SUBTITLES:
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00:01
[Music]
you're almost kind of a little bit of a
almost a lifestyle brand if you will you
come in into some experience are you
worried about within a chicken nugget
yes um sometimes no i don't but i highly
doubt it's top chicken pink slime
reality tv series happening in real time
with real companies and real dollars in
real delicious food at stake
it's two pieces of bread a piece of
fried chicken dill pickles and a squirt
of mayo who would have thought such a
humble sandwich could set up a fast food
00:38
war
in fast food chick-fil-a has long
dominated the chicken sandwich this
simple sandwich is part of what
propelled chick-fil-a to its spot as the
third biggest fast food chain in the u.s
despite being closed on sundays
chick-fil-a's race to the top has scared
even mcdonald's whose u.s franchisees
asked corporate to develop a worthy
competitor to chick-fil-a sandwich in
the summer of 2019 a formidable opponent
to chick-fil-a emerged and it wasn't
mcdonald's popeye's louisiana kitchen
01:08
introduced its crispy chicken sandwich
and conflict started to brew the
sandwich challenged chick-fil-a's
dominance in the chicken sandwich
category and fast food's biggest names
got into the battle
popeyes sold out of the chicken sandwich
in about two weeks
during that time analysts say other
chicken chains including chick-fil-a
lost customers to popeyes americans are
ordering and eating more chicken now
than ever before in a highly competitive
industry like fast food brands are
racing to stake their claim chains that
01:41
have long relied on chicken like
chick-fil-a and popeyes are in prime
position for victory
others like hamburger focused mcdonald's
have missed out on dollars spent by
chicken hungry fans
one thing is clear fast food customers
want chicken sandwiches and the trend
doesn't seem to be slowing now the big
chains are duking it out to deliver
despite supply chain issues and fierce
competition
part of chick-fil-a's brand messaging
has been that he didn't invent the
chicken just the chicken sandwich
02:16
but american studies professor psyche
williams forsen says people have been
eating this type of sandwich as long as
they have been eating bread and poultry
there's evidence that lots of early
colonial households who could afford the
ingredients to make bread
and would have any kind of bird
would eat bread and bird together how
they did that you know it's not
necessarily known
and
of course on through the centuries
we end up with what we know to be the
sandwich
02:47
and the chicken sandwich at that and
competition around the chicken sandwich
isn't exactly new either ebony magazine
searched black newspaper archives and
found ads for the chicken sandwich going
back to as early as 1936.
chick-fil-a's founder s truett kathy
invented the chain's original chicken
sandwich in 1964. that sandwich was made
of a boneless chicken breast breaded and
fried in peanut oil and served on a
toasted buttered bun with pickles the
first chick-fil-a opened in 1967 and the
chain has been closed on sundays since
03:18
then despite that chick-fil-a is the
third biggest restaurant chain in the
u.s by system-wide sales and reported
more than 10 billion dollars in revenue
in 2018.
for comparison popeye's pulled in 3.7
billion dollars in sales in 2018 making
it the 25th largest u.s chain
when popeye's parent company restaurant
brands international quietly discussed a
new menu item in its may 2019 investor
day it didn't know that the product's
launched would cause such a frenzy
it was the first time in its nearly
03:50
50-year history that popeyes offered a
chicken sandwich that was available
nationwide
in the past its menu tended to focus
more on bone-in products
this sandwich is a white meat breast
fillet ham battered and breaded in a
buttermilk coating served on a brioche
bun
there is one version with regular
mayonnaise and another with spicy mayo
popeyes rolled out its sandwich on
august 12 2019
one week later this sandwich set off a
virtual confrontation between some of
the biggest names in fast food
04:21
chick-fil-a tweeted an equation
suggesting that its sandwich was the
original and the best popeyes had a
simple but pointed response to
chick-fil-a
y'all good
their check-in prompted other chicken
brands to get into the conversation soon
wendy's and shake shack jumped into the
twitter feud too
this is what people love to see they
love to see kind of folks going at it
and and uh you know in a fun and
competitive way of course but this is
the
reality tv series happening in real time
04:53
with real companies and real dollars in
real delicious food at stake those
tweets set off a social media firestorm
and nearly doubled popeye's twitter
followers from a hundred thousand two
hundred and eighty thousand a marketing
group estimated that popeye's received
over 65 65.1 million dollars in
equivalent advertising value from media
mentions between august 12th and august
27th
the sandwich's impact was bigger than
just raising popeye's profile with
consumers it was also a boon to popeye's
bottom line
05:24
thanks in part to the chicken sandwich
sales at stores opened more than a year
grew by 9.7 percent in the third quarter
of 2019 compared to 0.5 growth in q3 of
2018.
