Are you in the Product Business, or the People Business?

Last week, a couple of our warehouse team members headed out to Chick-fil-A for lunch. To get there, they must have passed twenty other options that could have provided a quick bite to eat. Upon their return, a coworker commented, “You went all that way for chicken? KFC’s much closer”

It reminded us of what a great business example Chick-fil-A is. Prior to his death in 2014, Chick-fil-A founder S. Truett Cathy regularly reminded store operators that they weren’t in the chicken business; they were in the people business and just happened to sell chicken.

Today if you visit any of the company’s 2,300 restaurants, it’s very apparent that ethos remains core to the company’s mission. Customers, known as “raving fans,” champion the food, but it is the company’s consistently superior service that makes them such a shining star in a highly competitive marketplace.

A deeper look into Chick-fil-A doesn’t reveal any complex proprietary business practices. As a matter of fact, the Chick-fil-A “secret sauce” is a relatively basic concept. It’s saying “Please” and “Thank You”.

According to QSR magazine’s annual drive-thru reports, Chick-fil-A is statistically the most polite chain in the restaurant business. Employees at Chick-fil-A were the most likely of 15 chains surveyed to say "please" and "thank you," and to smile at drive-thru customers. Chick-fil-A workers were also recognized for having a "pleasant demeanor."

It seems hard to believe. Can words and phrases really set you apart in a multi-billion dollar business? As we’ve said before, the stats don’t lie!

Chick-fil-A generates more revenue per restaurant than any other fast-food chain in the US. The chain's average sales per restaurant reached nearly $4 million in 2015. Conversely, the average KFC sold $1 million.

So, what’s the key? According to industry analysts, superior customer service is the reason for Chick-fil-A's success, driving higher sales per unit, which contributes to the chain's ability to generate greater revenue than chains such as KFC, Pizza Hut, and Domino's who have at least twice as many more US locations.

Of course, excellent service doesn’t just magically appear. It’s a dedicated approach to training and supervision that produces the desired result. Consequently, Chick-fil-A realizes 400% more revenue per location than KFC, in 85% of the time (Chick-fil-A closes Sundays).

As our warehouse team members already knew, you can either sell a product, or sell yourself. Superior service will always set you apart, and more than likely keep your customers coming back for more! Such a simple concept can really impact your bottom line.