Quick-service chain Church’s Chicken has agreed to be purchased by the parent of Quiznos and Taco Del Mar, the companies announced Monday.
High Bluff Capital Partners said it has entered into a definitive agreement to acquire the Atlanta-based chain, which had been owned by FFL Partners. The deal is expected to be completed during the third quarter.
The company said it plans to open more than 100 new stores in the next year. Church’s has more than 1,500 restaurants in 26 countries.
“The past few years have been all about growth for the brand and its franchisees,” Christina said. “Our focus will be to deliver against our strategic plan with new locations in the U. S. and internationally and continued profitable sales growth. ”.
Investment firm High Bluff created Rego Restaurant Group, its restaurant platform, in 2018, when it acquired fast casuals Quiznos and Taco Del Mar. As sales of its Quiznos brand drop, the company has been testing ghost kitchens to see if they can bring them back.
Church’s 2020 sales were down 14. 8% from 2019, and the chain’s unit count fell nearly 10% during that time, according to data from Restaurant Business sister company, Technomic.
“At a time when the entire restaurant industry has faced unprecedented challenges, Church’s has stood out as a notable bright spot, having emerged from the pandemic with considerable tailwinds that strongly position the brand for tremendous growth geographically as well as in the overall chicken category,” said Anand Gowda, High Bluff’s founder, in a statement. We keep focusing on investing in brands that have strong relationships with customers and can be boosted to greater success through targeted industry knowledge, operational efficiencies, innovation, and creative brand management. ”.
Church’s was founded nearly 70 years ago in San Antonio. It is known for serving original and spicy fried chicken, as well as tenders and honey-butter biscuits. Internationally, the brand operates as Texas Chicken.
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The world’s largest fried chicken fast food chain, Church’s Chicken, is also known as Church’s Fried Chicken or Texas Chicken. Church’s is known for its tasty fried chicken, honey-butter biscuits, and strong Texas style. It has over 1,700 locations in 27 countries. In the 70 years that Church’s Chicken has been in business, ownership has changed hands several times. Who really owns this famous chicken brand?
A Humble Beginning in San Antonio
Church’s Chicken has been around since April 1952, when George W. Church Sr. opened a small walk-up fried chicken joint in San Antonio, Texas Church was the first to do a lot of new things, like having open kitchens and serving chicken in boxes so customers could watch their food being made. Within 10 years, Church’s had expanded to eight local restaurants.
Franchising Fuels Growth in the 1960s
Church’s began franchising in 1965 with a special marinade recipe developed by Church Sr’s sons. This allowed for rapid expansion across Texas and the southern United States By 1968, Church’s had over 100 locations and became the first Texas-born fast food chain to go national. Church Sr. passed away in 1956, and in 1968 the Church family sold the business.
Going Public and Continued Expansion (1969-1980s)
After going public in 1969, Church’s Chicken saw huge growth over the next two decades:
- 1970s: Expanded internationally to Canada, Mexico, Japan, and Puerto Rico
- 1970s and 80s: Opened over 500 new franchised and company-owned restaurants
- 1980s: Entered Indonesia and Malaysia under the name “Texas Chicken”
This rapid expansion made Church’s the second largest chicken QSR (quick service restaurant) chain by the late 1980s.
Acquisition by Popeyes and AFC Enterprises (1989-2004)
In 1989, Church’s Chicken was acquired by competitor Popeyes Louisiana Kitchen for $330 million. As part of the deal, Church’s closed 250 underperforming locations and converted others to Popeyes restaurants. Throughout the 1990s and early 2000s, Church’s remained under the ownership umbrella of AFC Enterprises, the parent company of Popeyes and Church’s.
Sold to Arcapita and Growth Under New Ownership (2004-2009)
Arcapita, a private equity firm based in Atlanta, bought Church’s Chicken from AFC Enterprises for more than $390 million in 2004. When Arcapita owned Church’s, it went global and increased the number of franchises it had. Pakistan, Malaysia, Singapore, Bangladesh, and the Middle East were some of the most important international growth markets.
Acquired by Friedman Fleischer & Lowe and Recent Ownership Changes (2009-Present)
In August 2009, Friedman Fleischer, a private equity firm in San Francisco, Church’s continued to grow around the world while it was owned by FFL, but in the late 2010s, sales were going down, which caused some problems.
In August 2021, Church’s Chicken was acquired by High Bluff Capital Partners and portfolio company Rego Restaurant Group. The acquisition price was undisclosed. Rego Restaurant Group is the parent company of Quiznos subs and Taco Del Mar.
- 1952-1968: Founder George W. Church Sr. and the Church family
- 1969-1989: Publicly owned after IPO
- 1989-2004: Owned by AFC Enterprises (also parent of Popeyes)
- 2004-2009: Owned by private equity firm Arcapita
- 2009-2021: Owned by private equity firm Friedman Fleischer & Lowe
- 2021-Present: Owned by High Bluff Capital Partners and Rego Restaurant Group
What This Means for Church’s Chicken’s Future
The latest acquisition of Church’s Chicken by High Bluff Capital Partners points to a focus on revitalizing sales and profitability for the established fried chicken brand. There may be more localization of menu offerings along with continued global expansion in international markets. With new ownership and leadership, Church’s is poised for a new era centered around enhancing the guest experience and refreshing the brand in an increasingly competitive chicken landscape.
So while the Church’s Chicken brand has changed ownership hands several times, it remains one of the most well-known quick service chicken chains worldwide. Church’s passionate franchisees and team members have kept the brand’s commitment to quality fried chicken alive for over 70 years. As consumer tastes and preferences evolve, Church’s aims to continue differentiating itself through its signature spices and flavors. One thing is certain – the future looks bright for this Texas-born fried chicken icon as it enters its eighth decade under new ownership.
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Church’s Chicken – The Rise and Fall…And Rise Again
FAQ
Who is the owner of Church’s chicken franchise?
Church’s Texas Chicken trades as Texas Chicken or Church’s Chicken in many countries. The chain is owned by American private equity firm High Bluff Capital Partners.
Are Churches chicken and Popeyes owned by the same company?
America’s Favorite Chicken, headquartered in Atlanta, Georgia, is the parent company of Popeye’s Fried Chicken and Biscuits and Church’s Fried Chicken, headquartered in San Antonio, Texas; these fast-food chains specialize in Southern-style fried chicken.
Is KFC suing Church’s chicken?
KFC claimed in a lawsuit that beginning September 30, it noticed Church’s “abruptly” began using the phrase and ignored KFC’s October 24 letter objecting to the ads. Church’s advertised its fried chicken deals with pictures and the words “our original recipe is back” above them. ”.