News
Chick-fil-A reports another banner year
February 2, 2010
Chick-fil-A powered through the recession as it surpassed $3 billion in annual sales for the first time. While many quick-service chains struggled to improve negative same-store sales, Chick-fil-A ended 2009 on a positive note by marking the company's 42nd year of consecutive sales growth. The chain has reported 2009 system-wide sales of $3.2 billion, representing an 8.6 percent increase over the chain's 2008 overall sales performance and a same-store sales increase of 2.52 percent.
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Chick-fil-A officials and franchisees celebrate surpassing $3 billion in annual sales at the company's recent kick-off event. |
Chick-fil-A's record sales performance in 2009 continues a trend of year-over-year growth the chain has sustained since its inception in 1967.
"Chick-fil-A has truly been blessed to have had another year of sales growth during these difficult economic times," said Chick-fil-A president and chief operating officer, Dan T. Cathy. "While we by no means are immune to the economic challenges our country is facing, we do believe we will continue to remain healthy as long as we stay committed to the qualities that have shaped the Chick-fil-A brand thus far: providing exceptional customer service and unmatched product quality to every customer on every visit."
Cathy also said that the chain, which has a longstanding practice of remaining closed on Sundays, has "sensed God's continued blessings on this business, especially during these unprecedented economic times."
Chick-fil-A celebrated a number of other business achievements in 2009, including:
- Commemorated founder and CEO S. Truett Cathy's $25 million milestone in the Leadership Scholarship program for store team members.
- Opened 83 new restaurants, including 69 stand-alone restaurants, one mall location and 13 licensed outlets (e.g. college campuses, hospitals, airports, businesses and industrial sites).
- The company also received recognition through a number of prominent industry awards, including American Marketing Association's Silver Effie for "Sustained Success" with creativity and effectiveness in advertising for the "Cow" campaign.
- Continued with aggressive marketing strategies to sustain sales momentum, including giving away 300,000 free Chick-fil-A Chicken Biscuits during its New Year's Day breakfast promotion; providing more than 250,000 free meals to cow-dressed customers during its annual Cow Appreciation Day event on July 10; and giving away nearly 2 million Chick-fil-A Chicken Sandwiches to customers dressed in sports team attire during its Labor Day Giveaway promotion.
- Celebrated the second annual Chick-fil-A College Kickoff and the 42nd annual Chick-fil-A Bowl, which were both played in front of sellout crowds in Atlanta's Georgia Dome and televised nationally on ABC and ESPN, respectively.
- Chick-fil-A awarded 17 franchise operators new cars as part of the chain's Symbol of Success sales incentive program. Through the program, franchisees are awarded a new Ford vehicle of their choice for meeting individual annual sales goals.
Philanthropy also continued to be a major focus in 2009 for the entire chain, a tradition set by its 88-year-old founder S. Truett Cathy. Cathy and Chick-fil-A commemorated the $25 million Leadership Scholarship milestone by awarding the 25,000th $1,000 scholarship to restaurant employees since 1973. Other significant charitable endowments for the chain included continued support for WinShape Foundation, a non-profit organization and charitable foundation established by the Cathy Family, and the 2009 Chick-fil-A Bowl, which again led all college football bowl games by contributing more than $1.2 million to charities and scholarships. Chick-fil-A also committed $5 million to the College Football Hall of Fame's move to Atlanta.
2010 strategy
Dan Cathy said he expects the company's momentum to continue this year. "2010 will be a banner year for Chick-fil-A; perhaps our most notable year ever," he said. "We are enhancing our menu with new products, entering new markets, reinvesting in our current restaurants and giving back to our communities."
Following are highlights of key initiatives Chick-fil-A believes will help continue to grow the business in 2010:
In addition to new product rollouts, 78 new locations will be added to Chick-fil-A's restaurant portfolio, including 66 stand-alone locations, two mall/in-line restaurants and 10 licensed outlets. Chick-fil-A will also celebrate its first foray into the greater Chicago area with a stand-alone restaurant expected to open in Aurora in the third quarter.
Chick-fil-A will dedicate reinvestment resources to renovate 86 of its existing restaurants in an effort to enhance the guest experience and introduce new efficiencies that will help attract and accommodate greater sales volumes.
In 2010, the company plans to award $1.9 million in scholarships to its restaurant employees – up from $1.4 million awarded in 2009. The 35 percent increase is the highest year-over-year increase in chain history.
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