Chick-fil-A to Shift 400 Locations to Owner-Operator Model NOW

URGENT UPDATE: Chick-fil-A has just announced a sweeping transformation affecting 400 locations across the United States. The fast-food chain is shifting its business model from a licensed format to an owner-operator model, a move that promises to enhance the customer experience at these restaurants.

This major switch, confirmed on Wednesday, will take place over the next several years as the chain steps away from its non-traditional restaurant model, which includes locations in venues like colleges, airports, and healthcare facilities. These adjustments aim to improve profitability and customer engagement.

Currently, Chick-fil-A’s licensed locations have been generating an average of $1.4 million in annual sales, significantly lower than the standard owner-operated restaurants, which boast sales exceeding $9 million per year. The non-traditional spots, while popular, typically offer a reduced menu and serve fewer customers, making them less lucrative for the company.

Notably, airport Chick-fil-A locations will remain unchanged during this transition, allowing travelers to continue enjoying their favorite meals. However, for the remaining locations making the switch, customers can expect a range of improvements. The new owner-operator model will enable patrons to utilize the Chick-fil-A app and loyalty program, streamlining the ordering process and enhancing the overall experience.

“We are excited about this next chapter and believe our local ownership business model will allow us to serve and care for guests and extend the great food and hospitality of Chick-fil-A in more places, for many years to come,”

the company stated, emphasizing the positive impact of this transition on customer service.

Chick-fil-A’s decision is driven by a need to ramp up sales, as the non-traditional locations have proven less profitable. The average unit volume figures reflect this trend, with non-traditional restaurants in airports and hospitals generating around $3.5 million annually—still far below the standard locations.

As of the end of last year, Chick-fil-A operated 425 licensed units nationwide, with the majority—312 units—located on college campuses, and another 97 locations in airports and healthcare facilities. In contrast, the chain boasts over 2,600 traditional franchises throughout the U.S.

In a related move, Chick-fil-A is also testing out “America’s favorite breakfast combo,” marking another exciting development for the brand as it adapts to consumer preferences.

This transition represents a significant moment for Chick-fil-A and its loyal customers. As the company continues to evolve, keep an eye on upcoming changes and how they will shape the fast-food landscape. With this urgent shift, Chick-fil-A aims to enhance its brand and customer loyalty for years to come.