An indication hangs outdoor of a Chick-fil-A cafe on Might 06, 2021 in Chicago, Illinois. Scott Olson | Getty ImagesChicken sandwiches, waffle fries, milkshakes – and now TV displays and podcasts?Chick-fil-A plans to release a brand new app on Nov. 18, with a slate of authentic animated displays, scripted podcasts, video games, recipes and e-books geared toward households.Whilst it is an strange transfer for a cafe corporate to wade into the crowded media global, Chick-fil-A has been increasing outdoor of meals for years already — with without equal function of directing extra other folks to its over 3,000 eating places. Since 2019, Chick-fil-A has held the spot of the third-biggest U.S. eating place chain via gross sales, trailing handiest Starbucks and McDonald’s, with many fewer places than both. Ultimate yr, its earnings reached $7.89 billion, in step with franchisee disclosure paperwork.Because it tries to power extra eating place gross sales, the corporate has offered branded products, like a sound asleep bag that resembles its rooster sandwich’s packaging, and created a derivative emblem known as Pennycake, which provides family-friendly video games and puzzles. And for the final 5 years, it is launched animated shorts on YouTube throughout the vacation season as a part of its “Tales of Evergreen Hills” collection.”We now have been paying consideration to a few analysis and conversations we have now had with households which are our shoppers, and insights bubbled up that content material and video games are each adjoining to mealtime,” stated Dustin Britt, Chick-fil-A’s govt director of name technique, leisure and media.”Our trust is, as we upload price to their enjoy, then we are giving them a reason why to wish to experience extra Chick-fil-A with us,” he added.A preview of the app seen via CNBC integrated the primary 22-minute episode of “Legends of Evergreen Hills,” which continues protagonist Sam’s adventures within the delusion global of Evergreen Hills; the primary installment of “Hidden Island,” a scripted podcast a couple of kinfolk that shipwrecks on a abandoned island; and a step by step cooking instructional that makes use of a Chick-fil-A milkshake as a key aspect.Shoppers can pre-download the unfastened Chick-fil-A Play app for his or her iPhones, iPads and Android gadgets forward of the release subsequent month.Why Chick-fil-A is making a bet on contentPeople stroll previous a Chick-fil-A cafe on eighth Road on December 30, 2023, in New York Town. Gary Hershorn | Corbis Information | Getty ImagesChick-fil-A determined to create the app following years of discussions with shoppers and as shopper conduct shifts clear of extended visits to its eating places.Whilst a lot of Chick-fil-A’s shoppers nonetheless experience its in-restaurant playgrounds, extra of its shoppers at the moment are the use of its drive-thru lanes and ordering supply, in step with Khalilah Cooper, Chick-fil-A’s vice chairman of name technique, promoting and media. Rival McDonald’s has slowly been erasing its PlayPlaces, a transformation most likely as a result of fewer youngsters the use of the playgrounds, considerations about well being and protection, and a shift clear of advertising to youngsters.”We are taking a look at this app with the intention to have a virtual playground for all the kinfolk to experience, whether or not they are in our eating places, within the drive-thru, using to football follow and even stress-free at house,” Cooper instructed CNBC. “We would like it to be an extension of our in-restaurant signature hospitality and generosity.”The content material at the app makes a speciality of subject matters like generosity, friendship, problem-solving, creativity and entrepreneurship, in step with Cooper. Chick-fil-A designed the app’s content material to attraction to youngsters 12 years previous and below and their folks.After the preliminary release, new episodes of “Legends of Evergreen Hills” will free up weekly during the vacations; “Hidden Island” will observe a identical drop agenda. Subsequent yr, the Play app will release “Ice Lions,” every other scripted audio collection in line with the actual tale of Kenyan youngsters who wish to shape the rustic’s first ice hockey group.Many of the content material that shall be to be had at the app used to be created with outdoor companions led via Chick-fil-A’s inside group, however a few of it used to be authorized. The corporate did not reveal the names of its exterior companions.”We are continuously excited about what further components we will upload into the app through the years,” Cooper stated.In August, media e-newsletter Time limit reported that Chick-fil-A has been running with outdoor manufacturing firms for content material, together with unscripted displays, like a family-friendly recreation display.”I’m going to say that we are exploring quite a few several types of content material, and the whole lot presently is a possible alternative for us. We are going to continue learning and exploring and working out what issues paintings,” Britt stated.Eating places as media brandsA Chick-fil-A meal is displayed at a Chick-fil-A cafe on June 01, 2023 in Novato, California. Justin Sullivan | Getty ImagesAs legacy media gamers like Disney and Warner Bros. Discovery have discovered, making content material is costly and attracting audience is tricky, given the glut of to be had choices on streaming products and services.For manufacturers like Chick-fil-A, the calculus is just a little other. Reasonably than the use of content material to earn money from subscriptions or ads, they are taking a look to promote extra of their very own merchandise. That is been the case since Procter & Gamble first backed daylight radio displays to promote its cleaning soap – growing the cleaning soap opera.”There is a large number of content material advent that occurs from media homes for manufacturers, and I believe that manufacturers wish to faucet into that as it feels extra original. It feels extra like content material and no longer an advert,” stated Stephani Estes, leader media officer for Goodway Workforce, a virtual advertising company.More moderen entrants come with Starbucks, which introduced this summer time that it’ll create authentic content material thru a partnership with Sugar23. And in January, Chuck E. Cheese stated it is running with “Best Chef” manufacturer Magical Elves to create its personal recreation display.”I believe the largest query I might have, as a advertising skilled, is what’s the industry subject that you are seeking to resolve? And is the buck invested in that content material advent or specific initiative going to pay out greater than spending that buck in other places within the advertising funnel?” Estes stated.For Chick-fil-A, the branded content material offers it some way to connect to youngsters – with out the similar stink as promoting immediately to them – and foster goodwill towards the emblem from their folks.And in contrast to Disney and Warner Bros. Discovery, Chick-fil-A has some flexibility to determine if the funding is operating. As a family-owned corporate, it’s not beholden to shareholders who would possibly thrust back in opposition to a pricey advertising undertaking.Chick-fil-A additionally has money to burn, particularly given its meteoric enlargement over the past decade. From 2018 to 2023, its systemwide gross sales just about doubled. Ultimate yr, it raked in web income of $1.07 billion. Chair Dan Cathy, who served as CEO from 2013 to 2021 and is father to present CEO Andrew Cathy, has a web price of $10.6 billion, in step with Forbes estimates.Coincidentally, Dan Cathy owns Atlanta-based Trilith Studios, whose phases have acted as units for lots of Surprise motion pictures and TV displays, plus Francis Ford Coppola’s 2024 mega-flop “Megalopolis.” Tax breaks and inexpensive exertions have helped Atlanta develop into the “Hollywood of the South” over the past decade. Cathy has in the past drawn complaint for remarks he made in 2012 opposing same-sex marriage, and the corporate’s basis donated to anti-LGBTQ teams throughout his time as leader govt.Dan Cathy used to be indirectly concerned within the building of the Play app or making selections associated with the content material, in step with Cooper. Chick-fil-A additionally hasn’t labored together with his studio – but.”We now have no longer lately completed any paintings immediately with Trilith up to now, however that is one thing that we proceed to discover, the place it makes probably the most sense for each our companies and types,” she stated.Don’t leave out those insights from CNBC PRO
