Entering New Markets

April 27, 2017

By: Melody Showalter, Clotilde Bouillot, Jessica Montenegro

Description and History

Chick-fil-A opened its doors in 1967 in Atlanta, Georgia by its founder Truett Cathy,

where the company was better known back then as the Dwarf House. The company back then

had the famous chicken only menu but also had pork and dessert on the menu like their ham and

cheese Midnight Sandwich. Truett Cathy was surrounded by all these burger ventures, he

wanted to bring something new and refreshing to the fast food game. The chicken sandwich was

slowly growing to fame but wasnt quite there yet. Cathy took the time to research the methods

and preparations it took to make a chicken sandwich. His research found the chicken sandwich

was taking too long to cook and customers preferred a burger that took less time to cook than a

chicken sandwich. Cathy found the solution of using a pressure cooker and using boneless

chicken to get the best tasty result of the original boneless chicken sandwich, a staple fast-food

classic till this day. The sandwich consisted of a piece of chicken and two pickles on a toasted

butter bun that hit the market in 1964. In 1967, Dwarf House moved locations to Atlanta to open

up shop to sell only chicken sandwiches. The store took off and was a hit amongst the customers.

In 1984, Chick-fil-A expanded and started its corporate headquarters that is still in existence

today. The company has developed successful marketing campaigns like its 1995 campaign that

promoted consumers to trust chicken more than beef. The campaign was halted during the Mad

Cow Disease scare in 2004 to not seem insensitive but is still running today with billboards and

TV commercials. Today, the company has over 2,000 locations in 46 states and prides itself

being a top quality fast food restaurant (chick-fil-a.com). Chick-fil-A plans to expand to

different communities in the future to coletme.

When you think of Chick-fil-A, often times a consumer thinks of a friendly atmosphere, a

delicious chicken sandwich, and the customer is always right attitude. From the beginning of
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time, Truett Cathy based his company off of being a family friendly company. The name Chick-

fil-A comes from the shortening of chicken filet and the A symbolizing their top quality used

with everyday operations to headquarters. Due to this quality, the chicken restaurant has the

highest same-store sales and is the largest quick-service chicken restaurant chain in the US based

on annual systemwide sales (Chick-fil-a.com). Cathy prided his establishment on its family

values as much as he does on quality. Chick-fil-A is not open on Sundays to give employees a

day of rest. This was equal parts practical and spiritual, letting those who wanted to worship be

allowed to do so and or just spend time with loved ones (businessinsider.com). He was in it for

the people, not just the business. Cathys customers were always well known by name and his

employees were people that considered Truett a true friend that helped them succeed through

college scholarships.

History of Fast Food

Restaurants have been around in some form or another for most of human civilization. As

far back as ancient Greece and Rome, inns and taverns generally served food to people who had

a reason to be away from home, such as travelers. This trend continued until relatively recently.

According to Tracy Wilson, a writer at HowStuffWorks, taverns and coffee houses were popular

places to gather and share beverages in the 17th century, although, the idea of eating out for fun

didnt take off in Western society until the late 18th century. Mcdonalds was the first restaurant

to use the assembly-line system, however, some people consider White Castle the first fast food

chain that was founded in 1921. At the time, most people considered the burgers sold at fairs,

circuses, lunch counters, and carts to be low-quality. Many people thought hamburger meat came

from slaughterhouse scraps and spoiled meat. Fast-food restaurants changed their image to

change the publics perception.

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Fast Food Industry

As consumers, we are bombarded by the fast food industry. If you live in the United

States or anywhere else in the world, you will see the chains. In the food court at the mall, off of

every exit on a highway, at the airport, and in commercial strips, you will find fast food

restaurants. Over the years, we have experienced a changing dynamics within the industry.

According to Matt Sena, author of Fast Food Industry Analysis 2017, Globally, the fast food

industry generates revenue of over $570 billion. In the United States, revenue was a colossal

$200 billion in 2015- quite a lot of growth since the 1970 revenue of $6 billion. The industry

anticipates to have an annual growth of 2.5% for the next several years-below the long term

average but coming back from a several year slump. There are over 200,000 fast food restaurants

in the United States and it is estimated that 50 million Americans eat at one of them every day.

The fast food industry employs over 4 million and counting- restaurant franchises added over

200,000 jobs in 2015.

