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Chick-fil-A boosts sales per unit, despite being closed on SundayChick-fil-A boosts sales per unit, despite being closed on Sunday

2019 Top 200 preview: Cult chicken brand still going strong

Ron Ruggless, Senior Editor

May 21, 2019

3 Min Read
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Restaurant customers have followed the gilded ad slogan of “Eat Mor Chikin” and vaulted Chick-fil-A Inc. again into the Top 200 rankings of fastest-growing restaurant brands in the 2019 Nation’s Restaurant News’ Top 200.

The Atlanta-based chicken-and-two-pickle chain ranked No. 3 in U.S. chain systemwide sales, just behind McDonald's and Starbucks. The chain rose four spots from No. 7, edging out Subway, Taco Bell, Burger King and Wendy’s in Latest-Year rankings.

Systemwide U.S. sales were up 16.7% in the Latest Year ended in December 2018, reaching $10.5 billion. That was up from $9 billion in the Preceding Year and $7.9 billion in the Prior Year. Sales grew 13.7% in the Preceding Year and 16.9% in the Prior Year as well.

Chick-fil-A ranked No. 12 in Latest Year sales growth, posting a fifth year of double-digit sales growth gains.

Chick-fil-A_stats.jpgChick-fil-A’s U.S. sales gain of nearly $1.5 billion in the Latest Year was more than the net sales gain of leading chains nearly twice its size.

The sales were impressive for a 55-year-old brand, which Truett Cathy founded as a mall food court concept. The first freestanding Chick-fil-A opened in 1986, also in Atlanta, and the brand tapped the Holstein cows with the “Eat Mor Chikin” message in 1995.

Chick-fil-A has been on a growth trajectory ever since.

The brand ended its Latest Year with 2,363 domestic units, up 5.8% from 2,234 in the Preceding Year.

Despite being closed on Sundays, Chick-fil-A’s Estimated Sales Per Unit hit $4.6 million, up 9.6% from $4.2 million in the Preceding Year. 

Chick-fil-A_meal_kit_crispy_Dijon_Chicken.jpgChick-fil-A has not been resting on its laurels or toasted butter buns.

In October 2018, the company debuted the first of two test units focusedsolely on catering, delivery and carryout, forgoing counter-ordering entirely.

 “New test locations in Nashville and Louisville have no dining rooms but focus on catering and delivery,” the company said, citing the need to meet “a growing demand for food to go.”

Those test units serve as hubs for catering and delivery, and the Nashville restaurant was opened as a cashless location, taking only credit and debit cards for payment even from walk-in customers.

Dovetailing with those units, Chick-fil-A also last August tested meal kits at 150 of its Atlanta-area units.

The “Mealtime Kits,” initially available only in restaurants at the chicken chain’s Atlanta hometown market, featured pre-measured ingredients, which yielded a full meal within 30 minutes were priced at $15.89.

Chick-fil-A_quote.jpg

“We know our guests are busier than ever and need a variety of convenient dinner options,” said Michael Patrick, who oversees Chick-fil-A’s innovation and new ventures, in a statement. “We’re excited to offer Mealtime Kits as a new way for us to serve our guests by providing fresh ingredients to enjoy a delicious meal at home.” 

The test included a rotating menu of five meal-kit recipes: chicken Parmesan, chicken enchiladas, Dijon chicken, pan-roasted chicken and chicken flatbread. Two of the five recipes were available at a given time.

Setting its sights beyond the domestic market, Chick-fil-A also last July announced it was making its first franchise push outside the U.S., seeking restaurant partners in Toronto, Canada.

NRN’s 2019 Top 200 is based on reported and estimated results for fiscal years ended from July 1, 2018, through June 30, 2019.

Read about more 2019 growth chains here>>

Contact Ron Ruggless at [email protected]

Find him on Twitter: @RonRuggless

About the Author

Ron Ruggless

Senior Editor, Nation’s Restaurant News / Restaurant Hospitality

Ron Ruggless serves as a senior editor for Informa Connect’s Nation’s Restaurant News (NRN.com) and Restaurant Hospitality (Restaurant-Hospitality.com) online and print platforms. He joined NRN in 1992 after working 10 years in various roles at the Dallas Times Herald newspaper, including restaurant critic, assistant business editor, food editor and lifestyle editor. He also edited several printings of the Zagat Dining Guide for Dallas-Fort Worth, and his articles and photographs have appeared in Food & Wine, Food Network and Self magazines. 

Ron Ruggless’ areas of expertise include foodservice mergers, acquisitions, operations, supply chain, research and development and marketing. 

Ron Ruggless is a frequent moderator and panelist at industry events ranging from the Multi-Unit Foodservice Operators (MUFSO) conference to RestaurantSpaces, the Council of Hospitality and Restaurant Trainers, the National Restaurant Association’s Marketing Executives Group, local restaurant associations and the Horeca Professional Expo in Madrid, Spain.

Ron Ruggless’ experience:

Regional and Senior Editor, Informa Connect’s Nation’s Restaurant News and Restaurant Hospitality (1992 to present)

Features Editor – Dallas Times Herald (1989-1991)

Restaurant Critic and Food Editor – Dallas Times Herald (1987-1988)

Editing Roles – Dallas Times Herald (1982-1987)

Editing Roles – Charlotte (N.C.) Observer (1980-1982)

Editing Roles – Omaha (Neb.) World-Herald (1978-1980)

Email: [email protected]

Social media:

Twitter@RonRuggless

LinkedIn: www.linkedin.com/in/ronruggless

Instagram: @RonRuggless

TikTok: @RonRuggless

 

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