The Chick-fil-A Franchise Model: A Day of Rest

“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice, and most of all, love of what you are doing or learning to do.” – Pelé

When it comes to franchise success stories, few companies shine as brightly as Chick-fil-A. With its impressive growth, high customer loyalty, and consistent industry accolades, Chick-fil-A has perfected a model that stands apart. But let’s be clear: Chick-fil-A isn’t a true franchise in the typical sense of the word. Instead, it leverages the entrepreneurial spirit of that model to attract best-in-class owner-operators who are deeply invested in their stores. And the critical element to that model is only being open six days a week.

Closed on Sundays

Being closed on Sundays feels like an obvious loss of money, losing an entire day, especially a weekend of sales. However, this decision has become a cornerstone of Chick-fil-A's brand and operational consistency. By prioritizing rest for their employees and owner-operators, Chick-fil-A ensures that their team is recharged and ready to deliver top-tier service for the rest of the week. This strategy enables the company to maintain its focus on quality and customer satisfaction, reinforcing its reputation for excellence. Some bemoan the loss in revenue and blame it on the religious beliefs of the founders, others make up elaborate hypotheses about how artificially holding back supply makes even more money during the rest of the week, but the truth of the matter is relatively simple. What matters most for fast food restaurants is having consistently high levels of quality and service. And Chick-fil-A’s strategy to maintain that over many stores and many years is their owner-operator model. A strategy which borrows heavily from franchise entrepreneurs' dreams to create something that is uniquely suited to drive Chick-fil-A’s strategy.

Selective Operator Model

Despite calling itself a franchise, Chick-fil-A takes a highly selective approach to choosing its operators. This selectivity directly supports the company’s operational strategy and quality goals by ensuring that only the most dedicated and capable individuals are entrusted with running a location. By prioritizing candidates who are fully committed to the brand’s values and standards, Chick-fil-A can maintain consistent quality across all stores, reinforcing its reputation for exceptional service and operational excellence. The company receives tens of thousands of applications annually but approves less than 1% of them. Operators are not typical franchisees; they are hands-on managers who commit to running a single location with full dedication. In addition, each operator is limited to one store (with some exceptions for very successful operators) and is typically required to be on site every single day. In such a way, Chick-fil-A ensures they are deeply involved in day-to-day operations and can uphold the company’s high standards for quality and service.

Low Financial Barriers to Entry

Chick-fil-A’s franchise model is unique in that it requires a relatively low initial investment—just $10,000. However, Chick-fil-A retains ownership of the store and manages most of the upfront costs, such as real estate, construction, and equipment. Instead of owning the store, Chick-fil-A shares a significant portion of each store’s revenue with the operators. This gives excellent income opportunities to a swath of the entrepreneurial population who don’t have the financial resources to buy their own franchise. Combined with Chick-fil-A’s intense screening process, these operators are set up for success.

Focus on Quality and Service

Now the pieces of Chick-fil-A’s strategy should be obvious. This focus on quality and service ties directly to the decision to remain closed on Sundays. By ensuring operators have a day to rest and recharge, Chick-fil-A reinforces the consistency and excellence of its daily operations. This approach highlights their commitment to putting people first, ensuring that both employees and customers receive the best possible experience when the doors are open. They place talented, motivated owners at each of their new locations who are working day in and day out to make the place a success. For Chick-fil-A to open seven days a week then creates a problem. Either the operator is now working non-stop and will eventually burn out, or they need to start delegating their workload to someone else. Considering the intensity Chick-fil-A went through to choose the operator in the first place, it is clearly unlikely that a similarly qualified candidate can be found to simply swap in. Nor is there any obvious way of aligning the profit share incentives. For Chick-fil-A to open up seven days a week means that the quality of management would have to slip. Chick-fil-A's unique insight and strategy in this market is to declare that trade-off unacceptable and they’d rather be closed.

It isn’t an obvious result, but the results seem to bear it out. Chick-fil-A’s ability to consistently outperform its competitors while open one fewer day is a testament to the power of consistent quality and service performance.

Lessons for Entrepreneurs

Chick-fil-A’s success offers several takeaways for aspiring business owners and entrepreneurs:

1. Quality over Quantity: It can be hard to say no to additional work and opportunities, but it is often more important to make sure that every customer and partner walk away with an excellent experience. This sometimes means taking reasonable breaks to keep yourself and your team fully charged.

2. Delegation is Powerful and Dangerous: Chick-fil-A is incredibly particular about how and why they delegate key aspects of their operations, in stark contrast to typical franchise models. While many franchises rely on layers of management and a distributed approach to delegation, Chick-fil-A places the responsibility squarely on the shoulders of its highly selected operators. This ensures that key decisions are made by individuals who are fully aligned with the brand’s mission and standards, rather than by secondary managers who may not share the same level of commitment or accountability. You should apply the same time and attention when you are hiring and staffing your own team.

3. Brands are Built One Customer at a Time: Considering the advantage of Chick-fil-A’s model could likely be categorized as brand and reputation capital, it is clear that their six-day strategy required significant time and investment to yield results. In the early stages, this approach might not have been profitable, as building a strong reputation often comes with upfront sacrifices. Over time, however, the focus on consistent quality and a values-driven operational model has created an enduring competitive advantage, showcasing the long-term benefits of prioritizing reputation over short-term gains. Building up that brand took a lot of time and money, but it is now a pretty impressive moat for Chick-fil-A.

Conclusion

Chick-fil-A’s model is a testament to the power of strategic decision-making and a values-driven approach to business. By focusing on quality, selecting the right operators, and maintaining a deep commitment to its mission, Chick-fil-A has become a benchmark for success in the quick-service restaurant industry.

As we explore what makes franchises thrive, Chick-fil-A’s story reminds us that true success comes from balancing operational excellence with an unwavering commitment to people and values.