Chick-fil-A jumped into retail in 2020, initially bringing its signature sauces to shelves at nearly 1,800 locations in Florida. The test went so well, the sauces rolled out nationally just months later.
Now, the brand is trying to duplicate that success with its salad dressings, announcing today it will begin selling four of its most popular dressings at participating Walmart, Kroger and Meijer stores in the Cincinnati market and across Tennessee. Avocado Lime Ranch Dressing, Garden Herb Ranch Dressing Creamy Salsa Dressing and Zesty Apple Cider Vinaigrette Dressing will be available for purchase in 12-ounce bottles, with prices varying by location and retailer.
The company plans to make the dressings available at retailers nationwide next spring.
“We love that our guests are enjoying our salad dressings in our restaurants and can now share them more easily with family and friends at home,” Michael Garrison, senior director of innovation and new ventures at Chick-fil-A, said in a statement. "We saw excitement from customers around the launch of our bottled sauces in 2020, and we are thrilled to add more retail offerings for our fans while introducing the brand to new customers in our pilot markets."
Royalties from retail sales during the pilot will be donated to support Chick-fil-A’s team scholarships, which follows the same playbook from its retail sauce launch. However, according to a spokesperson, such plans have not been solidified yet for the national rollout.
That means Chick-fil-A is extending its presence into retail for benefits beyond just incremental revenue. No doubt the retail opportunity creates added brand awareness and a potential to reach new customers before any brick-and-mortar plans are drawn up. Indeed, plenty of white space for unit growth exists for Chick-fil-A, which has less than 3,000 restaurants across the country. This is compared to nearly 4,000 KFC locations and nearly 14,000 McDonald’s locations.
That said, the accretive revenue stream without the potential to cannibalize core sales, is a driver behind most brands’ consumer packaged goods presence. And that list of brands is growing, from Krispy Kreme, Starbucks and Dunkin’ to Taco Bell, White Castle, Panera and Cava. Focus Brands, parent company of Cinnabon and Auntie Anne’s, generates nearly $2 billion in annual retail sales from more than 100 products across its seven brands, and plans to keep growing its retail channel.
Chick-fil-A is just getting started in this channel, but with its first full-scale distribution center opening recently, the runway is long. Also starting this month, for instance, Chick-fil-A’s retail sauces will be available in larger, 24-ounch bottles at participating Kroger and Walmart locations nationwide.
Contact Alicia Kelso at [email protected].