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This was the summer of Chick-fil-A for me. Jenny and I found that its chicken salad and waffle fries were the perfect antidote for our long driving days during our cross-country roadtrip. Despite the consistently long-lines and questionable charity stance, I found myself looking forward to my next meal there. Everywhere we went, Chick-fil-A was packed with families, couples, and teenage kids.
By USA sales, Chick-fil-A is ranked as the 3rd largest fast-food chain.
When adjusted for per store revenue, it is unparalleled. This is even more stunning because Chick-fil-A is famously closed on Sunday. Here is how its sales stack up against the golden arches for sales per restaurant.
Chick-fil-A was founded by a devout Christian named Truett Cathy. He opened the first Chick-fil-A in 1967 in his hometown of Atlanta, Georgia. He did a lot of things early on that separated them from the rest:
Closing on Sunday also drives up demand for the other days of the week and makes Chick-fil-A stand out even more, which in turn drives customer loyalty.
What’s kept them successful for 50+ years?
The simple menu leverages the paradox of choice, where more options paralyze people. It is counter-intuitive, but with fewer options, people buy more. This also saves a ton of money on kitchen prep, cutting better deals with suppliers and doubling down on the most popular items.
Speaking of popular, Dan Kathy the CEO of Chick-fil-A, says that their internal studies show that 30% of people drive away from Chick-fil-A because of the long line. Get this, opening up a new Chick-fil-A doesn’t really solve the problem. The demand still stays high 🤯