How much does a chick fil a make a day

Closed one day a week might not seem like a lot to your average person, but if you’re one of the biggest and most popular fast-food chains…it tends to add up.

Just last year, Chick-Fil-A earned more than $10 billion in sales across the United States, even though all of its locations are closed every single Sunday.

One analyst told Business Insider that while McDonald’s does not disclose hard traffic numbers for day-to-day operations, there is a significant amount of evidence that estimates about 15% of annual sales are taken in just on Sundays.

“Closing our business on Sunday, the Lord’s Day, is our way of honoring God and showing our loyalty to Him,” the founder, Truett Cathy, wrote in his book Eat Mor Chikin: Inspire More People.

“My brother Ben and I closed our first restaurant on the first Sunday after we opened in 1946, and my children have committed to closing our restaurants on Sundays long after I’m gone. I believe God honors our decision and sets before us unexpected opportunities to do greater work for Him because of our loyalty.”

For this massive restaurant chain, the cost of being closed just one day of each week totals to be more than $19,230,769 – each Sunday.

This means that every single year, Chick-fil-A takes a loss of more than $1 billion from the closures.

But, there’s a very specific reason this is paying off – big time – for the fast-food chain…

Maintaining their family-focused values and keeping true to their mission is something that boosts the brand’s reputation and keeps people coming back. Especially those who share the same values.

As author Adam Chandler told Business Insider: “If there’s one thing that everybody knows about Chick-fil-A, it is that it is closed on Sundays.”

President of Franchise Times, John Hamburger, says that “being open six days a week provides benefits to both operators and the customers…the owner-operator gets the time off. ‘Closed on Sunday’ conveys a sense of caring and community to the customers.” 

For patrons, just knowing that they won’t be able to get their craving satisfied on a Sunday pushes them to make sure they visit during the week – which, in turn, increases sales.

Check out this video below about their Sunday closures and let us know what you think of Chick-fil-A losing $1 billion being closed one day a week! 

And How Much Does a Chick-fil-A Franchise Make? 

There is  a lot that Chick-fil-A has done right.  Earnings per store or AUV's (average unit volumes) are at the top of the QSR50 at 4.4 million. To put  that into perspective the average unit volume of a Subway store is a paltry  $422,000.  So average Chick-fil-A locations earn literally 10 times what an average Subway earns!  For those of you who follow our channel you know I am not a fan of  Subway, but if I had to choose between the two I would invest in a Subway before Chick-fil-A even despite the earnings. I'll reveal why  in a moment.

Chick-fil-A also has a very low  franchisee dropout rate at less than 5% and many operators are with the company for 20 years or more. Employee turnover is also low at only 60% compared to typical food industry attrition rate of over 100%.  Chick-fil-A really seems to take excellent care of their employees and provides incentive programs for hard  workers that show initiative to move up the ladder. Considering how  effective this is it's surprising how few other companies offer this.

Chick-fil-A has just over 2000  restaurants and every one of them closes on Sundays. Despite having one less day to sell, Chick-fil-A has higher total revenues than many  franchises open Sundays and having double the locations.  

The corporate  office doesn't hide the  fact they are a Christian organization that  believes in traditional  marriage and family values. They recently received some  negative feedback  for opposing  same sex marriages and sending millions to  organizations that lobby  against it.

Chick-fil-A was  actually started as the Dwarf Grill in 1946 and opened by S. Truett  Cathy. The  first Chick-fil-A opened in 1967 and the organization has a long history  and  extensive experience in franchising.

So  at face value for many  people we have the American Dream! -  Christian values, closed on  Sundays , 4 million dollars annual volumes  per store, happy employees, low franchisee turnover AND did we  mention a super low franchise fee  of only $10,000!  Admittedly for many owners Chick-fil-A franchise is a dream come true. 

 However the business model is not for everyone and we'll explain why.   It should be noted that conspicuously absent from the Chick-fil-A owner lists are investor groups, single  investors, brokers, sports celebrities or anyone looking  to build a franchise empire. Why is that?

