Research paper
Being Your Own Boss in Franchises
Few things in life are more rewarding than business. Franchises have always had high reward at low risk. So “Franchising holds the same allure today and continues to draw entrepreneurs” to the vast field with nearly limitless possibilities (Franchise 2). With such potential at comparably lower cost Chick-fil-A is a great example of the American dream. This dream includes starting from the bottom up and working to make life great for family. Every American, dreams of having a job with such a high reward like Chick-fil-A. The owner of the Chick-fil-A Southlake loves his job and is thrilled to be a part of this great company. Owning a Chick-fil-A is a great business opportunity.
Firstly owning a Chick-fil-A is a great business opportunity because it has comparably lower startup cost. “Rob Taylor borrowed $5,000 to buy a Chick-fil-A franchise 21 years ago” and the price is still only $5,000, one cannot even buy a new car for that (Franchise 1). The Fried Chicken leader, KFC charges $15,000 to start up their franchises, and their product is not nearly as good as Chick-fil-A (Schmall 12). Truent Cathy likes to set people up in business not put them in debt (Guilbert).
Secondly owning a Chick-fil-A is great because the owners/operators are paid well. The average operators make “200,000 dollars a year” and are promised $30,000 base salary if the store does not do well (Guilbert). Corporate has amazing an amazing deal with these operators where they “rent everything to the franchisee for 15% of the restaurant's sales plus 50% of the pretax profit remaining,” so the other 50% of profit is theirs (Schmall 13).
In addition to being paid well, Chick-fil-A has a really low turnover rate, which makes owning it ideal because one does not need to hire/fire so many new people this way. The turnover rates on operators is only 5%, which means their job is very secure and that they love it very much (4). Then the “Hourly workers turnover is 60%, compared with 107% for the industry,” which is great for business (4). The core people stay and stick it out because they love the company so much (Guilbert).
Fourthly Chick-fil-A is very picky about their employees, which makes them have the very best people working for them. Truent Cathy, the founder, says “We tell applicants, 'If you don't intend to be here for life, you needn't apply” this strive to have the best people is translated through all the stores (Schmall 4). “The company opens about 70 franchised locations annually” so they have to be very picky about the operators they choose (Hirsh 2). Chick-fil-A strives to choose the very best on all levels.
Fifthly Chick-fil-A is closed on Sundays, which gives one a chance to relax and revitalize one’s self from the long work week. “Chick-fil-A does not open for business on Sundays,” and operator that break this rule have a risk of having their contract terminated (15). This intended so that the employees can go to church, spend time with family, and/ or rest to feel refreshed for the work week (16).
Also Chick-fil-A has quality product, which makes more people buy it and gives an individual more money also. Hirsh states that “Chick-fil-A continues to build momentum through a combination of fresh, made to order items--including sandwiches, salads and side items--and an intensive focus on worker training to convey friendly, Southern-style hospitality at all locations” (11). The fresh squeezed lemonade and food persuaded one man he could back that product even though he did not want to do fast food at all (Franchise 40). Things are fresh and made to order and also everything being made in the store really helps Chick-fil-A stand out from the masses of other fast food restraints (Hirsh 11). Operators are chicken sale men (brand magnets) and help make the company so great (Guilbert).
Furthermore Chick-fil-A is very involved in the local community, which makes the store even have greater business opportunities because it helps them get their name out there and make money while doing it. “The company in the past has given away $26,000 in free food coupons to the first 100 people in line--one free meal apiece for the next 52 weeks” this cost them money short term (Hirsh 3). Once people get their product they by far get their money back with loyal customers. Chick-fil-A also encourages operators to go to church and other community event so they might also get their names out and be an icon to the nearby people (8).
Also Chick-fil-A only requires a bachelor degree, which makes it easy to get into versus other programs that require a master’s degree, which takes much more time. Marketing or business degree is recommended but the degree can be in any field (Guilbert). There are some operators that have theology degrees so the degrees can be in anything, “you can have a backup plan” says Mark, Chick-fil-A just likes to see the second-mile service mentality that one invested in one’s future (Guilbert).
