Every investor aims to earn a high profit and get a return from their business. The franchise business is one of the safest and easiest ways of earning profit.
However, thousands of companies are offering franchises, some have the potential to earn the highest profit, and some don’t make as much profit as you expect.
Profitability depends on different factors like brand, marketing strategies, investment, and so on.
So, analyzing the factors is most important before investing in a franchise.
In this article, we will examine how much a Chick-fil-A franchise owner makes and whether owning the Chick-fil-A franchise is profitable.
About Chick-Fil-A
Chick-fil-A is a family restaurant known for its delicious chicken. It is the nation’s largest chicken chain.
They use 100% whole breast meat with no added fillers or hormones. They have different business strategies and always focus on a small menu and on customer service.
Originally, Chick-fil-A was founded in 1946 by Truett Cathy as “The Dwarf Grill .” However, in 1967, it was renamed “Chick-Fil-A .”
Today, it is a privately held and family-owned restaurant with over 1565 outlets in the USA. They offer franchises solid principles when it comes to menu innovation and catering.
How Much Does A Chick-fil-A Franchise Owner Make A Year?
A Chick-fil-A franchise owner generates $8,072,000in sales on average.
So, if we assume a profit margin of 15% on average, then we can find out that a Chick-fil-A franchise owner makes$795,000in net profits on average.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 5300000.00 |
| Rent | 10.63% | (563125.00) |
| Insurance | 5.31% | (281562.50) |
| Salaries | 21.25% | (1126250.00) |
| Franchise Royalty Fees | 5.31% | (281562.50) |
| Utilities | 2.13% | (112625.00) |
| Cost of Goods Sold (COGS) | 26.56% | (1407812.50) |
| Labor (Variable) | 13.81% | (732062.50) |
| Total (Expenses) | 85.00% | (4505000.00) |
| Net Profit | 15.00% | 795000.00 |
Note:The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
How much does an individual Chick-fil-A owner make per day? On average, an individual Chick-fil-A owner can make approximately $14,520 in sales & $726 per day in profit.
How much does an individual Chick-fil-A owner make per month? On average, an individual Chick-fil-A owner can make approximately $441,667 in sales & $22,083 per month in profit.
The company overall has $10 billion in annual system-wide sales. This calculation is based on the average restaurant’s earnings and the percent gross that operators take which is 50% of store profit.
What is the Chick-fil-A revenue Per Store?
Chick-fil-A generates impressive annual revenue per store of $8 million, which translates to a daily revenue of $21,917.
These figures highlight the consistent success and profitability of Chick-fil-A’s operations. The monthly sales amount to $657,510.
Interested In Chick-Fil-A Franchise?
What is Chick-fil-A best known for?
Chick-fil-A restaurant is known for its exceptional chicken sandwiches. Moreover, its menu includes a variety of chicken cuisine, fries, sandwiches, beverages, etc.
The most popular items at Chick-fil-A are the following:
- Chicken Nuggets
- Cobb Salad
- Grilled Chicken Nuggets
- Market Salad
- Waffle Fries
- Chick-n-Strips
- Spicy Southwest Salad
All the items are most demanded and loved by customers. Additionally, Chick-fil-A is also known for its best pleasant dining experience, great taste, reliable quality, low price point, and progressive attitude towards nutrition and animal welfare.
Pros And Cons Of Chick-fil-A Franchise
Pros of Chick-fil-A Franchise
- Chick-fil-A is the lowest-cost franchise
- Have solid principles and many of the logistics are taken care of for you.
- Never comprise with the quality of food
- Prior training program for the all-new franchise
Cons of Chick-fil-A Franchise
- Remain closed on Sunday, Christmas Day, and holidays which affects the sales.
