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Chick Fil-A (1 Viewer)

opening up in Bellevue, WA tomorrow

http://i.imgur.com/nQVCKfb.jpg
whats the story with the tents?

free chik fila for life?
Not for life but the first 100 win a free meal once a week for a year. :X
i dont get how people can eat that much fast food to make this worth their time. i might have chik fila once a week and i still feel thats too much.. reminds me of the all you can eat Olive Garden thread we had around here a month or so ago

 
they put one up on captiol drive here in milwaukeeland and it has like a four car wide drivethough it is like a bank maybe they send you food in a tube i do not know damndest thing i ever saw brohans take that to the bank

 
when i goto chik fila during lunch ill go with a few buddies & one is korean. the owner of this chik fila is korean and always hooks us . the other day she came out with some VIP card and said here you guys go this is very limited and special. i have no idea what purpose it has but i am now a CHIK FILA VIP :hophead:

 
The CFA by my house let my (then) 4 year old come behind the counter and help fix her own ice cream cone. Pretty much made it the single greatest restaurant on the planet in her opinion. Great marketing schtick.

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
You were approved?
So here's a few of the details:

-They want approved franchisees to share their religious beliefs. Not necessarily as fanatical, but if you told them you were agnostic or Muslim, I doubt you'd be getting a franchise

-The part I found interesting is that they do all the location and build-out. You basically "run" the franchise within their parameters and give them a % of the revenues. I forget the % exactly. So basically, they get paid if you sell something, even if you're operating at a loss.

We didn't pursue the path any further because of these two major caveats:

-With very few exceptions, you can own a maximum of 1 franchise location.

-When you die, or decide to retire, THEY decide who the franchise transfers to. If I retired, and wanted to give it to my kids, I'd need Chick-fil-a approval. Likewise, I can't sell my franchise rights to someone else.

These two things greatly cap the earnings potential. They said that a good owner operator could take home $200-$300K...My wife and I felt we could do better elsewhere.

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
You were approved?
So here's a few of the details:

-They want approved franchisees to share their religious beliefs. Not necessarily as fanatical, but if you told them you were agnostic or Muslim, I doubt you'd be getting a franchise

-The part I found interesting is that they do all the location and build-out. You basically "run" the franchise within their parameters and give them a % of the revenues. I forget the % exactly. So basically, they get paid if you sell something, even if you're operating at a loss.

We didn't pursue the path any further because of these two major caveats:

-With very few exceptions, you can own a maximum of 1 franchise location.

-When you die, or decide to retire, THEY decide who the franchise transfers to. If I retired, and wanted to give it to my kids, I'd need Chick-fil-a approval. Likewise, I can't sell my franchise rights to someone else.

These two things greatly cap the earnings potential. They said that a good owner operator could take home $200-$300K...My wife and I felt we could do better elsewhere.
So really you don't OWN it if you don't build any equity or build the business. You can't decide to sell it to whomever you'd like; when you're done, you've made your salary, and you're done?

Sounds like you pay the franchise fee and you just become an employee of CFA?

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
You were approved?
So here's a few of the details:

-They want approved franchisees to share their religious beliefs. Not necessarily as fanatical, but if you told them you were agnostic or Muslim, I doubt you'd be getting a franchise

-The part I found interesting is that they do all the location and build-out. You basically "run" the franchise within their parameters and give them a % of the revenues. I forget the % exactly. So basically, they get paid if you sell something, even if you're operating at a loss.

We didn't pursue the path any further because of these two major caveats:

-With very few exceptions, you can own a maximum of 1 franchise location.

-When you die, or decide to retire, THEY decide who the franchise transfers to. If I retired, and wanted to give it to my kids, I'd need Chick-fil-a approval. Likewise, I can't sell my franchise rights to someone else.

These two things greatly cap the earnings potential. They said that a good owner operator could take home $200-$300K...My wife and I felt we could do better elsewhere.
Good deal. Is that something you're still pursuing?

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
You were approved?
So here's a few of the details:

-They want approved franchisees to share their religious beliefs. Not necessarily as fanatical, but if you told them you were agnostic or Muslim, I doubt you'd be getting a franchise

-The part I found interesting is that they do all the location and build-out. You basically "run" the franchise within their parameters and give them a % of the revenues. I forget the % exactly. So basically, they get paid if you sell something, even if you're operating at a loss.

We didn't pursue the path any further because of these two major caveats:

-With very few exceptions, you can own a maximum of 1 franchise location.

