News
Church's Chicken value strategy translates into positive comps
December 8, 2008
ATLANTA —Church's Chickenhas announced its fifth year of positive same-store domestic sales, although the company did not release sales figures.
Company officials attribute Church's Chicken's strong performance to its marketing strategies and aggressive expansion domestically and internationally as well as new product introductions and the company's value positioning.
Church's new value menu is a direct response to the changing economic climate as well as an increase in the brand's limited-time offers, according to a news release. Church's also consistently brings back classic favorites like Tender Crunchers and Country Fried Steak, which are contributors for increased sales.
As poultry prices increased, Church's shifted away from higher price points to increasing the number of LTOs from two per year to eight. Some LTOs take advantage of efficient use of chicken, such as offering Chicken Chili or the Barbeque Chicken Sandwich during colder months.
"We made a strategic decision not to pass on all of our commodity cost increases to our customers," said Church's executive vice president and chief marketing officer Farnaz Wallace. "Instead, we focused on some cost-cutting initiatives that do not impact our customer experience, coupled with strategic value menus and limited-time-only product offerings with limited price increases. We also targeted a less price-sensitive customer base by providing them with premium items."
Franchise growth
Domestically, Church's Chicken added 25 new franchisees and recently entered the Seattle and Philadelphia markets, where it added franchise commitments for 125 new stores.
Overseas, Church's is experiencing its sixth consecutive year of positive comps. The company's international brand, also known as Texas Chicken, has recently opened its first of 30 restaurants in India with plans for expansion scheduled for Syria, Egypt and Canada.
New store design
In the coming months, the brand will be rolling out new 1,200 square-foot prototypes, which are fully modular, free-standing restaurants that are completely assembled in a factory.
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