The foundations of fast food originate are in North America, where the trend is

universally popular. However, Asia Pacific and the rest of the world are the quickest developing

markets for fast food, because of the enormous population that resides in these regional

segments. There is a growing demand for fast food in the emerging countries in Asia-Pacific, the

Middle East, Africa, and Latin America, because of their higher disposable income, favorable

demographics and increasing adoption of the Western way of life in eating patterns. According

to TMR, a market intelligence company based in the United States, geographically, North

America held the largest share of the worldwide market, closely followed by Asia-Pacific in

2013. Fast food is in huge demand in these regions and the driving factors responsible for this

demand are the hectic lifestyle of individuals and their dependency on the convenience of
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restaurant food. Some of the key players in the global fast food market are McDonalds

Corporation, Yum! Brands Inc., Doctors Association Inc., Dominos Pizza Inc., Burger King

Worldwide Inc., Wendys International Inc., and Jack in the Box Inc.

Fast food restaurants, along with fast casual restaurants, make up a segment of the

restaurant industry known as Quick Service Restaurants (QSR). This segment accounts for

more than 50% of sales in the entire restaurant sector (Sena).The restaurants themselves are

known to have a consistent, simple look, feel, and even music in each location. Customers

typically order and pay at a counter or window, and then take food out or grab a tray to sit and

eat. Meals are short, there is no table service and condiments are usually centrally located rather

than table top. Menus are usually the same from location to location, and consumers enjoy a

recognizable, familiar experience no matter what they are, with a dependable level of quality.

Common fast food types include pasta & pizza (Italian), burgers & sandwiches (American),

chicken, seafood, Chinese, Mexican, and other snacks such as potato finger fries and pastries.

The fast food industry faces some challenges such as (1) unhealthy menus, (2) low wages, (3)

cultural degradation, and (4) losing business.

1) Many consumers are looking for healthier options when they go out to eat, and

companies are reflecting this. The United States has a bad reputation for fatty fast food

restaurants and are slowly fighting back to have healthier options.

2) It is commonly known that fast food restaurants generally pay low wages- so low in fact

that one recent study claims that over 50% of front-line fast food employees rely on

public assistance programs. In other words, people work full-time jobs but cannot make a

living wage. Over the past couple years, employees have been organizing and demanding
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increased wages- winning their fight in New York City and other major metropolitan

areas.

3) Cultural degradation may not commonly be known to Americans because we dont value

culture as other countries do. For example, Taco Bell represents Mexican cuisine to many

Americans. However, this is very offensive to the Latinx community.

4) Related in part to concerns about healthier options, fast casual is the fastest growing

segment of the restaurant industry, and is largely stealing market share from the fast food

restaurants. A fast casual restaurant does not offer full table service but promises higher

quality food than other fast food restaurants with fewer frozen or processed ingredients. It

is an intermediate concept between fast food and casual dining and typically priced

accordingly.

Why We Chose Chick-fil-A

We chose Chick-fil-A because as we stated before, the fast food industry is a growing

market with a lot of demand which provides a substantial amount of revenue. Chicken is one of

the smaller areas of the fast food industry compared to burgers and pizza places. However, the

chicken industry, in general, is a huge market worldwide.

2905 kilos of chicken are produced and consumed in the world each second, meaning 101

million tons of chicken meat per year. This represents 86 billion chickens, 1.3 billion turkey's,

4.2 billion ducks, etc. The United States, Brazil, and China are the most important producers of

chicken. Poultry is the second most consumed meat in the world with 91.6 million tons in 2009

and 101 billion in 2011. The world production of chicken and poultry in 2007 have been

estimated by the FAO at 83.4 million tons.

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The world production of chicken and poultry continue to grow during the past couple

years. From 2000 to 2007, the world production of chicken and poultry increased by 2.7% per

year in average according to planeroscope.com. This industry is very interesting to study because

it represents many opportunities for entering a market.

Assessment

In order to determine the global marketing perspective of Chick-fil-A, we need to assess

the company by looking at three steps. The first step will be described by looking at our

company and steps two and three will analyze potential countries to enter.

1) Understand analyzing organizational readiness to internationalize.

2) Determine the suitability of products and services for foreign markets.

3) Describe screening countries to identify target markets.

Understand Analyzing Organizational Readiness to Internationalize

Chick-fil-A only has one international restaurant in an airport in Canada. It is risky to try

and enter a new market and opening in an airport alleviated some of the risks. A lot of travelers

from the United States travel to Canada, therefore it was a smart choice. Estimating the demand

for products or services in emerging markets and developing economies is a challenging task for

managers. Emerging markets and developing economies are huge markets for products or

services, however, we chose not to enter these markets until we are confident we will succeed.

Estimating demand in such countries requires managers to use innovative research methods to

gain insights or data.

What do we hope to gain from international business?

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We want to increase sales and follow key customers who have located abroad. We want to

pursue a global strategy and eventually follow suit in other European and Asian-Pacific

countries.

What demands will internationalization place on firm resources, such as management, human

resources, and finance as well as production and marketing capacity?

We plan on hiring local citizens to work in our international restaurants. Doing so will lower

cultural risk and will benefit the countries by creating jobs. It only takes $10,000 U.S. dollars to

open up a Chick-fil-A franchise (businessinsider.com).

What is the basis of our firms competitive advantage?

We lead in relationship excellence. Our core purposes and values can be summarized by our

healthy relationships built through high employee morale, award-winning customer service, and

community involvement. Our successful growth of the franchise has been attributed to employee

loyalty, employee satisfaction, and extremely low turnover.

UNITED KINGDOM

Suitability of Products and Services in the United Kingdom

The United Kingdom has a global marketing opportunity and is waiting for us to enter

their market. According to TheRichest in 2013, the United Kingdom had the fourth highest fast-

food consumption in the world. The country is known for having different cultures and a

different cultural taste has a large impact on the global success of the fast food industry at

national level.

Laws and Regulations

The UK is bringing strict regulations for food seller to inform the customers if the food

items contain genetically modified ingredients. Additionally, according to the UK government, it

is required to keep records on where our food comes from, known as traceability (gov.uk).

Food Standard Agency (FSA) is an agency which is responsible for the health of the public in

relation to the food in the UK. It is important for the fast food industry to follow the regulations

imposed by the FSA in the interest of public health.

The rules and regulations in the UK have certain barriers to entry. Overall, barriers to

entry are relatively low for the fast food industry. However, there may be some limitations

implied by the local authority on the number of restaurants of a particular type.

Modern Fast Food in the UK

Fish and chips is a favorite fast food in the UK and has its origins in areas where there

has historically been access to coastal or tidal waters. As well as the fast food native to the UK,

such as pie shops, fish and chips, and seafood, the UK seems to have taken on board many fast

food traditions with origins in other countries and continents.

The main players in the UK fast food industry are:

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Sandwiches: Greggs, Subway, and Thurstons

Burgers: Mcdonalds and Burger King

Chicken: KFC

Fish and Chips

Indian and Chinese Takeaway

Competition also exists in the form of threat of substitutes. The fast food substitutes

include other forms of food service and retails such as ready-to-eat meals, and frozen foods for

home cooking. Substitutes also offer a wide range of products and pose a moderate threat to the

fast food industry.

Customer Characteristics and Preferences

Fast food is benefiting from two trends in the UK: busier lifestyles are making people

less willing to cook for themselves, and many are attracted to fast food by its affordable prices.

According to Telegraph, a United Kingdom newspaper, The recession, and the subsequent

squeeze on disposable income has encouraged millions of families to cut back on spending

luxuries, especially on meals in restaurants. This has had an effect on consumers by forcing them

to spend money on cheaper meals. However, with the increase in fast food consumption,

consumers are focused on quality and health.

SWOT Analysis of Chick-fil-A entering the United Kingdom

Strengths

Chains from the United States have proven to be very successful in the UK.

In 2011, approximately 180,000 US-born citizens reside in England (wikipedia).

The UK has relatively low corporate taxes.

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The depreciation of the pound over the past decade will lower costs in starting our

business abroad.

Weaknesses

Uncertainties about the implementation and impact of the decision to leave the European

Union.

Strong religious culture and values of Chick-fil-A may deter customers.

The controversy surrounding funding of Anti-LGBT organizations.

Opportunities

We have potential to expand our menu by adding alcohol to the menu which is very

common in the UK.

