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CHICK-FIL-A: INTERNATIONAL EXPANSION CHALLENGES1

Bertrand Guillotin wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality.

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Copyright © 2020, Ivey Business School Foundation Version: 2020-03-20

September 6, 2019, marked the grand opening of the “first Chick-fil-A franchisee-owned restaurant outside of the United States,”2 in Toronto, Canada. A month later, Chick-fil-A opened its second international franchise, in England.3 Chick-fil-A’s international expansion was accompanied by excitement from fans and anger from members of the lesbian, gay, bisexual, transgender, and questioning (LGBTQ) community and their allies.4 The US-based fast-food company’s international expansion came at the same time as the company had lost two US airport store deals within two weeks due to criticisms about its corporate donations to anti- LGBTQ groups and public comments opposing gay marriage made by its chief executive officer (CEO).5 As the US protests became a global movement, England’s first Chick-fil-A was forced to agree to relocate by April 2020,6 and a number of questions emerged about the company’s internationalisation strategy.

CONTROVERSIAL GROWTH

Chick-fil-A, whose titular A stood for “Grade A,” top-quality food,7 opened its first location in 1967 in a 384-square-foot retail space in Atlanta, Georgia’s Greenbriar Mall. It was founded by Samuel Truett Cathy, who had established a diner in 1946 called the Dwarf Grill before starting Chick-fil-A, where Truett was credited with having invented the boneless chicken sandwich, which went on to become a fast-food staple.8 In 2013, Truett Cathy was succeeded as Chick-fil-A’s CEO by his son, Dan Cathy.9

Chick-fil-A was anchored in the United States’ Southern “Bible Belt” region.10 From its first tiny store, it expanded to include approximately 2,400 restaurants that generated US$10 billion11 in system-wide sales (see Exhibit 1), earning a reputation as a family-owned chain whose stores were always closed on Sundays. In 2018, it was ranked the third-largest fast-food chain in the United States, after McDonald’s Corporation (McDonald’s) and Starbucks Corporation, and its sales were growing at a rate of 16.7 per cent annually. Moreover, in 2018, it had average per-location sales of $4.6 million (up from $4.2 million in 2017), as compared to McDonald’s $2.8 million.12

However, Chick-fil-A’s extraordinary growth was controversial. In 2012, Chick-fil-A became the “culinary symbol of one of the country’s major social issues” due to the Cathy family’s public opposition to same- sex marriage. The Cathy family, who self-identified as Baptist Christians, had donated millions of dollars to organisations that opposed same-sex marriage and that promoted “conversion therapy” for LGBTQ individuals. In 2012, Dan Cathy also stated publicly that Chick-fil-A supported “the biblical definition of a

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marriage.” This public relations (PR) battle became political during the 2012 presidential campaign, and Mike Huckabee, the former governor of Arkansas, declared a Chick-fil-A Appreciation Day. The controversy spilled into a wider media campaign (even the Muppets got involved), and protests erupted, with one LGBTQ group staging a “same-sex kiss-in day” at Chick-fil-A locations.13

Despite the protests, Dan Cathy stated that Chick-fil-A would “stay the course” and would continue to “operate on biblical principles.”14 The Chick-fil-A Foundation also continued to fund anti-LGBTQ organisations,15 with donations totalling more than $1.3 million in 2015 and increasing to more than $1.8 million in 2017, according to tax filings.16 The Human Rights Campaign’s Buyers Guide gave Chick-fil-A a rating of zero due to the company’s lack of pro-LGBTQ workplace policies,17 and Dan was discretely dropped from a 2018 conference on inclusive economic development.18 The controversy again made headlines in the spring of 2019 when, within a two-week period, two airports (in San Antonio, Texas19 and Buffalo, New York20) banned the opening of Chick-fil-A stores in their terminals. In response, in May 2019, Texas passed a “Save Chick-fil-A” bill (Senate Bill 1978) that supporters argued would provide religious protections to companies like Chick-fil-A, although critics contended that the bill allowed discrimination against LGBTQ individuals.21 The polarised debate continued in September 2019, when faculty at Kansas University characterised Chick-fil-A as a “bastion of bigotry” and sought its removal from campus, while some students petitioned to keep it.22