one analyst estimated that popeye sold
about a thousand chicken sandwiches a
day
and that the sandwich accounted for
about 30 of sales while it was available
at least
after about two weeks with the chicken
sandwich on the menu popeyes around the
country started selling out it simply
ran out of chicken fillets fans started
posting pictures of handwritten sold out
05:56
signs on popeye's doors and
drive-through menus popeyes was even hit
with a lawsuit by an angry customer for
selling out of the sandwich
i said you saw popeye's market share
more than double and then you did see a
dip in foot traffic share at chick-fil-a
mcdonald's burger king and wendy's you
know the the actual infamous y'all good
tweet happened just as wendy's was
launching their spicy chicken sandwich
and
and just as burger king was launching
the impossible whopper nationally so it
sort of took the steam out of those
promotions for for a few short days but
06:27
the positive impact of popeye sandwich
wasn't limited to just that chain
the third quarter is the most important
part of the year for fast food companies
because it includes the summer months a
crucial selling season it was a very
successful third quarter for for fast
food in general i think it was probably
the most the fastest sales growth in
several years and the chicken sandwich
has some responsibility for that
sector-wide growth
hype around popeye's national release of
its chicken sandwich actually benefited
its competitors chicken-focused fast
food restaurants like kfc and
chick-fil-a saw traffic spike in late
06:59
august 2019 over a typical summer
weekend popeyes chick-fil-a zaxby's and
kfc would get about 8.3 million visitors
according to foot traffic's analytics
platform placer ai
but at the peak of the chicken sandwich
war the chains had 10.1 million visitors
over a weekend and now popeyes has
brought its sandwich back its nationwide
launch on november 3rd 2019 saw huge
crowds traffic at popeyes that day rolls
almost 300 percent higher than normal
07:30
one analyst estimated that busy popeye's
locations sold up to 1500 chicken
sandwiches per store every day for the
first 10 days the sandwich was back
effectively doubling sales volume at
those stores
and popeye's competitors are racing to
keep up
in july 2019 mcdonald's u.s franchisees
asked the company to add a southern
style chicken sandwich to rival
chick-fil-as franchisees said mcnuggets
and mcchicken sandwiches weren't enough
to compete in the premium chicken
sandwich category
08:01
on an earnings call mcdonald said it
missed out on some business in chicken
in december 2019 mcdonald's started
testing a crispy chicken sandwich
officially entering the chicken sandwich
wars
well they said on their conference call
that they actually lost share
during in the chicken segment but they
gained share of the burger segment so
clearly this is a this is an issue for
them that they're looking to correct the
franchisees have been asking for a
premium chicken sandwich for some time
you know the sandwich isn't likely to be
hand breaded the way hand battered and
08:32
hand breaded the way it is at popeyes so
mcdonald's will have to find a way to
win on on their core advantages which is
speed convenience and value the war is
far from over and if i were to make a
longer term prediction i would not
predict that chick-fil-a would be a
loser in that chicken war overall
there's so much uh momentum behind the
growth of that company and so much brand
equity that it just resonates with
consumers young old um and everywhere in
between in a lot of ways
09:03
for decades hamburgers have been
american sandwich of choice on fast food
menus now chicken sandwiches are
stealing some of the spotlight chicken
sandwiches remain number two but they
are gaining ground with consumers faster
than burgers are according to market
research firm npd group for the year
ended february 2019
4 billion chicken sandwich servings were
ordered at us restaurants during the
same time period burgers were more
popular with 8.6 billion ordered but
chicken sandwich orders were up 4
09:33
while burger orders stayed flat on
average diners still purchase burgers
more frequently than they purchase
chicken sandwiches but burger makers
shouldn't rest too easy in general
chicken consumption is on the rise
from 1960 to 2018 per capita chicken
consumption has risen
235 percent to 93.8 pounds a year
during the same time period per capita
consumption of beef has fallen 9.6
1991 was the last year people ate more
10:04
beef than chicken
in 2018 americans ate about 94 pounds of
chicken compared to 57 pounds of beef
that's a pretty dramatic difference in
that you know that's a reversal from 40
50 years ago
this was not always the case and it goes
to show what technological progress and
changes and consumption habits those
combination of factors can do to change
our diets
analysts point to three main factors
that have contributed to higher chicken
consumption
health concerns technological advances
10:34
and a growing population the national
institutes of health and the world
