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QSR chicken chains fight for more sales growth
July 26, 2009
Chick-fil-A is one of the few bright spots in the quick-service chicken category, according to The Dallas Morning News. The company recently announced it is on pace to continue its double-digit U.S. sales growth posted in 2008, but market research firm Technomic Inc. said overall QSR chicken sales grew at a slower pace than six other restaurant segments.
From The Dallas Morning News:
"Some of the large players have underperformed, but there are pockets of growth," said Bob Goldin, Technomic's executive vice president. "It's not going away, but it's not setting the world on fire."With sales up 2.6 percent from 2007, chicken finished behind burgers and baked goods and just ahead of pizza.
Chicken brands have launched a number of initiatives to gain market share and combat the growing number of other concepts adding chicken to the menu. Chick-fil-A recently celebrated its annual Cow Appreciation Day, giving away a free combo meal to customers dressed as cows in honor of the chain's brand icon.
KFC launched its Kentucky Grilled Chicken line, a product intended to offer consumers a healthy alternative. The company said in its recent earnings call that the product launch gave the company a sales boost, despite industry experts fears that a failed Oprah sponsored coupon offer would hurt the brand.
Popeyes Louisiana Kitchen held a one-day deep discount Pay Day promotion in April that drew huge crowds to stores, causing some to run out of chicken. In May, the company announced that sales were up over last year and a 22 percent decline in net income over last year was better than expected.
Church's Chicken has been celebrating its continued global same-store sales growth with a round of $1,000 cash giveaways to random customers as part of its Random Acts of Goodness campaign.
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