In conjunction to only requiring a bachelor degree, Chick-fil-A operators have very flexible hours. Mark Guilbert, Chick-fil-A Southlake’s Operator, said “I can work whenever I need to” (Guilbert). He started out working 60 hours and has slowly worked his way to 40-45 hours excluding marketing and community events because those are more pleasure than work to him (Guilbert).
Finally Chick-fil-A operators have complete authority over everything in the store they are completely in charge and truly their own boss. “Everything reflects on the operator good or bad it is his responsibility,” so he has make good decisions (Guilbert). Operators have to make good decisions or it could negatively affect everyone in the store. Cooperate keeps everything in balance and makes sure it is done right. Everything reflects on him because he hired the people who ultimately made the mistakes (Guilbert).
In conclusion there are many great things about owning a Chick-fil-A. Chick-fil-A is a great opportunity because of its low initial investment, high annual salary, low turnover rates, their strive for the best employees, stance on Sunday renewal, their exemplary product, involvement in their local community, low education requirements, flexible hours, and finally because of being above everyone. Chick-fil-A will continue to grow rapidly because of it strive to be the number one chicken producer in America in sales. When the right people get involved in Chick-fil-A they will thrive and become even greater than what they are and could ever dream of being. This is the company that will go far and keep growing and they will achieve their high goals and pass KFC. Chick-fil-A is a company that needs people’s backing, and desires it too.
Works Cited
"Franchise options fewer for entrepreneurs." The Colorado Springs Business Journal 9 Sept. 2011. General OneFile. Web. 5 Nov. 2012.
Guilbert, Mark. Chick-fil-A. Personal Interview. 31 Oct 2012.
Hirsh, Lou. "Chicken and charm a winning combination: Chick-fil-A takes selective approach to granting franchises." San Diego Business Journal 29 Aug. 2011: 8. General OneFile. Web. 5 Nov. 2012.
Schmall, Emily. "The Cult of Chick-fil-A." Forbes 23 July 2007: 80. General OneFile. Web. 5 Nov. 2012.
Few things in life are more rewarding than business. Franchises have always had high reward at low risk. So “Franchising holds the same allure today and continues to draw entrepreneurs” to the vast field with nearly limitless possibilities (Franchise 2). With such potential at comparably lower cost Chick-fil-A is a great example of the American dream. This dream includes starting from the bottom up and working to make life great for family. Every American, dreams of having a job with such a high reward like Chick-fil-A. The owner of the Chick-fil-A Southlake loves his job and is thrilled to be a part of this great company. Owning a Chick-fil-A is a great business opportunity.
Firstly owning a Chick-fil-A is a great business opportunity because it has comparably lower startup cost. “Rob Taylor borrowed $5,000 to buy a Chick-fil-A franchise 21 years ago” and the price is still only $5,000, one cannot even buy a new car for that (Franchise 1). The Fried Chicken leader, KFC charges $15,000 to start up their franchises, and their product is not nearly as good as Chick-fil-A (Schmall 12). Truent Cathy likes to set people up in business not put them in debt (Guilbert).
Secondly owning a Chick-fil-A is great because the owners/operators are paid well. The average operators make “200,000 dollars a year” and are promised $30,000 base salary if the store does not do well (Guilbert). Corporate has amazing an amazing deal with these operators where they “rent everything to the franchisee for 15% of the restaurant's sales plus 50% of the pretax profit remaining,” so the other 50% of profit is theirs (Schmall 13).
In addition to being paid well, Chick-fil-A has a really low turnover rate, which makes owning it ideal because one does not need to hire/fire so many new people this way. The turnover rates on operators is only 5%, which means their job is very secure and that they love it very much (4). Then the “Hourly workers turnover is 60%, compared with 107% for the industry,” which is great for business (4). The core people stay and stick it out because they love the company so much (Guilbert).
