A Major Chick-fil-A Model Change You Probably Missed

Author

Andy Moore
December 05, 2025

Hello!

Here are some interesting things that caught my eye this week, including:

  • Chick-fil-A’s changes to (some of) its licensed stores

  • Cava’s stand against discounting

  • In-N-Out’s growth push into its newest market

3 Numbers

6

Limited-time menu items launched by Burger King in partnership with the new SpongeBob movie. The list includes Mr. Krabs’ Cheesy Bacon Tots, Patrick’s Star-berry Shortcake Pie, and a Krabby Whopper (on a yellow square bun).

3

Footlong Subway sandwiches that guests can now buy to earn a fourth one free. The refreshed loyalty program — a relaunch of the Sub Club, which shut down 20 years ago — is one of the industry’s most generous, offering a roughly 25% discount rate to rewards members.

3

Locations that In-N-Out plans to open in its new Tennessee market by year’s end. (That’s in … checks notes … 26 days.) The three Middle Tennessee locations (in Lebanon, Antioch and Murfreesboro) will be the furthest geographic reach yet by the California-based company. But they won’t be too far away from the new In-N-Out support center that’s scheduled to open in Franklin next year.

2 Big Stories

  1. Cava says it has no plans to change its no-discounting policy despite a deal-heavy restaurant environment. Via the Wall Street Journal:

The company recently cut its same-store sales outlook and overall profitability for 2025, citing the same pressures that other fast-casual restaurant chains have recently flagged: Consumers, especially younger ones, are spending less on eating out. Appealing to would-be diners who are currently bombarded with discounts could mean joining in on the deals.

“There might be a tendency to try to generate short-term improvements in traffic as a result of discounting,” said Cava Chief Financial Officer Tricia Tolivar. “We don’t think that has value over the long term.”

Even without discounts, Cava diners get a deal, executives have said. A bowl with greens and grains, 12 unlimited toppings including pickled onions, cucumbers and olives, plus chicken is less than $11 in some locations. At most, the same bowl with chicken is just under $13 in New York City. That’s higher than a value meal at McDonald’s and certain deals at casual restaurant chains. But it’s well below lunch for $20, a higher-price point perception that bowl restaurants in particular have struggled to shake as diners look for cheaper meal options.

I thought Rick Vanzura (former CEO of Wahlburgers) had a good take on Cava’s positioning:

CAVA is doing the industry a favor by refusing to discount and framing its value proposition as the everyday value coming from high quality food and experience driven by strong operational execution. This will allow the category to see if that approach is successful, and it will also give Cava plenty of margin to play with to make sure it can execute at a high level and deliver on the concept's promise.

…

There is a long-term price to be paid for conditioning customers to expect discounts, and it also sends a message about your base pricing. It would be good to see concepts winning on the basis of demonstrating their as-priced menu delivers good value.

  1. Chick-fil-A is making a big shift in how it operates its licensed restaurants. Via QSR Magazine:

Chick-fil-A is shifting its licensed location strategy, albeit deliberately, a company spokesperson shared Wednesday. The goal will be to transition “as many as possible” to the brand’s local ownership franchise model. In time, the impact will surface in Chick-fil-A college campus, hospital, and theme park locations.

The company said it’s been “shifting incrementally a bit” in past years toward owner-operator-led non-traditional restaurants. According to its 2025 FDD, there were 425 domestic licensed restaurants at year-end 2024. Nearly 50 are airport locations, which are excluded in this effort.

Chick-fil-A said these transitions will unfold over “years” as existing agreements expire. “This won’t happen overnight,” the spokesperson said.

There are some deals in the pipeline that will still open in the coming year as licensed locations, the company added. Those will run the terms of their agreements and then be individually evaluated for transition as deals expire.

Why they’re doing this: Shifting the licensed stores to the local owner-operator model will bring the business model of the campus, hospital, and theme park locations more in line with the (quite successful) traditional locations. And it’ll allow customers to use gift cards and the mobile app.

(Buried in the QSR story is another bonkers Chick-fil-A AUV nugget stat: they had a mall location do $18.9 million last year.)

Other Headlines

Name That Chain!

Think you know your legacy pizza brands? You’ve got three guesses to name this week’s mystery chain:

  • This chain was founded in the late 1950s by two brothers who opened their first location across the street from a major Texas university.

  • It became known for its buffet before buffets were a standard feature of American pizza joints.

  • The chain’s longtime mascot — a friendly, mustachioed fellow in a signature red hat — is a minor legend in the South and Midwest.

Find the answer at the bottom of the email…

#Content Recs

Power Moves

A few big seat changes this week across the industry:

What’s Happening at FS Supply

We just began production on two new, branded pop-up bakery boxes. They’re lined for moisture control, are sturdy enough to handle the densest baked goods, and are produced in North America for quality (and tariff) assurance. Shoot me an email if you’d like to learn more: [email protected].

Thanks for reading! See you next week.

NAME THAT CHAIN ANSWER: Pizza Inn

Reply

or to participate.