Chicken Restaurant Ethics as applied to Chick-Fil-A

see mini-case at end of chapter 10 in ed 17.

Press Esc | to exit full screen Chapter 10 Business ethics, environment sustainability, and corporate social responsibility or ESG WHAT COMPANY HAS THE MOST ETHICAL BUSINESS CULTURE? The answer is Chick-fil-a. Headquartered in Atlanta, Georgia. Chick-fil-a is a privately-held company that prides itself on demonstrating high business ethics, anchored by being closed on Sundays to spend time with family and friends. Despite being closed one-seventh of the time, Chick-fil-a has surpassed Kentucky Fried Chicken (KFC) as the largest chicken quick-service restaurant (QSR) in the United States by revenue. This is shocking because there are only about 2,200 Chick-fil-a's in the nation, compared to KFC's 4,500. Total annual revenues for Chick-fil-a are about $5 billion. Chick-fil-a CLOSED SUNDAY Each Chick-fil-a restaurant averages more than $4.4 million in annual sales, more than three times KFC's average at $1 million. In fact, Chick-fil-a's average sales per restaurant is highest of all restaurants in the United States, with the number two chain being Whataburger, which generates $2.7 million per restaurant, a mere 61 percent of Chick-Fil-A. In terms of direct chicken restaurant rival firms, Chick-fil-a dominates in annual per-restaurant sales, toppling direct competitors Zaxby's ($2.3 million), El Pollo Loco ($1.9 million), Bojangles' ($1.8 million), Popeyes ($1.4 million), Boston Market ($1.4 million), and Wingstop ($1.1 million). About 65 percent of Check-fil-A's business is through its drive-thru where employees stand outside the restaurant taking orders on tablets. Research shows that Chick-fil-a employees say "thank you" 97 percent of the time; customers report that employees have a pleasant demeanor and smile in 9 out of 10 visits. The company's employee retention rate is exceptionally high. Chick-fil-a has the second- highest rate of accuracy at the drive-thru of all restaurants, getting orders right 95 percent of the time, second only to Carl's Jr.'s accuracy rate of 97 percent, in a recent study. The only aspect of business where Chick-fil-a does not rank highly is in speed of service. The average wait time at Chick-fil-a's drive thru is 4 minutes and 16 seconds, which is about 31 seconds longer than the average drive-thru wait time. But all in all, Chick-fil-a is an exemplary triple-bottomline company Questions relating to chapter 10 1. Describe the business culture at Chick-fil-a. 2. To what extent does Chick-fil-a's culture account for Chick-fil-a's performance? 3. How would you grade Chick-fil-a's triple-bottom-line? Why? 4. Should Chick-fil-a change its policy and be open on Sundays since all its major rivals are open on Sunday? Why or why not