Questions for Chick-fil-A Franchisee/Operator

54,988 Views | 41 Replies | Last: 11 yr ago by RK
RNG
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I seem to recall seeing in some previous topics that there was a Chick-fil-A franchisee/owner-operator that visits this board. Does anyone know his TexAgs handle?

Or to the CFA operator: If you happen to visit this topic, could I email you a few questions?
RK
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I believe 12th Man Ag runs one in Houston [I-10 & Taylor].
SACR
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I remember reading that they have one of the lowest restaurant franchise fees, only $5000.

Of course, it is a bear to get through the interview process, because it is more about how in tune you are with their religious beliefs than it is about your business acumen.

For someone who believes in their particular dogma, and doesn't mind working 60 hours a week, it is a terrific way to make six figures annually.
Diggity
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quote:
Of course, it is a bear to get through the interview process, because it is more about how in tune you are with their religious beliefs than it is about your business acumen.


I would doubt this is true. They didn't become one of the most profitable fast-food franchisees by handing out "$5K" franchises to people just because they're good baptists.
mhayden
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They use powdered sugar on everything.

That's what the reddit AMA told me.
RK
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It has a lot to do with both of those things. And I thought it was $10k. Could be wrong.
Stive
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Not saying it's not possible, but I've heard there is a huge waiting list for these and that Chic-fil-A is extremely careful about where they put new locations. They don't over saturate a market, the locations they choose do well, etc.

You have to be "involved" with your store (it can't be something you own on the side), you have to live within x miles of your store location (seems like it's pretty close...5-10 miles maybe?), things like that.

Maybe all of that is urban legend, or maybe there is some truth to most of it, but it's not as extreme as what the rumors are.

Either way, for as cheap as they are, they aren't easy to get, that's for sure.

cs69ag
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You become more of an operating partner with Chic-fil-a vs. being a franchisee....you have a little skin in the game, but nothing like a regular franchise, and you own nothing...no land or building or anything. You derive a % of the profits and you need to run it like it is your biz
to be successful! Their formula seems to work well and it is a very successful buiness. I admire their closed on Sunday philosophy.
SACR
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Diggity,

quote:
I would doubt this is true. They didn't become one of the most profitable fast-food franchisees by handing out "$5K" franchises to people just because they're good baptists.


Maybe you should do some research before you spout off.

http://www.chick-fil-a.com/Company/Franchise-Opportunity

Neach Lagha
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quote:

Diggity,

quote:
I would doubt this is true. They didn't become one of the most profitable fast-food franchisees by handing out "$5K" franchises to people just because they're good baptists.


Maybe you should do some research before you spout off.

http://www.chick-fil-a.com/Company/Franchise-Opportunity




Where did it say they don't care about business acumen?
RK
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quote:
You might want to continue researching an opportunity with Chick-fil-A if you: Are looking for a full-time, “hands-on” business opportunity.
Have a proven track record in business leadership.
Have successfully managed your personal finances.
Are a results-oriented self-starter interested in growing a business.
Are prepared to have no other active business venture



all religion talk and no mention of business!



[This message has been edited by RK (edited 7/16/2014 9:05a).]
RK
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as an aside, there is a sugarland operator named Quart Graves. pretty sweet name.
ToddyHill
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I am not affiliated with Chick fil A at all. However, I have a friend and business associate, which I've known for 20+ years, who works at their corporate headquarters in Atlanta.

• Corporate gets 20,000 requests from individuals hoping to land one of the 200 units they build each year.
• Corporate owns the land and building.
• The team that runs the restaurant pays a $5000 fee for the right to operate the unit.
• Operators split the profits (50/50) with corporate. The average operator makes well over 6 figures per year.
• In the past, operators owned up to two restaurants. Presently, that’s been reduced to one.
• One does not need to be Baptist to get ‘in’ with this company. My friend is Catholic. However, the process is lengthy…easily up to a year.
SACR
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Toddy,

Does your friend own a franchise?
ToddyHill
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quote:
Toddy,

Does your friend own a franchise?


He does not own a franchise or operate a restaurant...he works at the Chick fil A Corporate office in Atlanta. I spent about two to three hours with him recently at his office...got a tour of the corporate campus, saw Truett Cathy's car collection in the main lobby...and got the skinny on their business plan.

It was rather impressive.

[This message has been edited by ToddyHill (edited 7/16/2014 1:47p).]
Diggity
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quote:
Maybe you should do some research before you spout off.

http://www.chick-fil-a.com/Company/Franchise-Opportunity


I'm really trying to figure out what you were attempting to show me here.
MGS
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quote:
In the past, operators owned up to two restaurants. Presently, that’s been reduced to one.