Fourthly Chick-fil-A is very picky about their employees, which makes them have the very best people working for them. Truent Cathy, the founder, says “We tell applicants, 'If you don't intend to be here for life, you needn't apply” this strive to have the best people is translated through all the stores (Schmall 4). “The company opens about 70 franchised locations annually” so they have to be very picky about the operators they choose (Hirsh 2). Chick-fil-A strives to choose the very best on all levels.
Fifthly Chick-fil-A is closed on Sundays, which gives one a chance to relax and revitalize one’s self from the long work week. “Chick-fil-A does not open for business on Sundays,” and operator that break this rule have a risk of having their contract terminated (15). This intended so that the employees can go to church, spend time with family, and/ or rest to feel refreshed for the work week (16).
Also Chick-fil-A has quality product, which makes more people buy it and gives an individual more money also. Hirsh states that “Chick-fil-A continues to build momentum through a combination of fresh, made to order items--including sandwiches, salads and side items--and an intensive focus on worker training to convey friendly, Southern-style hospitality at all locations” (11). The fresh squeezed lemonade and food persuaded one man he could back that product even though he did not want to do fast food at all (Franchise 40). Things are fresh and made to order and also everything being made in the store really helps Chick-fil-A stand out from the masses of other fast food restraints (Hirsh 11). Operators are chicken sale men (brand magnets) and help make the company so great (Guilbert).
Furthermore Chick-fil-A is very involved in the local community, which makes the store even have greater business opportunities because it helps them get their name out there and make money while doing it. “The company in the past has given away $26,000 in free food coupons to the first 100 people in line--one free meal apiece for the next 52 weeks” this cost them money short term (Hirsh 3). Once people get their product they by far get their money back with loyal customers. Chick-fil-A also encourages operators to go to church and other community event so they might also get their names out and be an icon to the nearby people (8).
Also Chick-fil-A only requires a bachelor degree, which makes it easy to get into versus other programs that require a master’s degree, which takes much more time. Marketing or business degree is recommended but the degree can be in any field (Guilbert). There are some operators that have theology degrees so the degrees can be in anything, “you can have a backup plan” says Mark, Chick-fil-A just likes to see the second-mile service mentality that one invested in one’s future (Guilbert).
In conjunction to only requiring a bachelor degree, Chick-fil-A operators have very flexible hours. Mark Guilbert, Chick-fil-A Southlake’s Operator, said “I can work whenever I need to” (Guilbert). He started out working 60 hours and has slowly worked his way to 40-45 hours excluding marketing and community events because those are more pleasure than work to him (Guilbert).
Finally Chick-fil-A operators have complete authority over everything in the store they are completely in charge and truly their own boss. “Everything reflects on the operator good or bad it is his responsibility,” so he has make good decisions (Guilbert). Operators have to make good decisions or it could negatively affect everyone in the store. Cooperate keeps everything in balance and makes sure it is done right. Everything reflects on him because he hired the people who ultimately made the mistakes (Guilbert).
In conclusion there are many great things about owning a Chick-fil-A. Chick-fil-A is a great opportunity because of its low initial investment, high annual salary, low turnover rates, their strive for the best employees, stance on Sunday renewal, their exemplary product, involvement in their local community, low education requirements, flexible hours, and finally because of being above everyone. Chick-fil-A will continue to grow rapidly because of it strive to be the number one chicken producer in America in sales. When the right people get involved in Chick-fil-A they will thrive and become even greater than what they are and could ever dream of being. This is the company that will go far and keep growing and they will achieve their high goals and pass KFC. Chick-fil-A is a company that needs people’s backing, and desires it too.
Works Cited
"Franchise options fewer for entrepreneurs." The Colorado Springs Business Journal 9 Sept. 2011. General OneFile. Web. 5 Nov. 2012.
Guilbert, Mark. Chick-fil-A. Personal Interview. 31 Oct 2012.
Hirsh, Lou. "Chicken and charm a winning combination: Chick-fil-A takes selective approach to granting franchises." San Diego Business Journal 29 Aug. 2011: 8. General OneFile. Web. 5 Nov. 2012.
Schmall, Emily. "The Cult of Chick-fil-A." Forbes 23 July 2007: 80. General OneFile. Web. 5 Nov. 2012.