- Has a long selection process for franchise
- Not allowed to operate multi-units
Chick-fil-A Franchise Failure Rate
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 2085 | 2160 | +75 |
| 2021 | 2152 | 2242 | +90 |
| 2022 | 2230 | 2339 | +109 |
For theFranchisedoutlets:
- In 2020, the growth rate was (75)/2085×100≈3.59%
- In 2021, the growth rate was (90)/21524×100≈4.18%
- In 2022, the growth rate was (109)/2230×100≈4.88%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 26 | 49 | +23 |
| 2021 | 57 | 69 | +12 |
| 2022 | 81 | 72 | -9 |
For theCompany-Ownedoutlets:
- In 2020, the growth rate was (23)/26×100≈88.46%
- In 2021, the growth rate was (12)/57×100≈21.05%
- In 2022, the failure rate was (9)/81×100≈11.11%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 2111 | 2209 | +98 |
| 2021 | 2209 | 2311 | +102 |
| 2022 | 2311 | 2411 | +100 |
ForTotaloutlets:
- In 2020, the growth rate was (98)/2111×100≈4.64%
- In 2021, the growth rate was (102)/2209×100≈4.61%
- In 2022, the growth rate was (100)/2311×100≈4.32%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Chick-fil-A grew from 2020 to 2022, showing a growth rate between 3.59% and 4.88%.
On the other hand, for company-owned outlets, the number of outlets started declining in 2022 showing a failure rate of 11.11%. However, in the previous years i.e 2020 and 2021, the growth rate was lying in the range between 88.46% and 21.05%
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Chick-fil-A franchise has expanded in the years 2020-2022 showing a total growth rate between 4.64% and 4.32%.
Chick-fil-A franchise owners benefit from the fact that the business has a low failure rate.
The franchise retention rate is equally impressive; over 96% of Chick-fil-A franchises have been operating for at least 50 years.
This is an acknowledgment of how successful and profitable owning a Chick-fil-A franchise can be, as well as a testament to how well-supported and valued each owner is by the company.
Owning a Chick-fil-A franchise requires significant investment and commitment, but this comes with considerable rewards.
With a low failure rate and high retention rate, aspiring franchisees considering opening a Chick-fil-A restaurant can feel confident in their ability to make it a long-term success.
Chick-fil-A Franchise Payback Period
| Investment (Approximate) | Average Annual Sales | EBITDA | Annual Net Profit | Payback Period |
|---|---|---|---|---|
| $1,363,510 | $8,072,000 | 15% | $810,000 | 1.68 years |
The payback period of owning a Chick-fil-A franchise is relatively short. The average investment to open a Chick-fil-A franchise is around $1,363,510.
After taking into account the cost of rent, wages, and other expenses, the average annual net profit for a Chick-fil-A franchise is approximately 15%.
Using these figures, we can calculate the payback period of a Chick-fil-A franchise using the formula:
Payback period = Investment / Average annual net profit
Payback Period = $1,363,510 / $810000 = 1.68 Years
Anything below two years is a reasonable payback period for any franchise, making Chick-fil-A an attractive option for aspiring franchisees looking to make a return on their investment.
Chick-Fil-A Might Be The Hardest Franchise To Get
Chick-fil-A is one of the most popular fast-food chains in the United States, with a consistently growing customer base and many loyal fans.
While this may make it seem like a desirable franchise to own, aspiring owners should be aware that it is actually very difficult to get accepted into the Chick-fil-A franchise program.
Each year, the company receives more than 40,000 applications from potential franchisees hoping to open their own Chick-fil-A restaurant.
However, they only accept between 100 and 115 applicants each year – making the acceptance rate less than 0.25%.
This means that getting accepted into the company’s franchising program is significantly harder than getting accepted into Harvard University!
To become a Chick-fil-A franchisee, applicants must first fill out an initial “expression of interest” form online.
If selected, they will then complete a formal written application before being invited for recorded video and in-person interviews.
This rigorous process allows Chick-fil-A to select only those committed and able to provide the highest quality customer service possible.
The standards for owning a Chick-fil-A franchise are so high that some have even compared them to joining an exclusive club or fraternity.
Many aspiring owners simply do not have what it takes to meet all of these requirements and therefore fail in their attempt at ownership.
Facts About Chick-Fil-A
Now that you have a better understanding of how much a Chick-fil-A franchise owner makes and the challenging process of becoming one let’s take a look at some of the other facts about Chick-fil-A.
● Chick-fil-A is the largest quick-service chicken restaurant chain in the United States, with over 2,600 locations across 47 states and Washington, DC.
