Popeyes UK CEO foresees fried chicken market growth, attracting private equity

The UK’s fried chicken market is poised for significant expansion, creating new opportunities for private equity investment, according to Tom Crowley, CEO of Popeyes UK.

Backed by TDR Capital, Popeyes UK plans to scale rapidly, expanding from 65 locations to 350 by 2031. The brand aims to generate £200m in sales in 2025, reflecting a 70% increase year-on-year.

The quick-service restaurant sector is thriving, with chicken chains leading growth. While casual dining outlets declined by 4% in 2024, quick-service restaurants grew by 5%, driven by a 12% rise in chicken chain openings. Crowley attributes this trend to consumer shifts amid high inflation, with chicken emerging as a preferred and affordable protein option.

Popeyes faces competition from established brands like KFC and newcomers such as Dave’s Hot Chicken. However, Crowley remains optimistic, citing opportunities for sustainable growth and market consolidation. “The category is strong, and there is room for significant growth,” he said.

Private equity interest in the sector is growing. TDR Capital took control of Popeyes UK in 2023 following an initial £50m investment, while Sixth Street acquired Wingstop’s UK arm for £400m last month. These deals highlight the market’s appeal, driven by scalable opportunities and first-mover advantages.

Nam Quach of DC Advisory noted that the UK market lacks large-scale brands, leaving room for consolidation. “The future is going to be dominated by three or four brands,” he said, reflecting a “land grab” phase for market leadership.

Popeyes UK’s growth strategy aligns with this trend, aiming to balance rapid expansion with sustainable development to remain competitive in the evolving fried chicken landscape.

Source: Financial Times

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