Chick-fil-A Plans Menu Enhancements to Sustain 40-year Sales Streak

In what is forecasted to be the most aggressive product rollout year in chain history, Chick-fil-A has an array of menu initiatives planned in 2008 to help prolong its strong sales performance and menu leadership position.

"It would be very easy for us to pause after such a successful year, but in doing that, we would be in jeopardy of falling into a trap of complacency," said Woody Faulk, Chick-fil-A's vice president of brand development. "Regardless of our sales success, we must continue to upgrade our menu by looking for ways to stay ahead of our customers' ever-changing appetites. Change in the quick-service industry is much like that of the fashion industry. Customer needs are constantly fluctuating and we have to be intentional about staying ahead of and remaining relevant to those changes."

Chick-fil-A kicked off its menu changes in late March with the introduction of a Coffee Caramel Hand-Spun Milkshake, a limited time flavor the restaurant chain will offer nationally through Aug. 2.

The chain is also making significant improvements to some of its cold entree items. On May 19, Chick-fil-A is adding a new choice to its line of entree salads, a Chargrilled Chicken and Fruit Salad served with Harvest Nut Granola Topping and a complementary Berry Balsamic Vinaigrette dressing. Salad packaging will also be upgraded. Chick-fil-A's four entree salads will now be served in a larger, deeper salad bowl that is easier to eat out of and easily transported. Chick-fil-A will continue to intentionally cluster salad ingredients and offer individually packaged toppings (e.g. sunflower seeds, croutons, dressings, etc.), so ingredients and toppings can be easily removed or avoided if desired for nutritional and/or taste preferences.

Faulk says the chain's most recent salad enhancements are a response to its health-minded customers. "A growing number of our customers continue to become more health conscious and are looking for great-tasting products that fit into a balanced, healthy diet," he said. "As evident by our 1999 salad refresh, the rollout of our Cool Wraps line in 2001 and the introduction of the Chick-fil-A(R) Southwest Chargrilled Salad two years later, we have strived to offer a variety of flavorful, chicken-based products that suit diverse lifestyles. Offering a quality entree salad is 'just the price of admission' into the quick-service industry for the past several years, we believe it is essential to continually reinvent our salad line to exceed our customers' expectations."

The Chick-fil-A(R) Chicken Salad Sandwich is getting a makeover as well. While the recipe and flavor profile of the Chick-fil-A Chicken Salad will not change, the sandwich will now be served on a premium Wheatberry bread with Green Leaf lettuce. Starting at $6.05, the chain is now offering the Chicken Salad Sandwich as a Chick-fil-A Meal for the first time. The sandwich is priced individually at $3.65, and will be packaged in a clear clamshell rather than a foil bag, resembling packaging more typical of a high-end deli than a fast-food restaurant.

Rounding out its cold entree improvements, Chick-fil-A will begin serving its three Cool Wrap offerings in a new, higher-quality multigrain flatbread recipe with Green Leaf lettuce. Previously served in a foil wrapper, Chick-fil-A(R) Cool Wraps will now be served in a new clamshell packaging, much like the Chicken Salad Sandwich.

Perhaps the most significant change to the Chick-fil-A menu will be the introduction of a new Chick-fil-A Chick-n-Strips(R) product that is 50 percent larger than the chain's current strip offering (45 gram tender versus 30 grams). The Chick-n-Strips(TM), which are served as part of the Chick-fil-A(R) Chick-n-Strip Salad, will be added to the menu on May 19 along with Chick-fil-A's cold entree improvements, but the chain will not aggressively promote the new Chick-n-Strips as an entree until August. Chick-n-Strips will be offered as a 3- or 4-count entree for adults and in 1- and 2-counts for Chick-fil-A(R) Kid's Meals. To complement the new Chick-n-Strips, Chick-fil-A has developed a new proprietary dipping sauce, a smokey mustard recipe inspired by a veteran Chick-fil-A restaurant franchisee in Fredericksburg, Va.

Finally, Chick-fil-A is giving customers a choice of side options as part of its Chick-fil-A(R) Meals. Five additional side item choices will be available for customers to substitute for Chick-fil-A Waffle Potato Fries(R). A small Cole Slaw or Carrot and Raisin Salad can be substituted for free, or customers can choose a small bowl of Chicken Soup, medium Fruit Cup or Side Salad for nominal upcharge.

Atlanta-based Chick-fil-A, Inc. is the nation's second-largest quick-service chicken restaurant chain (based on sales), with nearly 1,400 restaurants in 37 states and Washington D.C. In 2007, Chick-fil-A produced record sales of $2.64 billion -- a 16.09 percent overall increase and an 8.47 percent same-store sales gain that helped extend the chain's streak of consecutive sales gains to 40 years. In 2008, Business Week magazine included the chain in its Top 25 list of Customer Service Champs.

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