Despite these tensions, Chick-fil-A sales continued to grow. Eating at Chick-fil-A was generally perceived as a more pleasant and friendly experience than at other fast-food chains due to the politeness of Chick-fil- A employees, who were required to say “my pleasure” instead of “you’re welcome” and who generally signalled that they were well-treated.23 The negative press and boycotts since 2012 did not have a noticeably negative effect on the company’s business;24 between 2012 and 2019, Chick-fil-A sales more than doubled, and the chain opened an additional 700 restaurants.25 In 2018, the company was rated “America’s most beloved fast-food chain” in the American Customer Satisfaction Index’s annual survey.26 Chick-fil-A diners .were clearly willing to separate their dining experience from the company’s politics; this was perhaps best summarised by openly gay US presidential candidate Pete Buttigieg, who stated in March 2019, “I do not approve of their politics. . . but I kind of approve of their chicken.”27 Moreover, Glassdoor had repeatedly listed Chick-fil-A among the Best 100 Places to Work (#43 in 2014, #72 in 2018) and as having a Top 100 CEO (#26 in 2013, #37 in 2017, and #70 in 2019), and in 2017, it also listed the company as among the Best 100 Places to Interview (#37).28

COMPANY ORIGINS

Lucky Timing

Chick-fil-A’s founder, Truett, was born in poverty. He got his start in the restaurant business in 1946, when he opened the Dwarf Grill diner in an Atlanta suburb. The business received a boost in December 1947 when the Ford Motor Company opened an assembly plant next door, providing a steady stream of customers and revenue.29 Later on, the restaurant also added a pressure fryer to its kitchen lineup, which “allowed cooks to churn out fried chicken sandwiches as quickly as fast-food chains like McDonald’s or Burger King could make hamburgers.”30

Following a slow and steady expansion strategy, Truett opened the first Chick-fil-A franchise restaurant in 1967, in Atlanta’s Greenbriar Shopping Center, in addition to its Dwarf Grill.31 This was another lucky move, as shopping malls experienced a boom for the next several decades. Over time, Chick-fil-A became famous for both its unique chicken sandwich and its “closed on Sundays” rule, which required all of its franchises to be closed on Sundays in order to allow employees to worship.

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From Humble Beginnings to National Fast-Food Giant

By 2019, Chick-fil-A franchises could be found in every US state except for Hawaii, Alaska, and Vermont.32 Although the company was most famous for its chicken sandwiches—whose secret recipe remained locked in a vault at the company headquarters in Atlanta33—its waffle fries were the most-ordered menu item.34 Each restaurant also made their pickles on-site.35 Chick-fil-A was the largest buyer of peanut oil, a key ingredient in its food, in the United States, another demonstration of its scale and market power.36 Over the years, the company also experimented with new products, such as grilled nuggets, which took seven years and $50 million to create,37 and new business models, such as an 8,000 square foot Hawaii- themed dine-in restaurant, called Truett’s Luau, in Fayetteville, Georgia, that served seafood, pork, and chicken.38 Still in existence today, this unusual Chick-fil-A location confirmed the interest of the chain in something else, something exotic and international. Chick-fil-A also became known for its humorous advertising on highway billboards—a creative but unconventional way to build brand recognition with a

39, 40 limited budget—that encouraged people to “eat mor chikin” and featured cows as the messengers. Chick-fil-A even opened a location inside Atlanta’s football stadium, despite the fact that the store remained closed on Sundays, when most football games took place.41

All Chick-fil-A franchisees were selected extremely carefully, and each franchisee was only permitted to operate a single store; however, franchise fees were only $10,000,42 and Chick-fil-A paid for all operational start-up costs, which it later recovered through services fees (see Exhibit 1). This unique revenue model attracted more than 60,000 franchising applications per year, although only 75–80 were approved.43 For comparison, McDonald’s franchises typically cost $1–2.2 million in start-up costs, including a $45,000 franchise fee, as well as a requirement that the franchisee have liquid assets of at least $500,000. In contrast, Chick-fil-A did not have any net worth or liquid asset thresholds.44

