QSR August 2022

QSR 50

the quarter, but dropped 1 percent for the full year. Innovation keyed progress. KFC U.S.’ digital sales soared 70 percent year-over-year in 2021, fueled by delivery and an e-commerce platform that launched nationwide early last year. In Q4, the brand rolled out Quick Pick-Up, in which customers can skip the drive thru and grab mobile orders out of cubbies inside the restaurant. Most vividly, though, KFC hit a prior goal in 2021 when it converted 70 percent of its system to the “American Showman” design, recognizable by bright red-and-white stripes (like a chicken bucket), bucket chandeliers, and graphics that serve as an allusion to the Colonel’s hard-working background. That’s stepping back now, however, in favor of KFCs Next-Gen model, which arrived in Berea, Kentucky, in Q4 2021. It boasts a digital-forward and contactless experience, including the company’s first double drive-thru lane. Models range anywhere from 1,300 square feet to 2,200, with the lower end being an off-premises-centric unit without a dine in element. There’s a lobby for customers, or couriers, to walk in and grab their food. As of February, about 25 percent of KFC’s pipeline were Next-Gen builds. That’s going to pick up as the chain cycles through previous commitments. In time, all new builds and formats, in the suburbs or cities, will be Next-Gen assets. A lead part of KFC’s go-forward strategy will also take shape across urban inline expansion. KFC’s Next-Gen design and features are flooding this arena, where the chain has aggressive plans for New York and St. Louis, and other city centers. Cahoe said this is one U.S. area where KFC is underpenetrated versus its national foot print. The company opened its first Next-Gen urban inline in 2021, and more are coming down the pipe The story for Popeyes, roughly two years removed from its category-busting chicken sandwich launch, is growth. Since the product’s August 2019 introduction, Popeyes has pushed banner results across a three-year stretch. Average-unit volumes rose some $400,000 to $1.8 million and menu launches, like nuggets, mac and cheese, and a collaboration with Megan Thee Stallion, continue to produce new news for a chain that’s unit count is starting to reflect its buzz. In 2021, Popeyes opened 208 stores in the U.S. and Canada, which brought its total above 3,000 restau rants. It exited fiscal 2021 with 2,754 U.S locations and 3,705 globally as last year marked the highest figure of openings (net of 254, or unit growth of 7.4 percent) since Burger King, Tim Hortons, and Firehouse Subs parent RBI acquired Popeyes in March 2017 for $1.8 billion. In April, Popeyes said it planned to eclipse the 200 bar again this year, but by an even greater distance. And 15 Popeyes

while this occurs, Popeyes will bring modernized store designs to market. “Several” of its 2022 openings will be in New York City, including a fresh flagship in Times Square. That restaurant, at 1530 Broadway, featured Popeyes’ updated design that pays homage to its Cajun roots and Louisiana brand heritage, yet layers tech into

the experience. It includes self-order kiosks, a two-story food transporter for upstairs dining, digital order-ready boards, and a merchandising store inside. The design mirrors the one Popeyes unveiled in March when it re-opened the company’s New Orleans landmark on Canal Street. The 200-year-old building represented the domestic introduction of the “NOLA Eclectic” image Popeyes is opening in the Big Apple, which first launched in Shanghai. In addition, Popeyes’ more traditional, freestanding footprint will lean heavily on double drive-thrus this com ing calendar. More than 50 percent of stores in its 2022 pipeline currently feature the build—a move designed to serve increased traffic, improve speed of service, and, ulti mately, “further enhance the guest experience.” Popeyes is also working to reconfigure and launch back-of-the-house solutions for new kitchen designs. Popeyes’ updated model developed kitchens and sys tems from the ground up to be more efficient and capable, and also a better place to work. Other contin ued evolutions on deck include mobile order and pay, curbside pickup, digital order pickup shelves, self-order kiosks, and Popeyes Rewards available on the Popeyes App. This year, the program will feature exclusive ben efits centered on value and frictionless ordering, the company said. But pulling Popeyes’ story out to a higher level, the chain, in February, told investors it had “signed more development agreements around the world than ever before. That includes India, the U.K., Saudi Arabia, Romania, and France, as well as further expansion in Mexico, the U.S., and Canada. In 2022, Popeyes contin ued its momentum with an agreement in South Korea,

POPEYES IS BUILDING ON ITS FAMED CHICKEN SANDWICH WITH MAJOR GROWTH PLANS.

POPEYES (3); KITCHEN: JEREMY LIEBMAN

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AUGUST 2022 | QSR | www.qsrmagazine.com