Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire

Last updated: Jun 18, 2023

The video discusses the 7 secrets behind Chick-fil-A's $50 billion empire and the lessons that can be learned from their business model.

This video by Alex Hormozi was published on Jan 18, 2023.
Video length: 12:30.

In this video, Alex Hormozi discusses the seven secrets behind Chick-fil-A's success and how they have become a $50 billion empire.

He highlights the importance of having a singular focus on core products, not taking on too much debt, having a mission-driven approach, and saying no to things that detract from values. He also discusses the wisdom in not letting anyone have more than one store and the power of having uncapped earning potential for employees.

Overall, he believes that there are valuable lessons that all businesses can learn from Chick-fil-A's approach to running a successful business.

  • Chick-fil-A makes more money than McDonald's, Starbucks, and Subway combined.
  • They have never had a down year in sales for 76 straight years.
  • They sell one quarter the amount of items of any other franchise.
  • Their royalty alone is 15% of Top Line, meaning their stores are running 20-30 plus percent margins in brick and mortar food.
  • They get 60,000 applications a year and only award less than one percent of those people a store.
  • They have a controversial social setting that would never work in a publicly traded corporate company that has to massage its PR.
  • Having singular focus on the core products and not getting cute and not getting fancy and not having 49 menu items.
  • Being better gives you leverage, meaning the same input gets you more output.
  • Having a long-term mindset and not taking on debt and not trying to grow faster.
  • Having a mission, not being a mercenary.
  • Not letting anyone have more than one store to ensure focus and dedication.
  • They are closed on Sundays.
  • They have profit check, which allows franchise owners to make more money.
  • They keep earning potential uncapped for franchise owners.
  • They say no to things that are obviously going to make them money but will detract from their values.
  • They have a way for people to come in mopping floors, flipping burgers, and going all the way up to eventually own their own franchise.
  • Chick-fil-A's founder, Esther Kathy, sold chicken sandwiches for 76 straight years.
  • He was a missionary, not a mercenary.
  • He believed that this way of doing business was what he wanted to represent.
  • His legacy outlasted his life.
  • He wanted to build an amazing Chicken Franchise.
  • Chick-fil-A has a culture of service that permeates the company.
  • They studied the hospitality industry and hired people from Ritz Carlton to create an exquisite experience.
  • They train their employees to always respond to thank you with "my pleasure."
  • Values have to be true to the company, not just nice words on the wall.
  • People learn 10 times more from watching what you do than listening to what you say.
  • Chick-fil-A has a compounding vehicle of capital within their business.
  • Whenever a store creates money, they have the cash to pick the next location and buy everything themselves.
  • They get high returns and tax benefits.
  • Compounding money within the structure of the business is a way to get higher returns based on skill and competitive advantages.
  • Building a compounding vehicle of capital is a way to create a business that grows even longer and bigger.
  • Chick-fil-A has a ruthless prioritization on the essential few items that they need to sell.
  • They haven't changed their menu in decades.
  • People value consistency and want to know that they will get the same thing they liked last time.
  • Having a refined menu makes the order process have fewer mistakes and happen faster.
  • They follow Pareto's principle of 80/20, knowing that 20% of their stuff creates 80% of their sales.
  • Chick-fil-A appeals to something above money, which means values matter more than just about anything.
  • They say no in the short term to get the long yes.
  • They have a long-term mindset and are willing to sacrifice short-term gains for long-term success.
  • They have a higher power that they appeal to, which is something above the money.
  • Appealing to something above money makes you more money in the long run.

7 Secrets Behind Chick-fil-A’s $50B Empire - YouTube

Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 001

Chick-fil-A's Business Model

  • Chick-fil-A makes more money than McDonald's, Starbucks, and Subway combined.
  • They have never had a down year in sales for 76 straight years.
  • They sell one quarter the amount of items of any other franchise.
  • Their royalty alone is 15% of Top Line, meaning their stores are running 20-30 plus percent margins in brick and mortar food.
  • They get 60,000 applications a year and only award less than one percent of those people a store.
  • They have a controversial social setting that would never work in a publicly traded corporate company that has to massage its PR.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 002

Lessons from Chick-fil-A

  • Having singular focus on the core products and not getting cute and not getting fancy and not having 49 menu items.
  • Being better gives you leverage, meaning the same input gets you more output.
  • Having a long-term mindset and not taking on debt and not trying to grow faster.
  • Having a mission, not being a mercenary.
  • Not letting anyone have more than one store to ensure focus and dedication.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 004

Chick-fil-A's Unique Practices

  • They are closed on Sundays.
  • They have profit check, which allows franchise owners to make more money.
  • They keep earning potential uncapped for franchise owners.
  • They say no to things that are obviously going to make them money but will detract from their values.
  • They have a way for people to come in mopping floors, flipping burgers, and going all the way up to eventually own their own franchise.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 005

7 Secrets Behind Chick-fil-A’s $50B Empire - YouTube

Chick-fil-A's Founder

  • Chick-fil-A's founder, Esther Kathy, sold chicken sandwiches for 76 straight years.
  • He was a missionary, not a mercenary.
  • He believed that this way of doing business was what he wanted to represent.
  • His legacy outlasted his life.
  • He wanted to build an amazing Chicken Franchise.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 006

Culture of Service

  • Chick-fil-A has a culture of service that permeates the company.
  • They studied the hospitality industry and hired people from Ritz Carlton to create an exquisite experience.
  • They train their employees to always respond to thank you with "my pleasure."
  • Values have to be true to the company, not just nice words on the wall.
  • People learn 10 times more from watching what you do than listening to what you say.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 008

Compounding Vehicle of Capital

  • Chick-fil-A has a compounding vehicle of capital within their business.
  • Whenever a store creates money, they have the cash to pick the next location and buy everything themselves.
  • They get high returns and tax benefits.
  • Compounding money within the structure of the business is a way to get higher returns based on skill and competitive advantages.
  • Building a compounding vehicle of capital is a way to create a business that grows even longer and bigger.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 009

Ruthless Prioritization

  • Chick-fil-A has a ruthless prioritization on the essential few items that they need to sell.
  • They haven't changed their menu in decades.
  • People value consistency and want to know that they will get the same thing they liked last time.
  • Having a refined menu makes the order process have fewer mistakes and happen faster.
  • They follow Pareto's principle of 80/20, knowing that 20% of their stuff creates 80% of their sales.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 010

Long-Term Thinking

  • Chick-fil-A appeals to something above money, which means values matter more than just about anything.
  • They say no in the short term to get the long yes.
  • They have a long-term mindset and are willing to sacrifice short-term gains for long-term success.
  • They have a higher power that they appeal to, which is something above the money.
  • Appealing to something above money makes you more money in the long run.
Alex Hormozi: 7 Secrets Behind Chick-fil-A’s $50B Empire 012

Chick-fil-A's Secrets to Success

  • Focus on a core product, the chicken sandwich, and perfect it to increase efficiency and consistency.
  • Limit the menu to avoid splitting sales and maintain focus on the core product.
  • Drive efficiency and accuracy through detailed testing and practice runs, such as in an indoor arena for the drive-through.
  • Continuously improve and innovate to stay ahead of competitors and maintain a mission-driven culture.
  • Have a long-term mindset and focus on solving the same problem for 100 years to become the best at it.
  • Build a strong brand and mission that resonates with customers and employees.

Watch the video on YouTube:
7 Secrets Behind Chick-fil-A’s $50B Empire - YouTube

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