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re: Why is Chick-fil-a successful?
Posted on 12/17/23 at 11:50 am to Obtuse1
Posted on 12/17/23 at 11:50 am to Obtuse1
quote:
The average McDonald's franchisee makes nearly twice what the average CFA owner makes and it is much closer to being passive income.
It is simple: if you manufacture a stat. At least back it up.
Chick-fil-A, on average, makes almost double the total revenue per restaurant than McDonald's.
LINK
This post was edited on 12/17/23 at 11:52 am
3
Posted on 12/17/23 at 12:42 pm to Roy Curado
He isn't talking about the store
Posted on 12/17/23 at 1:37 pm to BottomlandBrew
quote:
Pay staff better than industry average
This destroys fast food restaurants according to a lot of the economic geniuses around here
Posted on 12/17/23 at 2:46 pm to Powerman
It doesn't but it definitely raises the price of the food. Chicken sandwich meal there is $10. It's not the greatest sandwich imo compared to some others. Looked up hourly pay and according to Austin Chick Fil A they pay $16 an hour. I would imagine they're paying as well as anyone.
McDonalds announced $15 an hour and coincidentally are raising their prices.
No one has said the wage increase will destroy these places. It will just increase the price of the goods.
McDonalds announced $15 an hour and coincidentally are raising their prices.
No one has said the wage increase will destroy these places. It will just increase the price of the goods.
Posted on 12/17/23 at 5:16 pm to Roy Curado
quote:what the store takes in is not always what the owner makes. I bet CFA takes a bigger piece of the pie.
Chick-fil-A, on average, makes almost double the total revenue per restaurant than McDonald's.
Posted on 12/17/23 at 8:27 pm to nuwaydawg
It’s incredible training combined with qualified employees. They pay more than competitors and you have people looking to work there all the time. You never see them with an employee shortage unlike their competition. You have people like us telling everyone and their mother how nice their employees are. They monitor every time someone walks out or finis he d and order and expect them to be treated with the same greeting and goodbye. Everyone at the counter says “welcome to CFA” and “My pleasure.”
Food menu is super limited but it’s done well. Chicken and potatoes are cheap. Lemonade is all sugar there. Costs are not high to do the food.
Owners are involved in the day to day operations. They’re working as a business owner should instead of sitting back and collecting a check. Owners are not allowed multiple locations. CFA carefully researched and picks out where to develop a new location, pays for all the building costs, but requires about 90% of all profits. I could be wrong on the exact number, but I do know they take in almost all the profit.
To answer your question though:
Make a marketable product, spend on marketing, and have a quality product. CFA does all that.
Food menu is super limited but it’s done well. Chicken and potatoes are cheap. Lemonade is all sugar there. Costs are not high to do the food.
Owners are involved in the day to day operations. They’re working as a business owner should instead of sitting back and collecting a check. Owners are not allowed multiple locations. CFA carefully researched and picks out where to develop a new location, pays for all the building costs, but requires about 90% of all profits. I could be wrong on the exact number, but I do know they take in almost all the profit.
To answer your question though:
Make a marketable product, spend on marketing, and have a quality product. CFA does all that.
Posted on 12/17/23 at 9:05 pm to nuwaydawg
quote:Soggy, bland chicken? Cane's does that.
Why can't another franchise replicate what they have done?
Posted on 12/18/23 at 10:45 am to nuwaydawg
In N Out is very similar.
Simple menu, good service, consistent product.
Simple menu, good service, consistent product.
This post was edited on 12/18/23 at 10:46 am
Posted on 12/18/23 at 10:50 am to nuwaydawg
it's the service
Posted on 12/18/23 at 10:53 am to Roy Curado
It's Revenue versus profit. I was in corporate fast food for 15 years but have been out for over 5 so numbers/details may have changed. But I would assume they're at least directionally accurate.
A CFA operator is not an owner. They get a cut of the profits/sales at the end of the day. My understanding is that comes out to roughly $100-150K on average. And rarely does someone get more than 1 location. The average operator can expect to have 1 store (2 if lucky). And they will spend most of their working time at that store running everything.
McDonald's has owners that get all of the profits after costs (and rent/franchise fees) are paid. Before paying off any debt acquired to purchase the location, the average McD's generates $300-400K in profit. And the average owner has 5-7 stores which ranges widely from single store owners to groups with over 50 stores.
So the average CFA operator is pulling in $150K/year while the McDonald's is pulling in over 7 figures per year. And the McD's operator owns the business and can sell it to someone else making millions of profit per store. I'm not sure what the CFA situation is there. Per store, McD's pays operators a little more...per organization it's not even close.
I did see someone say McD's can pass on to the children. That's not automatic even if it's what usually happens. McD corporate has to approve any sale, whether it's to the kids or someone else. If the parent is a bad operator it's unlikely their kids will also get a shot.
A CFA operator is not an owner. They get a cut of the profits/sales at the end of the day. My understanding is that comes out to roughly $100-150K on average. And rarely does someone get more than 1 location. The average operator can expect to have 1 store (2 if lucky). And they will spend most of their working time at that store running everything.
McDonald's has owners that get all of the profits after costs (and rent/franchise fees) are paid. Before paying off any debt acquired to purchase the location, the average McD's generates $300-400K in profit. And the average owner has 5-7 stores which ranges widely from single store owners to groups with over 50 stores.
So the average CFA operator is pulling in $150K/year while the McDonald's is pulling in over 7 figures per year. And the McD's operator owns the business and can sell it to someone else making millions of profit per store. I'm not sure what the CFA situation is there. Per store, McD's pays operators a little more...per organization it's not even close.
I did see someone say McD's can pass on to the children. That's not automatic even if it's what usually happens. McD corporate has to approve any sale, whether it's to the kids or someone else. If the parent is a bad operator it's unlikely their kids will also get a shot.
Posted on 12/18/23 at 1:32 pm to Dave Worth
What's your opinion/inside info/outlook for a Papa John's franchise owner?
This post was edited on 12/18/23 at 1:37 pm
Posted on 12/18/23 at 3:31 pm to MorbidTheClown
quote:
it's the service
It really is this simple.
The strength of that service-culture is so strong that I've seen them 30 deep in the terminal at ATL and still "my pleasuring" everyone and everything. Most establishments in that airport are reluctant to acknowledge your existence on their best day.
Posted on 12/18/23 at 9:14 pm to wesfau
Um Todd, could you buy the Saints?
Posted on 12/19/23 at 7:45 pm to Sailorjerry
Awesome customer service quick and order is always right unlike most fast food resturants in Baton Rouge
The Hispanic population does a great job in the fast food business in houston
The Hispanic population does a great job in the fast food business in houston
Posted on 12/19/23 at 8:46 pm to nuwaydawg
Their employees...
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