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Chick-Fil-A Strategic Plan Analysis

Chick-Fil-A Strategic Plan Analysis

Chick-Fil-A is a company in the fast-food industry. It is was established in 1964 and is based in Georgia. The company specializes in poultry dishes as illustrated in the name. It offers breakfast, lunch, and dinner and uses chicken as its major ingredient. KFC is the Chick-Fil-A’s major competitor. The company’s new strategic plan will be based on its recent performance and the current economic conditions. The key elements covered in the strategic plan comprise of the company’s mission and vision statement, objectives, fast-food industry analysis, SWOT analysis and a perceptual map.

Mission and Vision Statement

Mission Statement:

To satisfy our customers with quick services, fresh and high-quality food which is all provided at an affordable cost. Every client who tries our menu is a happy customer. The organizational mission statement focuses on what the company does at the moment to achieve its goals or set objectives

Vision Statement:

To become a restaurant that listens cares and attends to the customer needs. Chick-Fil-A wants to become a customer service oriented in future. A company that understands and addresses all the customer needs, tastes and preferences irrespective of their income.

 Goals and Objectives

Dining Experience Objectives

  • Having a diverse and attractive menu.
  • Providing affordable, wholesome and culturally diverse menu options.
  • Offering the best customer services that promote the relationship between our clients and staff by responding to the customer needs and requests promptly.
  • To become successful by building a robust reputation and loyal clientele.
  • To create have the restaurant that clients to come only to dine but also relax and have the luxury.

Profitability Objectives

  • To create a menu that is profitable and affordable to all customers and that will make them return again.
  • The menu costs and materials will be low enough to allow Chick-Fil-A to charge the lowest price and at the same time make a reasonable profit.
  • Increase revenues by keeping our existing happy, converting casual customers into loyal ones and bringing new customers and provide them with wide varieties of food and services so that they may return.

Marketing Objectives

  • To retain the existing customers and at the same time attract the new ones.
  • Expending both regionally and globally.
  • Have a diverse menu that is affordable to all our customers.

Industry Analysis

The fast-food industry comprises of restaurants/businesses where the customers make payment first before eating. The purchased food can be delivered, taken out or consumed on-site. The gross revenue realized by the businesses in this industry can be obtained from the restaurant-owned or franchised stores. The franchise revenue is accounted within the industry overall revenue. Snack and coffee shops do not fall in this industry. However, several businesses in the industries sell sodas, juice, and water.

The report by IBIS world published on October 2017 showed that over the past five years the fast-food industry had suffered a huge drawback because customers were shifting from saturated and healthy foods that had kept the price low. Instead, consumers prefer high-quality food and service. This shift was also influenced by in the crease of discretionary income among the customers  (Berger, 2015).blankTo overcome the customer taste and preference shift, the restaurants in the fast-food industry have responded by rolling out new menus that have the variety of healthy food items (IBISWorld, 2017). However, the anticipation to have the fast-food industry growing fast as it has been the case in the past years may remain the achievable dream. This is because the major segments in the industry appear to have reached the maturity stage.  Besides, the consumers have continued to seek satisfaction by preferring convenient meals and healthy food options.

With the new trends in the fast-food industry the old companies industry such as McDonald, Chick-Fil-A, Chipotle Mexican Grill, Taco Bell, Arby’s, KFC, and Yum! Brands Inc. and Subway, Burger King and others are likely to affect heavily especially they do not alter their operations to address consumers new preferences and tastes.

IBISWorld (2017) show that the number of businesses in the fast food industry is 294,633, annual growth is 3.1 percent, the revenue is $245bn and the number of employees is 4.5 million. These statistics depict fast food as a huge industry that is likely to compete with the companies without strong and effective strategic plan.

The key success factors for the businesses in the fast-food industry are effective cost controls, appropriate market positioning and having the right business restaurant expertise. The key factors influencing the industry are healthy food consumption index and spending on the fast-food among the consumers.

