Wildly admired fast-food chain Chick-Fil-A is gearing up for global expansion, with plans to reach Europe and Asia by 2026.
Key Details
- The U.S. company reportedly has a $1 billion plan to expand its reach on a global scale, The Wall Street Journal reports.
- Nearly 2,700 U.S. locations brought in $6.3 million each in 2021. That’s around four times the revenue of competitors KFC and Popeyes, The Hustle reports.
- Now, the company is looking to expand to Europe and Asia by 2026. It plans to have five international markets by 2030.
- Chick-Fil-A has attempted global expansion before. It established restaurants in South Africa and the UK but had little success and eventually closed those locations.
- Currently, it has eight Canadian locations and three in Puerto Rico.
Why it’s news
Over the last decade, Chick-Fil-A sales have quadrupled, and it now ranks third behind McDonald’s and Starbucks.
Chick-Fil-A has solidified itself as a prominent fast-food chain in the U.S.—generating more revenue per location than any other fast-food brand—but it will have stiff competition in the international market. In Asia, KFC dominates the fast-food chicken industry. It commands 39% of the market share. It also has a substantial presence in Europe, The Hustle reports.
In December, KFC’s parent company Yum Brands told its investors that, on average, it opened a new restaurant every two hours over the last two years. Yum Brands owns several fast-food chains, including KFC, Taco Bell, and Pizza Hut.
Restaurant Brands International said last month that it was pushing its chicken fast-food chain Popeyes to expand into the international market.
Though Chick-Fil-A will have stiff competition in the chicken market, company executives expect the restaurants to perform similarly on an international scale. Restaurants will likely be in countries with dense populations and stable economies that have a demand for chicken, The Wall Street Journal reports.
Chick-Fil-A’s supply chain will likely stay in the U.S., though executives are looking for ways to replicate it abroad. The new international locations will have similar menus to U.S. locations, with some local twists. The company has said that its simple menu helps it operate smoothly.
