Chick-fil-A uses a fairly standard business
model for quick service restaurants.
They franchise their locations and take a percentage of top line sales
as well as a percentage of bottom line profits.
Their value proposition versus other quick service restaurants is in
their high levels of service and focus on quality over low costs. Their price point is much higher than the
typical competitor but people will pay it because of brand loyalty developed by
quality service and high quality products.
While many quick services restaurants have implement the use of new
technologies, the distribution and delivery of their product is still primarily
through physical locations and face-to-face ordering. Chick-fil-A is looking to increase the ease
of ordering and picking up of food with a new application for mobile devices
that will allow customers to order and pay before arriving at the restaurant
through their mobile devices. This has
not yet been implemented but will be coming in the near future. While Chick-fil-A has not changed their basic
franchise location business model, they are looking to implement new technology
to engages customers and reduce costs.
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