Dive Brief:
- Zaxbys will open its first unit in the Phoenix area on Wednesday, a significant market debut for the expanding chicken chain, according to a press release.
- The store is operated by a local franchisee, and marks the second new state entry for the brand in 2025.
- Zaxbys is on pace to crack the 1,000-unit threshold this year, according to the press release. The expansion of fellow challenger chains like Dave’s Hot Chicken and Raising Cane’s is one factor pushing larger QSRs — McDonald’s, Wendy’s and Taco Bell — to add chicken tenders to their menus and minimize strategic vulnerabilities.
Dive Insight:
The expansion establishes another foothold in the West for the chain, which is primarily concentrated east of the Mississippi and south of the Ohio rivers. Earlier this year, Zaxbys opened its first unit in Nevada.Last October the chain signed a multi-unit development agreement for parts of Maryland’s Eastern Shore, and similar deals in New Jersey and Pennsylvania. These openings and signings will help drive brand awareness and open opportunities for further growth, according to the press release.
Zaxbys accelerated the pace of its unit openings last year, with 28 net new stores, bringing its total unit count to 969, according to its franchise disclosure document. The brand has relatively strong unit economics to support this growth, with an average unit volume of around $2.78 million for franchised stores, per the FDD.
The brand has also worked over the last year to expand its menu beyond its core chicken finger product, raising four LTOs — two salads, an egg roll and a dessert — to permanent menu status in October, and adding a late-night appetizer LTO in June. The brand made its milkshakes permanent in June as well, in keeping with the QSR sector’s broader turn towards sugary, photogenic, premium beverages.
