Franchising
Southern Classic Chicken’s recipe for success: Longevity, pricing and big focus on taste
Southern Classic Chicken has a "cult-like" following in Louisiana. Managing Director Tom O'Keefe explains how the company's taste profile and longevity have set it up for successful franchising.
October 8, 2021 by Mandy Wolf Detwiler — Editor, Networld Media Group
The chicken wars cluck onward, and Southern Classic Chicken has been a player for more than three decades in a crowded field.
What sets the brand apart is its departure from dine-in and affordable price point. Managing Director Tom O'Keefe, a former Smoothie King COO, said the company's longevity is based in part on its $5 to $7 price tag and taste profile, which gives the brand its competitive edge.
Brothers Howard and Leon Fanning launched the brand in the Shreveport, Louisiana area more than 30 years ago. Today, Southern Classic Chicken has 17 stores and is in the beginning stages of franchising with $40 million in sales systemwide. The stores average about $1.8 million each.
QSRWeb talked to O'Keefe by phone to learn where Southern Classic Chicken is growing next and what it looks for in a franchisee.
Q: What's going to set Southern Classic Chicken apart in a crowded field of chicken choices?
A: I think a couple of things: One, it's longevity. It's been healthy for over 30 years, so even though it may be new to franchising, it's certainly not new to the market. There is a proprietary marinade process, so the taste profile is unique. And the price point … is super competitive. I think it's the combination of those things. Up in the Shreveport area, it's got a cult-like following. Also, I think their side items are second to none. I think the combination of factors feed into that.
Q: Why is value an important part of Southern Classic Chicken's concept?
A: That's true of any concept because there's always going to be, for consumers, a price to value relationship because ideally, whatever you're going to spend on a product you want to feel like that's money well spent and that you didn't overpay, or you paid but you didn't get the quality of the product that you thought you were going to get. I think inherently you need to establish a taste-profile value and a price-point value that will be delivered every time.
Q: So many chicken brands have entered the market as fast-casual concepts. Southern Classic Chicken's newest model eliminates in-house dining. Why quick service?
A: It's certainly convenience driven, but … if you look at what's happened since COVID has made its appearance and doesn't seem to want to go away — it's actually benefitted the model because of the drive-thru/walk-up concept. There's less contact and it provides a convenience and a speed of service. They do have some units that have inside dining, although it's the minority, but the franchise prototype is strictly drive-thru/walk-up.
Q: As the company begins to franchise, what markets is Southern Classic Chicken looking to enter?
A:East Texas, central and Southeast Arkansas, Louisiana and central and South Mississippi. Louisiana, we're looking to come down the state because they're in Northern Louisiana in Baton Rouge, Lafayette (and) New Orleans. … One of the things I've found to be really successful when you start a franchise platform is to do an "inside out" growth. Rather than to be tempted to go to Illinois or Minnesota where you just haven't established any brand equity, is to take where your initial flag has been planted and grow out from there because you have brand awareness in contiguous markets. People may have heard about you because they live there or work around a market where there is a location, and it's easier to create that brand recognition. We took Shreveport (and) drew a circle around it. … I think it's easier to serve the franchisees and over all, it lends itself to a more disciplined growth strategy.
Q: What does Southern Classic Chicken look for in a franchisee?
A: We certainly would prefer an owner-operator. We will allow a qualified franchisee, if they're not going to be the hands-on person, then they must have an operator or a GM … that would also have to be subject to being approved. We see (that) absentee ownership makes it a little more challenging. Our net-worth requirements are $250,000 liquid and a minimum $1 million net worth. We prefer prior food experience — fast food experience preferably — but it would not prohibit a prospect from becoming a franchisee if they lack that but they had an operating partner that did have that.
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.
