The competitive landscape in the fast-food chicken industry has taken a dramatic turn, as several franchise operators announce sudden store closures and financial restructuring amid rising costs and post-pandemic challenges. While top brands like Chick-fil-A and Popeyes continue to attract long queues, some franchisees—facing high operating expenses and shifting consumer habits—are struggling to remain afloat.
Tough Times for Franchisees
The aftermath of the chicken sandwich wars and persistent economic pressures have forced a reevaluation of business models across the fried chicken sector. Notably, a Popeyes franchisee, RRG Inc., operating 17 locations in Georgia, filed for Chapter 11 protection in February 2024. Citing three underperforming outlets as the tipping point, RRG Inc. aimed to restructure its operations amid mounting financial distress.…