This is what makes CFA so great. With only one or two stores, an owner can't afford to hire a GM to run the store, he/she has to spend 50-60 hrs a week in his own store running things. That's why they are cleaner, have better employees, and generally better managed than other restaurants.
Maroon Skittles
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There is a lot of misinformation in this thread from people being "experts" on the internet.

The guy whose friend works at CFA corporate is pretty spot on about everything he said.

Here are my thoughts and a couple of choice responses to some of the statements made.

First, my wife and I just went through the interview process. It took about a year. We started in a pool of 25,000 candidates and were narrowed down to the last 250 people. Unfortunately, we were cut at this point. BTW - It was my wife interviewing, not me, but I did help her along the way and advised her on interview prep. We have been told we can interview again and that CFA likes persistence. It is a highly competitive process especially towards the end of the selection process.

quote:
not exact quote, but something to the effect of you have to work 60-70 hours a week


False. I'm sure some operators do. One of my good friends is an operator here in Texas and he works no more than 30 hours / week and pulls down $200k/year. That is a fact. He is very open about his work schedule and the fact that he has hired and trained a good team to do the majority of the job for him.

BTW - not all operators pull in 6 figures. An operator in a mall location might only make $60-$75k. The location they give you (mall vs. free standing and then geography) is partly based on the kind of income you currently receive. They are not going to take someone used to making $125k year and put them in a $60k location.

quote:
Of course, it is a bear to get through the interview process, because it is more about how in tune you are with their religious beliefs than it is about your business acumen.


False. Yes, the interview process is an ordeal. At the end of the day, CFA is very interested in making money and business acumen helps a lot. Yes, CFA looks for people who will be good ambassadors of the brand in their local communities. It does not mean they would reject people strictly because of their religious preferences. That would be discriminatory. Being like minded certainly helps and CFA is an openly Christian company (which is refreshing). Gee, I wonder why everyone likes and respects the company so much...? It couldn't have anything to do with the company having a moral compass, could it?


Franchise Fee is $5,000. You have to have that in liquid cash early in the process. I've heard other companies have been so impressed with CFA's process that they have adopted similar practices including the $5k franchise fee. I believe Outback Steakhouse and maybe 7-11 have adopted these models. Don't quote me on this though because it is second hand from my wife who was told it by her CFA interviewer.


Hope that helps.

mhayden
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quote:
Gee, I wonder why everyone likes and respects the company so much...? It couldn't have anything to do with the company having a moral compass, could it?


I think it probably has a little bit more to do with their food being awesome.
techno-ag
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^^^ They handled themselves very well during the recent homosexual controversy, at both corporate and local levels. I'd say their moral compass AND good food combine to make a great company.
mhayden
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They are no doubt very good with public relations.

But companies with a good moral compass fail all the time. Companies with a poor moral compass but good food/product succeed quite often.

Based on the USA Today poll, the majority of people actually disagreed with Chick-Fil-A's stance and handling of the gay marriage controversy (and it pissed off The Muppets... and if you piss off The Muppets you have to be doing something wrong).

But that sure didn't hurt them in the sales department.

I can respect any business that stands by what they believe (though to be fair Chick-Fil-A basically cratered on the entire issue in regards to their funding), but at the end of the day what makes Chick-Fil-A successful isn't their moral compass -- it's that they make a great product (food and store cleanliness) at a competitive price.
Diggity
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can't it be all of the above Matt?
Maroon Skittles
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I think the sales the week(?) after the homosexual controversy prove that the moral compass is a strong selling point to many members of the community. Pretty much every church going person I know waited in line for hours on the CFA appreciation day. It was a national record sales day for CFA. That day was all about support of their policies.

And yes, the food is pretty good (for fast food anyway)...
techno-ag
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Great food makes or break the restaurant biz, no doubt. But the fact CFA corporate has a great moral compass that remains unaffected by silly things like USA Today opinion polls, makes them a great, outstanding company.
Thriller
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Good friend of mine is very strongly Catholic (including a brother who is a priest) and he runs a very, very successful CFA franchise.
dreyOO
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Maroon skittles, did your wife have restaurant experience before?
SACR
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Diggity,

quote:
I'm really trying to figure out what you were attempting to show me here.


That CFA does, in fact, give out $5000 franchises.
ToddyHill
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quote:
We have been told we can interview again and that CFA likes persistence. It is a highly competitive process especially towards the end of the selection process.


I would encourage you to stay the course, and to continue to pursue your dream of being an operator for CFA.

quote:
One of my good friends is an operator here in Texas and he works no more than 30 hours / week and pulls down $200k/year.