health organization have linked red meat
consumption to heart disease and cancer
some have pointed to white meat like
chicken and fish as a healthier
alternative technological advances have
also made it possible to produce larger
chickens more quickly and the price of
chicken has fallen in recent years if
you look at what's happened to the price
of chicken relative to say beef it's
fallen by about 45 over the last 20
years
so today uh chicken is about a third of
11:04
the price of beef at the retail level
similar things happen for pork so today
chicken is about half the price of pork
but in the chicken sandwich war not all
chicken is created equal some pieces are
better for sandwiches than others
most fast food chains rely on breast
meat for its sandwiches which is
typically more expensive than chicken
wings or thighs
fast food restaurants have offered
chicken items for years but analysts say
this social media feud attracted a new
generation of consumers certainly the
generation that follows social media
11:36
that might might go into a fast casual
restaurant you know maybe your chipotle
consumer or your shake shack consumer
doesn't really look too traditional fast
food as having a you know high quality
up leveled experience and so by having a
product that is of that
um you know that that rivals the the
chicken shack
will bring in a generation that's
probably never eaten a big mac before
burger orders may be flat but despite
attracting a new audience
analysts don't think chicken sandwiches
12:05
will pull ahead of burgers anytime soon
[Music]
if you grew up in the united states in
the last 70 years chances are you've had
a chicken nugget whether your nuggets
came in a mcdonald's box or from the
freezer aisle chicken nuggets have long
been a staple for american families but
have you ever eaten one cooked from
scratch at home
we did an experiment inspired by
celebrity chef jamie oliver if people
saw how chicken nuggets were made would
they still want to eat them
do you know what's in a chicken nugget
12:40
no
are you worried about what's in a
chicken nugget yes i am sometimes no i
don't but i highly doubt it's top
chicken
pink slime no that's why i don't eat
them very often because
it's kind of i think it's like mystery
meat i know it's like just a bunch of
chicken
cut up and
different like maybe bones are in there
we acknowledge the makeup of chicken
nuggets is questionable the treats
history has been marred by a bad press
yet americans ate 2.3 billion servings
13:11
of them in restaurants last year
however demand for chicken nuggets at
fast food outlets and restaurants has
stagnated
experts say that's because the chicken
nugget isn't a huge profit driver and
restaurants aren't likely to innovate
around them
restaurants only have so much room on
their menu and as a low cost item
nuggets aren't a big money maker
customers expect to be able to buy large
quantities of nuggets at super low
prices and the future doesn't look
better for chicken nuggets growth their
menu penetration is expected to drop by
5.4 percent in the next four years over
13:43
the past 10 years nuggets have dropped
off the kids menu by 10 while chicken
tenders have increased by 25
so why is demand for nuggets flatlining
first we have to understand what made
them so popular in the first place
today we can't help but associate
chicken nuggets with mcdonald's famous
for selling large mcnugget portions at
low prices credit for inventing chicken
nuggets often goes to the golden arches
but it turns out you have a scientist to
thank for your chicken nugget creations
mcdonald's introduced chicken nuggets in
1983 years after a researcher had laid
14:18
the groundwork for them in the 1950s a
professor at cornell university invented
a variety of processed chicken products
including chicken hot dogs and chicken
nuggets to convince americans to eat
more chicken his work was for scientific
research not commercial products and he
didn't expect chicken nuggets to take
off
when the chicken nugget came out in the
1950s they weren't too popular he said
after world war ii processed foods were
seen as safer and more reliable food
processing methods were developed during
the wars to make sure soldiers on the
front lines were fed
14:49
after the war companies had to find
another market for their new technology
attitude toward food processing has
changed dramatically in the past 30 40
years maybe when it was first introduced
people saw it as being
sanitary because human hands weren't you
know touching the food they saw it as
efficient because you could get food
directly from the field into a can or
frozen and that was supposedly you know
going to lock in the flavor in 1983
15:19
after the government recommended people
eat less red meat mcdonald's introduced
the battered and fried chicken nugget
it's mcnugget mania ad campaign casts
the nugget as a cheap delicious snack to
share
you can't resist them moms love them
kids crunch them
dad brings them home for the family
chicken nuggets became popular because
they were inexpensive uniform and easy
to eat
regardless of whether your nugget comes
