Why Chick-fil-A Franchise Is Making a Big Bet on Expansion into Europe and Asia

Chick-fil-A, the incredibly popular quick service restaurant franchise that’s known for its classic chicken sandwich, is on the brink of international expansion.

In an interview with The Wall Street Journal (WSJ), Chick-fil-A CEO Andrew Cathy made the announcement that the franchise is investing roughly $1 billion to open new restaurant locations in Europe and Asia by 2026, with locations also planned in five other international markets by 2030.

Cathy suggested that while the brand has plenty of room to grow in the U.S., Chick-fil-A needs to develop an international presence as it charts its future.

“We feel like it’s time to continue to innovate and try and test how we will do in international markets so that we can learn,” Cathy told the WSJ.

Brand executives say they are looking to open restaurants in places that have stable economies, dense populations and a demand for chicken. Cathy noted that the brand is still considering how to replicate its supply chain abroad but will find a way to continue serving its classic chicken sandwiches, waffle fries and milkshakes regardless of location.

Why Now?

Chick-fil-A currently boasts over 2,700 locations in roughly 47 states and Washington, D.C., and has locations in both Canada and Puerto Rico. The expansion into Europe wouldn’t be the brand’s first attempt at a location in the region. Chick-fil-A previously opened a restaurant in the United Kingdom in 2019, but the location was forced to close its doors just a few months after as a result of protests that erupted over the brand’s political views.

Speaking to WSJ, Anita Costello, who served as the franchise’s executive vice president for international, said the brand seeks to serve all customers in its markets and that it takes concerns raised about the company seriously.

Still, as of August 2023, the restaurant is the third-biggest U.S. fast food franchise in terms of sales, only behind the likes of McDonald’s and Starbucks. With a presence in international markets, the chicken sandwich concept could open its doors to an entirely new audience of potential customers. But the brand would be competing with its rival chicken concept Kentucky Fried Chicken, which is already a household name in China, where it has over 9,000 locations.

As it expands, Cathy also revealed that the brand would continue to stick to its franchising model, which limits most franchisees to only being allowed to operate one location at a time. This model has been wildly successful for the brand, as Business Insider reported that Chick-fil-A restaurants generate higher revenue per location than any other U.S. food franchise. In fact, in 2022, the average Chick-fil-A franchise saw nearly $8.1 million in sales. Chick-fil-A executives expect their global restaurants to perform similarly to the U.S.-based restaurants.

If the brand is able to replicate its restaurants and earnings in both Europe and Asia, it should leave no question as to why Chick-fil-A is looking to go global.