In 2015, the UK was considered one of the least religious areas (theguardian). Therefore,

it would be beneficial to keep our store open on Sundays. An extra day of revenue and

more availability to consumers is imperative.

Entering the United Kingdom will create an international presence and make other

European countries aware.

Threats

Unpopular political stances on same-sex marriage.

If our chicken supplier is infected, it would be costly to find another source.

Learning from Our Competitors

There are many successful American fast food companies in England. The UKs top

choice of fast food is the all-American Five Guys burger chain, according to a new consumer

survey by Market Force information (CNNMoney). The survey said that Five Guys beat the

competition with exceptional performance in the food quality, cleanliness, and staff friendliness
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categories. Five Guys decided to come to London because of rising demand, noting that the

chain had a large follower base of British fans on social media sites such as Facebook and

Twitter before the store even opened its doors.

Screening of Target Market of UK

According to the Central Intelligence Agency, the UK, a leading trading power and

financial center, is the largest economy in Europe after Germany and France (cia.gov).

Agriculture is highly intensive, highly mechanized, and efficient by European Standards. The

agriculture products they have are cereals, oilseed, potatoes, vegetables, cattle, sheep, fish, and

poultry. Therefore, as a company, we dont have to worry about the supply of poultry. In 2016,

the GDP was 2.788 trillion, ranked 10th compared to the world. However, the GDP growth rate

has been slowly decreasing over the past couple years. In 2016, the United Kingdoms

population was 64,430,428 with an unemployment rate of 5.1%. Overall, the economy is good

but somewhat volatile political and economic environment can affect corporate payment

behavior.

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JAPAN

History of Japan and Fast food

When thinking about Japanese culture, a consumer usually thinks of fresh vegetables,

rice, and sushi. Japan is domestic with their food choices using terraced land to plant crops

especially rice. The Meiji era in the late 1880s to the early 1910s was a time for acceptance of

different cultures in Japan. Western food was new to the grain focused diets of the Japanese

people during this period of enlightenment. The government wanted imperialistic expansions to

Japan to be more cultural change rather than have total take over to not spook their citizens of

new customs(thejapantimes.com). This period allowed for urban development to then, in turn,

see an effect in diets of Japanese people. The Meiji era was a time of modernization that

eliminated the meat-eating taboo which allowed for Japan to start changing their palettes. World

War I and II brought rationing of their main crop of rice which allowed it to become more of a

luxury rather than a staple food item in a meal. Tokyo restaurants were even banned from

serving rice to their patrons in 1940 to 1941. Japanese families started using substitutes like

bread instead of using rice, coming up with new recipes like buttered toast with shrimp powder

and a potato sandwich. (thejapantimes.com) The rationing of food post war made meal sizes

shrink to little to no food to feed the population. Japan used whatever they could to feed their

people. Soldiers returning from the war found themselves without jobs so they introduced gyoza

as dumplings to the starving. The gyoza dumplings were made of flour and not traditional rice.

They were stuffed with whatever they could find for a filling meal. After the war also came the

introduction of cars and more mobility. The Japanese population wanted to venture more outside

their houses and do more leisurely activities in public like karaoke and dining out in a restaurant

setting. The traditional family meal was taking place at Skylark, Dennys, or Mcdonalds. The
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introduction of these western fast food joints caused for the nations craze of hamburgers, fries,

shakes, and other fast food classics(thejapantimes.com). Today in Japan, fast food culture is all

the rage. Many restaurants offer traditional dishes like rice dishes but have hamburgers on the

same menu like at MOS Burger that is the second largest fast food chain in Japan behind

McDonalds or Yoshinoya that offer their best seller, the beef bowl combo(Tofugu.com) From

curry, to pizza, to sushi, Japans fast food offers fast tasty treats for the person on the go.

American restaurants do not stray too far away in popularity either on the island for fast food.