Major industry products are chicken, sandwiches, Asian, Pizza and Pasta, Mexican and Burgers.  These products are offered by almost all businesses in the fast-food industry in addition to other products.

Activities undertaken the fast-food industry companies comprise of quick-service restaurants, fast-food services and take-out and drive-through facilities.

The fast-food industry competitors are bars and nightclubs, street vendors, caterers, chain restaurants, specialty food stores and full-service restaurants.

SWOT Analysis

Strengths

Strength entail what the business does the best that gives it a strong competitive advantage over its rivals. Chick-Fil-A possesses several strengths:

Quality services: Chick-Fil-A success is chained in the impeccable customer service. This is a unique attribute to Chick-Fil-A since many businesses in the fast-food industry use costumer self-service approach. This makes the company different from other restaurants in the industry.

Face to Face Transaction: Unlike the competitors, Chick-Fil-A interacts with their customers face to face. The customers develop the feeling that they care since they are being attended by the people. Customers also feel that they are being appreciated by the restaurant because they do not get similar services in other restaurants.

Employee satisfaction: Chick-Fil-A pays its employees well compared to average pay within the industry. Besides, the company gives its workers an opportunity to advance their careers. Chick-Fil-A as an employer has enhanced employees’ satisfaction who in return have increased the performance, productivity and service delivery as well.

Restaurant ambiance: Several restaurants in the fast-food industry do not want customers to spend a lot of t time in their outlets while eating. As a result t, he embraces being formal and simple. However, for the Chick-Fil-A t, his is not the trend and they engaged in making their ambiance attractive and inviting as possible. Their atmosphere is colorful and walls are painted with attractive pictures that provides clients with a joyful and warm feeling.

Ingredients Choice: Chick-Fil-A has chosen chicken as its primary ingredient. Besides, the company sells sandwiches which are patties and chicken filling. Given the shift of trend among the customer’s to seek for more healthy food, Chick-Fil-A stands a good chance to gain more customers from the competitors who sell burgers and red meat since they are considered unhealthy.blankWeaknesses

Weaknesses refer to the eras of the business operations or brands that need improvement to improve the service delivery and overall business performance.

Small Geographical Coverage: Chick-Fil-A has concentrated its operations in the United States only unlike McDonald whose presence is felt internationally. Chick-Fil-A popularity is limited in America alone amid the stiff competition offered by other business rivals in the industry. Due to lack of global expansion, Chick-Fil-A is not part of the big competitors in the fast-food industry.

Less Innovative: Due to lack of its presence in the international arena, it has been hard for Chick-Fil-A to innovate its marketing and supply chain despite having an innovative menu.

Customer retention: The fast-food industry is expending growing very fast and as a result, it has left customers with no deficiency of choice. However, the expensive food varieties offered by the restaurants such as Chick-Fil-A has made it hard for the company to retain customers.

High Prices: Chick-Fil-A food and services are priced higher compared to that of the competitors. Despite that company high-quality services and food justify the pricing, its brand is not popular among the middle and lower-income classes. This limits the company’s target market size.

Opportunities

The shift of focus to fast-food restaurants: The poor services offered by the restaurants in the first food industry has influenced the shift of preference to high-quality services. Chick-Fil-A is among the restaurants in the fast-food industry offering high quality services and food. Therefore, the customers’ shift on taste and preferences it is an opportunity for Chick-Fil-A to maximize on it.

Healthy Fast Food Debate: In the recent past there has been growing public awareness of the health risks associated with the fast-food. Companies in the fast-food industry have strategized their plans to focus on healthy food varieties.

Threats

Threats are elements of the business external environment which pulls back business growth. The major threats facing Chick-Fil-A are;

Chicken Scandals: Over years there have been several scandals surrounding the fast-food companies using chicken as the major ingredient. As a result of these scandals n, the negative perception has been created in the minds of customers and thus avoiding such fast-food joints Chick-Fil-A being among them.

Stiff Competition: Fathe st-food industry is a huge industry with giant competitors such as McDonald, KFC, Subway and Burger King. This had made it difficult for Chick-Fil-A to compete advantageously provided that the company operations are confined to the American market only.