-When you die, or decide to retire, THEY decide who the franchise transfers to. If I retired, and wanted to give it to my kids, I'd need Chick-fil-a approval. Likewise, I can't sell my franchise rights to someone else.

These two things greatly cap the earnings potential. They said that a good owner operator could take home $200-$300K...My wife and I felt we could do better elsewhere.
So really you don't OWN it if you don't build any equity or build the business. You can't decide to sell it to whomever you'd like; when you're done, you've made your salary, and you're done?

Sounds like you pay the franchise fee and you just become an employee of CFA?
Yeah. You're basically an owner/operator. There's no cap on your earnings potential other than it's just what you can get out of your one location.

I didn't like that arrangement, so I suggested to the wife (who was the one really interested) that it wasn't probably worth pursuing, and that was that. I've owned a franchise before in a different industry, so I at least am aware of some of the loopholes. Basically, too much of the power lied in the franchise, and not enought with the franchisee.

-Having only 1 location per franchisee means that everybody is expendable. If you own a bunch, you start to have leverage. That would require an organized effort from multiple franchise owners in this situation.

-Since you sell Chick-fil-A products, and all of those products are sourced from Chick-fil-a, AND since their royalties are tied to revenue, not earnings, they aren't really incentivized to provide you a healthy margin. That is, if they decide that they need more $, and they decide to raise the cost you pay for their chicken by 15%, your only recourse is to raise your prices or just eat those costs elsewhere. Regardless of what you do, they get 15% more from you for their chicken, AND they stil get their royalty percentage off your top-line...so if you decide to raise prices to help counter THEIR price increase, they also get more royalties as your top line sales grow too...

-Not being able to sell your franchise means that you can never capitalize on future growth potential. You basically get a cash flow that terminates when you stop running it. No ability to really set your family up for a "legacy."

It's really a deal baised towards Chick-fil-A. Truthfully the first and second points were the ones that irked me the most. There's just nothing to stop them from deciding that they can open corporately owned franchises and run them better and more profitably, and subsequently jack your cost of goods up so high that you can't profit, causing you to "close," at which point they take over. This essentially means you can do well...but not too well.

 
Has this been addressed yet... ?

You give your order at the counter

They don't give you a table number or anything, they only have your name

You go sit down anywhere in the place

2 minutes later a person you've never seen before arrives with your food and calls you by name

Secret cameras in back?
they write on the receipt what you are wearing
So you're saying we should take off that hunters orange jacket we walk in with, hide it, and then watch them walk around for awhile.
 
Don't forget to amuse yourself playing the "Thank you" game. All Chick-fil-a employees are programmed to respond to your "Thank You's" with "My Pleasure." The wife and I like to just go way overboard with the "Thank You's" just to make them have to say it over and over and over. Without fail, every employee will say, "My Pleasure."

I'd imagine if they didn't, you should complain and get a free sammich or something.

 
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
do you remember the money involved in owning a franchise?
It's low 5-10K

Except, like I said above - you don't really "own" it.
I don't remember the exact amount, but it is very low by typical franchise standards, and as John Bender noted, you don't really "own" it in the traditional sense. I see CF franchises as being good ideas for hard workers with some restaurant experience, but maybe not a ton of $ to their name at the start...Not so much for someone trying to build a niche to become uber-wealthy.

Their model certainly makes them attractive to people who may not otherwise have the means to raise the upfront capital required to go all-in some other franchsie where the franchisee owns retail space and is responsible for the building, etc.

 
SWC said:
they put one up on captiol drive here in milwaukeeland and it has like a four car wide drivethough it is like a bank maybe they send you food in a tube i do not know damndest thing i ever saw brohans take that to the bank
That is Capitol Drive in Brookfield though. That is a conservative area and it is near a huge intersection so people are going to go there. The one in Greendale, near a Walmart, does get business but I have driven past there with zero cars in the drive thru. I've been to that one once, got a buffalo wrap, wasn't impressed.

 
Bruce Dickinson said:
Somebody call the police because I just murdered the Chick-fil-a breakfast buffet.
:coffee:
I might switch my next Orlando trip from a flight to a drive so I can hit up one of these CFA breakfast buffets along the way.
Yeah, I want to know more about this. I think someone up-thread mentioned one in Atlanta. That's probably the one I would go to.

