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Chick-fil-A Extends Positive Sales Growth Streak to 37 Straight Years
Milestone Year for Menu and Location Expansion Highlight Record Sales Year 2/1/2005 8:00:48 AM
January 31, 2005
ATLANTA, Feb 01, 2005 /PRNewswire via COMTEX/-- Continuing its unprecedented, 37-year run of consecutive sales gains, Chick-fil-A, Inc. today reported 2004 system-wide sales of $1,746,398,916, a 13.8 percent increase over its 2003 figures and a positive 5.2 percent same-store sales increase over the preceding year. The 37 consecutive years of continuous sales growth spans the entire history of the Chick-fil-A chain, which started in 1967. While the chain can also give credit for its 2004 sales success to continued expansion in western markets -- with the addition of eight new free- standing restaurants in California and two in Arizona alone last year -- perhaps the bigger expansion story could be found on its menu boards, as the chain known for its popular chicken sandwich implemented its largest menu expansion ever. Last May, the Atlanta-based chain introduced its new Chargrilled Chicken Sandwich (an enhanced version of the original now served on a toasted Golden Wheat bun created especially for Chick-fil-A), as well as the quick-service industry's first Fresh Fruit Cup to be offered by a chain system-wide. These new menu items were announced along with the addition of Dasani® bottled water as The Trim Trio™, a nutritious combination meal designed especially for Chick-fil-A's diet-conscious customers. In November, Chick-fil-A also began its full rollout of an expanded breakfast menu, which includes new Breakfast Burritos (chicken or sausage); a Chicken, Egg and Cheese Bagel Sandwich; and Chick-fil-A® Chick-n-Minis™, a variation of the chain's popular Chick-fil-A® Nuggets nestled in warm mini yeast rolls and lightly brushed with honey butter. The Fresh Fruit Cup also was added at breakfast, proving its popularity across all day parts for the chain. Currently the second-largest quick-service chicken restaurant chain in the nation (based on sales), Chick-fil-A's success in 2004 also was fueled by a successful growth strategy in both new (western) and existing markets to produce its largest-ever number of free-standing restaurant openings with 74. Many of these new free-standing units played a major role in the chain's desire to further serve existing markets (e.g., South Bend, Ind.; Louisville, Ky.; and Albuquerque, NM.), where only mall restaurants previously existed. In addition to the record number of free-standing locations, the chain also opened two "in-line" (storefront) sites, one mall location, and 11 licensed operations (e.g., college campuses and airports), for a total of 88 new restaurants. A key component to every free-standing Chick-fil-A restaurant opening in 2004 was the chain's "First 100 Fans" promotion. In a pilot program in 2003, Chick-fil-A awarded a year's worth of free Chick-fil-A meals to the first 100 people who attended the opening of the Chick-fil-A restaurant in Goodyear, Ariz. The promotion was such a success that Chick-fil-A has replicated the promotion at all of its free-standing store openings since and has had crowds of people camp out on restaurant grounds up to 48 hours in advance of each opening. "Our current growth strategy, both in terms of menu growth and restaurant growth, is in direct response to our expanding geographic reach and broadening customer base. Our goal is to keep our menu one of fresh choices and relevant to all of our customers in existing and new markets, and during all day parts," said Chick-fil-A President and Chief Operating Officer Dan T. Cathy. "A particularly successful component of our growth strategy has also been our First 100 Fans program. Through this concept, we've learned first-hand how much we value the 'raving fans' of Chick-fil-A, and I truly believe the excitement generated through the program has energized the business." Chick-fil-A's customer-service commitment was again amply recognized within the quick-service community as well as among the business community at large. In 2004, Chick-fil-A was the recipient of four prestigious awards and recognitions: · QSR Magazine's "Best Drive-Thru in America" (Third-consecutive year) · Restaurants and Institutions' "Choice in Chain's" Customer Satisfaction Award, Chicken Category (Sixth-consecutive year, 10th out of past 11) · Fast Company's "Customer-Centered Leader" (Part of the publication's inaugural "Customer First Awards") · J.D. Power and Associates' highest overall satisfaction index ranking in the South, 2004 Restaurant Satisfaction Study(SM) of quick-service and family casual dining concepts.Looking ahead to 2005Enjoying its continued positive sales trend and financial stability, the nearly 1,200 restaurant chain is looking forward to a number of developments in 2005. In terms of its western expansion, Chick-fil-A plans to open four additional free-standing restaurants in Arizona and five in California in 2005, with overall expansion slated to include 78 new restaurants, including 60 free-standing, 15 licensed, two in-line and one mall location.Continuing its menu expansion for the breakfast customer, Chick-fil-A plans to introduce new premium coffees by this summer. The chain also is focusing on enhancing service options for existing restaurants through its support program for off-site sales and catering entitled "Chick-fil-A Anywhere." The initiative includes identifying new, creative outlets for outside sales; menu offerings specifically geared toward catering; and creating appealing and food-safe packaging for delivering products to customers. As in recent years, traditional brand-building also will continue to play an integral role in Chick-fil-A's marketing strategy. Its signature, cow- themed "Eat Mor Chikin®" campaign -- celebrating its 10th year in 2005 -- will remain at the forefront of its marketing communications, while the chain will continue its event marketing strategy with key sponsorships in college sports (e.g., Chick-fil-A Peach Bowl), LPGA golf, and others.About Chick-fil-A, Inc.Atlanta-based Chick-fil-A, Inc., the nations' second-largest quick-service chicken restaurant chain (based on sales), currently has 1,200 restaurants in 38 states and Washington, D.C., as of Feb. 1, 2005. Credited with inventing the chicken sandwich and first introducing the chicken nugget concept, Chick- fil-A serves nutritious and freshly prepared food products in malls, free- standing units, drive thru-only outlets, Chick-fil-A Dwarf House® and Truett's Grill® full-service restaurants, and through licensed outlets in college campuses, hospitals, airports, businesses and industrial sites. More information about Chick-fil-A is available on the chain's website, located at http://www.chick-fil-a.com or http://www.chick-fil-apressroom.com.source:Chick-fil-A, Inc.
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