Most Golden Chick restaurants contain a vending machine that features a chicken that, after a quarter is inserted, cackles-cackles-cackles and then lays either a yellow or a golden plastic egg. In NRN’s latest Next 20 rankings of U.S. systemwide sales growth, it’s a Golden Egg Year for the chain.
Among the Latest-Year Next 20 brands, Richardson, Texas-based Golden Chick ranked No. 5 in total U.S. foodservice sales and No. 8 in year-over-year sales growth.
The predominantly franchised brand was founded more than 40 years ago as Golden Fried Chicken in San Marcos, Texas, and became Golden Chick in 1996. A signature menu item features chicken tenders, which it cleverly calls “the filet mignon of chicken,” served with cream gravy for dipping.
See profiles of the other Next 20 standout brands
Golden Chick grew its U.S. systemwide foodservice sales to $111.2 million for its September-ended fiscal 2014 from $91.3 million in the Preceding Year. Sales per unit were $915,200 in the Latest Year, up from $857,300 in the Preceding Year.
Keys to Success
Value: Blended lunch and dinner average checks are around $8. Average unit volumes are about $17,000 per week, the company said earlier this year, noting that it expects those volumes to grow 5 percent to 7 percent this year.
Besides its signature fried chicken and chicken tenders, the Golden Chick menu has expanded with salads and roasted chicken.
“Also, even though it is fried, we serve catfish that is a premium cut, U.S. farm raised filet and hand breaded in store with a proprietary breading. We stress quality over price but still try to offer some value offerings,” said Mark Parmerlee, president and chairman of parent company Golden Southern Chicken Corp., earlier this year. These menu additions are focused on appealing to a more urban customer than the chain traditionally catered to.
Strong growth: Golden Chick grew to 130 units in the Latest Year, an increase of 15 percent from the 113 in the Preceding Year. Parmerlee said the company added 11 units in 2012 and 14 in 2013.
Relaxed atmosphere: A makeover program over the past five years has modernized the colors and lighting in many of the Golden Chick restaurants. Most of Golden Chick’s new units are new construction, with a target of 2,200 square feet with 55 seats and drive-thru areas. Takeout and drive-thru business accounts for about 70 percent of sales.
Innovative financing: Golden Chick’s first EB-5 restaurant opened in January in Lancaster, Texas. EB-5 was developed in 1990 to promote job creation and capital investment. Administered by the U.S. Citizenship and Immigration Services agency, EB-5 lets investors from other countries earn U.S. citizenship for themselves and their immediate familes by investing in businesses on U.S. soil that create at least 10 full-time jobs.
Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless