Question

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.

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
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?

Answer 1

Describe the business culture at Chick-fil-A.

Chick fill A's corporate culture is a culture that integrates ethical values such as honesty, dignity and accountability. His corporate culture based on employee satisfaction and consumer satisfaction. We foster the working atmosphere in which workers will be happy and satisfied in their jobs.

To what extent does Chick-fil-A’s culture account for Chick-fil-A’s performance?

Chick Fil A's culture primarily accounts for its success because culture has the universal ideals and values expressed by and displayed by all employees. When workers are pleased with their society, they demonstrate higher efficiency, and Chick's sales are greater than their rivals. Staff get 95% orders to make the restaurant more successful.

How would you grade Chick-fil-A’s triple-bottom-line? Why?

I would award the threefold outcome of Chick Fill A a high rating of excellence as the restaurant focuses on the satisfaction of its staff by supplying them with a sunny day off. The organization also undertakes environmental conservation measures through a reduction in its restaurant carbon footprints.

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?

No, I think it needs to open on Sunday, because that's the difference between it and its rivals. If workers are happy to be able to maintain their working life on Sunday off. Employees are satisfied, then high efficiency and lower waste. It earns more than its rivals like KFC, so this strategy should not be changed.