Chic-Fil-A Business Plan

Chic-Fil-A Business Plan

Jenifer Reynolds

Southern New Hampshire University

Table of Contents

Cover Page……………………………………………………………………………………...3

Business Plan Mile Stone One………………………………………………………………….4

        Project Proposal and Company Information……………………………………………4

Business Plan Milestone Two………………………………………………………………….4-7

        Environmental Analysis………………………………………………………………..4-5

        Industry Analysis…………………………………………………………………….....6-7

Business Plan Milestone Three…………………………………………………………………7-8

        Management Team………………………………………………………………………7

        Manufacturing Operations Plan…………………………………………………………..8

Business Plan Milestone Four…………………………………………………………………8-12

        Financial Plan………………………………………………………………………….8-12

Business Plan Milestone Five………………………………………………………………..13-16

        Market Research and Evaluation…………………………………………………….13-16

Business Plan Milestone Six…………………………………………………………………16-18

        Timeline………………………………………………………………………………..16

        Critical Risks…………………………………………………………………………16-17

        Assumptions and Benefits to Community…………………………………………….....18

Business Plan Milestone Seven………………………………………………………………18-19

        Exit Strategy……………………………………………………………………………..18

        Executive Summary……………………………………………………………………...19

Chic-Fil-A Inc.

1234 Sells Lane

North Huntingdon, PA 15642

U.S.A.

Telephone: (724) 412-1234

Toll Free:  (800) 232-2677

Fax: (724) 412-8971

Web site: http://www.chic-fil-a.com

January 21, 2016

Chic-Fil-A has such a remarkable concept that they now own the title of the Nation’s Largest Chicken Chain.  “Chic-Fil-A is a contrast to the current QSR strategy that involves broader menus and more complex operation, whose volume exceeds $3 million (Rest Finance, n.d.).”  The company has one of the best ownership models.  A person looking to open a franchise only needs $5,000 to run their own Chic-Fil-A, and they have a regulated menu, that is available all throughout the day that makes it relatively easy to operate.

The type of product that would be sold is various chicken meals.  From sandwiches to wraps and even salads, with sides like waffle fries, fruit cups, or coleslaw.  All of these can be sold separately or as a combo with a side and a drink.  

The type of ownership that would be most successful in opening a franchise would probably be a general partnership.  “With this type of ownership the profits, liabilities and management will be equally divided amongst the partners (Maze, 2013).”  Each party involved will contribute to every aspect of the franchise.  And with this type of ownership, you will be able to provide more capital for the business.

Chic-Fil-A is then nation’s largest fast food chicken restaurant with over 1,700 locations in 39 different states.  Their advertising campaign ‘Eat Morchikin’ and ‘We didn’t event the chicken, just the chicken sandwich’ is well known across the nation.  There is a continuous growth in revenue annually.  Chic-Fil-A offers a family friendly environment that host frequent family nights and kids events.  And are well known for their charitable donations to a wide array of organizations.

Since Chic-Fil-A is considered to be a fast food restaurant they are still associated with high-calorie foods that can cause obesity in patrons.  Their reputation has become questionable to some since they fund various anti-LGBT organizations.  Even though there are over 1,700 locations across the United States, most of their restaurants are located in the southern states.  And since they are closed on Sundays this can have an effect on their bottom line.

Chi-Fil-A has franchising opportunities which mean they can branch out all throughout the nation, and possibly become internationally known by expanding their horizon to countries all around the world.  Another opportunity that would help their brand would be adding delicious new items to their menu. “And because they involved with sponsorships to college athletics, especially college football (Chic-Fil-A Bowl) they will be able to increase their advertisements during the football season (Encyclopedia, n.d.).”  The best opportunity comes from their consistency and quality of their products which helps them with brand acceptance.

There are several things that may affect Chic-Fil-A’s bottom line.  One thing that comes to mind is their anti-LGBT views and remarks, especially on the subject of same-sex marriages.  These remarks have led to protest and bad press which could decline their sales profits.  They also have strong competitors such as KFC and Popeyes.  And finally, the rising cost of raw materials, all of these can have a negative effect on their bottom line.

All Americans love fast food.  Even though Americans like a quick, easy meal the fast food industry are still faced with challenges.  “From the changing perceptions about health, the cost of food on the rise, and the economic downfall over the recent years, fast food chains have been feeling the heat (Franchise Help, n.d.).”  To overcome these challenges the industry has adopted new practices and started offering new products.