How Layne’s Chicken Fingers Gets Food Costs Down to Increase Franchisee Profitability

Layne’s Chicken Fingers, the Soon to be Famous™ fried chicken concept, prides itself on having a close-knit, family feel while simultaneously offering franchisees the perks and support that often come with big-box franchise concepts.

 One of these crucial forms of support is strategy to keep food costs low.

“The two major factors that impact food costs are vendor relationships and operational excellence,” explained Samir Wattar, COO of Layne’s. “I can get great prices coming in the back door of the restaurant, but if we don’t execute properly, those savings can disappear very quickly.”

Supply Chain Management

While a rocky supply chain created major challenges for many food concepts in 2022, Wattar says things have returned back to a more regular rhythm. However, relying on a strong supply chain alone can put a franchisor in a volatile situation. As such, Wattar says he focuses on the people.

“It’s a relationship business,” he said. “I don’t go out chasing the best prices. I chase great relationships, and the prices come along with them.”

By keeping the pulse of the market and being willing to plan ahead, Wattar can leverage insights to make the most of these relationships.

“What do we do? We sell chicken,” he added. “Every morning, I get a report on the chicken market. I look at what it’s doing, where it’s going and if there are any pitfalls on the way so I’m ready.”

With these observations, he can begin to plan for the future. The trajectory of the market and food costs for the next three to four months, from any point in time, has often already been decided by other circumstances that occurred months prior. 

Planning six or more months ahead allows Layne’s to predict any changes and plan accordingly, combatting costs in any way possible and avoiding major fallout in the future. In addition to internal planning, Wattar can begin to seek out supply contracts early. In many cases, a supplier will be a bit more flexible with prices if they are able to secure guaranteed business many months in advance. 

“I can give you an example. Mid-year last year, the market point for frying oil dropped below what was expected,” Wattar explained. “Because I’m continually educating myself, I was aware of the drop. I called the supplier with which I have a relationship and told them I would commit to purchasing from them for 2023 if they would agree to the lower price. I didn’t get to actually see the benefit until January, but I was able to protect our system, and we’re seeing the benefit right now.”

This is only half of the equation, though.

Back of House Excellence

Wattar also emphasizes the importance of proper training and operational practices. 

“We also work with the operations team on the execution side within the restaurant,” he said. “We must train employees properly and hold them accountable once they start working. We also work to create reports that will help us and the franchisee to identify where problems are occurring.”

At the highest level, keeping food costs in check comes down to the smallest denominator, he explained. Training resources are created in a way that makes them engaging and easily accessible to the teens and college students that often work in the kitchen. By providing adequate education and fostering a company culture that makes employees want to win for the larger organization, the Layne’s leadership team ensures optimal operational outcomes.

“I can negotiate the best prices, but if you’re not executing at a restaurant level, that doesn’t mean anything,” Wattar explained. “Say your portion size is five ounces, and you’re consistently giving out six or seven ounces. That’s going to ruin whatever you were able to save on the supply chain side. Everything is streamlined and comes together to get us the results we have, from negotiating prices all the way down to individual cooks in the restaurant.”

Franchise opportunities range from $656,000–$1,280,500, with different buildout options available. Learn more about franchising here.

ABOUT LAYNE'S CHICKEN FINGERS

Founded in 1994 in College Station, the original location became a Texas A&M legend known for its small-town charm, friendly service, iconic chicken fingers and secret sauce. While opening corporate locations across the Dallas-Fort Worth area, the leadership team focused on fine-tuning its operations and starting to franchise. Now, the company is planning to bring Layne’s Soon to be Famous™ Chicken Fingers to the rest of the world.