The Atlanta Journal-Constitution

Chick-fil-A debuts north of the border

Atlanta chain resumes global expansion closer to home.

- By Matt Kempner mkempner@ajc.com

Chick-fil-A won’t have poutine on the menu when it opens a restaurant in Toronto on Friday and makes its latest run at going internatio­nal.

Even without the Canadian melding of fries, curds and gravy, the Atlanta-based chain has bigger plans as it exports its chicken sandwiches and waffle fries with what it describes as its first full-service franchised restaurant outside the United States.

Chick-fil-A reiterated it plans to open 15 restaurant­s in the Toronto area within five years, plans it first disclosed last year. That’s the largest-ever internatio­nal push for the company. What comes after that? “While we hope to serve more global communitie­s in the future, we do not have any additional internatio­nal expansion plans to announce at this time,” the company wrote in an email to The Atlanta Journal-Constituti­on on Wednesday.

Still, Chick-fil-A has quietly tested temporary pop-up outlets in the United Kingdom, according to media reports there.

Domestical­ly, Chick-fil-A is on a growth tear. It is now the third-largest restaurant chain in the United States, behind only McDonald’s and Starbucks, according to one recent ranking of estimated revenue. Yet, with about 2,400 U.S. restaurant­s, Chickfil-A has fewer outlets than most of its fast-food competitor­s.

The chain only opened its first location inside Seattle’s city limits earlier this year. And its first Manhattan restaurant opened just four years ago.

In the 1990s, Dan Cathy, a son of founder Truett Cathy, contemplat­ed pushing into Europe, but instead expanded into South Africa with a few limited-service restaurant­s. The venture fell short of expectatio­ns and in 2001 the last of the restaurant­s closed.

The experience sharpened Truett Cathy’s resolve to focus on growth in the U.S.

In South Africa, “it was so awkward trying to get merchandis­e there, as well as employees. It was too far, too fast,” Cathy, who died in 2014, said in a 2012 AJC interview.

Toronto isn’t Chick-fil-A’s first foray into Canada. A limited-menu licensed outlet opened and eventually closed at a universit y in Alberta in the 1990s. Another at Calgary Internatio­nal Airport has since been shuttered during work there.

Dan Cathy, who is now Chick-fil-A’s CEO, in recent years mentioned possible expansion into Europe and Asia once the company mastered profits in U.S. markets such as New York City.

Toronto, Canada’s biggest city, is close to the U.S. border. But moving into other distant new markets comes with extra challenges, said Ken Bernhardt, a retired Georgia State University marketing professor who consults for Chick-fil-A and in the 1990s helped it design customer research in South Africa.

New supply chains have to be set up and marketing is often different than in the U.S., he said, “so the smart thing is to go slow and learn as you go.”

The menu itself may be less of a challenge. Offerings at Chick-fil-A’s first Toronto restaurant look much like what fans in Georgia would expect. There are tweaks, though. Items, including the chain’s signature sandwich, will use some Canadian-sourced ingredient­s. And the store will offer coffee blends roasted locally and “specifical­ly developed for Canadian tastes.”

 ?? BLOOMBERG 2015 ?? Domestical­ly, Chick-fil-A is on a growth tear. It is now the thirdlarge­st restaurant chain in the United States.
BLOOMBERG 2015 Domestical­ly, Chick-fil-A is on a growth tear. It is now the thirdlarge­st restaurant chain in the United States.

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