● The chain achieved its first billion dollars in sales in 2000.
● All Chick-fil-A restaurants are closed on Sundays to give employees time for rest and worship.
● The company’s signature menu item is the original chicken sandwich which consists of breaded chicken breast served on a buttered bun with two pickles.
● The name “Chick-fil-A” is a combination of the words “chicken” and “filet” since the company specializes in chicken filet sandwiches.
● The chain is known for its exceptional customer service, with employees trained to say phrases like “my pleasure” rather than just “you’re welcome” to make customers feel appreciated.
● Chick-fil-A’s mascot is a cow, and the company encourages customers to “Eat Mor Chikin” as part of its advertising campaign.
● Since 2005, Chick-fil-A has been celebrating Cow Appreciation Day second Tuesday of July, where customers can get free food if they dress up as a cow.
● In 2018, Chick-fil-A became the first fast food restaurant to sell meal kits that could be prepared at home, containing all necessary ingredients, including premeasured sauces and dressings.
Franchise Statistics
Chick-fil-A is one of the largest quick-service chicken restaurant chains in the United States, with over 2,600 locations across 47 states and Washington, DC. The chain achieved its first billion dollars in sales in 2000 and has continued to grow year on year ever since.
According to a 2022 report by Zippia, Chick-fil-A ranks as the seventh largest U.S. fast food chain based on U.S. system-wide sales.
It is currently reported that there are over 2,600 operational stores for the franchise across America and over 300 company-owned locations.
This represents a total number of over 2,900 operational Chick-fil-A stores across all states, including Washington, D.C., as of 2023.
In terms of closures within the Chick-fil-A franchise system in the past few years, there have been very few.
The only notable closure in 2021 was the closing of a nearly 50-year-old Chick-fil-A store at Brookwood Village Mall in Birmingham, Alabama, due to COVID and other reasons.
In June 2022, Chick-fil-A Franklin Square, which was the only Chick-fil-A location in the city, closed its doors, but this was replaced by a new store on Cox Road.
Chick-fil-A’s franchise retention rate has been over 96% for at least 50 years, so not many stores have had to close due to the high standards and rigorous selection process that owners go through before they can become Chick-fil-A franchise owners.
Is Chick-fil-A franchise Profitable?
Based on the average annual sales figure provided for non-mall units, it is evident that Chick-fil-A franchises can be highly profitable.
With estimated annual sales of $8,072,000 and a 15% net income – The payback period is 1.68 years on average.
Well, as we discussed, profitability depends on different factors. And the most important factor of profitability is investment.
The investment is always proportional to profit. Chick-fil-A franchise is the lowest-cost franchise but still has the potential to make the highest profit because of its brand recognition.
In the past year, Chick-fil-A made its goodwill in the fast-food industry, and customers always appreciate its services.
So, brand-building also plays a vital role in profitability. Chick-fil-A’s average revenue is the highest of any fast-food chain in the USA. It generates $4.2 million per store including all units.
Interested In Chick-Fil-A Franchise?
Wrap Up
Chick-fil-A offers a lucrative franchise with its intense beliefs and values. But it has a rigorous application and interview process.
To open a franchise, you will have to go through approximately 12 interviews or more. They will drop you if you don’t meet their criteria.
And if you are selected as a franchisee, Chick-fil-A is going to have a tight grip on your lifestyle.
Despite this, the Chick-fil-A franchise has the potential to earn high profits at the lowest cost.
Many companies charge higher franchise fees, and half of the franchise profit goes as a franchise fee.
So, select wisely before investing in any franchise. Read all the perspectives; it will help you to make the right decision.
Frequently Asked Question
What is the initial investment required to open a Chick-Fil-A franchise?
Opening a Chick-fil-A franchise requires an initial investment of $10,000
What is the average revenue of a Chick-Fil-A?
A Chick-fil-A may expect to make roughly $200,000 annually as of 2022.
Who can be eligible for Chick-Fil-A Franchise?
The licensing opportunities are available to licensed food service providers and self-operated food service providers. Individuals are not eligible for licensing opportunities.
