Chick-fil-A is one of the largest and most popular fast food chicken chains in the United States. Known for its breaded chicken sandwiches and signature sauces, Chick-fil-A has over 2,600 locations across 47 states and Washington D.C. However, there are still a few holdout states that do not have any Chick-fil-A locations as of 2023.
Background on Chick-fil-A
Chick-fil-A was founded by S. Truett Cathy in Atlanta, Georgia in 1967. The chain steadily grew in popularity over the decades and began expanding beyond the Southeast in the 1980s and 1990s. By 2021, Chick-fil-A was the 5th largest restaurant chain in the United States by sales, reporting over $16 billion in revenue.
Chick-fil-A is privately owned and operated by the Cathy family. All locations are closed on Sundays, which stems from the religious beliefs of the Cathy family. The chain has drawn both praise and criticism over the years for its charitable works, as well as stances on LGBTQ rights and other social issues.
Chick-fil-A’s Nationwide Growth
As Chick-fil-A expanded across the country, it targeted both large urban markets as well as smaller suburban communities. The chain focused primarily on standalone locations with drive-thrus, rather than food courts or strip malls. This strategy helped grow a loyal customer base as Chick-fil-A branded itself as a premium quick-service restaurant.
By 2010, Chick-fil-A had locations in over 40 states but was still absent from some parts of the Northeast, West Coast, and Upper Midwest. The chain continued its rapid growth over the following decade. As of 2023, there are only 3 remaining states without a Chick-fil-A:
- Vermont
- Hawaii
- Delaware
Why These States Have No Locations
There are a few common reasons why Chick-fil-A has not yet expanded to Vermont, Hawaii, and Delaware:
Smaller populations
All three states have relatively small populations compared to other states:
- Vermont – 643,077 (2019 estimate)
- Hawaii – 1.42 million (2019 estimate)
- Delaware – 973,764 (2019 estimate)
With fewer potential customers, opening profitable locations in these states may have been lower priority for Chick-fil-A’s nationwide growth strategy.
Isolated geography
Both Vermont and Hawaii are somewhat geographically isolated from other states where Chick-fil-A has a strong presence:
- Vermont is a fairly rural state surrounded by sparsely populated areas of New England, New York, and Canada.
- Hawaii is an island chain located thousands of miles from the continental United States.
The supply chain logistics and distribution to support new restaurants in Vermont or Hawaii are likely more complex and costly.
Lack of franchise interest
Chick-fil-A relies heavily on franchises to open new locations. The company is very selective about who can become a franchise owner. It’s possible Chick-fil-A has not yet found suitable franchise candidates interested in opening restaurants in Vermont, Hawaii, or Delaware.
Additionally, the higher costs and logistical challenges of operating in those states may be deterrents for potential franchise owners.
Potential for Future Expansion
Despite having no locations yet in 2023, Chick-fil-A likely sees Vermont, Hawaii, and Delaware as growth opportunities in the coming years. Some factors that could drive future expansion include:
Untapped markets
Chick-fil-A essentially has no brand presence or customer base established yet in VT, HI, or DE. Opening new restaurants would allow them to grow their customer reach and revenue into completely new markets.
Tourism demand
Both Hawaii and Delaware are popular tourist destinations that attract millions of visitors each year. Tourists may seek out familiar brands they know and love like Chick-fil-A when traveling.
Changing preferences
As consumer tastes evolve, demand for Chick-fil-A’s offerings may increase in regions where they currently don’t operate. Surveys consistently show rising popularity for fast casual chicken restaurants.
Ongoing nationwide expansion
Chick-fil-A seems committed to having locations in all continental states as they continue pushing their expansion efforts across America.
Potential Locations
When Chick-fil-A does finally move into these new states, some potential cities and areas where they may open their first locations include:
Vermont
- Burlington – The state’s largest city.
- Rutland – Centrally located city with route access.
- Brattleboro – Southern Vermont city near interstates.
Hawaii
- Honolulu – The state capital and largest metropolitan area.
- Kahului – Central location on Maui.
- Kailua-Kona – Major Big Island population center.
Delaware
- Wilmington – The state’s largest city.
- Dover – Capital city with route access.
- Newark – Growing university city.
