Chick-fil-A Closes

[VolFaninFla]

Chick-fil-A closing a store in Charlotte region, leaving over 110 people out of work
I have never seen one close. I wonder why this one did.

 

[bleedorange0037]

Chick-fil-A closing a store in Charlotte region, leaving over 110 people out of work
I have never seen one close. I wonder why this one did.

From the article you linked. If I had to guess, it may be the same reason the one at Turkey Creek in Knoxville closed a few years ago only to reopen a new store a few hundred yards down the road…More drive-thru space.

Chick-fil-A Franklin Square will be closing and relocating to Cox Road in Gastonia this summer, according to the Atlanta-based fast-food chain. The franchise will be owned by Nolan Hatley.

The new restaurant site off Interstate 85 is about 1 mile from the Franklin Square store.

Chick-fil-A Franklin Square workers will be paid through their last day of employment and can apply for positions at the new store, the company said in a statement to The Charlotte Observer Thursday.

 

[Thunder Good-Oil]

From the article you linked. If I had to guess, it may be the same reason the one at Turkey Creek in Knoxville closed a few years ago only to reopen a new store a few hundred yards down the road…More drive-thru space.

Kingston Pike by West Hills did the same. It moved about a mile west.

 

[DrRosenRosen]

Kingston Pike by West Hills did the same. It moved about a mile west.

The one further down Kingston Pike towards Turkey Creek was torn down and rebuilt recently. Wonder if they handled that the same way since it was obv out of commission for several months.

 

[Juanita]

Several years ago, CFA closed the store in Kingsport mall. Supposedly bc they were being pressured by mall management to open on Sundays. We still have CFA on Stone Drive, and that place is always packed.

 

[Juanita]

 

[Wireless1]

SInce owners are only allowed one store, if they want to expand they have to rebuild at a bigger or better location.

 

[Dudleys87]

I believe they require at minimum a double drive through now.

 

[cardvolfan]

Several years ago, CFA closed the store in Kingsport mall. Supposedly bc they were being pressured by mall management to open on Sundays. We still have CFA on Stone Drive, and that place is always packed.

I would say that the mall management team wasn’t too bright if they thought CFA would change their corporate philosophy about Sundays.

 

[WestTennesseeVol]

I believe they require at minimum a double drive through now.

Is that for existing ones or just new ones?

The one near us was closed for a few months so they could make it a double drive thru and renovate the inside. Apparently they got a lot of complaints from businesses nearby because cars would line up outside the CFA, down the shopping center entrance and spill into the main road, blocking people coming in for anything other than CFA.

 

[allvol123]

SInce owners are only allowed one store, if they want to expand they have to rebuild at a bigger or better location.

CFA franchising is so outside the norm. If I understand correctly CFA pays for the building. Not sure about an existing operator tearing one down and building right down the street.

 

[05_never_again]

CFA franchising is so outside the norm. If I understand correctly CFA pays for the building. Not sure about an existing operator tearing one down and building right down the street.

They call it franchising, but that is really a misnomer in the case of CFA. CFA owns the building and has full control over the restaurant. The franchisee is basically the manager of the restaurant. A component of their pay is determined by a % of sales, but outside of that they basically are a well-paid, managerial employee. They don't own anything. It is why the "franchise fee" is so low ($10k), because you aren't really a franchisee. You're paying for the privilege of managing the restaurant, a restaurant that is essentially guaranteed to be a money-printing machine.

If you are wanting to get into the franchising business it does not sound particularly rewarding from a financial perspective, especially given the amount of work you have to put in (they make the franchisee physically work at the restaurant most days) but it is also a huge reason why the place is so consistently good.

 

[allvol123]

They call it franchising, but that is really a misnomer in the case of CFA. CFA owns the building and has full control over the restaurant. The franchisee is basically the manager of the restaurant. A component of their pay is determined by a % of sales, but outside of that they basically are a well-paid, managerial employee. They don't own anything. It is why the "franchise fee" is so low ($10k), because you aren't really a franchisee.

If you are wanting to get into the franchising business it does not sound particularly rewarding from a financial perspective, especially given the amount of work you have to put in (they make the franchisee physically work at the restaurant most days) but it is also a huge reason why the place is so consistently good.

I agree. It sounds like they expect you to work your ass off, which isn’t something I am disagreeing with, but when people see the drive thru backed up for 3 miles, the franchisee is not making out like a franchisee at a different corp.

 

[05_never_again]

I agree. It sounds like they expect you to work your ass off, which isn’t something I am disagreeing with, but when people see the drive thru backed up for 3 miles, the franchisee is not making out like a franchisee at a different corp.

Yeah, definitely not. It seems like a very high floor, low ceiling proposition. You have to work incredibly, incredibly hard for that salary. I'd say there are other endeavors that are more rewarding, both from a work and compensation perspective. I absolutely adore CFA, but I wouldn't want to manage a fast-food restaurant for six figures.

Unfortunately, I bet you at some point CFA is going to sell to some outside investor, and one of the first things that investor will change is the restrictiveness of their "franchise" model. They'll let just anybody own one, they'll be on every street corner, and the quality of both the food and service will go downhill. Their franchise model is probably 80% of the reason why they are so successful.

 

[Dudleys87]

Is that for existing ones or just new ones?

