Church’s Chicken Expands In Middle Tennessee




The Tennessean:

quotation.jpg Calling the recession a good time to expand fast-food businesses, officials of the Atlanta-based Church’s Chicken chain say they’re bullish on the Nashville market in spite of the economic downturn.

And they’re confident that 23 newly acquired Mrs. Winner’s Chicken & Biscuits locations in the area will turn out to be a good fit. Mrs. Winner’s retains a handful of locations here.

Fast-food eateries — known in the industry as “quick-service” restaurants — have not been immune to the recession, analysts say, although they have fared much better than casual and fine-dining establishments.

“Generally, quick-service restaurants are better positioned from the standpoint of the average check, which is in the $5 to $6 range per person,” said William Fahy, a senior analyst at Moody’s Investors Service who follows the restaurant industry. “Consumer spending has been down, and the quick-service restaurants are on the lower end pricewise.”

Meanwhile, many high-end, casual and fine-dining restaurants have seen business spending fall, with fewer companies allowing employees to eat out on an expense account, Fahy said.

“People just aren’t eating out as much, because so many are unemployed or their savings are depleted,” Fahy said. “It’s tough for everyone in the restaurant business.”

Nevertheless, Church’s officials believe their Mrs. Winner’s locations takeover in Middle Tennessee will position the chicken chain for even better sales when the recession ends, said James M. Parrish, the chain’s chief operating officer.

“Church’s is certainly not recession-proof,” he said. “We had a great 2008, but began to struggle in the second quarter this year.”

Leave a Reply