Chick-fil-A Open On Sundays? New York-Proposed Law Could Make This A Reality For Some Locations

Fans of Chick-fil-A know the rule by now: The chain's locations are all closed on Sunday.

Even with being open six days a week, the company ranks among the top revenue-producing restaurant brands each year.

A new bill in New York could create a potential decision for the chain over its long-standing rule.

What Happened: The state of New York will consider Bill A08336, which would make it mandatory that all food services at transportation facilities and rest stops be open seven days a week, according to USA Today.

The purpose of the bill is to "ensure that New York State's transportation facilities offer a reliable source of food services."

"The traveling public and commercial trucking industry rely on these service areas to rest, refuel and to purchase food and beverages," the bill reads.

The bill specifically cites Chick-fil-A and its company policy to be closed on Sundays with seven service area locations impacted by the policy.

"While there is nothing objectionable about a fast food restaurant closing on a particular day of the week, service areas dedicated to travelers is an inappropriate location for such a restaurant."

The report said there are seven Chick-fil-A locations open in the impacted areas, with three more being built.

According to the report, hot food options have to be available, but it is unknown if Chick-fil-A would be able to have another company operate its location on Sundays with other food offerings.

A similar measure could also be passed covering transportation routes in the state of New Jersey.

Despite being closed one day a week, Chick-fil-A often ranks among the top restaurants in America by annual revenue, typically trailing only McDonalds and Starbucks, which are open all seven days and have more locations.

Among chicken restaurants, the annual revenue and revenue per location for Chick-fil-A is significantly higher than that of Yum Brands Inc (NYSE: YUM) owned KFC and Restaurant Brands Inc (NYSE: QSR) owned Popeye's Louisiana Kitchen.

Why It's Important: If the bill is passed, it is unclear what the restaurant chain will do.

Chick-fil-A is one of the most popular restaurants in the U.S. It's also among the top franchise businesses for those lucky enough to be able to get approved.

The Atlanta-based company's long-standing decision to be closed on Sundays dates back to its first location and comes from a religious background.

"Our founder S. Truett Cathy made the decision to close on Sundays in 1946 when he opened his first restaurant in Hapeville, Georgia. Having worked seven days a week in restaurants open 24 hours, Truett saw the importance of closing on Sundays so that he and his employees could set aside one day to rest or worship if they choose, a practice we uphold today," the Chick-fil-A website says.

The family will likely honor the decision to remain closed on Sundays into the future.

"I have a commitment from my three children that they will keep it private. And that we'll always close on Sunday," Cathy told Reuters in a 2007 interview.

Cathy passed away in 2014 and the family has so far stayed true to their word.

In 2017, Chick-fil-A opened a location inside Mercedez-Benz Stadium, home of the NFL's Atlanta Falcons. Despite the Falcons playing the majority of their home games on Sundays, the Chick-fil-A in-stadium location is closed those game days.

Even when Mercedez-Benz Stadium hosted Super Bowl LIII in 2019, the Chick-fil-A location still wouldn't open up on Sunday for the marquee event.

The stadium location changes over to a brand called Fries Up on Sundays offering loaded fries, but no Chick-fil-A food.

Chick-fil-A often gets mentioned as a potential IPO candidate. Going public could see the family get more pressure to open on Sundays and increase revenue by being open seven days a week. With a promise made to the founder to stay closed, Chick-fil-A will likely continue this time-honored tradition forever.