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Church's Chicken<br />

Headquarters<br />

980 Hammond Dr. Suite 1100, Atlanta, Georgia 30328 USA<br />

Tel: (770)350-3800 Fax: (770)512-3920<br />

www.churchs.com<br />

Ownership: Private<br />

Segment: Limited Service Chicken<br />

System Characteristics 2006 2005 2004<br />

U.S. Systemwide Sales ($000) 772,000 772,649 756,767<br />

Company-owned ($000) 225,000 226,188 215,144<br />

Franchised ($000) 547,000 546,461 541,623<br />

U.S. Number of Units 1,190 1,186 1,220<br />

Company-owned 279 277 283<br />

Franchised 911 909 937<br />

International Sales ($000) 235,000 215,616 195,597<br />

International Units 385 358 333<br />

Average Sales/Unit ($000) 650 676 625<br />

Concept Positioning |<br />

Church’s Chicken is one of the world’s leading quick-service chains specializing in fried chicken. The fast-food restaurant is<br />

best known for its Southern-style chicken, served in spicy or original flavors. Franchisees operate more than 80% of the units.<br />

Most units are freestanding and located in densely populated urban and suburban areas. Units average 1,200 sq. ft. and seat<br />

approximately 40. Nontraditional sites, such as convenience stores, require as little as 450 sq. ft. Takeout and drive-thru<br />

services are also offered and account for approximately 82% of total sales.<br />

George W. Church opened the first Church’s Fried Chicken to Go in 1952 in San Antonio. The company quickly expanded and<br />

opened its first international location in Japan in 1979. There are currently international locations in Puerto Rico, Canada,<br />

Malaysia, Mexico and Taiwan, under the brand name of Texas Chicken. The company was sold to AFC Enterprises in 1992. In<br />

2004, AFC sold Church’s Chicken to Crescent Capital Investments, Inc. (CCI), the parent of Caribou Coffee, for $390 million.<br />

CCI is an Atlanta-based private equity firm. In 2005, CCI and its parent company, First Islamic Investment Bank, changed their<br />

name to Arcapita Inc. Church’s projects future franchise expansion, but targeted markets have not been specified. The<br />

company plans to expand the chain from 1,500 to 2,500 restaurants by 2010 as well as launch more co-branded units with<br />

White Castle.<br />

<strong>Menu</strong> Positioning |<br />

Church's Chicken offers fried chicken by the box, by the piece or in combinations for lunch and dinner. Church’s uses broiler<br />

chickens, bought fresh and cut into eight pieces, then marinated, floured and battered before deep-frying. The marinade, flour,<br />

batter and seasoning mixes used are required proprietary products. Church’s also offers seafood and frequent limited-time<br />

offers. Side items include fries, mashed potatoes and gravy, coleslaw, corn on the cob, fried okra, jalapeño peppers, Jalapeño<br />

Cheese Bombers and honey butter biscuits. Signature sauces are the Purple Pepper Sauce, ranch, creamy jalapeno, sweet<br />

and sour, barbecue and honey mustard. Other menu options include glazed apple pies and soft drinks. <strong>Menu</strong> prices range<br />

from 99¢-$7.99 and checks average $4.<br />

©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />

Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />

published.<br />

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