Warning Signs of Trouble at Chick-fil-A?
I have been a fan of Chick-fil-A for many years. They are known as being a strong Christian company, and for the consistent response when you say “Thank you” with “My pleasure!” Personally, my favorite meal is the Chick-fil-A Chicken Deluxe Sandwich that includes tomato, lettuce, and cheese.
But recent personal experiences, plus a significant news item, suggest the company I have come to love is no more.
An experienced consultant once said to me “How large does a company have to get before it becomes bad?” There are clear telltale signs when a company has gotten so big that the magic is gone. What got it this far will no longer work. Warning signs begin appearing that should tell management (if their eyes are open) that the company is headed for trouble.
Sadly, I believe this has now happened to Chick-fil-A.
Warning Signs
I’ve recently experienced a few of warning signs that suggest Chick-fil-A is in trouble.
Consistent problems with orders. Over the past few months, I estimate that I have visited Chick-fil-A between 8-12 times (drive-thru). Almost every time, my order has been wrong. I asked for a Chicken Deluxe Sandwich and I received a regular Chicken Sandwich. Then they changed their menu and I’m told I now need to ask for extra tomato, lettuce and cheese with a regular chicken sandwich. When I do this, they leave off the pickle – because I didn’t ask for it. And to make it sound like I’m really complaining, when I asked for a packet of mayonnaise with my order, it was forgotten. (Very frustrating!)- Employees blaming corporate. At one location when I questioned why I was experiencing wrong orders, I was told the menu had been changed. I was then told “how” I needed to order my favorite sandwich. At a different location, when I asked “why” the menu was changed, the employee simply replied, “Don’t blame me, that all comes from corporate.” (Ouch!)
A shift in advertising strategy. It was recently announced that the new Chief Marketing Officer (even though a long-time employee) decided it was time for Chick-fil-A to make a change in their ad agency. For over 22 years, the Richard’s Group, based in Dallas, TX, was the brilliant team that brought the famous Chick-fil-A cows to life and provided the many creative ways they entertained us. As reported in Ad Age, Chick-fil-A decided to move the bulk of their advertising to the New York based McCann agency that manages a roster of both U.S.-based and global brands. In other words, Chick-fil-A is ratcheting up its advertising to compete in the big leagues. The feeling I used to have that Chick-fil-A was a local community-based restaurant is about to end.
As someone who has experienced the stiff competition in the advertising business, I understand both sides of the table here. Chick-fil-A has entered a new playing field (based on its size and scope) and wants to remain relevant in a highly competitive marketplace. The truth is they want to compete in a much larger market, but the customer experience is still one of being a small, growing restaurant that offers personal service.
This feels like a growing disconnect.
Mapping Chick-fil-A Values
Since its founding in 1946, Chick-fil-A has grown to become the 8th largest U.S. restaurant chain, and has same-stores sales that exceed McDonalds. At over $6 billion in annual systemwide sales (2015), the company has long passed being a regional chicken chain. It is now playing in the big leagues, competing with the likes of Burger King, Wendy’s, and Taco Bell (and way ahead of KFC).
But even at its current size, the company is still known for living its values, including being closed on Sundays (so employees can go to church).
Yet, when looking for a list of Chick-fil-A values, I was surprised to discover there were none posted on the company’s website. The only reference to values (as a heading) is on a web page outlining the company’s giving tradition. This is where the corporate purpose is posted.
With a little digging what I did find was a list of five values posted on SnagAJob, where some Chick-fil-A job openings were posted. Here, the company lists five core values:
- Customers First
- Personal Excellence
- Continuous Improvement
- Working Together
- Stewardship
None of these are truly unique. All five map to the common values that exist across Fortune 500 companies. However, living these five values consistently over time has clearly built a strong brand.
Is it possible for Chick-fil-A to preserve its brand legacy, and these values, as it continues to grow nationally and even expand internationally?
Restoring Faith and Hope
When warning signs appear, it doesn’t mean the end is near. Instead, leaders with their eyes wide open will take action and fix the problems before they become even more serious.
If I were asked by Chick-fil-A, I would recommend three things to restore faith and hope in the brand.
- Fix the ordering process. Over the past few years, I’ve noticed the addition of employees assisting outside the restaurant with the drive-thru process. While this is a good short-term solution, and supports the personal service aspect of the brand, it’s not reliable. People fail and mistakes happen, especially if they stop caring (enough). Thankfully, Chick-fil-A has armed their people with tablets connected wirelessly to take orders remotely. What’s missing is a slick technical solution whereby the customer can easily and quickly confirm the details of their order (using pictures!). The ordering process needs to be “fool proof” – and of course the fulfillment needs to match it.
- Empower employees. For Chick-fil-A, employees are clearly their most important asset. So all employees need to feel responsible for living the brand AND empowered to fix it, if something is not working. The culture needs to be re-aligned to reflect a bottom-up management system vs. a top-down model. In addition to franchise owners, every employee needs to feel ‘the buck stops here’. This means putting into place a reward and recognition program. It means creating a method to capture and share ideas within a store, and across stores. It means employees need to feel like shareholders (and maybe become one). It also means revamping employee training to be more peer-to-peer based, with accountability partners.
- Don’t mess with the brand. It’s time for Chick-fil-A management to acknowledge that the brand belongs to their customers, not the company. The marketing team is only a steward of the brand, not the owner. The way to keep growing and move forward is not by engaging a big New York agency (that’s so 20th century!). Instead, engage in dialogue and explore and experiment with existing customers to see how they want the brand to evolve. In a 21st century world of social media, it’s never been easier to engage with customers, but at a local level. Imagine having a social media contact in every store – working “in the store” – connecting with local customers as they come and go, providing feedback (both the good and not-so-good) to employees. This is the age of the “voice of the customer” and Chick-fil-A could be pioneering this front.
One of the key metrics for Chick-fil-A to know its brand will continue to shine is this: when every employee can say “My pleasure!” and it sounds genuine and not rote. How will we as customers know that it’s genuine? When it’s said like a local business owner who lives in your community and knows that without you he/she would not be in business.
