USA – Multinational fried chicken chain Popeyes has recorded a 3.8% decline in comparable sales in Q3 2024, a direct consequence of the chain not having as many compelling promotions to attract price-weary customers according to Restaurant Brands International (RBI) CEO Josh Kobza.

Popeyes’ sales decline in Q3 2024 reflects a change in its previous growth trend in the U.S., as the chain had posted positive same-store and systemwide sales growth since early 2023, according to Restaurant Brands International (RBI).

RBI CEO Josh Kobza cited a highly value-sensitive market and a lack of promotions appealing to budget-conscious consumers as significant factors in the downturn.

Burger King, another brand under RBI, also faced challenges with comparable sales. Its summer promotional offerings struggled to stand out among quick-service restaurant (QSR) competitors focused heavily on value.

In contrast, competitors like McDonald’s and Taco Bell launched targeted value menus to counter traffic slowdowns in the fast-food sector. This approach boosted both brands’ sales during Q3, highlighting the impact of value-driven strategies.

To realign with consumer expectations, Kobza explained that Popeyes is adjusting its marketing approach to emphasize value while reinforcing its unique appeal.

In mid-September, Popeyes introduced a US$5 three-piece chicken offer, followed by a US$6 Big Box in early October. These promotions have reportedly contributed to improvements in both traffic and sales.

In addition to short-term promotions, RBI is implementing long-term changes at Popeyes aimed at enhancing the overall customer experience.

Part of this initiative includes “easy to run” kitchen conversions designed to simplify operations, featuring a streamlined back-of-house layout and automated ordering systems.

These conversions, initially introduced in select California markets earlier in the year, have already shown positive results, according to Kobza.

This operational improvement plan forms part of a broader, multi-year strategy to elevate the Popeyes experience through more efficient processes and consistency.

RBI has worked to speed up the installation of these upgrades and regularly incorporates feedback to refine the system before wider rollout.

To increase accessibility, Popeyes is exploring new store formats that could reduce building costs and improve location presence in key markets, said Kobza.

Additionally, the chain has been enhancing its digital capabilities, which led to a 21% rise in digital sales, accounting for 28% of total sales in the last quarter.

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