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.”
Need to run more TV ads telling us how much they've changed and how much the coupons are worth to get us to buy their junk.
The one near us routinely donates significant portions of sales on special nights to support various programs at my children's Catholic school.
Mr. Cathy is truly a man of God.
ROTFLMAOPIMP! You mean companies like J.C. Penney's? Target? General Mills? Home Depot? They practically trip over each other racing to the mikes to announce their support for the sodomite agenda...
How old are the idiots that wrote this tripe? Five?
25 years working for big corporations and the forced tolerance only applies to everything non-Christian.
Try this:leave a copy of BLACK author Elder? book “The Ten things you can’t talk about in America” lay on your desk and see what happens.
My supervisor at the time was no doubt conflicted since the black author was on the cover but the book rightfully ridicules political correct stupidity...so the supervisor found a bland book and laid on top to hide the “offensive” one,whilst saying nothing.
Primarily, it's a moral stand. It remains to be seen, whether it's "bad for business".
I don't eat chicken, hate the vile stuff but I do like milk shakes and I understand they make a good one, plus to my lasting chagrin, my family members do eat the foul fowl.
I’ve decided that unless I really want a burger I’ll be eating at CFA from now on. Liberals refuse to eat there because they are “Christian”. I’ve known a number of liberals that love the food but refuse to go there due to their political bias. So, I’ll will go there due to mine.
Hopefully Cathy and Chick fil ‘A will hang tough. Their average customer is likely not even aware of the “firestorm” in progressive elite circles. The sophisticated wealthy inhabitants of New York’s Upper West Side, Chicago’s Gold Coast and Hyde Park, as well as San Francisco’s Presidio Heights and Menlo Park are not eating at Chick fil ‘A.
One thing Republicans often forget is the public has a short attention span in today’s media driven soundbite culture. Big media driven issues can only be sustained for 3 to 4 weeks maximum before the public totally tunes out. This Chick fil ‘A controversy has a much lower profile than the Trayvon Martin/Zimmerman sensation. Notice how the media’s recent attempts to keep the Trayvon story front page have been met with a collective yawn by the public.
If Cathy hangs tough, in another week this story will be gone. The mayors of Boston and Chicago may tie up the permitting process for new restaurants for a few months, and the health department may inspect existing locations daily for a few weeks, but eventually they will move on to other issues. A year from now it will be a non-event and Chick fil’ A will continue to thrive and grow. One doesn’t have to have restaurants in Chicago and Boston to be successful.
I ate lunch there in Danville, VA earlier this week. The line was a block outsie of their parking lot for the entire time I ordered and consumed my lunch.
Go Chick-fil-A!
I ate lunch there in Danville, VA earlier this week. The line was a block outside of their parking lot for the entire time I ordered and consumed my lunch.
Drove by last night at 7:00 PM, and the line was not quite as long, but was still off of their property.
Go Chick-fil-A!
This concocted “controversy” is wholly an invention of the homo-Left. Most people know that CFA is a decent, family-oriented, God-honoring business. They won’t be hurt at all by the manufactured tantrums.
Yeah, and one without curbs, either.
They just announced that they will be building one 1/2 mile form my house. One of my sons wants to work there. Another opened this morning nearby with people camping out in front. Here’s a news story.
http://www.baltimoresun.com/explore/harford/news/ph-ag-chick-fila-line-0727-20120725,0,7238626.story
This will be the next fast food joint I go to.
Mr. Cathy is standing on his beliefs. I can’t say that about a lot of preachers.
These idiots protesting hoping to cost the company business apparently are too stupid to understand that many gay people will lose their jobs.
Note my tagline.
He was/is a wonderful person to be around and was genuine at all times. (I'd observe him in the community where no one else knew who he was and he was the same whether incognito or before an audience.)
I wish there was one close enough to give them my patronage, but there are none here in Washington state. Nearest is in Boise, ID, which is just a bit far (150 miles) from Tacoma to drive for pickup.
**Or we could simply surrender.**
TO LESS THAN 10% OF THE POPULATION?
++Checking their locations page it looks like many of their restaurants are on University Campuses - that’s not good.**
Oh yes it is........think about it
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