To help his family during hard economic times, Truett Cathy, at the age of 8, would buy six-packs of Coke bottles for 25¢ and go door-to-door selling them for a nickel each. At age 12, he bought newspapers wholesale to start his own paper route. His success in both endeavors became his inspiration to open his own service-oriented business one day.
After serving in World War II, Truett put everything he owned, plus the money from a hefty bank loan, into building a restaurant with his brother. They opened the Dwarf Grill in 1946, but chicken was nowhere to be found on the menu, yet. That is until one day, Goode Brothers Poultry came in asking if Truett would be interested in buying their excess boneless chicken pieces. Thinking back to his mother's homemade chicken recipe, Truett began to experiment with chicken sandwiches, something that had yet to be invented. After testing hundreds of recipes over four years, the Chick-fil-A sandwich was born.
Food Service
1946
These caregivers have the spirit of a servant. As humble stewards guided by traditional Christian values, they believe in being respectful, prudent, patient, loving, forgiving, and generous. With an always clean and neat appearance, they hold themselves to a high standard of excellence, working hard and continually striving to do better. People are drawn to their cheerfulness, warmth, and positivity. In return, they welcome everyone into their lives with grace, hospitality, and a sincere smile.
With a goal to always make people smile, Chick-fil-A speaks with a tone that makes it sound like they are smiling themselves. They tell jokes in an affectionate and playful way that never come across as mean-spirited. In a response to a teacher's complaint about the Chick-fil-A's cows misspelling of words, founder Truett Cathy simply replied with this: "We’re sorry, but Cows can’t spell. It’s just a joke. Maybe you could use it as an object lesson to help kids learn the right way to spell. Thanks for what you do!”
To Chick-fil-A, service is the presentation, consistency, cleanliness, quality, and accuracy of a restaurant. On its own it is just the table stakes that customers expect from any dining experience.
Hospitality, however, is about going above and beyond in what Chick-fil-A calls Second Mile Service. This is the added value the brand brings to the experience, from the random acts of kindness to the connections they make with customers along the way. But the key to hospitality is that generosity and care need to be behavioral, not prescriptive. So Chick-fil-A focuses heavily on recruiting the right people and training them in order to make Second Mile Service second nature.
Operational excellence begins with fresh ingredients and Chick-fil-A prides itself on its fresh handmade food. Each piece of chicken is thawed, breaded, and made to order all in-store. Any chicken not used within 20 minutes of being cooked is pulled and repurposed for chicken soup. Biscuits are made from scratch daily, lemonade is freshly squeezed, and salads are locally sourced and hand-chopped.
For over 25 years, Chick-fil-A has focused on building emotional connections by using cows in all of their marketing. From billboards to calendars, the Eat More Chikin campaign, has positioned these Cows as endearing underdogs that are in a fight for self-preservation. And just as Chick-fil-A focuses on the freshness of their food, they also put just as much care into crafting the personality of these Cows in what they call the Chick-fil-A Moo Manifesto.
Family-oriented, Chick-fil-A customers care about spending quality time with the people they love. Their lives are busy, and they usually have kids in tow, so they need a place that helps make their lives easier. Finding somewhere that is clean, safe, and values-oriented is a top priority, so they can enjoy their time together worry-free. While price does matter, they are also willing to pay more for food that they feel is higher quality and more nutritious. Most importantly, they want to walk away feeling like they have done right by their family and themselves, while also creating a shared moment to remember.
Although the policy is rooted in their religious beliefs, Chick-fil-A believes in giving employees one day a week off to rest and spend time with family. Even with being closed on the most popular shopping day of the week, Chick-fil-A still makes more per restaurant than McDonald's, Starbucks, and Subway combined.
Hamburgers make up about 40% of all fast-food dining in the US. That's 50 billion hamburgers every year and Chick-fil-A doesn't even have them on their menu. And why should they when they have built their reputation on inventing and perfecting the chicken sandwich. Their authority in this industry helped them not lose any sales during the Chicken Sandwich Wars of 2019 and has kept them firmly ranked as the third largest fast food restaurant.
