CHURCH’S CHICKEN: Thriving in Hard Times

January 12, 2009 Franchise Publicity

Not every franchise chain is suffering in the recession. In fact, those who are positioned to meet the needs of the increasingly budget-conscious consumer are thriving.

Church’s Chicken is one whose “value leader” positioning makes it well-suited for the harder times to come. The Atlanta-based restaurant chain, which has 1,625 stores, posted both overall and same-store sales increases in 2008, and is projecting continued sales growth in 2009.

According to figures released by the company Friday, total global sales at Church’s restaurants rose 5 percent to $1.15 billion, marking the the fifth straight year of system-wide sales increases. Same-store sales at existing stores rose 2.7 percent —- up 3 percent at U.S. restaurants and 2.1 percent at international outlets.

Farnaz Wallace, Church’s executive vice president and chief marketing officer, attibutes its success to Church’s strategy of catering to a low-income, multicultural customers.

Church’s maintains a “no-frills” positioning of fried chicken at a low price. Church’s recently launched out a 99-cent value menu that includes a chicken sandwich, nuggets, fries, jalapeno cheese bombers, and a piece of dark chicken and a biscuit.

Church’s anticipates same-store sales to rise 2.5 percent to 3 percent in 2009.

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