from the drive-in or the frozen section
you usually know what to expect
people love to eat food with their hands
15:50
a trend abbala calls nuggetization
nuggetization also hides the origin of
the food when you eat a chicken nugget
you really don't know what it is the
fact that nuggets don't look like an
animal makes them more popular most
people don't want to be reminded that
their food used to moo or cluck it's not
for ethical reasons or because people
are eating less meat or simply just
squeamish
mcdonald's released its nuggets with
three signature sauces barbecue sweet
sour and hot mustard the product
development director thought a variety
of dipping flavors would make mcnuggets
more appealing to customers they were
16:22
right customers love nuggetized easily
dippable foods because sauce adds
another layer of customization to your
order
we've been eating chicken nuggets for
years but three main factors are working
against them health concerns bad press
and new competition
consumer attitudes about health are
changing
processed foods are falling out of favor
as consumers look for more natural
alternatives
very broadly across all consumers is a
what we call the pursuit of purity in
our food which is to say
we're looking for food that's real food
16:54
that's authentic food that's minimally
processed
in 2010 reports of chicken nuggets made
from pink goop swept to the internet a
photo rumored to have been taken inside
a plant making food for mcdonald's
surfaced and people said it showed
mechanically separated chicken a product
made by forcing bones with edible tissue
attached through a sieve
edible tissue includes whatever is left
on the bone including blood vessels
cartilage and skin
mcdonald's said the photo doesn't show
how it makes nuggets due to changing
17:24
consumer preferences it switched to
using 100 white meat in nuggets in 2003.
while mcdonald's promises to use 100
white meat
it doesn't state what percentage of the
nugget is meat
in response to the pink goop photo
mcdonald's released a video from a
mcnuggets supplier in canada
the video shows employees making a paste
from chicken breast and skin that will
become nuggets
mcdonald's didn't respond to requests to
comment for this video but their
earnings calls show consumers like the
switch to white meat
17:55
there isn't much regulation about what
can and cannot be in a nugget go to any
frozen food aisle and you'll find
gluten-free chicken nuggets
breast meat chicken nuggets and even
veggie nuggets
here's how the us department of
agriculture defines nuggets nuggets are
irregularly shaped usually bite size
meat and or poultry products which are
usually breaded and deep fat fried and
intended to be used as finger foods
there are three types
solid meat nuggets ground meat nuggets
and nuggets made from ground meat with
18:25
additives the labeling rules are
different for all three but one rule is
constant
any breaded nugget product can be no
more than 30 breading nuggets made from
solid pieces of meat can be labeled
simply as nuggets
the process to make nuggets that are
ground meat like what we made earlier
must be clear on the packaging for
instance chicken nugget chopped and
formed nuggets made from ground meat
with additives like binders or water can
be used to describe a product but needs
more detail the usda says breaded
18:57
nugget-shaped chicken patties is proper
labeling the usda's labeling guidelines
don't specify just how much meat a
nugget must contain
in 2013 researchers from the university
of mississippi studied the composition
of two nuggets and found that the
nuggets contained more fat than meat
the researchers got the nuggets from two
national food chains but didn't identify
which
it's also worth noting that two nuggets
is a very small sample size the bad
press for nuggets didn't end with this
study or with reports of pink goo
19:29
a federal judge called mcnuggets a
mcfrankenstein creation in 2003 after a
group of teens claimed mcdonald's food
was making them obese earlier this year
some of the country's biggest producers
recalled over 120 000 pounds of chicken
nuggets
consumers found bits of plastic or wood
in the nuggets or noticed that they were
labeled incorrectly
and finally there is another chicken
product kids love
chicken strips
while data found the chicken nugget
servings in restaurants were slumping
19:59
slightly servings of chicken strips were
actually on the rise in 2018 when
compared to 2017. researchers say
consumers aren't swapping nuggets for
strips but that the categories appeal to
different groups
families with young children are more
likely to purchase nuggets while adults
or families with teens buy more strips
strips are seen as an upgraded or more
wholesome version of chicken nuggets
there's nothing new or innovative about
a chicken strip it's been around for a
long time
but anytime you take something that the
20:30
american consumer already loves and you
innovate around it or you elevate the
form in some way it creates
opportunities for growth so we've seen a
lot of people doing this everybody from
