It costs $10k to ‘own’ a Chick-fil-A franchise • Hacker News Board

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#81

Post by sixtypoundhound » Sun, Jan 19, 2020, 10:16 PM UTC

manigandham wrote: post #51

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

Fantastic food that is higher quality than the typical chains. Served fast and close to the same prices. Individually owned and operated with tight franchise oversight. Also the faux Twitter outrage has helped give them more popularity.

Politics aside, the food is awesome, fast, and polite.

And generally better for you than the major chains...

I'm not really sure what MacDonald's actually serves anymore... much less any of the others...

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#82

Post by frankharv » Sun, Jan 19, 2020, 10:17 PM UTC

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

>Why is that? Because the franchise owner is on site for 10 hours a day. How many McDonalds owners even show up at a store a day?

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#83

Post by irrational » Sun, Jan 19, 2020, 10:18 PM UTC

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

They opened up the first one near me in a Portland Oregon suburb. The place was packed whenever they were open with drive-thru cars spilling out into the street. I thought the madness would end after a few days/weeks, but it's been years and they still have a huge draw. I went in there once just to try it. It was good, but not the best thing I've ever had. I wonder if it is nostalgia from people from the SE USA that is driving all the business.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#84

Post by sixtypoundhound » Sun, Jan 19, 2020, 10:18 PM UTC

kelnos wrote: post #69

lonelappde wrote: post #65

Earlier quoted context omitted.

A franchise is barely above MLM. Local "owner" is really an employee, takes on the risk and gets minimal profits.

For Chik-fil-A, yes, since corporate fronts all the money and owns the location and improvements; there, you're maybe a little more than an employee-manager, but not by much. For most others, not so much, since you own the result of your initial investment.

Uh...this is a common conflict between owner-operators and franchise groups.

Also a common area of abuse. There was a sandwich shop chain in the US where this got very ugly a few years ago...

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#85

Post by frankharv » Sun, Jan 19, 2020, 10:19 PM UTC

frankharv wrote: post #82

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

>Why is that? Because the franchise owner is on site for 10 hours a day. How many McDonalds owners even show up at a store a day?

I also think their counter workers are some of the best. Maybe because of the religious ethos they promote. They actually care about making you happy.

Have you seen the video of the McDonalds worker assaulting a customer because they complained about cold food. They are the worst.

I also think the size of their chicken sandwich is the key. Not press-meat but a true 6 ounce breast filet. The other fast food stores use junky meats.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#86

Post by oflannabhra » Sun, Jan 19, 2020, 10:19 PM UTC

I know several CFA owner-operators, and this article is mostly on point.

Some of the comments I’ve seen are a bit off. 2 of the 3 owner-operators I know have multiple locations, although this is rare. Income estimates are a bit low for typical stores I’d be surprised if any owner operator of a freestanding unit is below $250k. Also, the estimates of worked hours are a bit high. All the owner operators I know have great work-life balance, this is a function of how well they hire and train their general managers.

There are also some significant advantages to non-ownership that are win-win for both the company and operators. CFA provides significant support beyond what other franchisers do: IT, capex for renovation, and training. CFA is incredibly focused on efficiency in their stores. If you’ve seen a freestanding store recently, you’ve probably seen it be renovated to allow for double drive through lanes and a walkthrough parlor for pickup. That’s not the type of thing many franchisees at other companies have the cash (or willingness) to do.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#87

Post by hinkley » Sun, Jan 19, 2020, 10:22 PM UTC

When I was a teenager, I was told by a manager that the shake machine at McDonald’s cost more than I make in a year now. The amount of credit you’re operating under as a franchise owner... I don’t know how they sleep at night.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#88

Post by jnwatson » Sun, Jan 19, 2020, 10:23 PM UTC

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

It hits square in the middle of the “healthy” fast food market. It is perceived to be slightly more upscale and less bad for you than the traditional burger chains.

It is literally the default choice for soccer moms ferrying kids among afternoon activities.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#89

Post by frankharv » Sun, Jan 19, 2020, 10:25 PM UTC

frankharv wrote: post #85

frankharv wrote: post #82

Earlier quoted context omitted.

>Why is that? Because the franchise owner is on site for 10 hours a day. How many McDonalds owners even show up at a store a day?

I also think their counter workers are some of the best. Maybe because of the religious ethos they promote. They actually care about making you happy. Have you seen the video of the McDonalds worker assaulting a customer because they complained about cold food. They are the worst. I also think the size of their chicken sandwich is the key. Not press-meat but a true 6 ounce breast filet. The other fast food stores use…

Oh yes let us not forget they have a double lanes drive through.

During the busy periods they put order takers outside in line to take orders.

They have so serious efficiencies. I like that.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#90

Post by wffurr » Sun, Jan 19, 2020, 10:26 PM UTC

jnwatson wrote: post #88

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

It hits square in the middle of the “healthy” fast food market. It is perceived to be slightly more upscale and less bad for you than the traditional burger chains. It is literally the default choice for soccer moms ferrying kids among afternoon activities.

Fried chicken sandwiches are somehow healthy?