Let's look at those Top 6 reasons you may not want to buy a Chick-fil-A:

1.You absolutely need to be at the store and run the store. The store becomes your life. One of the benefits of franchising is the  ability to eventually or even initially operate your store in a passive or absentee capacity, meaning it will still operate and generate revenue while you are doing other things. Some franchises are better at this than others  but being able to have your business operate while you run other  businesses, work a career, travel or whatever else is a major benefit  of franchising.  Business models like Chick-fil-A where franchisees are required  to work in the store are considered by many as "buying a job" as opposed to actually owning a business.  You are expected to work in the business rather than on the business. 

2. You are not allowed to operate multi units or any other businesses. Recently we uploaded a video featuring a young college student and already owns and operates 3 franchises between classes and after school. We see many people building  franchise empires either through multi-units or master  franchising. With Chick-fil-A you can not own multi units. We have  heard there are a few operators in the system that own a couple of  stores but apparently franchisees need to be an owner for over 10 years and have your  store in the top 1/3 to be considered. That's a slow empire!

3. You own nothing and build no equity. This one is huge. In a typical franchise arrangement after you have spent  years working hard and building up a business when it's time to retire or  move on you can typically sell that business or pass it on to your family. Successful franchises can be worth millions. In the case of  Chick-fil-A however you own nothing and because you have no equity in  the business you have nothing to sell. Ownership is always retained by  corporate - not you. So are you really an owner? Its interesting that on Chick-fil-A's own website they they don't refer to franchisees as owners but as "operators" - and many states have tried to have Chick-fil-A re-classify operators as employees not franchise owners and  therefore entitled to employee benefits.

4. Chick-fil-A tells you where you will open the store. If you are not prepared to move to where the next store is slated to open you will likely wait a long time.

5. Low earnings. Now Chick-fil-A is quite secretive regarding their facts and figures so  information is difficult to come by, but it appears that the general consensus is that owners receive between 5%-7% of the gross. So let's put  that in perspective at 5% if your store does 1 million you would receive $50,000,  2 million you receive $100,000, at 3 million $150,000 and at 4 million you  would receive $200,000. So that would put the average store owner Chick-fil-A  earnings at $200,000 per year at 5% and $240,000 per year at 6%. Now a  quarter million a year is a pretty good salary, but from a franchise  ownership perspective only receiving 6% of the gross is quite low.

6. Your chances are virtually zero to ever get one. Now again numbers are hard to come by but from what we have heard  Chick-fil-A receives about 20,000-50,000 applications per year, and  awards only 60-100 locations. So the chances of you ever actually getting one, (even if you are a Christian family man who agrees to abide by their  corporate prayer policy) are slim to none. If you don't have  solid references, verifiable family history, roots in the community and strong moral values - slim to none. 

Depending on your perception there are two ways to look at the situation. One, that the company is giving hard working, strong valued  people an opportunity to earn pretty darn good money and live a solid Christian valued lifestyle!  As we initially stated they do have a lot of great things going for them.  Another way to view it is that Chick-fil-A is using hard working folks, retaining the majority of the store earnings and disallowing expansion or growth by owning other businesses or more locations. But let's be honest - would each store be so successful if owners were focusing on other businesses? Unlikely.  Based on their success it would appear Chick-fil-A has made all the right decisions.  Also, the majority of Chick-Fil-A franchise owners love what they do, and are very happy with their decision.  And kudos to them for making the cut and working in a business they enjoy. 

There is no right answer to the question:  "What is the best franchise?" Depending on your goals, dreams, budget, objectives and even religious views Chick-fil-A could be a terrible choice or the greatest franchise opportunity out there.   We don't make the decisions we just give you the facts.  If you think you would make a great Chick-Fil-A franchise owner you can apply here:  https://www.chick-fil-a.com/franchising/franchise  if you need help finding a franchise click below. Thanks for visiting!

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