Founding Values and Corporate Culture

Caution, top-down control, and regular in-depth employee trainings were the cornerstones of Chick-fil-A’s success.45 The company also became known for its culture of caring, and strong values were inherent to the company’s corporate fabric.46 “Your culture is your co-founder,” says subject-matter expert Javier Munoz; Chick-fil-A’s “co-founding” culture, which was strongly influenced by Truett’s values, provided its groundwork and DNA to guide the company to its purpose and impact.47 Truett’s values were, therefore, crucial to the company’s success, making it critical to take a deeper look at them.

In 2008, Truett discussed his values in a public interview:

I’ve been in the restaurant business serving the physical and emotional needs of people, and oftentimes their spiritual needs. I feel like it’s a high calling to have that position of furnishing the essentials of life, and not just food, itself . . . I started out at eight years old buying Cokes, six for a quarter, and selling them for a nickel apiece and recognizing a 5-cent profit. I was a pretty good salesman. . . We’re still a private company, and I intend to stay that way. We give out a lot of things we couldn’t do if we were a public company. We have a scholarship program for our part-time team members, where we give them $1,000 scholarships if they work for us for two years. Our average work schedule is 20 hours a week. We’ve devoted $40 million toward that, and the other scholarship programs we have. We have a boy’s camp and a girl’s camp, and I have 12 foster homes where we try to identify those kids who do not have any serious behavior problems, just victims of circumstances . . . I have a moral and corporate compass to glorify God by being a faithful steward. That means to give back a portion of God’s blessings to others, and to help the people we come in contact with.48

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Truett’s values and religious beliefs also led him to establish Chick-fil-A’s WinShape Foundation in 1984, which aimed to “shape winners by helping young people succeed in life through annual scholarships (more than 20 worth up to $32,000) and support programs.”49 In 2010, the WinShape Foundation made significant donations to politically conservative groups with a history of anti-LGBTQ work, including a donation of $247,500 to the National Christian Foundation.50

Before his death in 2014, Truett made his three children, Dan Cathy, Don “Bubba” Cathy, and Trudy Cathy White, sign a contract agreeing that the family-owned business would never go public, although the children retained the right to sell the company.51,52 In 2019, the family was America’s 15th richest, with an estimated $11 billion in wealth.53

CHALLENGES

In 2019, many industry experts argued that the fast-food market was saturated:

Fast-food chains are increasingly relying on discounts to get customers in the door. Only recently, Burger King started selling 10 chicken nuggets for $1. This week [October 2018], Wendy’s announced a $1 any-size-fry deal, and many other chains are seeing what they can fit in a $5 box. . . . If you get growth, it can only come from an existing provider. You would have to work harder than ever to get customers in your door and any success could be fleeting.54

Competition was fierce, and many smaller fast-food chains had filed for bankruptcy, including the New England–based Papa Gino’s and D’Angelo Grilled Sandwiches and the Texas-based chain Taco Bueno, which had 169 restaurants. Declining fast-food sales were attributed to declining football viewership, immigration rates, and construction activity, as well as to increased consumer demand for healthier alternatives to hamburgers and pizzas.55 Despite the broader market challenges, however, Chick-fil-A enjoyed a dominant and profitable position in the US chicken sandwich market segment (see Exhibit 2), and its 2018 system-wide sales were more than those of its next three competitors combined.

