Leadership Thought: Chick-fil-A is Coming and What I Learned about Their Philosophy of Success.

Dear Friend,

I have always been intrigued by the success of Chick- fil A. There is something about walking into one of the restaurants that is so different from other well-known franchises, and you feel it right away.

It is kin to walking into a church, and right away knowing that there is something different about this church, and this is where you were meant to be. 

What is so different? It is the people behind the counter, at the register, outside in the checkout line, and those who serving you. They are all a part of a culture that cares. And it is this caring culture that is foundational to its overwhelming success.

I recently listened to a podcast featuring a retired executive of Chick-fil-A- Filet sharing a climactic moment in its history. In 2000 venture capitalists were rushing to invest huge amounts of money in Boston Market, which was rapidly opening new franchises all around the country. In Dallas they opened 60 new restaurants in six years and they were also expanding like wildfire all across our country.

Dan Cathey, who took over the business from his father, Truett, was nervous as he looked at the rapid growth of one of its competitors. He came back from a venture capitalist meeting where he heard all about how quickly Boston Markets were building franchises, and he was determined that Chick-fil- A needed to keep pace. He shared his vision of building franchises more rapidly to compete with Boston Market. His father, who was not impressed with his vision, banged his fists on the table and said the words that would be foundational for the company’s success. “If we want to get bigger, we need to get better.” Our company must put people over profit. If we serve people and build a culture where everyone’s first concern is others, the profits will automatically follow.

Truett was right. Shareholders don’t fund your business, people do, and if you focus on people, and not on shareholders you will wind up making both of them happy.

Boston Market’s rapid expansion was their downfall. In their desire for profit, they overbuilt. They compromised on securing the best locations, and they discovered how difficult it would be to hire enough quality employees to staff their restaurants.

Boston Market has been on a downward trend for several years. Just this week. I learned of another area franchise closing while another Chick-fil-A will be opening later this month on Route 35 in the area occupied by Costco and AMC Movie theaters.

Chick-Fil-A learned the value of the BSBS principle, “Build slowly, build solidly.” Today it is harder to own a Chick-fil-A franchise than it is to get into Harvard, and this is partly because they open so few franchises a year-only a few over 100 across the United States. I know this to be true through conversations I have had with its new owner. Brandon Jones who worships with us and who is presently involved in our Men’s Spiritual Leadership class. He has waited 8 years for final franchise approval.

The servant spirit of its fonder Truett Cathy bleeds through the organization. It is a philosophy which places “being rich ahead of getting rich.” It is not about what I  get, but what  I give. It is more about contribution than consumption. The culture that derives is one in which everyone wins. The employee wins because they are valued and treated with respect. The customers win because they get a top-quality product for a fair price. And the suppliers win because they enjoy doing business with a company that values honesty in all their relationships.

When you enter a Chick A Filet you are apt to hear the words, “It is my pleasure." spoken at the counter, cash register, or from a host or hostess. Those words derive from the servant mindset of its founder, Truett Cathy. Cathey based his company on biblical principles, and always operated in a “servant leadership” style long before it was called that. The religious influence is explicit in the company's purpose, “To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A.

The success of the franchise can be easily summed up in a few sentences. "Recruit for culture, nurture talent by telling the truth, and engaging guests in your culture by practicing “Second-Mile-Service, going out of your way to make their service memorable."

I think we all could learn something from this franchise, whose actions and attitudes are summed up in those signature words, “It is my pleasure.”

Yours in faith and friendship,

Tom

I am indebted to Kevin Kruse who wrote the article, “How Chick-fil-A Created a Culture That Lasts" for some of the information in this message