you know the world's largest restaurant
chain mcdonald's has a premium uh
chicken strip offering now to regional
uh chains that are springing up like
raising canes or zaxbees tempting
consumers to buy a more premium product
like a strip means a higher margin for
restaurants
i think chicken nuggets sort of have
their their home in fast food
21:03
and as um
parents have
more educated about you know better
quality proteins um and
they're trading at more to fast casual
restaurants i think you're seeing more
of a tendency for people to move to
chicken strips chicken tenders which is
something that kids really like and
honestly you know people of all
generations kind of like chicken strips
a low birth rate could also have
something to do with nuggets stagnation
in 2017 the us birth rate hit a 30-year
21:36
low
americans aren't having enough babies to
replace the population and population
growth increasingly relies on
immigration
data shows that chicken strips show up
on restaurant menus more often than
chicken nuggets do with a higher menu
penetration of 14.2 percent
however over time chicken strip menu
penetration has also declined
and at a faster rate than nuggets which
begs the question
are consumers over them both
22:05
are chicken strips really a threat to
chicken nuggets place at the top of the
processed meat food chain
even though strips are gaining traction
there's no reason nuggets and strips
can't thrive together
at restaurants americans still ate a
whopping 2.3 billion nuggets last year
compared to 1.5 billion strips so don't
worry nugget lovers there will still be
nuggets to dip
chick-fil-a it's a fast food chain with
chicken sandwiches said to be so good
22:42
even mcdonald's wants to steal them and
it has a reputation so controversial
entire cities have banned the restaurant
from their airports
critics say chick-fil-a has a history of
supporting and donating millions of
dollars to anti-lgbtq
organizations which has drawn the ire of
lawmakers and civilians alike
chick-fil-a's values are not chicago
values but it also has its share of
arden supporters
whatever you think of the company's
23:15
politics chick-fil-a's sales are on a
tear as of june 2019 it is the third
biggest restaurant chain in the u.s by
system-wide sales and it generates the
most sales per store of any fast food
restaurant in the country the ascent is
so rapid that even mcdonald's and
popeyes are taking note in july 2019
mcdonald's franchise owners demanded the
company add a southern style chicken
sandwich to its menu in order to keep
23:46
pace with chick-fil-a a month later
popeyes debuted its own chicken sandwich
on a buttered roll with pickles the
first to be sold by the chain nationwide
chick-fil-a is also eating market share
from giants in the chicken category like
kfc and wing stop so how is it that a
restaurant that's ensnared in
controversy and closed on sundays is
next in line to overtake starbucks and
mcdonald's
[Music]
it all started in atlanta georgia where
24:19
chick-fil-a's founder s truett kathy was
raised and where the company is now
headquartered
kathy grew up watching his mother
prepare chicken in traditional southern
fashion in 1926 the 25 year old and his
younger brother cobbled together about
ten thousand dollars to open a diner
called dwarf grill
legend has it that's where kathy
invented chick-fil-a's original chicken
sandwich fried in peanut oil and served
on a bun with pickles the menu item
24:50
regularly sold out
so in 1967 he opened the very first
chick-fil-a in the greenbrier mall in
atlanta from the outset kathy
implemented a policy still in place to
this day
all stores would be closed on sundays
a devout christian he reasoned that
sundays were for spiritual worship kathy
carried those christian values with him
to chick-fil-a's flagship store which
featured an upbeat logo of a bright red
chicken kathy said the a of the
25:22
company's name represented grade a
chicken he was one of the first to
envision putting fast food in malls and
as malls began to grow in popularity
chick-fil-a was taken along for the ride
between 1971 and 1974
chick-fil-a tripled in size expanding
into the rest of georgia and the
carolinas and continuing through the
south and southwest
in 1986 chick-fil-a decided to grow
beyond malls by opening its first
25:52
free-standing restaurant
by 1993
its 500th restaurant had opened but this
pushed it into competition with
established chicken focused fast food
chains like kfc which also opened in the
south 15 years before chick-fil-a
chick-fil-a didn't have as much money as
those companies to spend on advertising
so it decided to make a splash another
way
in 1995 it put up huge billboards on the
side of highways in the southeast
26:23
the first billboard featured a pair of
cows scrawling eat more chicken to try
to get people to stop eating beef the
campaign went viral and it worked
in 2000 the privately held company hit
one billion dollars in sales doubling
its performance from when the billboards
first debuted
it also rose to the third largest fast
food chain in the chicken category
