It seems like every fast food restaurant is feeling the need for a chicken sandwich these days. After chicken franchise industry stalwart Popeyes debuted its then-new chicken sandwich in August 2019 to long lines and shortages, virtually all its competitors that didn’t already have one realized they too needed one on their menu.
However, chicken franchises are far more than just chicken sandwiches. Chicken franchises focus on the sale of chicken products in its numerous forms such as wings, fried chicken, grilled chicken, chicken nuggets, chicken salads and, of course, chicken sandwiches. While the focus of these franchises is primarily on chicken, many also sell additional food types.
Most chicken franchises are fast food (aka quick service) restaurant franchises, providing customers primarily carry-out service, though many have some form of seating. These franchises may also feature a drive-thru, delivery, and catering options for more business diversity. Others, particularly sports bars and fast casual options, have a more robust dine-in presence.
Leading chicken franchises in terms of sales include (in no particular order): KFC, Chick-fil-A, Popeyes, Zaxby’s, Bojangles, Wingstop, Buffalo Wild Wings, Church’s Chicken, Chicken Salad Chick, Chester's Chicken, Raising Cane’s, El Pollo Loco, Slim Chickens, and Golden Chick.
Looking towards the future of the industry, business analysts expect the chicken franchise industry to follow a path similar to burger franchises. From December 2021:
<blockquote>If you look at how burger franchises developed, there were two big waves. First was the McDonald's and Burger King wave, with a business model that helped parents get burgers with their kids at an affordable price. Then came the gourmet burger wave, with brands such as Five Guys and Burger 21 adding toppings like garlic aioli and cilantro cream. Experts say that same business pattern is now repeating with chicken. Whereas brands such as KFC, Popeyes, and Church’s Chicken are long-established and beloved, a new wave of franchises like Pollo Campero, El Pollo Loco, and the Shaquille O'Neal–backed Big Chicken are offering sandwiches with smashed avocado and low-calorie, fire-grilled chicken breast dinners.</blockquote>
A big reason for the two-wave industry growth pattern is how consumers’ tastes typically develop as a group. First, they get a taste of something. Then, they become more adventurous. For instance, as Christina Coy, vice president of marketing at Korean fried-chicken franchise Bonchon, says in regards to fried chicken: “People's taste buds are changing. They're more willing to try new flavors. That's why more consumers are getting excited about fried chicken. It's Korean fried chicken or Nashville hot fried chicken. There's just so many different ways now to have fried chicken.”
Wing Franchises Take Flight
One place, specifically, to look for further development in the industry is wings. Believed to be created on accident in the 1960s, chicken wings are still a growing area in the chicken franchise industry. A fan favorite for Super Bowl Sunday and during various other sporting events from the beginning, chicken wings have become a favorite American appetizer with more and more franchises springing up based solely on serving them.
As alluded to above when talking about the future of chicken franchises as a whole, chicken wing franchises are entering their artisan flavor phase (though the traditional buffalo wing remains the most popular flavor). Also as noted, these wing-centric franchises are red-hot during football season especially, catering to viewing parties big and small. But make no mistake: These specialty chicken franchises draw in consumers year-round.
Chicken wings are an industry segment that may have actually been helped by the pandemic. As stated on FranchiseWire, “During the COVID-19 pandemic, the popularity of chicken wings has increased because of the rise of carryout and delivery orders. Wing franchises have been the beneficiary of this pandemic-related increase in sales.”
And, for the record, wing franchises aren’t immune to the chicken sandwich wave. In summer 2022, Wingstop introduced its own line of chicken sandwiches…and sold out in less than a week.
Initial Investment and Opening Costs for Chicken Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements.
The opening costs for a food franchisee can depend on many factors, including but not limited to: the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
One of the most important variables in how much it costs to open a chicken franchise is the type of franchise being opened and how big it is. The two types of food franchise most commonly offered are traditional and non-traditional. Traditional franchises are usually the biggest option. They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like malls, airports, or gas stations.
In addition, food franchises are increasingly being run from a small or shared kitchen facility, referred to a “ghost kitchen,” and is only used for pickup or delivery. Food truck franchise opportunities are also on the rise.
Our franchise profiles will present you with a basic range for the initial investment required to open a chicken franchise. But when it comes to finding out the details of an initial investment, the franchise disclosure document (FDD) is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Chicken Franchises
Throughout the length of the agreement there are costs for being a part of the franchisor’s business system. These costs include items such as royalty fees, charges for technical support, and continued advertising/marketing costs.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
In addition, it’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.
You can also check out many more related Food Franchises here on Franchise Direct, such as: