Dive Brief:
- Zaxbys is making four of its popular limited-time offers into permanent menu items, the brand said Monday. Zaxbys’ Asian Zensation Zalad, Veggie Egg Rolls, Blue Zalad and Fried Cheesecake Bites with Strawberry Sauce are now available at the chicken chain’s restaurants on a continual basis.
- The chain also added two large meal packs to its menu — a 20-piece chicken finger box and a 30-piece boneless wings box — each served with crinkle cut fries, Texas toast and dipping sauce.
- The broader array of menu choices could draw new customers to try the chicken chain out as it looks to expand beyond its traditional markets, with forthcoming restaurants in New Jersey and Maryland.
Dive Insight:
Transitioning an LTO to a permanent item is an easy way for Zaxbys to grow its menu. Many customers will already be familiar with the items and associate them with the brand, reducing potential hesitancy. Zaxbys likely knows how the items will perform, as past intervals of sales act as market tests, and its supply chain already has experience sourcing and delivering the necessary ingredients.
Subway’s recent sales success, for example, is driven in part by the addition of footlong cookies to its permanent menu after they debuted as buzzy LTOs in 2022.
The addition of Zaxbys LTOs as permanent dishes was a response to their popularity during recent revivals, Patrick Schwing, the chain’s chief marketing officer, said in a statement. The larger meal packs make it easy for groups to order, he said. They can be ordered online or through Zaxbys’ app for curbside pickup or delivery.
Zaxbys has grown modestly since the appointment of Bernard Acoca as CEO at the end of 2021, with its unit count rising from 911 at the start of 2022 to 941 at the beginning of this year, according to its 2024 franchise disclosure document.
The chain is expanding into new markets. Its stores are concentrated primarily in the South and states like Oklahoma, Missouri and Texas. The chain had only 21 restaurants outside of these markets at the start of the year, in Indiana and Utah, according to its FDD.
Entering New Jersey, where the brand plans to build franchised units across several regions, will put it close to Philadelphia and New York City. Efforts to build in the Northeast may be constrained by real estate costs and other factors, but Zaxbys has strong unit economics compared to some of its national chicken chain competitors — its $2.7 million AUV is nearly twice KFC’s $1.4 million AUV.