As one of the largest privately owned restaurant companies in the US, Chick-fil-A never plans to offer stock options to the public. Too often Wall Street focuses on profits over principles which might limit the large amounts of money Chick-fil-A gives to charity. To Chick-fil-A, being generous today, is what guarantees a successful future.
Instead of focusing their kids' meals on the most popular movies or TV shows, Chick-fil-A gives out books on history, geography, weather, and dozens of other subjects. Their goal is to not draw families in because of gimmicks but instead to create opportunities for children to learn and parents to be a part of that journey.
Chick-fil-A reinvented the fast food franchise model by focusing on finding fully committed owners, which they call Operators, who will be present every day to maintain high quality standards. But to do find the best people, Chick-fil-A first removed the need for any large upfront costs on the Operator's part. This allowed Chick-fil-A to select new owners based on character and values, rather than the size of their wallets.
The Operator's Agreement for Chick-fil-A works like this:
Out of 20,000 applications submitted each year, Chick-fil-A selects only .4%. Their high standards come from a desire to make each relationship last for life, and with less than a 5% turnover rate, in an industry where 30-40% is common, they are succeeding.
Chick-fil-A's marketing goal was to find an uncontested market space, and then dominate it. With a limited budget, they couldn't compete with TV ads—but what they could do, was focus on billboards, 3D billboards to be precise. At the time, billboards were used only to showcase price points and tell people which exit to take. Chick-fil-A, however, found their Blue Ocean by using billboards to build an emotional connection with their brand. Their rules for billboards were simple:
Instead of relegating innovation to a few experts, Chick-fil-A opens up their innovation process to the entire organization.
Staff from each department volunteer and then are trained to become innovation coaches. They then go back to their teams as consultants to help facilitate innovation using Chick-fil-A's innovation methodology:
From the start of the process, each team member is encouraged to play the part of a particular thinking type:
Over ten years ago, Chick-fil-A wanted to relay to its staff, in the simplest visual format, how each brand touchpoint, although separate, connects everyone together across the organization. They started by placing all touchpoints around a wheel design to breakdown the stigma of organizational silos. Everyone is responsible to work around the wheel and have influence in all projects, even if they are not directly accountable. At the center of the wheel, aligning everyone together, is their brand essence.
A brand essence is a short rallying cry created to embody a brand cause, mission, promise, and personality. Chick-fil-A defines theirs as: Where good meets gracious.
All new products and services are first tested by Chick-fil-A in roughly 60 to 100 stores for a one-year period. During this time, Chick-fil-A surveys customers to see if the new product or service are consistent "with what they perceived to be the Chick-fil-A brand."
When choosing between shoestring and waffle fries, Chick-fil-A used this methodology and found that, even though waffle fries were more expensive, customers saw them as a better brand fit. Shoestring fries were trying too hard to be like everyone else, and waffle fries were visually different, and perceived to be more nutritious.
To Chick-fil-A coupons and discounts scream, “Our products are not worth full price." Instead of being a "transaction-chasing" brand like other fast-food restaurants, Chick-fil-A chooses to build their brand through personal relationships.
Founder Truett Cathy set out to build a company culture where staff genuinely care for each other and put other's needs ahead of their own. But a culture like this can only flourish when "it is backed up by authentic sentiment, reinforced through action, and strengthened over time." Some key ways that Chick-fil-a fosters their Culture of Care is to:
In the early 1980s, Chick-fil-A, then a mall-based restaurant, was in trouble. There was an economic recession, mall development stopped due to low engagement, and Chick-fil-A saw its first ever decline in sales. Founder Truett Cathy considered budget cuts and sales contests but shifted gears when he was asked at an executive committee retreat: "Why are we in business?"
Before then, the company's biblical values were never officially codified in one official statement. Leaders spent the rest of the retreat defining what would become Chick-fil-A's just cause. This statement laid the foundation of how the brand will:
And the results? As former chief marketing officer, Steve Robinson, put it: “There's no way to explain it. The next year, we had a 36% sales increase. And let me assure you the financial crisis and the retail crisis was not over.”
Around 2000, Chick-fil-A was having a shortage of next generation leaders. Their staff was talented but was not aligned on how to lead. This caused unintended negative consequences for the brand's culture. To fix this, Chick-fil-A set out to align the organization under one single vision of leadership guided by a list of key principles.
