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Fallout continues from govt hit job on Chick-fil-A

Fallout continues from govt hit job on Chick-fil-A

Back in July, when Alderman Moreno and Chicago Mayor Emanuel decided that the best way to represent “Chicago Values” was to penalize a company for its president’s personal views, Chick-fil-A had a brand rating of 62 according to rankings by researcher YouGov.

New statistics released by the company show that the war waged by these government officials on a company seeking to provide jobs to their city has been in some part damaging to the Chick-fil-A brand. From the 62 rating on July 10 to when it sunk as low as 30 on August 20, it is clear that the brand has suffered:

On July 16th, the day the Baptist Press published its interview with Chick-Fil-A CEO Dan Cathy, the chain’s Index score was 56, 7 points above the Top National QSR Sector average score that day of 49….Chick-Fil-A’s Index score didn’t stop dropping, hitting a low of 30 on August 22nd. From then, it staged a comeback, reaching the Top National QSR sector score of 49 on September 10th. But the Index score had dropped back down to 37 on September 19th, when the brand issued a neutral statement saying its corporate giving had been mischaracterized for many months.

The chain’s Index score drop, from 62 on July 10th to 30 on August 22nd, represents a difference of 32 points, a feat not duplicated by any other top QSR brand since at least mid-2010.

Chick-Fil-A’s current Index score is 40, while the Top National QSR Sector average is 53.

This is what happens when government officials use their capacities to play favorites in the private sector. Nothing but destruction to a company, to its employees, and to the business climate–an arena which ought to be at least allowed to do what it does best, create jobs.

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Comments

No private company can defend itself against political attack – all it can do is not do business in the regions where those politicians have power. If the people of Chicago would rather be unemployed than have people with different political views do business in their city, that’s their choice.

DINORightMarie | October 3, 2012 at 10:23 am

How is this number scored? If it was by number of patrons, I would think their numbers would be MUCH higher, overall, given the huge public support and outrage.

Is business down dollar-wise? Are any of the chain’s bottom-line figures impacted? I would assume some stores/locations may have been adversely impacted, but the businesses seem pretty strong to me when I go!

More on these figures and how they are generated, please.

    casualobserver in reply to DINORightMarie. | October 3, 2012 at 11:32 am

    That was my first thought. Has there ever been such a, um, counter-reaction in history as the one for the restaurant? I suspect if Chick-fil-A sees any significant drop in sales, they will try to find that string to pull on again through PR and the like.

    The scale is a perception survey of people (18 years or older) who have eaten at fast food restaurants in the past month.

    In other words, it virtually is meaningless.

It is in the link.

“Chick-Fil-A and the Top National QSR Sector were measured with YouGov BrandIndex’s Index score, the company’s flagship brand health measurement. The Index score is an average of key scores measuring quality, impression, value, reputation, satisfaction and willingness to recommend. All measurements were filtered for adults 18+ who have eaten fast food in the past month. The Top National QSR sector average includes such brands as Pizza Hut, Arby’s, Papa John’s, Domino’s, Taco Bell, KFC, McDonald’s, Burger King, and Long John Silver’s.”

It seems it has nothing to do with actual profit. If someone disagreed with Cathy’s personal statement they would give CFA an extremely negative impression.

    casualobserver in reply to ReneeA. | October 3, 2012 at 11:36 am

    And is it surprising that there would be some change (although not so great) immediately in the aftermath of the fabricated controversy?

    I still think that the restaurant, as well managed as it has been to date, will react as needed if this ’emotional’ score actually shows up in existing store sales. And they may find it more challenging to expand by locating in some urban centers, but I suspect there are still plenty of other locations into which they could expand. For every Chicago challenge, perhaps there is a San Antonio or a Tuscon where a new restaurant can be successful.

      The sale per unit/store is amazing compared to the rival KFC. The issue is expansion, which is understandably have its score lowered.

      Nothing but praise in the 2011 QSR index for CFA.

What the heck is a “QSR score” and why should anybody care? I had never eaten at a Chick-fil-A until “appreciation day”, and drove 30 miles to the closet one. The place was absolutely packed with a line of cars several blocks long. I’ve eaten there several times since and the place is always very busy. Oh BTW, the food is superb!

Brands are EXTREMELY valuable. And not just to the company owning them.

As Thomas Sowell points out in “Basic Economics”, brands convey huge amounts of information to consumers and others in the economy.

It is consistent with the contempt the Collective has for those things that actually do create wealth in society that they will attack a company with such careless hate.

Oops! closet=closest Bad fingers, BAD!

A lie told often enough becomes the truth.
Vladimir Lenin

Read more at http://www.brainyquote.com/quotes/authors/v/vladimir_lenin.html#pAzpsg7Wctc1tK1o.99

The Left excels in the art of the “lie”

I personally wish CFA’s reaction had been to sue for discrimination and quietly make plans to open a store elsewhere. They would have never needed to issue what looked like an apology (even though it wasn’t) and they can’t possibly have needed Chicago to maintain the health of the company. We don’t have one here in my part of Washington state, but the branches where my son lives in Tucson are always busy.

This looks like it measures consumer perceptions and has nothing to do with whatever acts were threatened by the governments

Perception snapshots are stupid. How have their sales been affected?

BannedbytheGuardian | October 3, 2012 at 7:31 pm

A good chikkin sammitch & a reasonably priced drink is always a winner.

[…] Fallout from Govt Hit Job on Chick-fil-A – Anne Sorock, Le•gal In•sur•rec•tion […]

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