On Using Perspective

I’ve been reading a few good books about different topics of interest to me right now. I came across a good story about “Perspective” and how it can dramatically change the results without changing any of the facts. It pretty much is the only principle that can.

I thought I would share it here. It’s a recount of certain facts around the fast-food industry.

Currently, the average fast-food restaurant in America grosses $800,000 per year. And according to the data, Sunday is the best to own a fast-food operation. More money by far is spent on at fast-food restaurants on Sunday than on any other day and has been the case for along time.

For years, every operation in the fast-food industry has had access to the same data, the same facts. So based on the careful examinations of those same facts, do all fast-food operations “see” them the same way? Based on the same data facts, do they all choose the same “perspective”? No, they do not.

McDonald’s looks at the data and determines that it only makes sense to strike while the iron is hot. Since there is obviously more money to be made on Sunday than any other day of the week, the increased crowd needs to be served quickly. Therefore, McDonald’s “perspective” is that Sunday is a great day to bring in as many employees as possible in order to staff their restaurants with the week’s highest number of workers.

Chick-fil-A has access to the same data and has had it for years. So every time industry facts and data are released, the executives at Chik-fil-A examine the same details as all other fast-food operations. The information is clear and consistent, Sunday continues to lead every other day of the week in revenue by a large margin. So after examining the same data, Chik-Fil-A’s “perspective” is that there are some things more important than merely selling another chicken sandwich. Their “perspective” is that Sunday is a great day to give their employees the day off. This is done to allow families to be together, to allow a time to rest and regroup and take a deep breath and to allow their employees the opportunity to attend church if they wish.

So it’s same industry, same data but different “Perspectives”.

How does this all play out in revenues? Remember the fast-food industry average, across the board for all franchises and chains taken as whole, each restaurant averages $800,000 gross profit per year. But McDonald’s operation is obviously way above average, so it probably doesn’t surprise you that the average McDonald’s restaurant takes in $2.6 million gross profit per year.

One might think Chik-fil-A would be overwhelmed by that kind of competition with these kinds of numbers. But in reality, it’s not even close. Now remember, Chik-fil-A is never open 24 hours a day and never open on a Sunday. Yet even with a reduced amount of hours and fifty-two fewer days open on the calendar year, the average Chic-fil-A restaurant brings in $4 million gross profit per year!

“Perspective” is such a little thing, but it’s the only thing that can dramatically change the results without changing any of the facts.

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Maybe it is because Chik-fil-A actually sells a great product and the staff say thank you and seem to actually treat you like you matter to them personally.

I NEVER eat at McDonald’s and I eat at Chik-fil-A frequently. I would love to own a Chik-fil-A but would NOT own a McDonalds. Perspectives indeed. You just have to drive by a Chik-fil-A on Saturday to see they far outsell their competitors.

Thanks for the interesting discussion.

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Chick-fil-A has made a value judgement that Sundays off was worth more than the money they would make had they stayed open. Same goes for Christmas Day or Easter.

And their customer base apparently agrees since few seem to hold their decision against them.

Edit: added

I used to frequent McDonalds until they caved in to the PC crowd demanding that Supersize was evil. I think that McDonalds still has some of the tastier fries in the industry despite several changes in the grease they use in the fryer. And I like the Big Mac. But when I pay for a large drink, I want a large drink, not one slightly bigger than their medium.

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Chick-fil-A is like crack. Lol. The fact that you can’t get it on Sunday probably helps their sales. Their staff are great & very friendly. I don’t think I have have ever seen a frown on any of the employees faces.

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True story: When I changed jobs back in early 2000s, I ended up drving right by a Chick-fil-A each moring. They had a two-for-1 sale on their chicken biscuit breakfast sandwiches at same time, so I stopped by and bought two, ate one (doused w/honey), and gave one away at work. Next day, same thing…and every workday for almost a year. The ~600 calories a day for 10 months or so made me the man I am today…

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I think that they also have different target audiences, McDonalds
will build store in low income areas, there are at least 3 within
2 miles of my house, The nearest Chick Fil A to me is in Ceder
Hill over 10 miles away, They do not really have a competitor with
a very similes product, either, If I wan a a good chicken sandwich,
I need to buy it when I am close to one, If I want a burger, I have lots
of options, multiple Burger Kings, Sonics, Jack in the Boxes and Wendys
in that same 2 mile range (no Whataburgers however). Chick Fil A is a
more exclusive product

Folks love to compare Wal Mar to Costco, but their customer base is
not the dame, Costco appeals to a higher income customer, Did you
know that t they will not open a store if they can not sell WINE in it! Not beer

And yes I live in a area with LOTs of fast food, Last night, we stopped at Churchs
so my hubby could get their shrimp deal, They were out, to get home, we chad to eithr drive my Sonic, next doo, or byt Taco Bell, Jack in the Box and Willims chicken all withing a hlf mile of s,
but wine

Thank you for sharing! Very interesting! What’s the name of the book? Thanks!

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