Restaurants like Subway, Pizza Hut, and KFC are contenders amongst the other fast food places

that only have locations in Japan(hillslearning.wp.com). These American restaurants have won

the hearts of the Japanese and continue to be a great hit putting their own classic twists on

classics. The poultry industry is a growing part of Japans commodities that the Japanese can

foster self- sustainment in replacing rice cultivation. In 2016, the USDA reported that Japan had

increased consumption by 2% from its 2.63 million and 1% from its 1.4 million to which in turn

will have a part go to the fast food industry (usda.com). Chicken is no stranger to Japan with

most of their gastronomic customs lacking meat but needed protein is added with the use of

chicken and or fish. Company culture is also a big part of Japanese business practice. In Japan,

businesses tend to work more as individual contribution to a whole group rather than just

individualistic. It is rare to see isolation and cubicles in an office. Everyone has a structured 5-

day work structure that is always punctual to the time(blog.btrax.com). Return on Investment is

also huge, Japanese business people focus more on the overall approach of how one achieved

success to then, in turn, be 100% sure with any risk they take. Business is seen to be a serious

matter and all seriousness should be accounted for when running an enterprise in Japan. Work is

number one priority for working Japanese, personal life revolves around work. American
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businesses do not have too much of a hard time adapting to their work culture but often times

need to be reminded of their respectful yet easy going work culture(blog.btrax.com).

Suitability of Products and Services in Japan

With Japan having a vast presence of fast food restaurants and not many fried chicken

restaurants, Chick-fil-A would not have an entirely hard time of trying to tap into the Japanese

market. The company is strong in its customer service presence that will flourish amongst the

Japanese that look for a more personal catered experience rather than run and go American

experience. In Japan, meals are shared communally amongst family and

friends(https://www.tofugu.com/japan/japanese-restaurant-culture/). Chick-fil-A emphasizes the

importance of being with loved ones with their family based marketing(chick-fil-a.com). They

can expand their menu as far as Japan goes with offering more communal meals for 2-3 on the

normal menu rather than having a catering based menu. This would set them apart from the other

American and Japanese fast food restaurants making the food of quality but also quick service to

help family and friends enjoy the possible limited time they have together choosing to eat at a

fast food restaurant.

Chick-fil-As restaurant culture in the US would not differ much if they were to enter ithe

Japanese market with American fast food already being recognized on the island. Japan is very

fond of American fast food with restaurants like Mcdonalds, Subway, and KFC located in their

cities that offer the classics with their own twists (firstwefeast.com). The adoption of culture

helps consumers in the market warm up to the idea of a foreign concept or food that can be made

to their own liking like adding curry sauce and a pork cutlet stuffed with cabbage and cheese to a

cheeseburger. Chick-fil-A taps markets in the U.S from the different locations and adds a little

twist from each region's culture like Hawaii with its Teri chicken that combines chicken with a
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teriyaki glaze and a side of pineapple rice(Chick-fil-A.com). Portion control would hinder

freshness control using less products when selling menu items due to the fact that Japan eats way

less than American consumers. Chick-fil-A uses the freshest ingredients possible with their food,

so constant turnover of supplies is needed when portions are smaller. Profits may be smaller if

the same amount of people in Japan vs. the US are eating less food. The adaptation of seeing if

suppliers in the area could accommodate to the difference in the market would help the

restaurant. Overall, the food selection would do great in Japanese modern day culture amongst

the younger generations fascinated with American customs like fast food.

Chick-fil-A prides itself on utmost respect and cares for its customers from the minute the

customer enters the store to the minute they leave. This service is recognized to go above and

beyond any other fast food chain in the United States can offer. Truett Cathy always recognized

the people as being the most important thing when it came to running a business, not the money.

From his customers to his employees, Truett made his people a priority by instilling celebration

days for the employees, distributing scholarships for college, and having only a 6 day work week

to ensure the employees are not burnt out(chick-fil-a.com). Happy employees mean happy

customers. Customers are greeted warmly once they make contact with a Chick-fil-A employee.

The customer is always treated with respect and empathy is always number one when addressed

with a problem then finding a solution to help the customer out. Managers and higher scale

employees also do their part to check on the customers during the meal. Chick-fil-A sees a 13%

increase in revenue based on the customer experience alone(blog.clientheartbeat.com). Japan

customer service in retail and food businesses mimic somewhat of the same philosophy Cathy

had with his employees and customers. In Japan, retail and food employees are taught to have

complete respect for the customer as part of Japans initiative to curb European and North
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American markets(spafaxcontentmarketing.com). Although they do not believe in going above

and beyond, they use the same great service with everyone they encounter especially in a

restaurant. Japan is also known for no tipping which also brings less of an incentive to do a better

job but this does not phase Japanese service employees (spafaxcontentmarketing.com). Chick-

fil-A employees would definitely see a culture shock when the restaurant rewards them with

incentives like Sundays off and a chance to score money through their employment through the

company. But rather than hindering this experience, the extra incentives would add to the

motivation to increase revenue, sales, and bring back happy customers wanting to eat delicious

chicken from Chick-fil-A.