Chick-fil-A was nonetheless at risk from its competitors. McDonald’s, the fast-food market leader, saw a 13th straight quarterly rise in global same-store sales, especially in international markets (led by sales in the United Kingdom, Canada, and Australia) in 2018.56 McDonald’s had renovated its 12,000 restaurants and had invested in technology, such as delivering meals via Uber Eats, improving customer experiences via high-tech ordering kiosks, and investing in a $300 million acquisition of the artificial intelligence company Dynamic Yield—its largest acquisition in 20 years.57 Popeyes, another fast-food chain whose parent company also owned Burger King, had also experienced success abroad; already present in 25 countries, it launched in China in 2019 with a plan to open 1,500 outlets there over the next decade, seeking to follow in the footsteps of the internationally successful fast-food chain KFC.58

THE CHICKEN SANDWICH WAR: A TIMELINE

December 2018

By the end of 2018, Chick-fil-A had $10 billion in annual system-wide sales and higher per-location profits than any other fast-food company. McDonald’s recognised Chick-fil-A as a very serious threat and began discounting its meals to attract more customers.59

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July 2019

McDonald’s franchisees reported that “McDonald’s carries chicken nuggets and the McChicken sandwich but does not have a premium chicken sandwich” and requested a new chicken sandwich product to compete with Chick-fil-A.60

August 2019

Popeyes’ launched its own (spicy) chicken sandwich on a buttered roll with pickles—the first chicken sandwich to be sold by the chain nationwide. The sandwich enjoyed an “inexplicably inescapable” success as the “Tickle Me Elmo of sandwiches,”61 and the sandwich sold out two weeks after its launch. A “chicken sandwich” war ensued on Twitter and other social media.62

September 2019

On September 6, 2019, Chick-fil-A opened its first franchisee-owned, full-service international location, in Toronto, with plans to open at least 15 more restaurants in the Toronto area by 2024.63 However, there was no poutine (a local food staple) on the menu, a sign that Chick-fil-A was staying true to its successful and standardised US formula and not seeking local adaptation when venturing abroad. At the same time, McDonald’s launched a “Spicy BBQ Chicken Sandwich”64 to compete with Chick-fil-A in the United States.

October 2019

Two months after Popeyes’ “biggest product launch in the last 30 years,” the company’s highly sought- after spicy chicken sandwich was once again available in its stores.65 This was a clear sign that Popeyes was not given up easily; the chicken sandwich war was raging.

November 2019

The popularity of Popeyes’ new spicy chicken sandwich turned tragic when a 28-year-old man was stabbed to death in Maryland after a fight over the restaurant’s new offering.66

Chick-fil-A continued its September 2019 Canada expansion with another international launch on the other side of the Atlantic, in the UK, two months later.67 This synchronised plan was not going as smoothly as expected, something that the chain had experienced in the past.

INTERNATIONAL EXPANSION

Chick-fil-A had previously flirted with a couple of small, unsuccessful Canadian operations at the University of Alberta in the 1990s and at Calgary International Airport in 2014, which offered a limited menu. Similar limited-service restaurants had also operated in South Africa since 1996.68 Chick-fil-A also unsuccessfully tested the market in Lyon, France in 2015, in a bid to enter the European Union.69 In late 2019, however, Chick-fil-A launched a bold new international expansion, opening two large, full-service restaurants in Toronto, Canada, and Reading, England, within a month of each other and announcing plans for an additional 15 Canadian stores. Chick-fil-A, known for its high-quality customer service, food quality, and innovative franchise model, was hoping to extend these assets across borders in order to expand internationally.

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Chick-fil-A’s Toronto restaurant could seat 70 people. Moreover, Canadian franchisee costs were only CAD $15,000,70 compared to CAD $100,000–$300,000 for many other franchises, and they created “50 to 75 new jobs per location.”71 This investment in the local community, using a unique business model, was a way for Chick-fil-A to demonstrate its positive intentions and to gain acceptance outside the US.

