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CASE STUDY CHICK-FIL-A
MRKT 670 –Case Study Fast-Food Company
Regine Rhine
School of Business, Liberty University
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CASE STUDY CHICK-FIL-A
Introduction
The fast-food industry has become competitive over the years with new restaurants adjusting
to societal changes and meeting consumer needs. Chick-fil-A is a leading fast-food chain with a
chicken-based menu, affordable pricing and stellar customer service. The paper aims to examine
the marketing mix of the Chick-fil-a brand while also uncovering fast-food competitors in the
same industry.
Brand Chosen
Chick-fil-A was founded in 1967 by Truett Cathy with a goal to serve a chicken-based menu.
The restaurant first opened as the Dwarf Grill diner in Hapeville, Georgia. In 1967 Cathy opened
the first Chick-fil-A restaurant in a Greenbriar Shopping Center in Atlanta. The company’s
niched items have allowed them to differentiate themselves in the market amongst of fast-food
franchises. Chick-fil-A operates on a model centered on providing stellar customer service. Their
strategy to use a small size menu has attracted a large customer base throughout the years. The
restaurant’s signature dish is the Chick-fil-A Chicken Sandwich which is made of two toasted
buns, toppings, a boneless chicken breast and signature sauces. Customers have the option to
choose between grilled and fried food options. Choices range from chicken nuggets, chicken
strips and salads on both the breakfast and lunch menu. Chick-fil-A is currently the largest and
fastest growing fast food chicken service restaurant chain in the United States with over 2,000
locations across 47 states (Manko, 2022). Despite the criticism the company has faced due to its
private ownership and beliefs, the stellar customer service and charitable participation
continuously ranks the company as one of the most high performing franchises.
Fast Food Competitors
Criteria of
Comparison
Brand Chosen Competitor # 1
Zaxby’s
Competitor # 2
Raising Canes
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CASE STUDY CHICK-FIL-A
Product Offerings Chicken Restaurant Chicken sandwiches,
salads, chicken strips,
toast, sides, wings,
special sauce
Chicken sandwiches,
chicken strips, special
sauce, toast
Price Ranges Chicken Restaurant $6.00 - $14.00 $7.00 - $15.00
Distribution – how
many stores in the
U.S.?
Chicken Restaurant 935 694
Promotion Chicken Restaurant Rewards account &
Discount offers (5
free chicken tenders
with $5 purchase
upon sign up)
National giveaway’s,
NY and FL
sweepstakes, concert
partnerships and
sweepstakes
Disruptive Idea
They Have
Launched
Chicken Restaurant Revamped tech stack
to promote growth in
industry. Currently
has America’s fastest
growing restaurant
app with an excellent
rewards program
Canes in the moment
initiative aims to
celebrate moments
that bring joy which
connects to current
and new customers
on empathetic level
and builds loyalty.
The chart above indicates the performance between Chick-fil-A’s competitors, Zaxby’s and
Raising Canes. All three franchises have a chicken-based menu with signature selections.
Zaxby’s has maintained a large presence across the United States with over 900 store locations
and the most diverse menu options. More particularly, Zaxby’s has trailblazed over their
competitors through technological advancements by revamping their app and creating a rewards
program that builds brand awareness. On the contrary, Raising Canes has launched several
promotions and initiatives that allow them to connect to their consumers on a personal level.
Both Zaxby’s and Raising Canes remains Chick-fil-A’s top competitor.
What is Important to Today’s Fast-Food Customers
When visiting fast food corporations’ consumers look for high quality fresh food. A larger
factor of importance is based on variety in the menu, particularly for families. Healthy food
options are common as many corporations are seen adding vegan menu items to their menu.
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CASE STUDY CHICK-FIL-A
Often times, restaurant chains who conduct ad campaigns that emphasize their ingredients
receive high traffic. Deals and cheap prices also play a deciding role in fast food choices. For
many, restaurants placed near their residence or place of work is also the best option for food
choice due to the convenience to grab and go. Ultimately, customers opt for food with good
quality and low price point.
Brand Chosen – Biggest Concerns
U.S obesity has been on the rise across states and remains an economic challenge for many
fast-food chains. In a 2015 poll, demographics ranging from gen Z to baby boomers admitted
that they are more likely to seek healthier options when consuming food. As the importance of
athleisure has risen, healthy food options have increased in many fast-food chains as a response
to consumer’s needs (Srivastava, 2015). Furthermore, forecasts predict that 70% of households
will be in more urban areas by 2030. Oftentimes, those who reside in more urban areas have a
higher income than their counterparts, resulting in them participating in fine dining on a more
frequent basis (Lees, 2012). This is an economic disadvantage for many fast-food chains, that
will more than likely prompt a response to improve menus to reach a larger audience of
consumers. The use of technology has increased over the years and has undergone many
advancements. This has prompted an increase in digital transactions in the e-commerce industry,
including online orders, mobile pickups, quick apple pay, and food delivery. Moreover, political
factors such as high labor costs, wage, and hygiene regulations are the top issues fast food chains
have to continuously adjust to. While many restaurants are in compliance with hygiene
regulations, most will come across overhead challenges when adjusting pay.