Screening of Target Market of Japan

Japan currently has the third largest economy in the world with its economy profiting

much of its success to its growing global demand. Strong stable politics allows the country to

give domestic and foreign businesses the chance to enter the countrys market smoothly and

successfully(heritage.org). The country currently has 126.7 million people and has 3.3%

unemployment allowing citizens more stability in the economy and spending. The country has a

growth of .5% in the year 2017 with the gross domestic profit. Currently, the country is ranked

39th in the world in terms of how profitable the economy is amongst other world competitors.

Japan is facing a large amount of public debt that has caused the economy to sink in place that is

hitting hard private sectors. Chick-fil-A is currently a private company that is still family owned.

Would this limit the potential growth for foreign businesses like Chick-fil-A? Japan is more of

an export based country rather than imports that is hurting their domestic items that have

nontariff barriers(heritage.org). Prices are skyrocketing because of this. The country wants to

focus more on bilateral trade agreements to better amplify the weaker parts of their economies.
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Imports and exports make up 37% of the GDP in 2017 because of their remote location (focus-

economics.com). These weaknesses are not holding Japanese back from purchasing with trade,

financial and investment freedom coming in high above the 50% rank allowing Japanese

consumers to be free beings with what they do with their money. A country risk that may occur

doing business is that oftentimes corruption is prevalent amongst business owners. Despite the

laws and government officials not partaking, the climate of Japanese business fosters for the

opportunity for corruption amongst relationships of politicians, companies, and government

agencies rigging the bids for public work projects(heritage.org). Japans neighbor is directly

affected by China and also feels after effects from the U.S. Today in 2017, Prime Minister

Shinzo Abe is protecting Japan from falling under the United States overshadow(heritage.org).

Despite its challenges, Japan is constantly growing allowing for new business ventures the

possibility to prosper with the correct marketing and emergence into its country.

SWOT analysis of Chick-fil-A entering Japan

Strengths

Quality of food products exceeds all other fast food restaurants in Japan.

Customer service in Chick-fil-A is expected in Japan,

Incentives for customers and employees, people first mentality.

Great time period to enter as a new business in Japans growing economy.

Weaknesses

Expensive food costs for fresh supplies.

Private sectors are very weak due to public debt in Japan.

Opportunities

Few chicken competitors- KFC is the only other major chicken competitor in Japan.
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Family oriented service to attract customers looking to enjoy and sit down their meal.

New American trend amongst Japanese.

Threats

Numerous fast food chains that will create hard competition for Chick-fil-A

Locations would be difficult to build up being that HQ is in the states which are a day

behind Japan.

Corruption

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AUSTRALIA

History of Australian fast food industry

The fast food history in Australia started around the 1960s when the first fast-food

restaurant opened and Australians began to eat more meat and chicken. According to the

Australian Geographic, in the 1950s and 1960s, meat production relied on grazing - and

Australians ate more beef and lamb. But thanks to increasing factory methods, chicken

production costs shrank to about 40%, helping to multiply its consumption tenfold to today's

levels. Likewise, pork consumption has almost tripled.

The Australian diet really began to change in this period when the influx of Italians and

Greeks introduced foods such as zucchinis, capsicums, eggplants, artichokes, and garlic.Food

factories in each city were absorbed by larger national firms, and then by multinational

corporations. The new trend was the value-added food consumption, in which extra preparation

was done before the food reached the domestic kitchen. Characteristic items included dried

Chinese meals, frozen pizzas, and pre-mixed cakes.

Fast food and takeaway chains such as McDonald's, Kentucky Fried Chicken and Pizza

Hut arrived in Australia in the late 1960s.In the 1980s the Australian fast food number exploded

and culinary expanded because of immigration, particularly from Asia. Today, fast food

restaurants continue to grow and food regions proved there wasnt one Australian cuisine but

many.