Protests in Toronto

Tim Tassopoulos, Chick-fil-A’s president and chief operating officer, stated in an interview that Toronto was the best city to kick off the company’s Canadian expansion: “It’s a global city. It has so many different ethnic groups. Toronto really represents the globe. We feel like it’s a great learning ground for us.”72 However, in 2017, Toronto was ranked the third most LGBT-friendly city in the world,73 and Chick-fil-A’s September 2019 opening in Toronto was met with protests and calls for boycotts due to the company’s history of anti-LGBTQ political activism.74,75 One Toronto resident stated, “I am so angry about this you have no idea,”76 while another noted that “Toronto loves new food, but Toronto also isn’t very welcoming to intolerance.”77 A nationally syndicated newspaper columnist even wrote, “Chick-fil-A is about to open in Toronto. I hope it fails.”78

However, Chick-fil-A also had a number of supporters in Toronto, and on opening day, the supporters who were camped in front of the store seemed to outnumber the protesters.79 Chick-fil-A also hired an international PR and lobbying company, Group SJR, to assist with its international expansion,80 and shortly after the company’s launch in Toronto, Chick-fil-A called its Toronto opening a “true celebration,” comparable to its Manhattan opening.81

Protests in England

Chick-fil-A launched its first UK store in Reading, England, on October 11, 2019, as a pilot.82 A company spokesman explained, “For right now, we are focused on this location to help us understand more about consumer interest in our brand and signature menu items.”

Within days of Chick-fil-A’s grand opening in Reading’s Oracle shopping centre, the company announced that the store would close after just six months due to “disruptive liberal protests from various left wing gay rights groups who claim the openly Christian restaurant chain is anti-LGBTQ.”83 A spokesperson for the Oracle shopping centre explained that failing to extend the restaurant’s lease beyond the six-month pilot period was “the right thing to do.”84

NEXT STEPS

Chick-fil-A’s immediate and unexpected failure in England raised a number of concerns about the company’s internationalisation strategy. How should the company address the backlash from supporters of LGBTQ rights and ensure the success of Chick-fil-A outside the United States?

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EXHIBIT 1: CHICK-FIL-A FRANCHISE DISCLOSURE DOCUMENT

As of December 31, 2018

2017 2018 Change Notes

In US $ billion In US $ billion Per cent Total system-wide sales 8.6 10 +16.3

From franchised and company-operated Chick-fil-A restaurants.

Total revenue 2.6 3 +13.7

Chick-fil-A charged franchisees an operating service fee equal to 15 per cent of restaurant sales, less amounts charged to franchisees for equipment rentals and business services fees. The company also received from franchisees an additional operating service fee equal to 50 per cent of the franchised restaurant’s net profit. The base operating service fee and additional operating service fees were charged to franchisees monthly and were recognised as revenue in the period earned.

In US$ million In US$ million Per cent

Total advertising expenses 98.7 99.6 +0.9

Property and equipment purchases 716.2 804.0 +12.25

Net cash from operating activities 814.7 910.4 +11.7

Comprehensive earnings (profits) 426.2 450.9 +5.7

Credit agreement 800.0

New credit agreement totalling $800 million with a syndicate of lenders in 2018, with Wells Fargo Bank, NA serving as administrative agent, swingline lender, and issuing lender.

Number of locations

Number of locations

Change

Franchised and company-operated Chick-fil-A restaurants

1,882 1,989 +107

Licensed Chick-fil-A restaurants (e.g., in schools, airports, hospitals, universities)

343 363 +20

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EXHIBIT 1 (CONTINUED)

2018 In US $ million

Annual sales per domestic franchised restaurant (excluding malls) 5.6

Median annual sales for 2018 for approx. 1,539 restaurants.

Annual sales per domestic franchised restaurant (excluding malls) 5.7

Average annual sales for 2018 for approx. 1,539 restaurants.

Annual sales per domestic franchised restaurant (malls only) 1.8

Median annual sales for 2018 for approx. 234 restaurants.

Annual sales per domestic franchised restaurant (malls only) 2.2

Average annual sales for 2018 for approx. 234 restaurants.

Source: Compiled by the author from “Chick-fil-A Reports Record Revenue, Profits Up 5.7% In 2018,” Restaurant Finance Monitor, April 14, 2019, accessed October 31, 2019, http://restfinance.com/Restaurant-Finance-Across-America/April- 2019/Chick-fil-a-reports-record-revenue-profits-up-57-in-2018/.

