What are some of the strategic challenges facing Chick-Fil-A?
In 2011, sales at Chick-fil-A (CFA), a southern U.S. restaurant chain, surpassed $4 billion, an increase of 13% over 2010. CFA's advertising budgets and debt loads were lower than average, and operating hours were reduced. Franchisee recruitment, financial commitment, and management expectations also deviated from industry norms. Due to ownership's aversion to debt, the pace of expansion was significantly slower than the fast-food-segment average. But perhaps the most significant differences between CFA and other fast-food chains were its private, family-controlled ownership structure and its management philosophy. This case provides an opportunity to explore the relationship between an enterprise's philosophy and its long-term viability.
Case controversy: COO Dan Truett, in 2012 publicly stated to be in favor of the biblical definition of marriage, perceived to criticize LGBT marriage. LGBT rights groups called for a boycott. Questions raised about the extent to which ownership views can affect or compromise an enterprise's long-term viability.