Posted on 07/26/2012 5:22:32 AM PDT by Prov1322
A week after Chick-fil-A President Dan Cathy’s comments on marriage created a firestorm, the Atlanta company finds itself grappling with a public relations snarl that some experts say could affect its bottom line.
Restaurant and branding experts say the Southern-fried chain could lose millions if customers begin associating the company with polarizing political issues instead of food.
At the same time, fallout continues to be mixed, with online petitions both for and against Cathy’s stand on traditional marriage — widely interpreted as a slap at supporters of gay marriage — drawing thousands of signatures. Gay and lesbian groups have called for protests at a store opening next week in California and want same-sex couples to kiss at Chick-fil-A locations on National Same-Sex Kiss Day next week.
Former Arkansas governor-turned-TV host Mike Huckabee has declared next Wednesday National Chick-fil-A Appreciation Day, in support of Cathy.
Marketing experts said they are surprised a company so adept at honing its brand could stumble into the political thicket.
“Most brands try to steer away from political stands because they are so polarizing,” said Tim Calkins, a clinical professor of marketing at the Kellogg School of Management at Northwestern University.
Said Rupert Barkoff, a partner and food industry expert for Kilpatrick Townsend: “When you bring politics into business, the worlds collide and the consequences can be unpredictable.”
Privately held Chick-fil-A, which rakes in about $4 billion a year, could see as much as a 1 percent to 2 percent drop in sales if the controversy lasts a month or two, said Peter Saleh, director and senior restaurant analyst for the Telsey Advisory Group.
But Saleh added, “We’ve seen other PR nightmares or PR issues with companies and they will bounce back. It will just take some time. Maybe a couple of quarters.”
Chick-fil-A declined to comment for this article. The chain has stood by its initial statement that its goal is “to treat every person with honor, dignity and respect — regardless of their belief, race, creed, sexual orientation or gender. ... Going forward, our intent is to leave the policy debate over same-sex marriage to the government and political arena.”
The comment sparking the uproar came when Cathy told an interviewer from a religious publication that he supports “the biblical definition of the family unit,” which many, especially those in the gay community, regard as opposing gay marriage. Harder-edged remarks he made on a radio show in June also have circulated.
Greg Sanders, publisher of North Carolina-based Food News Media group, said the debate could stunt the company’s growth in areas outside of the Southeast.
“Chick-fil-A is part of the South. It’s part of the Southern culture, and they’ve done an outstanding job of expanding over the years,” Sanders said. “But let’s be frank, if they’re new in California, not only are social attitudes possibly different in that part of the country, but there’s also not a bank of good will with that brand being built for up years [as it is] in the South.”
Since Cathy’s remarks surfaced, Boston Mayor Thomas Menino and Proco “Joe” Moreno, a Chicago alderman, have promised to block the chain’s efforts to build more stores in their cities.
Muppets creator Jim Henson’s company last week severed a toy deal it recently launched with Chick-fil-A, although reports on Wednesday said Chick-fil-A told customers the toys were being dropped because of unspecified “defects.”
Mark Pettit, president & chief executive officer of Creaxion, an Atlanta marketing firm that has a specialty in crisis management, said Cathy’s candor was bad business.
“Mr. Cathy needs to understand that while his company is privately held, his brand is publicly owned,” Pettit said. “Thousands of gay people work and eat at Chick-fil-A every day — many of them with a bit of shame knowing they love the company but don’t like what senior executives apparently stand for. Mr. Cathy needs to address the situation head-on and let all customers know they are welcome at Chick-fil-A.”
The scope of the controversy is somewhat uncharted territory for Chick-fil-A.
The company has long said it operated on biblical principles and is well-known for staying closed on Sundays, a stance that has won admiration from some. But experts said it never hit diners over the head with beliefs.
Still, this is not the first time the chain has butted heads with gay rights organizations. They have complained about donations the company and franchisees have made to Pennsylvania Family Institute, Focus on the Family and the National Organization for Marriage, all groups that oppose gay marriage.
At that time, Cathy told The Atlanta Journal-Constitution he felt discussion of the issue was a “really great thing” for the company.
Sanders said controversies can yield surprising results. He pointed to a Texas-based pizza chain, Pizza Patron, that launched a “pizza for pesos” promotion in the late 2000s, igniting a media storm during a time that illegal immigration was, and remains, a hot issue.
“There was quite a bit of fallout. They took heavy criticism,” Sanders said. “But here’s the thing: Their sales increased.”