EXHIBIT 2: US FAST-FOOD DATA [CHICKEN MARKET SEGMENT]

Rank Company

2018 US

system- wide sales (in US $ millions)

2018 average sales per

unit (in US $

thousands)

2018 franchise licence units

2018 company

units

2018 total units

Total change in units

from 2017

Per cent change in units

from 2017

1 Chick-fil-A* 10,000.00 4,166.67 2,400 0 2,400 175 7.29 2 KFC 4,400.00 1,210.00 4,019 55 4,074 −35 −0.85 3 Popeyes* 3,325.00 1,415.00 2,327 41 2,368 148 6.25 4 Zaxby’s* 1,850.00 2,060.00 757 141 898 21 2.33 5 Bojangles 1,296.21 1,741.06 440 319 759 −5 0.65 6 Wingstop 1,261.03 1,139.00 1,095 29 1,252 225 17.97 7 Raising Cane’s* 1,185.00 2,963.00 70 330 400 0 0 8 El Pollo Loco* 870.00 1,798.00 271 213 484 7 1.44 9 Church’s Chicken* 750.00 714.00 811 165 1,086 −46 −4.23

10 Boston Market 557.77 1,259.00 19 435 454 7 1.54

* Includes Figures Estimated By QSR. Source: Compiled by the author from “The QSR 50 Chicken Segment,” QSR Magazine, 2019, accessed November 2, 2019, https://qsrmagazine.com/content/qsr50-2019-chicken-segment.

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https://qsrmagazine.com/content/qsr50-2019-chicken-segment
http://restfinance.com/Restaurant-Finance-Across-America/April
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ENDNOTES