Vision: Great leaders serve.
Principles:
For years, founder Truett Cathy would remind Chick-fil-A restaurant owners of his rule for staff to say 'My pleasure' to customers. And for years, it never took hold—until he began teaching them the principle behind the phrase, not just the rule itself.
As Truett Cathy explained, customers are the reason staff have paychecks, college scholarships, team outings, and parties, and because of that, it is always a pleasure to serve.
Over the years, Chick-fil-A developed a culture led by guiding principles rather than an exhaustive prescriptive list of behaviors and rules. Leaders would share principles with their staff, give the meaning behind them, and coach them on their understanding. This ultimately empowered staff to take it upon themselves to explore new ways of providing remarkable experiences for guests, like changing tires in the parking lot and dumpster diving for retainers.
Acts of generosity and care from Chick-fil-A leaders range between little moments of appreciation to grand gestures of kindness for their staff. It is not uncommon for restaurant owners to:
Chick-fil-A, as a company, also provides scholarships to over 7,000 employees which totaled $19 million in 2021.
While it seems obvious that floor level employees clean the bathroom at Chick-fil-A restaurants, owners and executives clean the bathroom just as often. As founder Truett Cathy would say: "When top executives demonstrate that they don't mind doing the dirty jobs, team members understand that every job is important."
Some Chick-fil-A owners carry around $10 gift certificates in their pocket to reward employees after they say or do something special for a customer. This not only serves as a public example of excellence, but engages employees to try to be the next winner.
Chick-fil-A leadership made it a habit to stop at every fast food operation and visit the headquarters of brands like Disney, Apple, Harley-Davidson, Southwest Airlines, and Zappos to understand each one's service philosophy.
They also took training courses from Horst Schulze, co-founder of The Ritz-Carlton. He suggested: "Don't look to be better than the other fast food restaurants. Those limited expectations will just weigh you down. Instead, aspire to the next level of service—restaurants with price points that are at least Chick-fil-A's, and build a service model that resembles that."
From there, Chick-fil-A drew inspiration from steak houses, grills, and restaurants that were three times their price point, borrowing ideas like:
Chick-fil-A even borrowed their iconic 'My pleasure' from The Ritz-Carlton.
At Chick-fil-A, the widely used Be Our Guest free meal card, is not viewed as a gimmick to drive business growth (even though it does that very well), but as an opportunity to create a memorable moment for someone.
In fact, the brand's underlying intent behind any generous act is to solely bring happiness to a customer without any strings attached. Its this prevailing giving mindset that empowers employees to proactively:
While Chick-fil-A does expect their company's principles to be respected, leaders also want employees to feel safe testing their limits. Yes, mistakes will happen, and that's okay. The goal at Chick-fil-A is to learn a lesson from each mistake, so they don't happen again. When one employee took a chance which resulted in a $2 million dollar loss, founder Truett Cathy didn't belabor on the problem or hold it over his head during the span of his career. Instead, he replied "We just invested $2 million in your education. You'll never make that mistake again."
Even former Chick-fil-A president, Jimmy Collins, has reinforced this principle when he said: "We'd rather restrain mustangs than kick mules. Don't play it safe. If you're right out there at the edge of your authority, we'll ease you back when the time comes."
As Truett Cathy, founder of Chick-fil-A, wrote: "You don't generally find good employees wandering the streets. We go to schools, churches, youth organizations, and other places where quality people gather and tell them what we have to offer. When we speak to young people about job and career opportunities, we advise them, 'Select a job representing a company you will be proud to work for. Then make them proud of you.'"
The wrong person working just ten hours a week can break down a culture and turn away customers for good. Chick-fil-A takes their time to find candidates by judging them on three tenets.
Chick-fil-A follows these three principles when it comes to asking questions during an interview.
Dee Ann Turner, former vice president of talent at Chick-fil-A, is completely transparent with candidates when it comes to telling them the good, and also the bad, about the company and its culture. As Chick-fil-A sees it, if a candidate can be talked out of the job in the interview, it's much better to know then rather than to know after you have invested in their training and development.