Perceptual Map

The key elements to include in the perceptual are price, quality, healthy food and unhealthy food. There are major factors currently affecting the fast-food industry.

Healthy

High Quality

Low Quality

Unhealthy

Chick-Fil-A falls in the Healthy and High-Quality Quadrant. Chick-Fil-A has focused on delivering high quality and healthy food the two factors which are the customers’ preference currently.

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Chick-Fil-A New Strategic Plan

The company new strategic plan will be based on its recent performance and the current economic conditions. The key elements covered in the strategic plan comprised of the company’s mission and vision statement, objectives, fast-food industry analysis, SWOT analysis and a perceptual map.

Mission and Vision Statement

.Mission Statement:

To satisfy our customers with quick services, fresh and high-quality food which is all provided at an affordable cost. Every client who tries our menu is a happy customer. This organizational mission statement will focus on what the company will do at the moment to achieve its goals or set objectives

Vision Statement:

To become a restaurant that listens cares and attends to the customer needs. Chick-Fil-A wants to become a customer service oriented in future. A company that understands and addresses all the customer needs, tastes and preferences irrespective of their income.

Goals and Objectives

Dining Experience Objectives

  • Having a diverse and attractive menu.
  • To provide wholesome and culturally diverse menu options.
  • To offer the best customer services that promote the relationship between our clients and staff by responding to the customer needs and requests promptly.
  • To create have rea restaurant that clients to come not only to dine but also relax and have the luxury.

Profitability Objectives

  • To create a menu that is profitable and affordable to all our customers and that will make them return.
  • The menu costs and materials will be low enough to allow Chick-Fil-A to charge the lowest price and at the same time make a reasonable profit.
  • To increase revenue by keeping our existing happy, converting casual customers into loyal ones and bringing new customers and provide them with wide varieties of food and services.

Marketing Objectives

  • To retain the existing customers and at the same time attract the new ones.
  • Expending both regionally and globally.
  • Have a diverse menu that is affordable to all our customers.

Industry Analysis

The fast-food industry comprises of restaurants/businesses where the customers make payment first before eating (Grand View Research, 2018). The purchased food can be delivered, taken out or consumed on-site. The gross revenue realized by the businesses in this industry can be obtained from the restaurant-owned or franchised stores. Snack and coffee shops do not fall in this industry. However, several businesses in the industries sell sodas, juice, and water.

The report by IBIS world published on October 2017 showed that over the past five years the fast-food industry had suffered a huge drawback because customers were shifting from saturated and unhealthy foods that had kept the price low. Currently, consumers prefer high-quality food and service. This shift was also influenced by in the crease of discretionary income among the customers  (Berger, 2015).

To overcome the customer taste and preference shift, the restaurants in the fast-food industry have responded by rolling out new menus that have the variety of healthy food items (IBISWorld, 2017). However, the anticipation to have a fast-food industry growing fast as it has been the case in the past years may remain an unachievable dream (Kramer, 2017). This is because the major segments have reached the maturity stage.

With the new trends in the fast-food industry the old companies industry such as McDonald, Chick-Fil-A, Chipotle Mexican Grill, Taco Bell, Arby’s, KFC, and Yum! Brands Inc. and Subway, Burger King and others are likely to be affected heavily especially they do not alter their operations to address consumers new preferences and tastes.blankIBISWorld (2017) show that the number of businesses in the fast food industry is 294,633, annual growth is 3.1 percent, the revenue is $245bn and a number of employees are 4.5 million. These statistics depict fast food as a huge industry is likely to be competitive with the companies without strong and effective strategic plan.

The key success factors for the businesses in the fast-food industry are effective cost controls, appropriate market positioning and having the right business restaurant expertise (IBISWorld, 2017). The key factors influencing the industry are healthy food consumption index and spending on the fast-food among the consumers.

