Chick-Fil-A Is Going International

Biz Journals:

The famous “eat-mor-chikin” cows will now speak Spanish.

Puerto Rico and Mexico are the two first international markets the company plans to reach. The expansion will take place within the next ten years, said Andrew Cathy, owner and operator of the Chick-fil-A restaurant at Tyrone Boulevard in St. Petesrburg, and grandson of Chick-fil-A founder and chief executive officer, Truett Cathy, at a presentation at the University of Tampa for the American Marketing Association Tampa Bay chapter.

The company is also set to rebuild its older stores, to make them look more modern and add features and amenities that the newer ones already have.

“The cows are helping us sell more chicken,” said Cathy.

So much so that today the average sale for a McDonald’s (NYSE: MCD) franchise is $1.9 million, while an operator of Chick-fil-A makes an average of $2.4 million, he said.

“You don’t have to be the biggest to be the best, as long as you are using your resources wisely,” Cathy said. “Just take the weaknesses and make them into strengths.”

Chick-fil-A has a $13 million marketing budget, and competes with McDonald’s, which has a $700 million marketing budget.

The difference is how the company spends that money, he said.

“Instead of spending it nationally, we spend it in our local stores,” he said. “They spend in the way they see fit.”

Doing a national campaign can be a waste of money since an ad can work well in one market and not another, he said.

Connecting with the customer on an emotional level has been the key to success, he said.