Food Truck Startup Journal Entry #11 “Book Review: Doing Business the Chick-Fil-A Way by S. Truett Cathy”

Purchase Link — https://www.amazon.com/Eat-Mor-Chikin-Business-Chick-fil/dp/1929619081

5/18/2023 -

Summary in a sentence — The business story of Chick-Fil-A from its inception until 2002 as told by its co-founder (and main leader) S. Truett Cathy.

What is it? — Doing Business the Chick-Fil-A Way (2002) is part memoir, part business case study, and part leadership guide. This book differs from the more prominent sequel How Did You Do It, Truett (2007) which is a broader look that focuses on how S. Truett Cathy’s entrepreneurial journey gives his reader a vision for general success. This book is specifically about the company story of Chick-Fil-A (CFA) as seen through the lens of its founder.

What I learned -

1. The business structure of Chick-Fil-A (CFA) makes it stand out from other fast food chains. Other fast food and fast casual Chains use either a manager or a franchise model. (see journal entry #8 on Chipotle as an example) Chick-Fil-A uses a hybrid model where they call their store owners, “Operators.” Chick-Fil-A owns the national brand however it incentives and empowers Operators to own their own restaurants. It differs from the traditional Franchise model because there is a lower financial cost to buy in ($5,000) and tighter initial restrictions. This highly competitive structure gives the Operator more buy-in than in a traditional fast food establishment where a leader may not be incentivized for a high producing year. The book lays out what this business structure looks like.
2. Cathy’s customer service started at a young age. Cathy shares how his love for entrepreneurship started at a young age. He started as an eight year old with a bad speech impediment selling Coca Cola‘s door to door. He also gives stories to illustrate the importance of customer service on a personal and corporate level.
3. Co-founded with his brother Ben. I have often heard S. Truett referred to as the “co”-founder, however he also seems to be the singular focal point of Chick-Fil-A history. In this book he clarifies by explaining that his brother Ben was killed in a terrible airplane incident many years ago. He also uses the book to explain the many ways family impacted his business decisions.
4. How one early negotiation decision changed the course of Chick-Fil-A History. In this book he explains how he and his brother were trying to become the equivalent of franchise owners in a business called Toddle House. He describes Toddle House restaurants as being similar to a smaller Waffle House or what we would imagine to be a food lunch stand with limited setting. Cathy recalls the owners reneged on an original agreement. Instead of taking the modified agreement, he and Ben decided to launch their own business called the Dwarf Grill (later renamed the Dwarf House) the fast food version that would follow would be CFA.
5. The origins of the CFA Leadership Program. I have often wondered about the racial relations history of business started in Georgia in the 1940s. I was pleased to learn that the current leadership program was started when one of their first hires, an African American named Eddie White was assisted in going to college through patrons of the initial restaurant. “Eddie’s College fund” was the progenitor of many of the subsequent scholarship funds that are still currently offered for teen workers.
6. Initially influenced by McDonald’s. Cathy shared, “…Atlanta was not leading the way in restaurant innovation at the time, so I traveled the country looking at various operations to see what might work best for us. McDonald’s was just getting off the ground nationally, along with several other fast-food restaurant chains. I was fascinated with the self-serve concept. It reduced labor, streamlined operations, and sped up service. The systems could also deliver consistency, which I knew would bring customers again and again.” Today, no one would mistake McDonald’s for Chick-Fil-A, CFA is unique and distinctly different. However, as a new food entrepreneur I am grateful that Cathy was transparent in sharing this. It illustrates both personal humility and how food (and food brands) are never created in a vacuum.
7. 3 Pillars of the CFA restaurant. CFA Operator ED King shared insights given to him by Cathy when he opened his restaurant in 1978. “…focus on three things: my customers, the cleanliness of the restaurant, and the quality of the food.” Great advice for anyone that desires to launch, serve or lead in a restaurant.

How I will seek to apply -

1. Crock pot growth > Hastily overextending the people and resources of his business. It is ironic that CFA is consistently named (by sources like this https://www.khon2.com/news/national/americas-favorite-fast-food-chain-unchanged-for-8th-straight-year/) as the fastest growing fast food restaurant chain. However, Cathy explains how they have a slow and steady strategy. He shares, “In all of my years in the restaurant business, I have tried never to overextend…I’d rather have seventy restaurants operating efficiently and professionally than 500 restaurants where half are run well and the other half not.” I infer that Cathy would rather be the tortoise and not the hare to reference one of Aesop’s most famous fables.
2. Seek to push through despite tough circumstances. One thing that is apparent about reading Cathy’s life story is that he has endured many trials and tribulations. However, his story is a story of perseverance despite enduring hardships, he did not quit.
3. Giving God the glory for any entrepreneurial success. I find it encouraging to read about the success of a Christian entrepreneur. While I don’t personally believe that a business can be a “Christian business” (I am specifically talking about the entity and not the people.) I do think it is refreshing to read about an entrepreneur that is willing to value God and his family above the bottom line. I pray for the grace to be able to have the same conviction and commitment.