 
Was doing work with a guy not too long ago and lunch time came up. Was going to skip lunch but there was some down time so I asked if he wanted to go. Not having a lot of time I said I don't usually do fast food but Chick would be okay. His eyes lit up and he tells me he goes there every day for lunch. Every day! Seems a bit much. :shrug:

 
Their franchise model is almost opposite most others. They pay you a cut of revenue but they pay to build and develop the store. It's basically allowing the franchisee to be the exclusive operating partner.

Most other franchises require owners to open/develop the real estate, hire/market etc and the Franchisor takes a royalty.

 
Was doing work with a guy not too long ago and lunch time came up. Was going to skip lunch but there was some down time so I asked if he wanted to go. Not having a lot of time I said I don't usually do fast food but Chick would be okay. His eyes lit up and he tells me he goes there every day for lunch. Every day! Seems a bit much. :shrug:
what did he order? he must know some inside secret menu

 
Was doing work with a guy not too long ago and lunch time came up. Was going to skip lunch but there was some down time so I asked if he wanted to go. Not having a lot of time I said I don't usually do fast food but Chick would be okay. His eyes lit up and he tells me he goes there every day for lunch. Every day! Seems a bit much. :shrug:
what did he order? he must know some inside secret menu
No, just something off the regular menu and packets of the chick-fil-a sauce.

 
Fat Nick said:
John Bender said:
Rick James said:
Fat Nick said:
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
do you remember the money involved in owning a franchise?
It's low 5-10K

Except, like I said above - you don't really "own" it.
I don't remember the exact amount, but it is very low by typical franchise standards, and as John Bender noted, you don't really "own" it in the traditional sense. I see CF franchises as being good ideas for hard workers with some restaurant experience, but maybe not a ton of $ to their name at the start...Not so much for someone trying to build a niche to become uber-wealthy.

Their model certainly makes them attractive to people who may not otherwise have the means to raise the upfront capital required to go all-in some other franchsie where the franchisee owns retail space and is responsible for the building, etc.
I mean if their fees are that low (5k-10k) then the arrangement isn't too bad. Most other restaurants charge 100k+ (I think MCD is 500K?). If you wanted to run multiple stores you could just buy a different franchise (BK, etc).

 
Fat Nick said:
John Bender said:
Rick James said:
Fat Nick said:
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
do you remember the money involved in owning a franchise?
It's low 5-10K

Except, like I said above - you don't really "own" it.
I don't remember the exact amount, but it is very low by typical franchise standards, and as John Bender noted, you don't really "own" it in the traditional sense. I see CF franchises as being good ideas for hard workers with some restaurant experience, but maybe not a ton of $ to their name at the start...Not so much for someone trying to build a niche to become uber-wealthy.

Their model certainly makes them attractive to people who may not otherwise have the means to raise the upfront capital required to go all-in some other franchsie where the franchisee owns retail space and is responsible for the building, etc.
I mean if their fees are that low (5k-10k) then the arrangement isn't too bad. Most other restaurants charge 100k+ (I think MCD is 500K?). If you wanted to run multiple stores you could just buy a different franchise (BK, etc).
Don't know for sure, but I'd bet there's some clause in both CF and BK's contracts about running competing fast-food franchises. I get your point though.

The issue was really that in general, your earnings had a pretty defined ceiling that was just dictated by the max a franchise coudl really make.

 
Fat Nick said:
John Bender said:
Rick James said:
Fat Nick said:
Just approved by zoning to open one in Flemington NJ. :excited: :thumbup: :pickle:

The wife and I went to a prospective franchisee meeting one time a few years ago. Interesting franchise model they have...
do you remember the money involved in owning a franchise?
It's low 5-10K

Except, like I said above - you don't really "own" it.
I don't remember the exact amount, but it is very low by typical franchise standards, and as John Bender noted, you don't really "own" it in the traditional sense. I see CF franchises as being good ideas for hard workers with some restaurant experience, but maybe not a ton of $ to their name at the start...Not so much for someone trying to build a niche to become uber-wealthy.

Their model certainly makes them attractive to people who may not otherwise have the means to raise the upfront capital required to go all-in some other franchsie where the franchisee owns retail space and is responsible for the building, etc.
I mean if their fees are that low (5k-10k) then the arrangement isn't too bad. Most other restaurants charge 100k+ (I think MCD is 500K?). If you wanted to run multiple stores you could just buy a different franchise (BK, etc).
Rita's Italian Ice, when it just started locations in SoCal, franchise fees were $1million. For a freaking seasonal dessert shop. From what I hear it's down to ~$500k now.

 

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