DURHAM N.C. Chick-fil-A by John White, one of founder S. Truett Cathy’s grandsons. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
White, 25, a former punter for Auburn University’s football team and missionary in Africa, is the third of Cathy’s grandsons to join the 1,358-unit chicken chain. Cousin Mark Cathy operates a store in California, while another cousin, Andrew Cathy, works in human resources for the Atlanta-based quick-service company after operating a store in St. Petersburg, Fla., for a few years. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Although Truett Cathy, who at 86 remains chairman and chief executive of Chick-fil-A, said he has high hopes that, like his three children, all dozen grandchildren and three great-grandchildren will eventually enter the business, luring progeny into the family business is not always easy. And ensuring a seamless transition from one generation to another is even more difficult. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
The odds of family-owned businesses succeeding with the third generation are less than 15 percent, said Ron Braund, a consultant specializing in family businesses who was hired by the Cathys nearly seven years ago. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“When you go from two or three siblings cooperating, to cousins collaborating and then second and third cousins, that type of exponential growth creates a huge communications challenge,” he said. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
For that reason, communication is key, said David J. Ciambella, a consultant with the Orlando, Fla.-based Rawls Group specializing in succession planning. He also notes that succession planning needs to take place early on, especially when a second generation takes over. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
In addition, all stakeholders have to be considered, including incoming spouses and even their family members, Braund said. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“Succession is not an event, but a long-term transitional process,” he said. “They have to understand that, as well as defining the lines between work and family roles.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
To sort out these issues, the Cathy family’s second-generation stakeholders meet four times a year and the third-generation stakeholders meet twice annually. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“These meetings are a time to review relationships, clarify family dynamics and to look at success factors, such as assimilation, education and philanthropy,” Braund said. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Aside from possibly working in the organization, each third-generation family member oversees a foundation. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
In addition to exhibiting a passion for Chick-fil-A, family members must graduate from college and work outside of the business for at least two years. Once employed by Chick-fil-A, family members go through the same employment channels as other applicants. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Truett Cathy’s son, Dan, is president of the chain, while son Bubba is senior vice president and also runs the Dwarf House, Truett’s original restaurant. Daughter Trudy White runs the Winshape Foundation, a charity founded to shape winners. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
The chain, which was founded in 1967, had sales of more than $2 billion in 2006. It expanded across the country during the shopping center boom of the 1970s and 1980s and eventually moved into standalone restaurants. All units close every Sunday, a policy Truett Cathy is intent on maintaining even though there is no written rule requiring it. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“They have assured me they will keep it that way,” he said. “I’ve always said staying closed on Sundays is the best business decision I’ve ever made. It honors the Lord and attracts good people who appreciate Sundays.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Despite high divorce rates and the changing mores of society, the family sees no need for prenuptial agreements, Dan Cathy said. The family does have a wealth transfer program, however. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“There have been no divorces, and we are quite proud of the fact that we have stayed the course with our values,” he said. “We don’t worry about future generations changing that.They are rock-solid.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
John White, the son of Truett Cathy’s daughter Trudy, sees no trouble with perpetuating his grandfather’s values. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“I think it would be unwise to seek out something else in hopes that it would work when it already works the way it does,” he said. “Typically what happens in families this size is they break into segments, but we are still meeting all as one group. I talk to my cousins frequently. We’ve made it a priority.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
At Columbia Restaurants in Tampa, Fla., Richard Gonzmart is the fourth generation of his family to work in the restaurant, which was founded in Ybor City in 1903. Currently, there are seven Columbia restaurants and two Cha Cha Coconuts, all in Florida, owned by Gonzmart, 55, and his older brother Casey, 59. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
While succession planning was fairly informal for his parents, Richard Gonzmart said he and his brother have formalized the process. He is grooming his two daughters, who have both been involved in the business in some capacity since they were 10, for succession. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
His older daughter, Lauren, 31, who is expecting her fourth child, works part time running the retail sales in the restaurants. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“She’s mostly busy grooming generation six,” he said, laughing. “But seriously, that is really important to keep the legacy going.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Lauren Gonzmart said one challenge of working with family is keeping emotions in check. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“It is easier to cross lines because these are people you love,” she said. “You forget that your Dad is your boss at times and not just Daddy.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
She added that it is also tough for her dad to let go of decision-making. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Casey Gonzmart has six children, but only one daughter, Cassandra, works in the business as an assistant manager in the West Palm Beach, Fla., unit. Because Casey Gonzmart’s children are from different marriages, succession planning is a bit more complicated, said Richard Gonzmart, who supports pre-nuptial agreements. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
Four years ago the family hired a consultant to assist in setting up a family advisory board. The board forces the family to meet regularly and look at financial statements and succession plans so everyone is on the same page. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“Communication is paramount,” Gonzmart said. “Also, family businesses often function like personal bank accounts. People take money out and don’t reinvest back in the company, but we force ourselves to invest back in the company and in training.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
One of the biggest challenges family-owned businesses face is balancing the original culture with the changing times, he said. —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a
“Each generation in our family has great memories and have made their own contributions,” he said, “so you have to respect the hard work of the generations before you and maintain the legacy they left.” —Four generations of the Cathy family gathered in this college town recently to celebrate the opening of a