These 6 Chicken Chains Are Losing Customers Fast

Casual dining chains are going through a rough patch right now—customers are simply not spending money the way they used to, and with high prices and perceived low value, many people don't think the experience of eating out is worth it. While chicken chains such as Chick-fil-A and Raising Cane's are growing, other fast-casual and fast-food spots are not doing so well. Here are six chicken chains where customers are just now showing up as they did in the past.

El Pollo Loco

El Pollo Loco reported decreased revenue in a recent earnings report. "Company-operated restaurant revenue in the first quarter of 2024 decreased to $97.2 million, compared to $97.9 million in the first quarter of 2023, mainly due to a $5.0 million decrease in revenue primarily from the 18 company-operated restaurants sold by the Company to existing franchisees and a $0.1 million decrease in revenue recognized for our loyalty points program," El Pollo Loco says.

Sticky's

Sticky's Holdings, owner of the chicken chain Sticky's, filed for Chapter 11 bankruptcy on April 25, 2024. "COVID-19 dramatically impacted the restaurant industry … including significantly greater reliance on food delivery apps to generate business," said CEO Jamie Greer via Nation's Restaurant News.

Popeyes Franchisee

According to Franchise Times, Georgia-based company RRG Inc., which owns 17 Popeyes locations, filed for bankruptcy in January 2024, after three locations in particular "have significantly lost money and caused a financial burden on the continued operation of the remaining restaurants," according to the filing. Aside from debts for inventory, RRG owes $21,442.75 and $238,595.13 in outstanding lease rent.

KFC

KFC franchisee EYM Chicken closed down at least two dozen locations in Illinois, Indiana, and Wisconsin last year due to weakening sales and slower traffic. "The KFC brand in the U.S. has been struggling," Gibbs said. "And I think we're excited about some of the work that's going on behind the scenes to really boldly reset the brand in the U.S," said Yum Brands CEO David Gibbs.

Raising Cane's

It's not all doom and gloom—some chains are doing quite well, even in this economy. Raising Cane's had what the company calls a "record-breaking year of growth" in 2023, continuing the momentum into 2025. "Our Crew hit the ground running in 2024 by opening 13 new Raising Cane's Restaurants in January, and we kept our growth momentum going all year long. With 17 new Restaurants opened in December, we wrapped up the year with a total number of 118 Restaurants opened in 2024!" the company said.

Zaxby's

Southeastern chicken chain Zaxby's is another chain going from strength to strength. COO Bernard Acoca wants the chain to be on par with well-known names like Raising Cane's and Wingstop. "We won't be satisfied until we are one of those brands people talk about with the same reverential tones as them," he told Nation's Restaurant News.