Just verifying employment history is not enough. At Chick-fil-A a reference interview can easily take up to 45 minutes. They ask the reference for specific behavioral examples and look to verify the candidate's answers during the interview process.
As Dee Ann Turner, former vice president of talent, wrote: "More of my hiring decisions have been based on references than any other part of the process."
Chick-fil-A employees are encouraged to move around in the organization between different departments. This gives everyone the opportunity to better understand the business in its entirety, which puts them in a better position to become future company leaders.
The path to becoming a business generalist starts with the leaders of the company who:
Want more from your employees? First ask yourself what you can do for them.
At Chick-fil-A, leaders take an active role in helping their employees follow their passion, even if it leads them away from the company. One restaurant owner went so far as to help an aspiring photographer make a business plan, create a website, and find her an apprenticeship.
As Dee Ann Turner, former vice president of talent, wrote: "As a steward of the talent entrusted to us, we receive 100% of our employees' efforts when they know we care about their dreams and desires."
At Chick-fil-A the CEO takes an active role in making new hires feel welcome. While it is common practice for the CEO to sit with new employees at company events, the biggest impact this leader makes is on the employees' first day.
Franchisees and office staff are welcomed with an organizational culture tour lead by the CEO. The day begins with a bus tour to the original restaurant and then to other meaningful locations in Chick-fil-A's history. There are additional stops to meet company vendors and to see firsthand the charitable work the brand supports. The day ends at the CEO's home, where dinner is served.
After being served a perfectly made sandwich, Jimmy Collins, Chick-fil-A's former president, would take it back into the kitchen and find out who made it. He would then say, loud enough for everyone to hear, "This is a beautiful piece of work," and then explain in great detail what the employee did right and what makes it a perfect sandwich. This was not only a great way for him to publicly praise outstanding work but also teach everyone a lesson in operational excellence.
"Since first opening its doors, Chick-fil-A has valued quality time together. From building relationships with guests, to encouraging shared moments between friends and families, togetherness has been at the core of our business." And while we may never be able to get back time, Chick-fil-A strives to make the time we have, and the moments we share together, more meaningful.
At Chick-fil-A, there is one way to make breaded chicken, one way to cut lemons, and one way to make coleslaw—and owners and secret shoppers are always on the look out for any deviation from these standards. So, when one team member tried making the slaw prettier by adding in purple cabbage, the entire batch was immediately thrown out. This comes from Chick-fil-A's strong belief that if you don't have operational consistency then you don't have a brand at all.
Chick-fil-A employees turn bad experiences into a positive ones by making sure that customers are HEARD:
At each Chick-fil-A grand opening, the first one hundred customers receive free meals once a week for one year. This prize has become so popular that raving fans began to camp out in front of stores days before their opening. Seeing an opportunity to build relationships with their customers, Chick-fil-A turned these campouts into one long event with free samplings, a midnight Icedream® party, backstage tours of the restaurant, and live entertainment and activities.
In their mission statement, the remark in remarkable is capitalized to emphasize that Chick-fil-A employees need to do things worth talking about. With this in mind, they organize experiences across their restaurants that bring families and friends together in memorable ways.
The Cell Phone Coop challenge was created to get people to spend more time talking to each other and less time on their phones while eating at Chick-fil-A restaurants. The rules are simple:
When first launching this billboard campaign, Chick-fil-A only showed the rubber chicken without any text or logo. It was only after thousands of people drove past it and media chatter began to rise that they added the rest.
Whether they are at a doctor's office or on a plane, Chick-fil-A associates are encouraged to carry plush Cows and Be Our Guest free sandwich cards with them wherever they go. They then readily hand them out to anyone who seems like they could use a pick-me-up or anyone who can tell them what the Cows say. These small acts of generosity strengthen the brand because they:
When surveying their customer-base, Chick-fil-A found that "93% of respondents said quality time together is the single most important ingredient to creating favorite holiday memories, in front of food, decorating, music, parties and gifts." This lead to the creation of their holiday Time Shop ad.
For Truett Cathy, the choice to name his company Chick-Fil-A was simple. They specialized in chicken sandwiches, the best cut of beef is a fillet, and the capitalized A reinforces top quality.