Armed with a work ethic forged during the Depression and keen business sense coupled with a personal and business philosophy based on biblical principles, restaurant entrepreneur S. Truett Cathy and his brother Ben opened The Dwarf Grill (later Dwarf House) in Atlanta, Georgia in 1946. They named resulted from the fact the restaurant was so small, it contained only 10 stools and four tables; however, it was a start and the restaurant prospered through the years. Sales at the end of the first day totaled $58.20.
Born on March 14, 1921, Samuel Truett Cathy is one of America's most generous philanthropists, sharing his fortune primarily with disadvantaged children. A Sunday school teacher of thirteen-year-old boys in the Baptist church for more than fifty years, Cathy and his wife, Jeannette has taken in 150+ foster children over the years.
Truett was eight years old when his business entrepreneurial journey began in 1929 during which time he operated a Coca-Cola stand in his front yard. By 1935, the Great Depression placed the Cathy family in dire financial straits. They move into Techwood Homes in downtown Atlanta, the country’s first federally funded housing project where they paid $67/month for rent. During this time Truett helped the family’s income with money earned from a paper route.
Cathy started his first franchise when he opened the second Dwarf House in Forest Parkin 1951. When it burned down in 1960, Truett decided to pioneer the idea of a fast-food restaurant instead. Experimenting with a sandwich featuring a boneless breast of chicken, Cathy perfected the recipe for his ‘chick-fil-a’ over a period of four years using cooking techniques his mother taught him when she worked in a boarding house kitchen.
In 1967, Cathy pioneered the idea of fast food restaurants located in malls when he opened his first Chick-fil-A restaurant in the Greenbriar Shopping Center. Chick-fil-A is now the second largest quick-serve chicken restaurant chain in the United States with over 1,500 locations in 39 states and Washington, D.C. Annual sales in 2010 were over $3.5 billion. Chick-fil-A is still privately held and family owned.
At the time Cathy started Chick-fil-A, it was not uncommon for a large variety of businesses to be closed on Sundays. Today, however, most businesses tend to think of Sunday as just another work day, and have even begun to include special holidays such as Easter, Christmas and Thanksgiving to that list. Cathy, on the other hand, has continued with his standard of requiring all Chick-fil-A restaurants closed on Sundays.
Cathy states: “The decision to close on Sundays was our way of honoring God and directing attention to things more important than our business.” The company's stance on religion is so serious that part of its mission statement reads: The purpose of Chick-fil-A is to glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come in contact with Chick-fil-A.
Cathy believes in putting his money where his faith is. From a business standpoint, this rule is said to cost the company approximately $500 million in lost income annually. The loss does not seem to have much effect though, with $2.96+ billion in system-wide sales generated from 1,450+ restaurants annually.
In an interview with Forbes magazine, Cathy remarked, “The Lord has never spoken to me, but I feel Chick-fil-A has been His gift." Cathy went on to state employees are not required to be a Christian to work at Chick-fil-A, but they must base their work on biblical principles. Those seeking a franchise license with the company are asked to disclose marital status, number of dependents, and any/all involvement in community, civic, social, church, and/or professional organizations.
Cathy established his WinShape Foundation in 1984. The program grew from his desire to ‘shape winners’ by providing scholarships and youth-support programs to help young people succeed in life. Normally 20-30 young people receive scholarships each year to attend Berry College. The scholarships are jointly funded by WinShape and Berry College. As of February 2010, Chick-fil-A had donated over $25,000,000.
2006 marked Cathy’s 60th anniversary in the restaurant industry. That year 1,300 Chick-fil-A restaurants in 37 states and Washington, D.C. surpassed $2 billion in annual sales. Today Chick-fil-A is still privately held and family owned.
In 2008, the Christian-themed film Fireproof featured a Chick-fil-A prime product placement during one scene when the main character offers his wife a bowl of soothing Chick-fil-A chicken noodle soup. As soon as Cathy learned about the movie, he quickly contacted the writers to help with marketing efforts. The two brothers who wrote the script had been employees of Chick-fil-A as teenagers.
It never seems to fail with successful companies, someone wants to slam them with a lawsuit and has an ambulance-chasing attorney ready to help. Chick-fil-A was sued in 2002 by a Muslim in Houston who stated he was fired by the company due to his religious beliefs. The case was later settled out of court.
While there are those who have their doubts as to whether or not the company’s religious ties benefit the bottom line in any way, it is hard to argue with success. According to company records, enough Chick-fil-A sandwiches have been sold to create an unbroken trail from Atlanta to Seattle and back again almost six times.
"We must motivate ourselves to do our very best, and by our example lead others to do their best as well." Truett Cathy
“A good name is rather to be chosen than great riches, and loving favor rather than silver and gold.” Proverbs 22:1
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