Chester’s is No. 164 on the Franchise Times Top 400, based on 2023’s system sales.
The demand for chicken skyrocketed in recent years, from sandwiches to wings to items boasting impressive heat levels.
At 941-unit Zaxby’s, a “world-class” development team is behind a lot of the company’s recent growth, Chief Development Officer Mike Mettler said. “We’re a large business in a very competitive space. I need a best-in-class team and tools,” Mettler said.
Zaxby’s is up two spots on the Franchise Times Top 400 list to No. 43, with $2.5 billion in system sales. Sales were up 5 percent and unit growth was up 2 percent. The franchise ended 2023 with 145 corporate units, which Mettler said is part of his development plan for Zaxby’s.
The annual Top 400 ranking lists the largest U.S.-based franchise systems by global systemwide sales.
Georgia-based Zaxby’s is No. 94 on the Franchise Times Top 400.
The company strengthened some digital elements, launching a new app and loyalty program and switching up its point-of-sale system, Mettler said. Those updates, and an emphasis on marketing, led to Zaxby’s growth in 2023 and continued growth this year, he said.
Dave’s Hot Chicken, ranked No. 165 on the Franchise Times Top 400, added 80 units last year, a 76.5 percent increase, ending 2023 with 180 units.
“There are shortages of products and commodity fluctuation. But all in all, the headwinds are not really there,” CEO Bill Phelps said. “The category is growing. People are eating more chicken and we continue to see improved sales in the category.”
Dave’s sales were up 40.1 percent to $406 million. Dave’s Hot Chicken jumped 38 spots on the annual list, breaking into the top 200. The franchise launched a television advertising campaign, which Phelps said impacted sales in 2023.
The chicken category as a whole did $76 billion in total sales last year, up 12 percent from 2022.
Chicken powerhouses Chick-fil-A and KFC remained in the top 10 this year, keeping their same No. 6 and No. 3 rankings, respectively. KFC did $33.86 billion in total sales, an 8.8 percent increase, across its 29,900 units. Chick-fil-A increased sales by 15 percent to an estimated $22.28 billion with 2,981 restaurants.
William Culpepper
No. 164 Chester’s grew the least in the chicken category, but still increased sales by nearly 4 percent. Chester’s franchisees often operate in convenience stores, which is helping to drive sales at the unit level.
“The C-store industry over the last decade or so has experienced a dramatic change in terms of elevating food service,” Vice President of Marketing William Culpepper said.
Customers require better options beyond the stereotypical gas station hot dog on a roller grill, Culpepper said. That’s where the 50-year-old brand comes in.
“They’re willing to pay a premium,” he said. “We’ve always been focused on quality—a little bit ahead of our time in that regard—and now we’ve really been focused on innovation and driving more guests.”
In June 2023, Lee’s Famous Recipe Chicken bought four units from franchisees who were retiring in Fort Wayne, Indiana. The franchise ended the year with 17 corporate-owned restaurants and 106 franchised ones. Lee’s climbed 17 spots with sales of $229 million.
Slim Chickens opened another 58 stores last year, up 33 percent to 233 restaurants. The brand climbed 12 spots to No. 168 with systemwide sales of $388 million.
Related: Slim Chickens Is ‘New Love’ for Multi-brand Franchisee Dennis Ekstrom
Even before the COVID-19 pandemic, Slim Chickens put an emphasis on multiple revenue channels to drive sales for franchisees—such as a loyalty app and online sales.
“The price of poultry can go up, and it fluctuates,” CEO Tom Gordon said. “We have to do our job for our franchisees of managing that fluctuation and making sure that we can deliver quality cost of goods on their P & L as it comes.”