behind kfc and popeyes that was also the
year kathy and his three children signed
26:55
a covenant promising to uphold
chick-fil-a's principles the agreement
included staying closed on sundays and
never taking the company public you know
the company culture is very unique and
has clearly led to a lot of success
and
culture
it's all interlocked like you pull one
strand of it and the whole blanket can
unravel and sometimes if a company's
public
someone might want to pull out a strand
27:25
and might not realize wow that's the
strand that could unravel the whole
blanket here
chick-fil-a's fast-paced growth was also
fueled by a few key innovations in its
operating structure each franchise is
owned by an independent operator who
usually has just one unit and no other
business ventures a model that's still
relatively unique in the fast food
business this allowed franchise owners
to be focused on the restaurant and
truly connected to the community
employee makeup is another
27:55
differentiator for the brand chick-fil-a
has said that two-thirds of chick-fil-a
employees have grown up working for the
company doing shifts in high school and
college and ultimately returning for a
career with chick-fil-a after graduating
chick-fil-a is extremely selective of
who is even allowed to become an
operator
that structure has created a network of
experienced franchise owners who are
loyal to the brand it's the main reason
why they're successful because they have
these people that are in the stores
28:27
every single day they've gone through a
heavy training process um uh they
believe very strongly in the brand and
um they are interacting with customers
so
uh they are interacting with the
employees they are interacting with
everybody and and it really works for me
the franchise agreement also allows
operators to start restaurants for an
extremely low cost the initial fee is
just ten thousand dollars
in comparison the fee at mcdonald's is
forty five thousand 000
28:57
and wendy's is 40 000
unburdened by the debt of a large
initial fee chick-fil-a franchisee
operators are able to put more of their
funds into growing and improving their
store
the closed on sunday policy also applies
to the chick-fil-a's operating in
stadiums its mercedes-benz location even
remained closed when the super bowl was
held there in 2019
analysts say the policy comes with a
hefty price tag
if you do the math i think it works out
29:28
to roughly 1.7 billion dollars
in system-wide sales that are lost by
being closed on sundays now again that's
assuming you just open up on sundays and
everything else works normally but they
also say being closed might actually
help the chain provide better service
every employee can look forward to time
off no matter how hard they're working
monday through saturday and you know
sometimes that rest and relaxation can
do a person real good
30:01
on top of that you know the guests like
they better get to the chick-fil-a
restaurant before sunday comes because
if they find the time on sunday and they
have that craving on sunday and they
show up on sunday
not getting any food from that
chick-fil-a restaurant in 2018 there
were 2
352 chick-fil-as in business with 234 in
malls
264 on college campuses and 73 at
hospitals businesses or airports the
culture of chick-fil-a today still
30:33
focuses on the christian values that
kathy founded the chain on outside its
atlanta headquarters a plaque with
chick-fil-a's mission statement still
hangs analysts point to the chain's
religious backbone as a driving force
behind the company's number one rank and
customer service for four years from
2015 to 2019. in a 2018 survey of
drive-throughs chick-fil-a employees
were reported to have smiled
91.4 percent of the time while employees
of the next highest chain kfc smiled
31:05
78.5
of the time
basically you're starting to see that
they're almost kind of a little bit of a
almost a lifestyle brand if you will you
come in into some experience from the
minute you walk in you've got that that
fresh-faced kid who's you know greets
you thank you you know they're polite
they're walking around helping you etc
it's beyond just a
transaction of food it's an entire
experience and i think you're starting
to see some of the you know the bigger
brands really trying trying you know as
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much as they can to to mimic that and
trying to give you an experience
chick-fil-a's christian values have also
been a source of major controversy in
recent years
in july 2012 chick-fil-a came under fire
after truitt kathy's son and the
company's current president dan cathy
publicly expressed his views on gay
marriage he told the baptist press that
he was guilty of supporting the biblical
definition of a family unit the comments
incited backlash in the form of boycotts
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and lgbt kissings at chick-fil-a
restaurants around the country according
to a brand satisfaction measurement from
yougov the company's rating dropped to
its lowest level in two years following
the comments
