Chicken Delight
Encyclopedia
Chicken Delight today is a chain of restaurants offering eat in, take out, and delivery service with a menu featuring chicken, pizza and ribs. Based in Winnipeg
, the chain mostly has outlets in that city and throughout Manitoba
, although a few are located in the New York metro area, and at other scattered locations in the United States and Canada.
The current operation is a relic of a much larger chain. Founded in Illinois
in 1952, the chain grew to over 1,000 locations in the 1960s. They were purchased by Consolidated Foods in 1964. Their jingle "Don't cook tonight, call Chicken Delight", emphasizing their delivery service, was widely broadcast on American radio. They were known by their use of Volkswagen Beetle
cars for deliveries that featured a huge plastic chicken on the roof.
By the late 1960s, however, Chicken Delight in the US was a troubled operation. While emerging chains like McDonalds ensured that each and every outlet provided a product that met the franchisor's most exacting standards, the quality-control of Chicken Delight outlets in the US was lax. The company was fighting the battle of people who, having had a bad experience in one single outlet, generalized that to the whole chain, then told their friends to stay away.
At the same time, Chicken Delight was finding itself under increasing pressure from a fast-growing competitor, Kentucky Fried Chicken. Even though Chicken Delight and KFC were founded in the same year, Chicken Delight had grown far more quickly. KFC, in many markets, was just beginning to take hold. The competition became particularly strong when KFC added a new chicken product to their menu with a similar taste and texture to Chicken Delight's that they dubbed "Extra-Crispy."
When Chicken Delight was founded, franchisers typically used one of two different methods for collecting revenue. One was to rake 4% to 8% off the top of gross sales, as is typically done now. The other method was to require their franchisees to buy all their equipment and packaging from the franchisor. Chicken Delight franchisees paid a little extra for each paper cup, each paper plate, the chicken-coating mix, etc., providing the franchisor with the money for corporate operations, advertising, and, of course, profit. A law firm felt this scheme ran afoul of the Sherman Anti-Trust Act which requires that the franchisor not sell products above fair market value. In the 1960s, they successfully sued on behalf of 94 franchisees and, in 1971, got a precedent-setting ruling from the US 9th Circuit Court of Appeals that broke the franchise contract for all stores and awarded their clients damages. (Siegel v. Chicken Delight, 448 F.2d 43 (9th Cir. 1971))
The lawsuit win proved to be a Pyrrhic victory
, however, because Consolidated Foods (Now Sara Lee Corporation), then-owner of Chicken Delight, just simply turned their back on the business in the US, leaving all their former US franchisees to fend for themselves. Today, some of the old US stores operate independently under names reminiscent of the original, such as "Chicken Tonight".
In 1979 Otto Koch, owner of the successful Chicken Delight Canada Ltd., purchased the remaining rump of the American operations, and a handful of true Chicken Delight stores can once again be found in the US operating under modern quality-control and contractual conditions.
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
, the chain mostly has outlets in that city and throughout Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...
, although a few are located in the New York metro area, and at other scattered locations in the United States and Canada.
The current operation is a relic of a much larger chain. Founded in Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
in 1952, the chain grew to over 1,000 locations in the 1960s. They were purchased by Consolidated Foods in 1964. Their jingle "Don't cook tonight, call Chicken Delight", emphasizing their delivery service, was widely broadcast on American radio. They were known by their use of Volkswagen Beetle
Volkswagen Beetle
The Volkswagen Type 1, widely known as the Volkswagen Beetle or Volkswagen Bug, is an economy car produced by the German auto maker Volkswagen from 1938 until 2003...
cars for deliveries that featured a huge plastic chicken on the roof.
By the late 1960s, however, Chicken Delight in the US was a troubled operation. While emerging chains like McDonalds ensured that each and every outlet provided a product that met the franchisor's most exacting standards, the quality-control of Chicken Delight outlets in the US was lax. The company was fighting the battle of people who, having had a bad experience in one single outlet, generalized that to the whole chain, then told their friends to stay away.
At the same time, Chicken Delight was finding itself under increasing pressure from a fast-growing competitor, Kentucky Fried Chicken. Even though Chicken Delight and KFC were founded in the same year, Chicken Delight had grown far more quickly. KFC, in many markets, was just beginning to take hold. The competition became particularly strong when KFC added a new chicken product to their menu with a similar taste and texture to Chicken Delight's that they dubbed "Extra-Crispy."
When Chicken Delight was founded, franchisers typically used one of two different methods for collecting revenue. One was to rake 4% to 8% off the top of gross sales, as is typically done now. The other method was to require their franchisees to buy all their equipment and packaging from the franchisor. Chicken Delight franchisees paid a little extra for each paper cup, each paper plate, the chicken-coating mix, etc., providing the franchisor with the money for corporate operations, advertising, and, of course, profit. A law firm felt this scheme ran afoul of the Sherman Anti-Trust Act which requires that the franchisor not sell products above fair market value. In the 1960s, they successfully sued on behalf of 94 franchisees and, in 1971, got a precedent-setting ruling from the US 9th Circuit Court of Appeals that broke the franchise contract for all stores and awarded their clients damages. (Siegel v. Chicken Delight, 448 F.2d 43 (9th Cir. 1971))
The lawsuit win proved to be a Pyrrhic victory
Pyrrhic victory
A Pyrrhic victory is a victory with such a devastating cost to the victor that it carries the implication that another such victory will ultimately cause defeat.-Origin:...
, however, because Consolidated Foods (Now Sara Lee Corporation), then-owner of Chicken Delight, just simply turned their back on the business in the US, leaving all their former US franchisees to fend for themselves. Today, some of the old US stores operate independently under names reminiscent of the original, such as "Chicken Tonight".
In 1979 Otto Koch, owner of the successful Chicken Delight Canada Ltd., purchased the remaining rump of the American operations, and a handful of true Chicken Delight stores can once again be found in the US operating under modern quality-control and contractual conditions.