Chick-fil-A announced plans in 2020 to enter Puerto Rico by 2022. Now, it plans to expand to Asia.
Chick-fil-A has 2,700 restaurants in the US as well as some in Puerto Rico and Canada.
CEO Andrew Cathy told the WSJ that the chain is ready to explore growth in Asia and Europe.
The company plans to invest $1 billion to expand to new markets outside the US.
Chick-fil-A, one of America’s most successful fast food brands, plans to take its fried-chicken sandwiches abroad, according to the Wall Street Journal.
Andrew Cathy, CEO of the chain since September 2021, told the publication that it’s time for the chain “to continue to innovate and try and test how we will do in international markets so that we can learn.”
He said the chain plans to invest $1 billion to open restaurants in Europe and Asia by 2026.
The move abroad would mark a significant growth change for the Atlanta-based chicken chain, which has more than 2,700 franchised restaurants in 47 states, Washington, DC, Puerto Rico, and Canada. By going abroad, Chick-fil-A will compete with US-based rivals such as KFC and McDonald’s, which have been in Asia for years. KFC alone has nearly 24,000 international locations.
Cathy, the family-owned chain’s CEO, told the Journal that growth abroad is necessary as the company charts its future. The company would “stick” to its current franchising model, which limits most franchisees from owning more than one restaurant.
Chick-fil-A did not immediately respond to Insider’s request for comment.
Owning a Chick-fil-A franchise is historically an attractive opportunity for any potential franchisee.
Chick-fil-A restaurants generate higher revenue per location than any other US chain. Most locations average about $8.1 million in sales per year, according to the chain’s 2022 Franchise Disclosure Document. That’s more than double the average yearly sales of a McDonald’s.
In the US, Chick-fil-A is the third largest restaurant chain, in terms of sales, according to market research firm Technomic. Only McDonald’s and Starbucks generate more revenue than Chick-fil-A, which reported sales of $16.7 billion in 2021.
Chick-fil-A CEO Andrew Cathy wants to take the brand to Asia – a move first discussed by his father a few years ago.
It’s unclear how many restaurants the chain would build abroad, but it is targeting five international markets by 2030, Cathy told the Journal.
This isn’t the first time Chick-fil-A …read more
Source:: Business Insider