run this like Lauren’s Chicken Shack. His model is ‘this is my own restaurant. It’s not an investment type mentality.’” – Lauren Silich, Owner Operator of Chick-fil-A Water Tower• Overall Assessment: Exceptional 7
  8. 8. COO Assessment by Team Beta• Marie – Chick-fil-A has an innovative business approach that focuses not only on the food but also the stakeholders involved. – Dan Cathy does an exceptional job as a leader to set a high standard of behavior for his employees to provide the best service possible.• Jacob – While Dan Cathy has done a great job at growing a brand with an almost cult-like following, he didnt not and is not going about the political issues properly, and his PR actions are harming the company. – Someone more suitable for PR/Marketing should take the limelight so Cathy can get back to really running the company and making money.• Alix – As evident through the financial success of Chick-fil-A, Dan Cathy has done an exceptional job as a leader, despite all of the criticisms and unnecessary attention centering on his political beliefs. – His personal investment in the company is seen through his involvement in all aspects of the organization and his dedication towards exemplary customer service as well as continued innovation. 8
  9. 9. COO Assessment by Team Beta• Matthew – While critics of Dan Cathy cite “loss of brand value” as his major failing, the ultimate purpose of a strong brand is to generate revenue for the corporation when it goes public. – As the Cathy family has no plans for a public offering, the only metric of leadership should be financial performance, which, to be honest, is exceptional.• Mayra – Dan Cathy is an exceptional leader, which is evident in the way his company has been able to generate revenue despite the criticism of his personal beliefs. – Being a private company, Chick-fil-A financial success should be considered the main metric for evaluating Dan Cathy’s leadership.• Mitch – While the negative press surrounding Chick-fil-A often casts the leadership of Dan Cathy as incompetent and unfit to lead the brand, the financial data tells a completely different story. – Dan Cathy’s leadership has yet to yield any detrimental effects to the brand which has continued to grow and surpass even their publicly traded competition in size. 9
  10. 10. Summary• Chick-fil-A is currently ranked #1 in the chicken market by QSR magazine in per unit sales and #2 in total volume, where it is poised to overtake KFC when 2012 QSR numbers are released.• Chick-fil-A participates in numerous environmental stewardship endeavors, including packaging, resource conservation and supply chain sustainability.• Chick-fil-A models itself on “Second-Mile” QSR Hospitality, including exceptional customer service, clean restaurant environments and healthier meal options.• Franchise strategy at Chick-fil-A is the inverse of a typical QSR with Chick- fil-A choosing and retaining ownership of all locations.• Chick-fil-A maintains a strong corporate culture, with mandatory Sunday closings in its franchise agreements. 10
  11. 11. Works Cited1. Baskin, Jonathan Salem. "Three Cheers for Chick-fil-A and Why Ill Never Eat There Again.” AdAge.2012. Becker, Jill. “Have Tent and Trumpet, Will Travel.” Success Magazine.2012. Bhasin, Kim and McConnell, Alaina. “RANKED: The Most Popular Fast Food Restaurants In America.” Business Insider. 2012. restaurants-in-america-2012-7?op=12. Chandler, David. “Strategic CSR - Chick-fil-A.” CSR Newsletter. 2012. “Chick-fil-A 2009 Tax Records.” Scribd. 2011. “Chick-fil-A Adds Healthier Options to Kid’s Menu.” Better Business Bureau. 2012. <>5. “Chick-fil-A Annual Message.” Chick-fil-A. 2012. "Chick-fil-A Bowl Announces Sustainability Results." Chick-fil-A Bowl Announces Sustainability Results. N.P., 2011. Web. <http://www.Chick-fil->.7. "Chick-fil-A: Company Fact Sheet." Chick-fil-A. 2012. <>.1. “Chick-fil-A Debuts One of America’s Most Nutritious Kid’s Meals.” 2012. "Chick-fil-A Receives Chain’s First LEED Gold Certification." MultiVu: Multimedia and Broadcast PR. 2012. <>.3. Cody, Steve. "Chick-fil-As 5 Most Boneheaded PR Moves." Yahoo! Small Business Advisor. 1 2012. <>.3. DeFreitas, Susan. "Chick-fil-A Clucks about Its First LEED Green Outlet." Earth Techling. 2012. <>.4. “Direct Business Company." EnerG². The Madison Energy Group. <>.5. Gaudet, Charlie. "Is Chick-fil-A’s CEO Smarter Than You Think?" Predictable Profits. 2012. <>.6. Horovitz, Bruce. “Chick-fil-A thrives despite gay rights issue.” USA Today. 2012. Howerton, James. "Chick-fil-A President Dan Cathy: We Have Made No Concessions to Same-Sex Marriage Supporters." The Blaze. 2012. < president-dan-cathy-we-have-made-no-concessions-on-same-sex-marriage/>. 11
  12. 12. Works Cited18. Lewis, Al. “The Gospel According to Chick-fil-A” The Wall Street Journal Market Watch. 2012 magnate-marriage/219. Mahan, Bridgette. CPA, Business Department Chair, Harold Washington College. 2012. bmahan@ccc.edu20. Mariano, Jonathan. “Chick-fil-A: Stewards of the Environment?” Triple Pundit. 2012. Marzilli, Ted. "Chick-fil-A Takes a Hit with Fast Food Eaters." Brand Index. 2012. <>.22. McGregor, Jena. "Does Chick-fil-A Controversy Risk Turning off Young Employees?" Washington Post. 2012. < controversy-risk-turning-off-young-employees/2012/08/03/ab038014-dd7e-11e1-8e43-4a3c4375504a_blog.html>.23. Menkin, Kit. “Leasing News.”Leasing News. 2012. Murray, Haskell. "Conglomerate Blog: Business, Law, Economics & Society." Conglomerate Blog: Business, Law, Economics & Society. N.P. 2012. Web.<>.25. "No Such Thing as Bad Publicity?" Daily Mail Online.. 2012. < chain-gay-marriage-stance.html?ito=feeds-newsxml>.26. O’Donnell, Jayne, and Horovitz, Bruce. “Chick-fil-A moderates its stance on gay issues.” USAToday. 2012. moderates-its-stance-on-gay-issues/57815712/127. Paul, Ron. "In the News." Technomic. 20 Sept. 2012. Web. 13 Nov. 2012. <>.28. “Pepperdine 2011 Commencement Ceremony.” Pepperdine University. 2011. Salter, Chuck. “Chick-fil-A’s Recipe for Customer Service.” Fast Company. 2012. Silich, Lauren. Owner-Operator of the Chicago Ave. Chick-fil-A Franchise. 2012.31. Sniegowski, Don. “Chick-fil-A Model, A Rare Bird.” Blue MauMau. 2012 Stafford, Leon. “Fast-food company deals with firestorm.” Atlanta Journal Constitution. "Top 50 Sorted by Segment." Quick-Service Restaurant. Aug. 2011. Web. 13 Nov. 2012. <>.34. Tristano, Darren.“Top Growth Chains: Who They Are and Why They Succeed.” Technomic. 2012. 1235. White, Mark. “Chick-fil-A, Corporate Social Responsibility, and Ethical Consumption.” Economics and Ethics. 2012. responsibility-and-ethical-consumption.html