UK—Fast food restaurant chain Wingstop has revealed plans to expand further in the UK, opening six new outlets before the end of 2024.
The new outlets will be in Crawley, Ealing, Lakeside, Manchester, Walthamstow and Whitechapel. Wingstop will give away free unlimited chicken wings to its first 100 customers at these new locations.
The exact launch dates of the locations have not been made public. However, the restaurant chain has revealed that they will be open before the end of the year.
According to the chicken chain, each location is expected to create 60 jobs, adding 300 new jobs to its 2,500 workforce.
The move follows Wingstop’s recent positive Q2 2024 results and the recent appointment of Goldman Sachs to aid in the sale of the company’s UK wing. Goldman Sachs was selected to oversee the sale after the chicken chain received unsolicited interest from buyers.
Revenues and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 45.3% and 50.7% year over year (YoY). The growth is attributed to robust same-store sales in the UK.
From a strategic perspective, increased sales and revenue can be attributed to innovative menu offerings, a formidable digitization strategy and expanding brand awareness.
The chicken chain has positioned itself as a substitute for KFC, becoming increasingly popular among young people and celebrities like UK rapper Stormzy.
This strong performance has impressed analysts and players alike, especially when QSR chains worldwide are struggling with the effects of high inflation, which has significantly increased cost pressure and prices while stifling demand.
Wingstop’s strategy appears to have yielded better results than competitors’ strategies, which resorted to value deals to attract customers.
The QSR chain launched its first outlet in the UK in 2018 and now operates 50 restaurants across the country.
Lemon Pepper Holdings, Wingstop’s franchisee in the UK, welcomed the move, reiterating that it will help the QSR chain leverage the untapped potential across the UK. The franchisee also intended to open more than 200 outlets in the UK within the next five years.
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