Learning from our competitors

McDonalds continued to lead in fast food in 2015, followed by Subway Systems

Australia. Combined, these two companies accounted for over 32% of total fast food sales and

46% of value sales of chained fast food, according to euromonitor. Fast food chains in Australia
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are constantly searching for innovation and create new tastes in order to respond to consumers

growing expectations. Experimental products, limited-edition menu items and unique food

combinations commonly referred to as frankenfood, were used to attract a higher flow of

consumers looking to try the latest combinations. All of these new experimentations were very

successful among Australians. Testing with new menus, limited edition products, and store

formats will continue to be used by fast food operators over the forecast period. Australians

consumers expectations and demands will largely support the continuation of this trend.

The main competitors in Australia for Chick-fil-A will be American fast food such as:

McDonalds

Subway

KFC

Hungry Jacks (corresponding to Burger King)

But also Australian fast food such as:

Red Rooster (A direct competitor of Chick-fil-A)

Chicken Treat

Chicken industry in Australia

According to a study about the chicken industry in Australia, Australias chicken meat

industry plays an important role in Australian agriculture and in the broader Australian economy.

The industry conservatively estimates that consumers currently spend $5.6 billion annually on

chicken meat in supermarkets, fast food outlets, specialty shops and restaurants.The chicken

meat industry is substantial and growing, with a strong presence in many rural and regional

communities, where it employs people in both agricultural and food processing environments.
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From production to processing, Australias chicken meat industry is wholly Australian-

owned. With minimal international trade in chicken meat into or out of Australia, almost all

chicken eaten in Australia, including all fresh and raw frozen chicken, is produced locally.

Forecasts uniformly predict continued steady growth in both production and domestic

consumption of chicken meat.

In 2010, the chicken was the most popular meat in Australian. According to Patrick

McCaffrey (Chief Executive Officer, Golden Cockerel Pty Ltd), Australias chicken meat

industry is characterized by its stability and steady growth, representing a relatively low-risk

environment compared with other agricultural endeavors. This reasoning shows Chick-fil-A

might have an opportunity to enter Australia.

Suitability of Service for Foreign Markets

Australia is one of the wealthiest AsianPacific nations and has enjoyed more than two

decades of economic expansion. It has a stable political environment which supports transparent

and well-established political processes, a strong legal system, competent governance, and an

independent bureaucracy. The judicial system operates independently and impartially. Anti-

corruption measures are generally effective.

Australia has 23.9 million inhabitants, with $1.1 trillion of GDP and a 2.5% of growth.

Australia has in this way the opportunity to open Chick-fil-A because the country risk, political

risk, and economic risk is very weak. Chick-fil-A will also have the opportunity to open on

Sundays since shops are allowed to open on this day.

SWOT Analysis of Chick-fil-A entering Australia

Strengths

Great time period to enter as a new business in Australias growing economy.

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Weak country risk, political risk or economic risk

US fast food already exists in Australia and favored by the locals.

There are few chicken competitors in terms of fast food except KFC and Red Rooster.

Threats

Five guys, In and Out and other similar American fast food are still hesitating to launch

in Australia.

Comparison of Countries

Ease of Starting a Dealing with Getting Paying Trading

Doing Business Construction Electricity Taxes Across
Business Permits Borders

United 7 16 17 17 10 28
Kingdom

Japan 34 89 60 15 70 49

Australia 15 7 2 41 25 91

After our analysis of Chick-fil-A, we have decided to enter all three markets, due to its

growth and success in the United States from its customer service, quality of food, and profits.

The company has seen a great positive response in the United States from the start of its success

from 1967 to now in 2017 where it has locations in 46 states. What better way to increase its

popularity and fame by emerging into markets across the world like the United Kingdom, Japan,

and Australia. Japan would be a great market to open a new Chick-fil-A location due to

American food being already so popular amongst the Japanese and Chick-fil-A having a

company culture similar to companies in Japan. We chose to move to opening a location there as

well for the growing economy seeing it would have great potential to grow to be well-liked as
 24

well for its ability to allow Japanese to sit as a family to eat a quality fresh ingredient meal.

Chick-fil-A would benefit from entering the United Kingdom, one of the largest economies in

Europe. Compared to Australia and Japan, the United Kingdom is easy to start a new business.
 25

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