Latest news with #ChickenSandwichWars
Business Insider
11-07-2025
- Business
- Business Insider
Summer's fast food wars hit their flow as McDonald's vs. Popeyes wrap battle heats up
There's a new fast food feud taking shape this summer, and the popular chains McDonald's and Popeyes are beefing (but not over beef). At the center of the wrap battle: crispy chicken. McDonald's on Thursday relaunched its popular Snack Wrap menu items, bringing its spicy and ranch-flavored crispy chicken offerings back after nearly a decade away. The Snack Wraps, which were phased out in 2016, have been brought back at the $2.99 price point. Corresponding with the McDonald's Snack Wrap relaunch, fried chicken chain Popeyes is running a promotion for its own chicken wrap this weekend. It's offering a free chicken wrap, usually priced starting at $3.99, with any purchase of $5 or more until July 13. Popeyes launched its wrap menu in June. Spokespeople for both fast food chains declined to comment on the competition between their chicken wrap offerings. It's not the first time fast food chains have clashed over similar offerings and new menu items. Popeyes made headlines in 2019 when it launched its fried chicken sandwich and with it, the "Chicken Sandwich Wars." The "Burger Wars" have been brewing for decades between chains like McDonald's, Wendy's, and Burger King, with each chain bragging about the differences in its patty size, ingredients, and preparation methods. But this year, the battle appears to be on a smaller scale, in both portion size and price point. Both Popeyes and McDonald's wraps are positioned as menu offerings under $4, and most flavor variations contain fewer than 500 calories. A growing chicken snack trend Analysts told Business Insider that consumers' increasing snack habits and the rise of GLP-1s (not to mention consumers pulling back on discretionary spending amid rising inflation) may be driving the summer's chicken wrap trend. "According to our research, customers from all generational cohorts say that they are increasingly likely to replace traditional meals with snack items during the day," Vanessa Sink, the senior director of media relations for the National Restaurant Association, told Business Insider. "72% of millennials and 70% of Gen Z lead the way, but Gen X and baby boomers are also leaning toward snacking." Jim Sanderson, a managing director and research analyst at Northcoast Research, told BI he believes the low price point of these new menu offerings is likely an effort to drive returning traffic and increase the average check size as an "add-on" since the wraps' price "is lower than most burgers and sandwiches." Research published in May by McKinsey showed that 43% of consumers reported that their top concern these days is rising prices, followed by uncertain tariff policies (29%), outpacing anxiety over immigration and job security. And a full 60% of consumers had either changed or planned to change their spending habits in response to President Donald Trump's tariff announcements — even if the tariffs' full effects have yet to hit store shelves. Matthew Barry, Euromonitor International's Global Insight Manager of Food, Cooking and Meals, told Business Insider that chicken snacks in particular are having a moment, as consumers shift away from plant-based proteins and turn toward "natural" — i.e., animal-based — protein sources. "It's not like lamb's ever gonna get that big in the United States," Barry said. "So chicken really fits in this nice spot, where it's comprised of animal protein in kind of an affordable way." The Ozempic effect Sanderson said another element to consider in the chicken wrap wars is how weight-loss drugs like GLP-1s are shaping consumer behavior. While exact statistics on how these drugs are changing the market remain unclear, analysts have posited that the snack category could end up benefiting from wider GLP-1 usage. Given the increasing prevalence of the drugs, Sanderson said, "consumers may be more interested in smaller portions, which these wraps could fulfill." Barry told BI the rising use of GLP-1s likely has some impact on how consumers are choosing their snacks, but that is just one factor contributing to the broader "snackification" of the food industry, wherein more of our overall calorie intake comes from snacks. "A lot of things are kind of shrinking down and blurring the line between the meal and the snack, and the Snack Wraps are in that space," Barry said. "GLP-1s are part of that trend, too, but there's also a lot of other elements at play: smaller households, economization, experiential desire, and, you know, on-the-go lifestyles, all sorts of things." Putting it in TikTok terms, we're watching the continued rise of Girl Dinner — and McDonald's and Popeyes want to be part of it.