Recommendations for Changes to Brand
Product
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CASE STUDY CHICK-FIL-A
Chick-fil-A’s product offering is commonly recognized by its chicken-based food
options. The company’s chicken items include the Chick-fil-A sandwich, chicken nuggets,
chicken wraps, and salads. The chicken is provided with an option to choose fried or grilled if
you prefer a healthier alternative. All of Chick-fil-A’s products are made with fresh ingredients
and prepared fresh daily. The company is also cautious to of various dietary restrictions and
preferences by offering vegetarian and healthy options. The company can make efforts to extend
the brand to other target markets by providing other chicken options such as chicken wings. The
company provides seasonal items such as peppermint shakes in the winter and watermelon
lemonades in the summer. Providing limited edition items year round will likely expand the
company’s audience.
Price
Chick-fil-A does an excellent job with appealing to their audience with affordable prices.
Their pricing strategy is a mix between affordability and perception of value. While the average
meal may cost more than competitors such as McDonalds or In-N-Out, the quality of food brings
value to the costs. Resultingly, customers willingly pay the difference in price, not only for the
quality of food, but for their experience and great customer service. There are no
recommendations I would suggest for the company’s pricing of menu items.
Placement
Customers can access Chick-fi-A in several locations. The company has chosen to place
locations in areas where there is high traffic, shopping centers, airports schools or colleges, and
busy intersections. This strategy allows the franchises to profit and gain benefits of being easily
accessible and convenient to customers. Chick-fil-A can increase brand visibility by having
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CASE STUDY CHICK-FIL-A
mobile restaurant options to sell food in places like festivals, events and church parking lots. This
strategy has been commonly seen by the fast-food burger restaurant, In-N-Out.
Promotion
The Chick-fil-A brand utilizes a blend of traditional and digital platforms, ranging from
marketing channels, television commercials, print advertisements, social media campaigns,
billboards, and influencer partnerships. Chick-fil-A is most recognized for its promotional efforts
towards seasonal campaigns including holidays and events The company is most known for their
cow mascot, who often times shows up at events to represent the brand. A strong brand has been
achieved through the cows calling consumers to “eat mor chikin” instead of beef. The mascots
were created in 1995 and have been displayed in football fields, billboards, TV and radio
(Waldan, 2016). The consistency of this promotion since the creation of the brand has led to
customer loyalty.
Marketing Approach
Chick-fil-A currently faces economic and political threats that can effect the stability of their
franchises. Threats include inflation and policy implementation that can harm the business
functions. Also, Chick-fil-A is competing in a competitive industry including chicken based
brands such as Zaxby’s and Raising Canes. The first opportunity I would take as a marketing
manager is to expand the business so that it reaches a larger audience and improve global
awareness. Locations like Hawaii would be great to expand the franchise to. Introducing a new
menu, including a special menu for staple locations would be a strategy to bring in consumers
who would like to try specialty items. This will include having exclusive Hawaiian menu items
such as pineapple chicken salad in Hawaii’s territory.
Recommendations for Christian Integration for Brand
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CASE STUDY CHICK-FIL-A
Since 1995, Chick-fil-A has exhibited a consistent brand to their consumers. From their
niched menu, great food quality, customer service and affordable pricing, customers consistently
receive top quality service when dining with the company. This consistent approach has built
ethics and created brand loyalty. The company remains true to their beliefs by honoring God on
Sundays and remaining closed, and exemplifying their morals through promotional efforts.
Using a tag line such as “Loyalty is not a word, it’s a lifestyle” and adding the scripture Proverbs
20:6 on their bags, will create a direct link to the company’s faith and increase awareness of their
faith.
Recommendations Summary
In conclusion, as the fast-food industry has become competitive over the years with new
restaurants adjusting to societal changes and meeting consumer needs, Chick-fil-A remains a
leading fast-food chain. With their chicken-based menu, affordable pricing and stellar customer
service. The brand can remain competitive in its industry by expanding their menu items,
particularly creating specialty items for specific locations across the nation. Brand awareness can
be improved further by the expansion of locations across the globe. Efforts to incorporate the
company’s beliefs in their promotions and marketing collateral can benefit further brand loyalty.
Ultimately, Chick-fil-A remains a top competitor in the industry,
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CASE STUDY CHICK-FIL-A
References
Lees, L. (2012). The geography of gentrification: Thinking through comparative
urbanism. Progress in Human Geography, 36(2), 155
171. https://doi.org/10.1177/0309132511412998
Manko, B. A. (2022). Analyzing an unconventional success story chick-fil-A fast food
restaurants in the USA. Management (Zielona Góra), 26(1), 118
143. https://doi.org/10.2478/manment-2019-0087
Srivastava, R. K. (2015). How differing demographic factors impact consumers’ loyalty towards
national or international fast food chains: A comparative study in emerging
markets. British Food Journal (1966), 117(4), 1354-1376. https://doi.org/10.1108/BFJ
07-2014-0230
Waldon, G. (2016). Chick-fil-A site rings up $1.8 million transaction. Arkansas
Business, 33(27), 22.
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