Chick-Fil-A is to be the newest American fast-food chain wanting a piece of the international pie.
As the rise of chicken sandwich-based restaurants has exploded within the United States, Chick-Fil-A, the most profitable chain, hopes to branch out with a multi-billion-dollar expansion into Europe and Asia. There are over 2,400 locations within the United States and only a limited portion of international locations. Upper management believes that heavy expansion is the next step for the brand’s future. Their goal is to expand into at least five international markets by 2030. Over the last decade, they have become the third most popular fast-food chain domestically within the United States, only behind McDonald’s and Starbucks. With a global expansion, they will finally be able to compete overseas for market share.
What makes CFA’s expansion different from other American fast-food chains is the timing of its expansion. Many of their competitors have become well-established brands in the markets they wish to branch into. Regarding direct competitors, KFC has become a household name in almost every country in Western Europe and Asia, and McDonald’s has their own fried chicken that competes against the Colonel. While in recent years, the American public has seen Chick-Fil-A as something with a much higher rank taste than KFC, internationally, KFC has been famous for the high quality that even caused them to be popular on certain occasions as Christmas in Japan. Chick-Fil-A would have to work hard to make sure that they are different, not just a fried chicken sandwich, but the fried chicken sandwich.
Another factor that has been questioned is Chick-Fil-A’s relationship with the LGBT community. While they have expanded over the decade, they have also had their fair share of controversy. In 2012, the company donated 5 million dollars to anti-LGBT organizations, and it has been a frequently discussed topic when the company is spoken about. Since then, they have made strides to change their image of how they were perceived, but many questions if it is enough, especially for expanding into Europe. Chick-Fil-A will have to ask themselves how to market to consumers that they are different so that they can open internationally without issues. With LGBT rights being much more prominent in Europe, CFA would already be entering a bad reputation. They may need help finding distributors willing to put their reputation on the line. Luckily, with proper communication, public relations, and an overall memorable product, they can overcome this and succeed under a new reputation.
As mentioned, the supply chain in foreign markets is something Chick-Fil-A will have to work hard to catch up with competitors without issue. Because of this, they have already failed once with expansion into the UK in the early 2000s. Famous brands in the United States, such as In-n-out, have been a success not just because of their product but because of their efficient supply chain as well. As CFA expands overseas, it will have to work well with local suppliers to build, establish, and maintain its supply chain network to have the most efficient product for its business.
Sources:
https://www.restaurantbusinessonline.com/financing/largest-chicken-chains-us