CNBC
02-06-2025
- Business
- CNBC
Private equity firm Roark Capital invests in fast-growing restaurant chain Dave's Hot Chicken
Private equity firm Roark Capital has bought a majority stake in Dave's Hot Chicken, the company announced on Monday. Financial terms were not disclosed, but Dave's CEO Bill Phelps said on CNBC's "Squawk Box" that the reported $1 billion valuation for the deal is "pretty close." Since its founding in a Los Angeles parking lot in 2017, the fast-growing chicken chain has expanded to more than 300 locations by franchising its restaurants. Dave's U.S. sales soared 57% last year and surpassed $600 million, according to data from market research firm Technomic. Roark's investment follows a boom for chicken-focused restaurants, fueled by the so-called "Chicken Sandwich Wars" sparked by Popeyes in 2019. A wave of quickly expanding upstarts, like Dave's and Raising Cane's, have challenged legacy chains like Yum Brands' KFC, further boosting the category's growth. Dave's success also comes as younger consumers seek more heat in their food. The chain offers a diverse range for the chicken's "hotness" — from no spice to "Reaper," which requires the orderer to waive liability. The Reaper has sent at least one customer to the hospital; co-founder and Chief Business Officer Arman Oganesyan said the diner who signed the waiver offered a bite to her boyfriend, who couldn't handle the heat. But the restaurant's menu overall is small and focused on its oversized chicken tenders, which can also be inserted into a bun to make sliders. According to Oganesyan, its sliders are the perfect size to eat with one hand, leaving the other free to scroll on a phone. Phelps, who previously led Wetzel's Pretzels for 25 years, joined Dave's in 2019, less than two years after its founding. Co-founders Dave Kopushyan, Tommy Rubenyan and Oganesyan have stuck around and plan to continue in their roles after the deal closes. Along with Phelps, they're also holding onto their equity as minority stakeholders. "The timing was absolutely right," Phelps said. "We were at an inflection point where we could get an incredible valuation, and yet there was still significant upside for Roark, so that's the perfect place to be. "Roark has the ability to use their international supply chain to reduce the costs. And it's a better deal for the franchisees, but they also have the international ability to grow with all of their franchisees around the world, so we have an opportunity to blow this thing up very quickly," he added. Looking ahead, Dave's could reach up to 4,000 locations worldwide over the next 10 years, Phelps said. So far, Dave's has resisted conforming to industry practices, like focusing on speed of service, switching to cheaper ingredients or expanding its short menu. Sticking to many of its founders' original practices allowed the chain to keep the quality of its signature chicken high even as it opens new restaurants every day, Dave's COO and President Jim Bitticks said. Executives don't expect that to change under Roark's ownership either. "How did we get to that billion-dollar brand status? We leaned into what they created, rather than adjusting it or changing it based on conventional wisdom," Bitticks said. The deal marks Roark's first restaurant deal since the firm's blockbuster purchase of Subway for a reported $9.6 billion in 2023. Roark's portfolio also includes two holding companies, Inspire Brands and GoTo Foods, that collectively own more than a dozen restaurant brands, like Arby's, Dunkin' and Cinnabon. Roark has been keeping an eye on Dave's since the early days. "They came to our 15-store grand opening," Oganesyan said. "We'd see them at conferences all the time. They understood the potential of the brand. ... When the time came where we needed that new investor to come in, they were some of the only people on our minds. Early Dave's investors aren't the only ones making money from the deal. Masterminded by Phelps, the company plans to give dozens of its employees, from its support center team to restaurant assistant managers, significant bonuses. "He literally made 20 millionaires," Oganesyan said.
Yahoo
14-02-2025
- Business
- Yahoo
This Fried Chicken Chain Is Going Through A Major Brand Overhaul
America loves that chicken from Popeyes, the nation's number-two fast food chicken chain (second only to Chick-fil-A, per CNBC), but the Louisiana-born chicken empire is making some major changes to its American restaurants. In an earnings call with investors, as reported by Restaurant Dive, Popeyes revealed its plans to massively modernize the technology in front and back of house, while also remodeling stores and boosting advertising to drive sales back up after a somewhat disappointing 2024. Popeyes intends for every U.S. restaurant to have fully revamped technology within 22 months, according to Restaurant Brands International CEO Josh Kobza. This includes (but is not limited to) cloud-based point-of-sale systems, order-ready boards for in-store customers who want to track their food's progress, automatic batter makers, and improved hot holding units to keep batches of chicken warm. So far, about 85% of franchisees have committed to this plan. New methods in back of house also call for new organization. Kobza also revealed that Popeyes franchisees will have the option to install a newly redesigned production line. Each store can exercise this option either when it receives the new equipment or during its next remodel. Read more: Popular Fast Food Items That Aren't What You Think Over the next two years, Popeyes isn't just aiming to modernize its U.S. restaurants' technology. RBI CEO Josh Kobza revealed on the earnings call that 85% of Popeyes franchisees have also committed to boosting their marketing budgets as yet another prong to drive customers back to Popeyes. As a restaurant, Popeyes is not short on acclaim. Popeyes was a favorite of the late Anthony Bourdain, its Cajun turkey is a Thanksgiving legend, and the Louisiana chain also helped spark the Chicken Sandwich Wars, which defined an era in fast food. Yet despite all this impact, Popeyes reported that sales growth lagged significantly in 2024. Its growth shrunk from over 6% in Q1 (after multiple quarters of growth) to just 0.6% in Q2, and it actually went negative by almost four points in Q3. The new changes coming to your local Popeyes are meant to reverse this surprisingly low sales growth, which rounded out at 0.6% for all of 2024. To help, RBI is also increasing its ad spend and offering a $4,000 ad credit to each franchised restaurant. Hungry for more? Sign up for the free Daily Meal newsletter for delicious recipes, cooking tips, kitchen hacks, and more, delivered straight to your inbox. Read the original article on The Daily Meal. Sign in to access your portfolio