What is the Chick Fil A Franchise Operator Profit Split?
Chick-fil-A operates under a unique franchise model that involves a profit split between the franchise operator and the brand. While the specific details may vary, historically, Chick-fil-A’s profit split arrangement has involved operators retaining 50% of the net profit, with the remaining 50% going to the brand.
This means that if you become a Chick-fil-A operator and your restaurant generates a net profit of, let’s say, $100,000, you would keep $50,000, and the other $50,000 would go to Chick-fil-A.
Where is Chick-Fil-A headquartered?
The headquarters of Chick-fil-A is located in College Park, Georgia.
How many locations does Chick-Fil-A has?
Chick-fil-A operates in 2,987 restaurants across 48 states. The company has its operations in Canada.
Who is the owner of Chick-Fil-A?
The owner of Chick-fil-A is S. Truett Cathy, who founded the company in 1946.
He passed away in 2014, but his family still runs the business today under the same principles that Truett established decades ago: excellent food and genuine hospitality.
Amit Gupta
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.
I am Amit Gupta, a seasoned expert in digital marketing and co-founder of DrFranchises. With over 11 years of experience in franchise digital marketing, SEO, email marketing, and social media marketing, I have been instrumental in guiding numerous brands toward online success. My expertise extends to franchise models, analyzing costs, revenue, and profitability to facilitate profitable growth for brands. As a passionate entrepreneur and owner of seven franchises, my practical experience aligns with my in-depth knowledge of the industry.
Now, delving into the concepts presented in the provided article:
-
Chick-fil-A Overview:
- Chick-fil-A is a privately held, family-owned restaurant known for its delicious chicken.
- Founded in 1946 as "The Dwarf Grill" by Truett Cathy, it was renamed Chick-fil-A in 1967.
- Focuses on a small menu, customer service, and uses 100% whole breast meat with no added fillers or hormones.
- Currently, Chick-fil-A has over 1,565 outlets in the USA.
-
Chick-fil-A Franchise Profitability:
- A Chick-fil-A franchise owner generates an average of $8,072,000 in sales, with a 15% profit margin.
- This results in an average net profit of $795,000 per year.
- Monthly, an owner can make approximately $22,083 in profit, and daily, around $726.
-
Chick-fil-A Revenue Statistics:
- Chick-fil-A generates impressive annual revenue per store of $8 million, translating to a daily revenue of $21,917.
- The company's overall annual system-wide sales reach $10 billion.
-
Chick-fil-A Franchise Pros and Cons:
- Pros include being a low-cost franchise, solid principles, quality food, and a pre-training program.
- Cons involve closures on Sundays and holidays, a lengthy franchise selection process, and restrictions on operating multi-units.
-
Chick-fil-A Franchise Growth and Failure Rates:
- Franchised outlets show consistent growth rates between 3.59% and 4.88% from 2020 to 2022.
- Company-owned outlets experienced a decline in 2022 with a failure rate of 11.11%.
- The overall growth rate for Chick-fil-A franchises from 2020 to 2022 is between 4.32% and 4.64%.
-
Chick-fil-A Franchise Payback Period:
- The payback period for a Chick-fil-A franchise is 1.68 years, indicating a relatively short time for return on investment.
-
Chick-fil-A Franchise Acceptance Difficulty:
- Chick-fil-A has a highly competitive franchise acceptance process, accepting only 100 to 115 applicants from over 40,000 applications annually.
- The acceptance rate is less than 0.25%, making it more challenging than getting into Harvard University.
-
Facts About Chick-Fil-A:
- Chick-fil-A is the largest quick-service chicken restaurant chain in the U.S., with over 2,600 locations.
- Achieved its first billion dollars in sales in 2000.
- All Chick-fil-A restaurants are closed on Sundays.
- Known for its exceptional customer service, signature chicken sandwich, and advertising campaign featuring cows.
- Chick-fil-A was the first fast-food restaurant to sell meal kits in 2018.
In conclusion, the Chick-fil-A franchise demonstrates high profitability, rigorous acceptance criteria, and a history of consistent growth, making it an attractive option for potential franchisees who are willing to meet its standards.
