Chick-fil-A’s first UK location in Reading is set to close in 6 months after its lease expires,
indicating how the chain’s controversial reputation could negatively impact its plans to
break into international markets. The announcement of the closure – made only 8 days after the restaurants opening on October 10th – came after protests and boycotts by LGBT+ activists.
Reading Pride, which organised the protests, have stated that the American company’s
“ethos and moral stance goes completely against our values, and that of the UK as we are a
progressive country that has legalised same-sex marriage for some years and continues to
strive towards equality”.
This backlash, illustrative of the consequences of a modern company not aligning its values
with the values of its consumer base, stems from Chick-fil-A’s infamously controversial
donations to anti-LGBT+ organisations who oppose same-sex relationships and marriage
equality.These organisations include Exodus International, which offered gay and transgender conversion therapy; and the Fellowship of Christian Athletes, which opposes same-sex marriage.
Furthermore, in 2012, Chick-fil-A’s chief executive Dan Cathy came under fire after publicly
stating that “We are very much supportive of the family – the biblical definition of the
family unit. We want to do everything we can to strengthen families.”
As a result of the controversy, a representative for the Oracle shopping mall in Reading
stated that the Oracle will disallow trading with Chick-fil-A beyond its initial lease
agreement, calling it the “right thing to do”.
However, it is unlikely that this is the end of Chick-fil-A’s expansion efforts in the UK. In fact,
the chain has already quietly opened a second location in a hotel in Scotland and many
more locations are likely to come.
Nonetheless, if the protests reflect the majority views of the UK market the same result
could be reached. The online change.org petition launched in protest against the opening of the Scottish location, which has received over 1,000 signatures so far, is a case in point.
On the flipside, the company has pointed out that a counter-petition that has called for the
Reading location to remain open and labelled its closure as an “attack on religious freedom”
has received nearly 21,000 signatures.
Overall, this case demonstrates how politics seeps into business and may be symptomatic of
a modern economy that is moving towards consumers that only support companies whose
values closely align with their own, possibly forcing companies to pick sides in the value-
based conundrums of this generation.
This could result in a true revolution on how companies reflect their values, and if
companies fail to align their values with markets they intend to break into, it could result in
failure to expand internationally.
Indeed, despite the fact that Chick-fil-A’s anti-LGBT+ reputation has done little damage to its US sales – as annual sales have grown from $4.6 billion in 2012 to $10.5 billion in 2018 –
Chris Allieri, a founder at consultancy firm Mulberry & Astor, has predicted that “their
reputation could absolutely impact their ability to expand or land partnerships with other
brands”. He continued to state that he would “never counsel a brand that appears to
support discrimination and hate”.
In the end, it will be most telling to see what Chick-fil-A’s earnings are at the end of the 6-
month lease in order to determine whether, in reality, the consumer cared enough about
the company’s controversial values to sever business with the chain.
by Daniela Bodero Jimenez
References
https://www.theguardian.com/world/2019/oct/21/chick-fil-a-outlet-reading-to-close-in-
lgbt-rights-row
https://www.independent.co.uk/news/business/chick-fil-a-close-first-uk-restaurant-
reading-lgtb-backlash-a9162491.html
https://www.businessinsider.my/chick-fil-a-uk-expansion-continues-despite-backlash-2019-
10/
https://www.businessinsider.my/chick-fil-a-uk-expansion-continues-despite-backlash-2019-
10/
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