1 This case was written on the basis of published sources only. The interpretations and perspectives presented in this case may not represent those of Chick-fil-A or any of its employees. 2 Chick-fil-A, “Chick-fil-A Selects Toronto for First International Location,” news release, July 25, 2018, accessed September 27, 2019, https://chick-fil-a.com/stories/news/2018/07/chick-fil-a-selects-toronto-for-first-international-expansion. 3 BBC News Service, “Reading Chick-fil-A outlet to Close in LGBT Rights Row,” BBC News, October 18, 2019, accessed November 1, 2019, https://bbc.com/news/uk-england-berkshire-50094551. 4 Mark Carcasole, “Grand Opening of Toronto Chick-fil-A Generates Both Excitement and Anger,” Global News, September 5, 2019, accessed November 1, 2019, https://globalnews.ca/news/5862272/toronto-opening-chick-fil-a/. 5 Amelia Lucas, “Chick-fil-A Loses Two Airport Deals in Less than Two Weeks,” CNBC, April 2, 2019, accessed November 1, 2019, https://cnbc.com/2019/04/02/chick-fil-a-loses-two-airport-deals-in-less-than-two-weeks.html. 6 Daniel Villarreal, “England’s First Chick-fil-A Shut Down by LGBTQ Protestors Barely a Week after Opening,” LGBTQ Nation, October 18, 2019, accessed November 1, 2019, https://lgbtqnation.com/2019/10/englands-first-chick-fil-shut-lgbtq-protestors- barely-week-opening/. 7 Nora Brazell, “Beginner's Guide to Chick-fil-A,” Chick-fil-A (blog), October 27, 2016, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/General-Beginners-Guide. 8 Ibid. 9 Kate Taylor, “The Incredible Story of How Chick-fil-A Took Over Fast Food,” Business Insider, January 25, 2016, accessed November 1, 2019, https://businessinsider.com/chick-fil-a-history-and-facts-2016-1#cathy-opened-the-first-true-chick-fil-a-at- age-46-in-suburban-atlanta-3. 10 Matt Rosenberg, “Where and What Is the Bible Belt?,” Thoughtco, January 28, 2019, accessed September 28, 2019, https://thoughtco.com/the-bible-belt-1434529. 11 US$1 = US dollar; $1 = CAN $1.3372 on March 2, 2020; All currency amounts are in US$ unless otherwise specified. 12 Kate Taylor, “Chick-fil-A Is Now the 3rd-Largest Restaurant Chain in America, and McDonald's and Starbucks Should Be Terrified,” Business Insider, June 18, 2019, accessed September 27, 2019, http://businessinsider.com/chick-fil-a-third-largest- restaurant-chain-in-america-2019-6. 13 Kim Severson, “Gay Rights Uproar Over Chick-fil-A Widens,” New York Times, July 25, 2012, accessed November 2, 2019, https://nytimes.com/2012/07/26/us/gay-rights-uproar-over-chick-fil-a-widens.html. 14 K. Allan Blume, “‘Guilty as Charged,’ Cathy Says of Chick-fil-A's Stand on Biblical & Family Values,” Baptist Press, July 16, 2012, accessed September 15, 2019, http://bpnews.net/38271/guilty-as-charged-cathy-says-of-chickfilas-stand-on-biblical-and-family-values. 15 Jonathan Maze, “Chick-fil-A’s Gay Marriage Controversy Rises Again,” Restaurant Business, June 12, 2019, accessed September 15, 2019, https:// restaurantbusinessonline.com/financing/chick-fil-gay-marriage-controversy-rises-again. 16 Daniel Villarreal, “Chick-fil-A Has Increased Its Funding of Anti-LGBTQ Groups,” Queerty, March 20, 2019, accessed September 15, 2019, https:// queerty.com/chick-fil-increased-funding-anti-lgbtq-groups-20190320. 17 Human Rights Campaign, “Coming Soon: HRC's New Buying for Workplace Equality Guide,” Human Rights Campaign, 2019, accessed September 15, 2019, https://hrc.org/resources/coming-soon-hrcs-new-buying-for-workplace-equality-guide?orgid=61530. 18 Josh Israel, “Non-Profit Decides That Chick-fil-A’s CEO Should Give Keynote Speech at ‘Equality’ Conference,” ThinkProgress, August 2, 2018, accessed September 15, 2019, https://thinkprogress.org/dan-cathy-chick-fil-a-ceo-keynote- equality-conference-52ae4e51a0af/. 19 Janelle Griffith, “Chick-fil-A Banned from Second Airport in Two Weeks,” NBC News, April 4, 2019, accessed September 15, 2019, https://nbcnews.com/feature/nbc-out/chick-fil-banned-second-airport-two-weeks-n991016. 20 Janelle Griffith, “San Antonio City Council Bans Chick-fil-A from Airport, Citing ‘Legacy of Anti-LGBT Behavior,’” NBC News, March 25, 2019, accessed September 15, 2019, https://nbcnews.com/feature/nbc-out/san-antonio-city-council-bars-chick-fil- airport-citing-alleged-n987191. 21 Veronica Stracqualursi, “Texas House Passes ‘Save Chick-fil-A’ Bill Critics Say Will Discriminate Against LGBTQ Community,” CNN, May 22, 2019, accessed September 12, 2019, https://cnn.com/2019/05/21/politics/texas-house-chick-fil-a-bill/index.html. 22 Ralph R. Ortega, “Kansas University Faculty Wants Chick-fil-A Removed from Campus,” Daily Mail, September 2, 2019, accessed September 28, 2019, https://dailymail.co.uk/news/article-7419825/Kansas-University-faculty-wants-Chick-fil- removed-campus-bastion-bigotry.html. 23 Gaby Del Valle, “Chick-fil-A’s Many Controversies, Explained,” Vox, November 19, 2019, accessed November 2, 2019, https://vox.com/the-goods/2019/5/29/18644354/chick-fil-a-anti-gay-donations-homophobia-dan-cathy. 24 Ibid. 25 Nate Chute, “While Critics Have Advocated for Chick-fil-A Boycott, the Fast-Food Chain Has More Than Doubled Its Sales,” Journal & Courier, September 17, 2019, accessed November 2, 2019, https://jconline.com/story/news/2019/09/17/chickfila- starbucks-mcdonalds-boycott-lgbt-donations-fast-food-restaurant-purdue-university/2301619001/. 26 Kate Taylor, “Chick-fil-A is Dominating the Fast-Food Industry in One Key Area and It Reveals the Secret to the Chain's Success,” Business Insider, July 5, 2019, accessed September 15, 2019, https://businessinsider.com/chick-fil-as-customer- service-explains-success-2018-7. 27 Ibid. 28 Glassdoor, “Chick-fil-A,” accessed November 2, 2019, https://glassdoor.com/Overview/Working-at-Chick-fil-A- EI_IE5873.11,22.htm.

