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Issue Date: March 1, 2008, Posted On: 3/4/2008


Church’s Chicken to launch in Britain

Atlanta chain to convert 50 Dixy Fried Chickens


By Indus News Wire

   
 

Harsha Agadi, chief executive officer of Church’s Chicken, has led the franchise chain’s expansion into the United Kingdom with a recent acquisition.

ATLANTA – Texas Chicken, the international brand of Atlanta-based Church’s Chicken, has opened its first restaurant in the United Kingdom, with plans to open 36 restaurants by the end of March and 50 before the year’s end.

This growth will make the United Kingdom the fourth largest international market for Church’s/Texas Chicken, and will make the brand the second-largest quick-service-restaurant chicken concept in the British marketplace, according to Church’s Chicken.

With over 1,700 quick-service-restaurant chicken restaurants, the United Kingdom is one of the largest markets in the world, and offers an incredible opportunity for Church’s/Texas Chicken, which aims to provide customers a much-needed and welcome alternative to KFC, the company stated.

“Currently in the U.K., there are no strong players to compete with KFC,” said Harsha V. Agadi, chief executive officer of Church’s Chicken. “We are entering this market to grow aggressively and provide an alternative to KFC with home-style, freshly prepared fried chicken with a unique crunch and signature side items. We feel confident that customers will try and love the taste and flavor of our chicken.”

As a result of its move into the United Kingdom market, Church’s Chicken plans to open an office in the country to support training, operations, and day-to-day business.

“We are committed to the expansion of Texas Chicken in the U.K. and beyond through our franchising model,” said Zack Kollias, Church’s Chicken senior international vice president. “The U.K. marketplace represents a great chicken market and we are excited by the opportunity to introduce high quality products and services in such a dynamic market.”

A majority of the 50 locations are existing Dixy Fried Chicken restaurants, whose franchisees are converting to Church’s/Texas Chicken, the company said. This agreement doubled the number of international franchisees for the Church’s Chicken. The first group of Texas Chicken restaurant openings took place in London and Birmingham.

With expansion into the United Kingdom, Church’s/Texas Chicken enters its second European market, following restaurant openings in Russia in December 2007. The company is also planning expansion into India later this year. The restaurant chain, although new to the United Kingdom, began expanding internationally in 1979.

The Atlanta-based Church’s Chicken International has 1,600 locations in 19 countries, including Puerto Rico. The chain serves traditional southern and spicy friend chicken. System sales exceeded $1 billion in 2007.

Agadi joined the chain in 2004, when it was acquired by the Atlanta-based private equity firm Arcapita. Agadi’s GHS Holdings LLC, a consulting firm focused on the restaurant industry, is a co-investor in Church’s. With over 20 years in the restaurant industry, Agadi was a strong choice to take over the reigns at Church’s.

His first move was to revise the brand’s menu to focus on “spicy” products. Church’s introduced two new main menu items — spicy bone-in chicken and its spicy chicken sandwich. The brand also renewed its focus on marketing and made a push to become an “urban brand.” He also launched a focus on the concept of the Church’s brand as quality food for a great value.

The moves paid off and, in addition to generating over $1 billion in sales, Church’s is second only to KFC in the quick service chicken market.

Founded in San Antonio, Texas in 1952, Church’s grew to 500 locations in 22 states by the mid-1970s and became a $100 million company.

Agadi came to the United States from India in 1984 with a bachelor’s degree from the University of Bombay. He attended Duke University and received a master’s degree in business administration. He then got a job with Kraft General Foods, which led to a position at Pepsi. Agadi also served as president and chief operating officer of Little Caesars.

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