The average Chick fil A restaurant generates 3.5 million dollars per year in sales with the Operator making $190,000 in profit per year.

quote:
because it is more about how in tune you are with their religious beliefs


I too, disagree with this opinion. Yes, they are Christian, but they are also good business people with a top notch team that executes very well.

quote:
I've heard other companies have been so impressed with CFA's process that they have adopted similar practices including the $5k franchise fee. I believe Outback Steakhouse and maybe 7-11 have adopted these models.


Which came first, the chicken or the egg? I don't know who came up with this, but 25 years ago, Outback adopted the 'Managing Partner' model for their restaurants. The MP paid $25,000 to Outback, then took a portion of the profits (I'd heard it was between 20-25%) for the next five years. At the end of the fifth year, Outback would buy out the MP with stock.

quote:
I think the sales the week(?) after the homosexual controversy prove that the moral compass is a strong selling point to many members of the community. Pretty much every church going person I know waited in line for hours on the CFA appreciation day. It was a national record sales day for CFA. That day was all about support of their policies.


My friend never told me the sales for that Chick fil A appreciation day. I think that's one fact many will never know, but it was HUGE. I stood in line for an hour that day, and it was a very hot! To me, participating in the event wasn't about supporting their position as much as it was about their right to Free Speech, which to me is more important.
RNG
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Maroon Skittles, if you had to guess, why do you think that your wife didn't make the cut her first go around? Lack of restaurant experience, too many "persistent" people ahead of her, etc.? Just trying to learn what exactly they are looking for.
Diggity
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That CFA does, in fact, give out $5000 franchises.


I don't see anything about the franchise costs on there.

...but even if they are $5K, that had little to nothing to do with my response. you implied that religious affiliation was more important than business skills, which it obviously isn't when you look at the bullet points on that site.

/snark
mhayden
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Yes a bunch of people stood in line to buy Chick-Fil-A that day.

Yes most national polls said most people disagreed with Chick-Fil-A's stance.

Yes Chick-Fil-A has since completely folded to public opinion and no longer funds the anti-gay groups they previously did.

Chick-Fil-A succeeds because of their business model and product -- not because of their supposed "moral compass".
techno-ag
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What you're failing to consider is their moral compass guides their business model.
Maroon Skittles
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Hey guys,

Here are answers to the direct questions posed to me.


quote:
Maroon skittles, did your wife have restaurant experience before?


quote:
Maroon Skittles, if you had to guess, why do you think that your wife didn't make the cut her first go around? Lack of restaurant experience, too many "persistent" people ahead of her, etc.? Just trying to learn what exactly they are looking for.




My wife did not have any real restaurant experience prior to this other than a stint as a hostess in high school (20+ years ago) at a national chain. She did, however, have an extremely diverse background and a lot of great experiences, including managing a good sized team at her most recent job.

If I had to guess what caused us to get cut, I suspect it might have a little to do with life circumstances. We just adopted two children and my wife left her job 6 months ago. When we first applied to Chick-fil-A, we knew adoption was possible (we had gone through the approval processes), but it was on the back burner as we waited to be blessed with the right opportunity. Plus, we weren't sure if my wife would leave her job or not. After getting the kids (now ages 3 and 4 siblings), we realized that they really needed a full-time parent at home to watch them and help them develop properly. In foster care, so many kids needs go unmet. You can really make an impact on a child's life simply by being there, providing structure, and meeting their core needs. The kids are doing awesome now (6 months later).

Our friend who is an operator didn't think the adoption would impact our chances and, to be fair, we made it quite far (or my wife did) in the process. I just think that it could have been one of the deciding factors that cut us. If we had been selected, I would have most likely quit my job to work for my wife (LOL) and together we would manage the restaurant.

We plan on having my wife pick up some shifts at our friend's store to further strengthen our case the next go round. Chick-film-A does like it if you have experience in one of their stores. I am confident that we will be blessed with this opportunity when the time is right.


Oh, one other tidbit that I haven't seen mentioned, if we had made the final cut into the group approved for stores, we would then go into a candidate process for store selection. We would have to compete with other approved operators and existing internal operators looking to move stores for new store openings. Competition involves creating presentations to the selection team about how you will market the store, etc. There are some approved operators who never get a store for various reasons. My wife would have been very strong in this presentation having experience in this regard previously.
Bitter Old Man
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IF I understand correctly, once you are chosen, you don't get a lot of choice on where you go. They sort of assign you a new location and you either move there, or pass you over.

Is this correct?
Maroon Skittles
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quote:

IF I understand correctly, once you are chosen, you don't get a lot of choice on where you go. They sort of assign you a new location and you either move there, or pass you over.

Is this correct?




No, that is not my understanding. Yes, you give them general geographic preferences during the process, but after being selected, there is another process where you compete for stores opening wherever they are opening them. You are not guaranteed to get a store, but you have to compete at the specific locations they are opening.
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