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This document is authorized for use only by haokang zhang in MGT 459-O taught by JOSEPH GANITSKY, University of Miami from Aug 2020 to Feb 2021.

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29 Steven John, “Chick-fil-A is one of the most profitable fast-food chains in the US — here's why they're so successful,” Business Insider, October 13, 2018, accessed March 19, 2020, https://www.businessinsider.com/why-chick-fil-a-is-successful-2018-9. 30 Ibid. 31 Ibid. 32 Ibid. 33 Coleman Wood, “The Original Chicken Sandwich," Chick-fil-A (blog), May 5, 2017, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/Whats-So-Original-About-the-Original-Chick-fil-A-Chicken-Sandwich. 34 Anna Akins, “Five Things You Need to Know about Chick-fil-A Waffle Fries,” Chick-fil-A (blog), June 28, 2019, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/Five-Things-You-Need-to-Know-About-Chick-fil-A-Waffle-Fries. 35 Bernard Hendrix, “Creating a Masterpiece,” Chick-fil-A (blog), June 23, 2015, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/Practice-Makes-Perfect-Creating-the-Original-Chick-fil-A-Chicken-Sandwich. 36 Desiree Fulton, “Peanuts: The Story Behind the Trans-Fat Free Oil,” Chick-fil-A (blog), July 2, 2015, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/Peanuts-The-Story-Behind-the-Trans-Fat-Free-Oil. 37 Anna Akins, “5 Things You Need to Know about Chick-fil-A Grilled Nuggets,” Chick-fil-A (blog), June 29, 2017, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/5-Things-You-Need-to-Know-About-Chick-fil-A-Grilled-Nuggets. 38 Ibid. 39 Katie Richards, “Chicken With a Beef: The Untold Story of Chick-fil-A's Cow Campaign,” Adweek, June 17, 2016, accessed November 2, 2019. https://adweek.com/brand-marketing/chicken-beef-untold-story-chick-fil-cow-campaign-171834/. 40 Bernard Hendrix, “20 Years of Cows,” Chick-fil-A (blog), July 14, 2015, accessed November 2, 2019, https://thechickenwire.chick-fil-a.com/inside-chick-fil-a/20-years-of-cows. 41 Sean Ward, “Why Is There a Chick-fil-A in Mercedes-Benz Stadium?,” Chick-fil-A, December 22, 2017, accessed September 15, 2019, https://thechickenwire.chick-fil-a.com/Inside-Chick-fil-A/Why-Is-There-a-Chick-fil-A-in-Mercedes-Benz-Stadium. 42 Kate Taylor, “Becoming a Chick-fil-A Franchisee Is Almost Impossible,” AOL-Business Insider, January 27, 2016, accessed September 15, 2019, https://aol.com/article/2016/01/27/becoming-a-chick-fil-a-franchisee-is-almost-impossible/21303663/. 43 Kathleen Elkins, “Less Than 1 Percent of People Who Apply Get to Open a Chick-fil-A—Here's What It Takes,” CNBC, December 14, 2018, accessed September 15, 2019, https://cnbc.com/2018/12/14/less-than-1-percent-of-people-who-apply- get-to-open-a-chick-fil-a.html. 44 Ibid. 45 Ibid. 46 Ibid. 47 Javier Munoz, “Your Culture Is Your Co-Founder,” Delivering Happiness (blog), 2019, accessed September 15, 2019, https://blog.deliveringhappiness.com/blog/culture-co-founder. 48 Peter Economy, “Chick-fil-A Founder S. 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This document is authorized for use only by haokang zhang in MGT 459-O taught by JOSEPH GANITSKY, University of Miami from Aug 2020 to Feb 2021.

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