The one near us was closed for a few months so they could make it a double drive thru and renovate the inside. Apparently they got a lot of complaints from businesses nearby because cars would line up outside the CFA, down the shopping center entrance and spill into the main road, blocking people coming in for anything other than CFA.

Both as far as I know.
They also want you in a spot for the highest sales according to their business layouts
so that is a factor too

 

[Dudleys87]

They call it franchising, but that is really a misnomer in the case of CFA. CFA owns the building and has full control over the restaurant. The franchisee is basically the manager of the restaurant. A component of their pay is determined by a % of sales, but outside of that they basically are a well-paid, managerial employee. They don't own anything. It is why the "franchise fee" is so low ($10k), because you aren't really a franchisee. You're paying for the privilege of managing the restaurant, a restaurant that is essentially guaranteed to be a money-printing machine.

If you are wanting to get into the franchising business it does not sound particularly rewarding from a financial perspective, especially given the amount of work you have to put in (they make the franchisee physically work at the restaurant most days) but it is also a huge reason why the place is so consistently good.

if the doors are open your expected to be there
You can have no other business ventures
You own nothing
You are required to attend CFA training in ATL for 6-8 months
The profits are slim

 

[Wireless1]

Yeah, definitely not. It seems like a very high floor, low ceiling proposition. You have to work incredibly, incredibly hard for that salary. I'd say there are other endeavors that are more rewarding, both from a work and compensation perspective. I absolutely adore CFA, but I wouldn't want to manage a fast-food restaurant for six figures.

Unfortunately, I bet you at some point CFA is going to sell to some outside investor, and one of the first things that investor will change is the restrictiveness of their "franchise" model. They'll let just anybody own one, they'll be on every street corner, and the quality of both the food and service will go downhill. Their franchise model is probably 80% of the reason why they are so successful.

I doubt the Truit family will sell out for multiple generations much like the Johnson family hasn't/won't because they won't let the lazy/greedy ones near management/ownership in the company

 

[05_never_again]

I doubt the Truit family will sell out for multiple generations much like the Johnson family hasn't/won't because they won't let the lazy/greedy ones near management/ownership in the company

Depends - Truett Cathy left it to his kids who agreed to run it the same way he did, but now the kids aren't spring chickens (no pun intended) themselves. Do Dan and Bubba's kids want to run CFA? I dunno. Hopefully whatever succession plan they have doesn't lead to any big management changes in the business. CFA has an extremely unique way of running their business that an outside investor would come in and immediately upend.

 

[Dudleys87]

Depends - Truett Cathy left it to his kids who agreed to run it the same way he did, but now the kids aren't spring chickens (no pun intended) themselves. Do Dan and Bubba's kids want to run CFA? I dunno. Hopefully whatever succession plan they have doesn't lead to any big management changes in the business. CFA has an extremely unique way of running their business that an outside investor would come in and immediately upend.

Unless they’re a rare breed they’ll dump it for a major profit and live off that.

Hell, look at WWE for example. People already know once Vince kicks the can the company is gone. They’ve already proven it by selling most things to NBC.

 

[05_never_again]

Unless they’re a rare breed they’ll dump it for a major profit and live off that.

Hell, look at WWE for example. People already know once Vince kicks the can the company is gone. They’ve already proven it by selling most things to NBC.

I somehow totally missed this...appears it has stayed within the family. Dan Cathy's son (Truett's grandson) is now the CEO. Announced it late last year.

Chick-Fil-A Leadership Transition Stays All in the Family

 

[Rasputin_Vol]

Several years ago, CFA closed the store in Kingsport mall. Supposedly bc they were being pressured by mall management to open on Sundays. We still have CFA on Stone Drive, and that place is always packed.

I don't see why the mall management would GAF what days they were open as long as they were a paying tenant. Plus, didn't the mall know before they allowed CFA to be a tenant that they closed on Sunday?

I doubt that could be the real reason. Has to be something else.

 

[Rasputin_Vol]

Is that for existing ones or just new ones?

The one near us was closed for a few months so they could make it a double drive thru and renovate the inside. Apparently they got a lot of complaints from businesses nearby because cars would line up outside the CFA, down the shopping center entrance and spill into the main road, blocking people coming in for anything other than CFA.

Tough titties...

 

[Boston Vol]

SInce owners are only allowed one store, if they want to expand they have to rebuild at a bigger or better location.

This isn’t entirely true anymore. They still shy away from letting one person operate more than one location, but they have let it happen some recently. I know a guy here in Lexington who operates two stores. Also know of a guy in the Cincinnati area who operates two and may even get a third.

 

[Boston Vol]

I agree. It sounds like they expect you to work your ass off, which isn’t something I am disagreeing with, but when people see the drive thru backed up for 3 miles, the franchisee is not making out like a franchisee at a different corp.

They’re not, but they’re still making decent money for basically just being a General Manager. Most operators are making more than $100k a year. You’re not getting that kind of salary hardly anywhere for your typical QSR company.

 

[Rasputin_Vol]

They’re not, but they’re still making decent money for basically just being a General Manager. Most operators are making more than $100k a year. You’re not getting that kind of salary hardly anywhere for your typical QSR company.

They gotta make more than $100k/year. I would think closer to $200k. Well put it like this, if they are making in the general range of $100k, they are underpaid.