the day of dan kathy's first comments
chick-fil-a's rating was 65 19 points
above average but four days later the
chain had fallen to 47. even though the
comments hurt the brand's reputation the
company's annual sales improved in 2012
the company saw four billion dollars in
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system-wide sales a 13
increase from the 3.6 billion dollars a
year earlier it also grew 7.4 in average
sales per unit
dan cathy said in 2014 that he regretted
publicly commenting on gay marriage and
that he would stay out of political
debates but in 2017 reports revealed the
chick-fil-a foundation had donated
millions to what critics say are
anti-lgbt groups such as donations to
the fellowship of christian athletes a
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sports ministry that believes homosexual
misconduct is unnatural in the eyes of
god
again sales remained unharmed
chick-fil-a pulled in 8 billion in
system-wide sales in 2017
up 15 from the previous year and the
company has still not redeemed itself
among lgbt supporters during the 2019
pride parade in new york city attendees
taped a large x over one of
chick-fil-a's store fronts between 2017
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and 2018 system-wide sales improved 12.8
percent from 8 billion to 9 billion
its sales per store is higher than any
other fast food chain at 4 million
mcdonald's generates 2.7 million dollars
a unit and in 2019 it became the third
largest restaurant chain in america by
system-wide sales it surged past wendy's
burger king taco bell and subway in just
one year since 2007 chick-fil-a has
doubled its number of stores to 2400
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restaurants the majority of its
restaurants are still in the south and
southwest
texas for example tops the chart with
391 restaurants while georgia has 218.
from its history of store openings
however it seems the company is slowly
working to expand its foothold in other
regions between 2011 and 2018 for
example the company grew from having one
location in new york to having 17. 25
years ago this was a regional
uh concept that was much smaller
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and today you know depending on what
source you use it
very much is the third biggest
restaurant concept in the whole country
and
they're still underpenetrated some of
those heavily populated parts of the
country they don't open on sundays at
all so
they're a big player
the chain is also a growing threat to
other fast food chains technomic
estimates that chick-fil-a tallied over
10 billion dollars in revenue in 2018
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and grew 13.5 percent while mcdonald's
grew just 2.5
in july of 2019 a group of mcdonald's
franchise owners signed a joint letter
asking the company to add a southern
style chicken sandwich to its menu
chick-fil-a's results demonstrate the
power of chicken the board wrote
a chicken sandwich at mcdonald's should
be our top priority
the company is an especially big threat
to other chicken focused restaurants
between 2009 and 2018 chick-fil-a grew
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from owning
19.3 of the chicken fast food market to
38.5
um their chicken menu doesn't change we
are experts in chicken we you know will
occasionally give you something
additional spicy chicken or like i said
fish or whatever whatever it is
um but and and i think by being
maniacally focused on what they do it
allows them to then be focused on all
those extras you know the service the
atmosphere you know they're not always
36:16
searching for what's that next big lto
the just the energy of their brand and
what they do day to day
is just once again growing their brand
from it from the perspective of
excellence
so is there a ceiling for chick-fil-a
truett kathy passed away in 2014 leaving
his three children to inherit the
company and the 11 billion dollar family
fortune
dan cathy is now the company's chairman
and ceo while his brother bubba is an
executive vice president
36:48
the private company declined to comment
for this piece and is secretive about
its financial information and goals but
analysts say that if chick-fil-a manages
to maintain its growth there are major
regions that the chain has yet to take
over
chick-fil-a plans to open its first
international location in 2019 in
toronto and plans to open at least 15
more locations in canada looking ahead
they just need to make sure that you
know they have the
the
management infrastructure
37:20
because of you know as any company gets
bigger and bigger it just becomes that
much more challenging to make sure that
the quality of what you're doing
uh remains high so
if i had to guess will they achieve that
yes but
there's no 100 certainty
uh in the future and i'm sure they're
aware of that and trying to work as hard
as they can to make sure that odds of
success for them are as high as they can
be
[Music]
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you
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