Major industry products are chicken, sandwiches, Asian, Pizza and Pasta, Mexican and Burgers.  These products are offered by almost all businesses in the fast-food industry in addition to other products. Activities in the fast-food industry companies comprise of quick-service restaurants, fast-food services and take-out and drive-through facilities. The fast-food industry competitors are bars and nightclubs, street vendors, caterers, chain restaurants, specialty food stores and full-service restaurants.

SWOT Analysis

Strengths

Quality services: Chick-Fil-A success is chained in the impeccable customer service. This is a unique attribute to Chick-Fil-A since many businesses in the fast-food industry use costumer self-service approach (Peterson, 2017).

Face to Face Transaction: Unlike the competitors, Chick-Fil-A interacts with their customers face to face. The customers develop the feeling that they care since they are being attended by the people (Kim, 2017).

Employee satisfaction: Chick-Fil-A pays its employees well compared to average pay within the industry. Besides, the company gives its workers an opportunity to advance their careers. Chick-Fil-A as an employer has enhanced employees’ satisfaction who in return have increased the performance, productivity and service delivery as well.

Restaurant ambiance: Several restaurants in the fast-food industry do not want customers to spend a lot of time in their outlets while eating. As a result, the embrace being formal and simple. However, for the Chick-Fil-A, this is not the trend and they engaged in making their ambiance attractive and inviting as possible (Peterson, 2017). Their atmosphere is colorful and walls are painted with attractive pictures that provides clients with a joyful and warm feeling.

Ingredients Choice: Chick-Fil-A has chosen chicken as its primary ingredient. Besides, the company sells sandwiches which are patties and chicken filling. Given the shift of trend among the customer’s to seek for more healthy food, Chick-Fil-A stands a good chance to gain more customers from the competitors who sell burgers and red meat since they are considered unhealthy.blankWeaknesses

Small Geographical Coverage: Chick-Fil-A has concentrated its operations in America only unlike McDonald and other restaurants whose presences are felt internationally. Chick-Fil-A popularity is limited in America alone amid the stiff competition offered by other business rivals in the industry. Due to lack of global expansion, Chick-Fil-A is not part of the big competitors in the fast-food industry.

Less Innovative: Due to lack of its presence in the international arena, it has been hard for Chick-Fil-A to innovate its marketing and supply chain despite having an innovative menu.

Customer retention: The fast-food industry is growing very fast and as a result, it has left customers with no deficiency of choice. However, the expensive food varieties offered by the restaurants such as Chick-Fil-A has made it hard for the company to retain customers.

High Prices: Chick-Fil-A food and services are priced higher compared to that of the competitors. Despite that that the company’s high-quality services and food justify the pricing, its brand is not popular among the middle and lower-income classes. This limits the company’s target market size.

Opportunities

The shift of focus to fast-food restaurants: The poor services offered by the restaurants in the first food industry has the influence to shift the preference to high-quality services. Chick-Fil-A is among the restaurants in the fast-food industry offering high-quality services and food. Therefore, the customers’ shift on taste and preferences it is an opportunity for Chick-Fil-A to maximize on it.

Healthy Fast Food Debate: In the recent past there has been growing public awareness on the health risks associated with the fast-food. Companies in the fast-food industry have strategized their plans to focus on healthy food varieties.

Threats

Chicken Scandals: Over years there have been several scandals surrounding the fast-food companies using chicken as the major ingredient. These scandals have created a negative perception in the minds of customers and thus avoiding such fast-food joints Chick-Fil-A being among them.

Stiff Competition: the Fast-food industry is a huge industry with giant competitors such as McDonald, KFC, Subway and Burger King (Peterson, 2017). This has made it difficult for Chick-Fil-A to compete advantageously provided that the company operations are confined to the American market only.

Perceptual Map

The key elements to include in the perceptual are price, quality, healthy food and unhealthy food. There are major factors currently affecting the fast-food industry.

Healthy

Low Quality

High Quality

Unhealthy

Chick-Fil-A falls in the Healthy and High-Quality Quadrant. Chick-Fil-A has focused on delivering high quality and healthy food the two factors which are the customers’ preference currently.

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