10 emerging chicken chains ready to take off
The chicken category has been on fire since the start of the pandemic in March 2020.
After Popeyes’ Chicken Sandwich went viral in the second half of 2019, many chains followed with their own take on the article, including big names like McDonald’s, KFC, Burger King, Wendy’s, and Zaxby’s. . Additionally, the food segment has seen an influx of virtual chicken-based brands like It’s Just Wings from Chili’s, Cosmic Wings from Applebee’s and The Wing Experience from Smokey Bones. Data from the NPD Group shows that chicken entrees at U.S. restaurants increased 4% in the year ending April 2021.
However, rising demand, combined with an ongoing labor crisis, has caused shortages and price inflation. KFC asked operators in April to remove chicken offerings and Nashville Hot chicken dishes from online menus due to supply issues, the Wall Street Journal reported. Additionally, Bojangles, 770 units, had supply issues with its Supreme Chicken offerings last spring. In terms of price increases, Wingstop CEO Charlie Morrison told CNN Business in late June that the wholesale price of wings in 2020 was only 98 cents, but is now 3.22 cents. $. US producer prices for processed poultry rose 6.6 percent from May to June, according to the Bureau of Labor Statistics.
Despite the headwinds, a multitude of chicken chains have moved forward with skyrocketing sales and a plethora of franchise deals. Expansion efforts are targeting areas across the country including California, Colorado, Texas, Massachusetts, Florida and more. Traders view the labor market and volatile prices as short term and are ready to play for the long term. Here are 10 concepts with less than 100 units ready to grow and gain more market share in the years to come.
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