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Chick-fil-A SWOT & PESTLE Analysis

ID : 521186053| Mar 2022| 21 pages

COMPANY PROFILE -Chick-fil-A

Business Sector :Fast Food

Operating Geography :United States, North America, Global

About Chick-fil-A :

Chick-fil-A is a fast-food restaurant chain in the United States that specialises in chicken sandwiches. The company is headquartered in College Park, Georgia. The company runs 2,774 restaurants in 47 states and the District of Columbia, the majority of which are in the United States. The chain's roots can be traced back to 1946, when S. Truett Cathy, the chain's former chairman and CEO, opened the Dwarf Grill (now the Dwarf House) which later was renamed as Chick-fil-A. Chick-fil-A's business strategy focuses on a limited menu and excellent customer service. It focuses on chicken sandwiches, unlike other fast food businesses that frequently extend their menu items in an attempt to attract new customers. The capital A in their name denotes that their chicken is of "grade A top quality." The company also offers biscuits, salads, coffee, and milkshakes. According to a press release from 2021, the company's first restaurant will open in Kahului in early 2022, with additional locations opening later that year in Honolulu and Kapolei.
Chick-fil-A's USP lies in its being one of the largest fast-food restaurant chains in the United States. The mission statement of the Chick-fil-A reads, “To be American's best quick-service restaurant at winning and keeping customers.”

Chick-fil-A Revenue :


$ 4.3 billion - FY ending 31st March 2020 (y-o-y growth 13%)
$ 3.8 billion - FY ending 31st March 2019

Competitive Analysis of Chick-fil-A

SWOT
PESTLE
The SWOT analysis for Chick-fil-A is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Food prepping strategy ensures fresh food for customers
2. Customized restaurant designs for different geographies
3. Wide range of child-friendly food options
4. Good customer reviews and award-winning service
1. Bankruptcy declarations from franchisee owners
2. Lack of global footprint compared to competitors
3. Alleged discrimination against employees belonging to LGBTQ community
OpportunitiesThreats
1. Increase offerings in the healthy-fast food segment
2. Improve online food ordering services
3. Expand in markets outside the US
1. High competition from other fast-food chains
2. High regulatory costs of maintaining franchisees
3. Faces opposition from the vegan movement
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Chick-fil-A

Strength

1. Food prepping strategy ensures fresh food for customers: Chick-fil-A has a food preparation strategy that is quite different from that of other fast-food chains. While most restaurants prepare their food hours or even days in advance and keep them frozen to be used later. This diminishes the freshness of the food and is detrimental to the health of the customers. Chick-fil-A a on the other hand, prepares its food in small batches and more frequently to ensure that maximum freshness is retained. They also follow other quality measures like serving whole chicken without any fillers or hormones. Fresh produce is delivered directly from farmers and delivered several times during the week to reduce storage time. Salads are also cut and prepared several times in a day and not cut and stored. The iconic Chick-fil-A Lemonade is not made with artificial flavorings but simply cane sugar and water. Chick-fil-A has taken a pledge to completely shift to using cage-free eggs over the next ten years.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Increase offerings in the healthy-fast food segment: Chick-fil-A was one of the flagship fast food chains to offer a fruit cup in their menu way back in 2004 when people were less conscious about eating healthy. Over the past decade, there is rising awareness about healthy food. A large fraction of diners also want to know where their food is sourced from and whether it is sustainable. To keep up with these changing eating habits and interests, Chick-fil-A has to adapt its menu at a faster pace. Chick-fil-A’s commitment to use antibiotic-free chicken was received well by their diners. They also reduced sodium in their food and removed artificial food colorings from sauces. They have also recently started to use sustainably sourced coffee directly from the farmers. Chick-fil-A’s protein breakfast sandwich saw strong sales, indicating that customers want more such healthy options. Their dedicated salad menu was introduced in 2013. To move forward and capture the health-conscious consumer base, Chick-fil-A has to introduce more healthy options in their regular menu which is still mainly comprised of fried chicken. Using cage-free eggs and labelling food ingredients and source will also help them increase their customer base.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Truett’s Grill
  • Hapeville Dwarf House
  • Truett’s Luau
  • The Dwarf House
  • Truett’s Chick-fil-A
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in Chick-fil-A SWOT & PESTLE Analysis Report

1. What it Takes to Set up Shop in New York City - https://thechickenwire.chick-fil-a.com/inside-chick-fil-a/what-it-takes-to-set-up-shop-in-new-york-city
2. Great food - “Food is essential to life, therefore make it good.”- https://www.chick-fil-a.com/about/great-food
3. Who we are - https://www.chick-fil-a.com/about/who-we-are
4 FRANCHISE DISCLOSURE DOCUMENT - https://bloximages.newyork1.vip.townnews.com/restfinance.com/content/tncms/assets/v3/editorial/7/61/761e457c-9b94-11eb-998c-f714f028556a/60744dd3d5dc3.pdf.pdf
5. Location listings - https://www.chick-fil-a.com/locations/browse
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2022). Chick-fil-A SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/chick-fil-a/ [Accessed 25 Sep, 2022].

In-text: (SWOT & PESTLE.com, 2022)

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Chick-fil-A SWOT and PESTLE analysis has been conducted by Anangsha Saha and reviewed by senior analysts from Barakaat Consulting.

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