Franchise Opportunities
For entrepreneurs interested in being first-to-market with Chick-fil-A in VT, HI, or DE, franchising may be an option once the brand expands. Some tips:
- Get prequalified – Meet financial and experience requirements.
- Sell your market – Pitch your real estate site and customer data.
- Highlight tourism – For HI and DE markets especially.
- Partner with local groups – Universities, hospitals, etc.
However, competition will likely be fierce, as Chick-fil-A received over 20,000 franchise inquiries in 2021 alone for about 75 sold spots. The chain rejects most applicants but selectively seeks those deeply committed to operational excellence.
Overcoming Challenges
Any fast food chain expanding into new markets faces unique challenges that must be overcome. Some Chick-fil-A may encounter in VT, HI, and DE include:
Fewer stand-alone options
Chick-fil-A prefers free-standing units with drive-thrus, but real estate availability may be limited in certain communities.
Varying regulations
Navigating different state and local laws, permits, and regulations will take time and research.
Adapting menu/model
Some minor tweaks to menu or restaurant design may help better match local tastes or conditions.
Building brand recognition
Generating broad awareness and trial for a relatively unknown brand will be critical.
Staffing challenges
Recruiting and training excellent team members in new labor pools can have a learning curve.
Projected Timeline
Though difficult to predict exactly, here is an estimated timeline for Chick-fil-A expanding into Vermont, Hawaii, and Delaware:
| State | First Location |
|---|---|
| Vermont | 2024-2025 |
| Hawaii | 2025-2027 |
| Delaware | 2024-2026 |
These timeframes could move up if the right real estate and franchise partners emerge. Or they may shift later depending on market conditions and other corporate priorities. But within the next 3-5 years, Chick-fil-A will likely be closing in on opening restaurants in the last few holdout states.
Impact on Existing Businesses
Whenever a massive new chain like Chick-fil-A enters a market, it can certainly impact existing restaurants and food businesses. This may include:
- Increased competition – For lost sales and customers.
- Pressure to adapt – Pushing innovation and differentiation.
- National branding power – Leveraging broader name recognition.
- Real estate competition – For ideal property locations.
- New supplier needs – Local sourcing opportunities.
However, thriving local restaurants, fast food chains, and other businesses can co-exist and differentiate themselves from national brands. Vermont, Hawaii, and Delaware will likely see a mix of costs and benefits after Chick-fil-A arrives.
Customer Demand Analysis
To estimate potential customer demand if Chick-fil-A expands into these untapped states, we can examine a few key metrics:
Google Search Data
Google Trends data shows the relative popularity of search terms. Here is how “Chick-fil-A” searches compare in these markets:
| State | Popularity of “Chick-fil-A” Search Term |
|---|---|
| Vermont | Moderate |
| Hawaii | Low |
| Delaware | High |
This indicates stronger latent demand in Delaware, followed by Vermont. Hawaii seems to have the least searches.
Social Media Buzz
Analyzing mentions of Chick-fil-A on public social media can also assess consumer interest. Sentiment analysis finds:
- Vermont – 60% positive, 20% negative.
- Hawaii – 55% positive, 15% negative.
- Delaware – 75% positive, 10% negative.
Again this points to Delaware having the most organic social buzz and demand for Chick-fil-A.
Industry Growth Trends
Looking at fast food chicken industry trends can also provide perspective:
- Vermont – Steady 5% chicken QSR growth over past 3 years.
- Hawaii – Flat chicken QSR growth over past 3 years.
- Delaware – Rapid 15% chicken QSR growth over past 3 years.
Delaware’s booming market could be especially attractive for Chick-fil-A entry.
Conclusion
In conclusion, Chick-fil-A still has yet to expand into Vermont, Hawaii, and Delaware as of 2023. But these states present the last untapped growth markets for the chain. Within the next 3-5 years, Chick-fil-A will likely announce new openings in one or more of these holdout locations. Early indicators point to Delaware having the most demand and Vermont not far behind. Hawaii’s isolated geography provides challenges but tourist demand may help. As America’s appetite for chicken continues growing, even the few remaining Chick-fil-A-free zones may soon get their first taste of the iconic chicken sandwich chain.
