Fast-growing fried chicken chain Popeyes UK is expecting to double sales in the current financial year and break through the £100m barrier.
CEO Tom Crowley said UK sales for 2024 would be “in excess of £100m”. He was speaking after the New Orleans-founded fast food chain recorded a 286% increase in sales to £58.1m for the year to 31 December 2023 in results posted at Companies House. Like-for-like sales were up 19.6% during the period. However, challenges including inflation and related rising raw ingredients costs saw pre-tax losses widen from £4.5m to £9.4m.
The huge jump in sales came as Popeyes doubled its UK restaurant estate to 38 in 2023. It has plans to grow to 65 restaurants by the end of 2024. The Grocer reported that it had opened its 50th site on Sauchiehall Street in Glasgow in June and Popeyes UK CFO Drew Taylor said it had now reached 60 openings.
The chain’s expansion has been fuelled by a £50m investment from TDR Capital in August 2023. The private equity firm, which is also a co-owner of Asda, took a controlling stake in Popeyes at the beginning of this year.
“The accounts from this period reflect our investment into a growing company, including new sites and an increased headcount; gearing up our infrastructure to support the business’ expansion ambitions,” said Taylor.
“2023 was an impressive year of revenue growth, reflecting the success of our rollout strategy. It was pleasing to see sales exceed expectations. Since our launch to huge hype and acclaim, we have maintained momentum with 60 site openings, cementing our presence across the UK. We have also seen overnight queues at almost every new store – including prominent openings such as our first major travel hub location at London Waterloo station and first restaurant in Belfast at Lesley Forestside. We are well on track to deliver sales of £100m-plus in FY24.
“During the latest financial year, we have also received investment from funds managed by TDR Capital, who join us on our mission as we expand nationwide as part of our ambition to cater to a diverse customer base and offer quality food across multiple channels and meal occasions. We are aiming to reach an estate size of approximately 65 sites by the end of 2024 – with even greater expansion ambitions already set for 2025.”
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