“There was quite a bit of fallout. They took heavy criticism,” Sanders said. “But here’s the thing: Their sales increased.”
What happened to tolerance? How can mayors of cities ‘ban’ certain businesses due to personal beliefs?
I will now patronize these places more to show support.
Tolerance is strictly a one-way street for the left.
“There was quite a bit of fallout. They took heavy criticism,” Sanders said. “But here’s the thing: Their sales increased.”
That line negates all the hand wringing in the article. In fact, it should have been the title.
My daughter, son-in-law and grandsons are in town. Yesterday we all had Chick-Fil-A for lunch. And the reason I suggested it was pure and simple to support the chain for their Biblical stand.
As a bonus, the food tasted great.
Anyone who’s near one of their outlets should stop in,eat,and tell management why they’re doing so.Sadly,the nearest one to me is about 30 miles away and is located in an area to which I very seldom venture.
Some of us here have purchased our last box of General Mills cereal as a result of that idiocy.
Or we could simply surrender.
This comment on a public message board echoes my sentiments exactly:
Thank you Chick-fil-A for taking a stand for your beliefs. It doesn’t surprise me that all of those people who are normally preaching “tolerance” are not tolerant of this belief. It is OKAY not to agree with a lifestyle and that is NOT the same a being intolerant or discriminatory. Chick-fil-A hires gays, serves gays, they don’t discriminate against them or their lifestyles. They just don’t believe that the homosexual lifestyle is biblical.
Let's not forget that the CA people voted twice against gay marriage in the form of Proposition 13. No matter how many times they put gay marriage on the ballot, it fails!
We will support Chick-fil-A!
It seems queer that he would receive such criticism just for exercising his first amendment rights.
I’m having lunch there today - third time in just over a week. I am not terribly fond of fast food, but they are among the best in that category. The first two times I waited in line longer there than I remember from past visits, so this fuss may not be a bad thing from a business perspective. When Obama worked hard to pin Bain on Romney, it turned out that most voters liked the Bain link and considered it a positive. Now that Boston’s mayor is trying to pin a harsh “supports the same traditional values as most Americans” tag on CFA, I hope that turns out the same.
“TOLERANCE” does not exist in reality. Chick Fil A espouses a certain belief and what ensues is a “Firestorm” in the left wing media and the liberal world.
Other firms (some huge) express a public support for each and every LGBT, leftist, and anti-American cause and the only media reaction is the sound of happy crickets.
Individuals may act on a personal basis to avoid those companies, but it is a personal decision.
However, what we see regarding Pro-Life, 2 sex marriage, open religion, love of country, and regard of the constitution and its words has become the target of a “Hate Community” and its minions and useful idiots.
I’m hearing from all over that there are lines at CFA’s.
Sorry...propositon 8 not 13 (I guess I have taxes on my mind this morning!)
“Cathy’s candor was bad business”
Here is the heart of America’s problem: telling the truth is bad for business.
Just wow...
They need both customers and knowledge that what they are doing is paying dividends.
My daughter taught at a Christian School and Chik-Fil-A was a great supporter.
I don't normally eat at fast food outlets, but I will make and exception for them.
Our Chic-fil-a is on the other side of town, but made a point to do dinner there because of the stand they are taking and will eat there at least 1 a week... great place and atmosphere. It was crowded for a late dinner... and when i told the cashier why we were there, she hit a button on her register i believe to keep track of comments.
i should have asked her but didn’t. i believe the lefts boycott muscle will be shown to be all talk and little action.
t
“...Tolerance is strictly a one-way street for the left....”
Liberalism rots out the human brain in epic proportions. It’s a chronic debilitating mental disease. In the rotted-out liberal mind, they think the minority is the majority and that they are wholly supported by the entire of society. They think wrong is right, and right is wrong. While, the very opposite of their thinking is reality. The real majority doesn’t take kindly to having the minority’s values (or lack thereof) forced down their throat and show it with their money and will show it with their vote in November. Chic’s sales increased. Gun sales increased. Contrary to liberal thinking, that’s reality.
Liberals are totally delusional. They are the physical manifestation resulting of the events in Genesis Chapter 3. They will utterly destroy the nation with their deluded thinking. November 6th can’t get here soon enough.
You can bet that Jerry Sandusky believes in tolerance...particularly for himself.
It (tolerance) most certainly does not include tolerance for Christians.
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