Sales at Popeyes Are Suffering Thanks to This Major Issue — Eat This Not That

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By Ghuman

Introduction

Popeyes is one of the most popular fast-food chains in the United States, but their sales have been suffering due to a major issue. This issue is the rise of healthier eating habits among consumers, which has caused them to turn away from fast-food restaurants like Popeyes. This article will discuss the impact of this issue on Popeyes’ sales and what the company can do to address it. We will also look at how other fast-food chains are responding to the trend and what strategies they are using to remain competitive.

Sales at Popeyes Are Suffering Thanks to This Major Issue

Popeyes, the beloved fast-food chain, is facing a major issue that is causing their sales to suffer. The issue is the lack of chicken sandwiches on their menu. The chain was forced to remove the popular sandwich from their menu due to a shortage of chicken.

The chicken sandwich was a huge hit when it was first released in August 2019. It quickly became a fan favorite and was selling out in stores across the country. Unfortunately, the demand for the sandwich was too much for Popeyes to handle and they were forced to remove it from their menu.

The shortage of chicken has been a major issue for Popeyes. The chain has been unable to keep up with the demand for the sandwich and has been unable to restock it. This has caused a major decline in sales for the chain.

Popeyes is now trying to find ways to make up for the lost sales. They are offering other menu items such as chicken tenders and fried shrimp. They are also offering discounts and promotions to try and draw customers back in.

The shortage of chicken is a major issue for Popeyes and it is causing their sales to suffer. The chain is doing their best to make up for the lost sales, but it may take some time before they are able to get back to where they were before the shortage. In the meantime, customers should consider trying some of the other menu items that Popeyes has to offer.

The latest earnings results from Restaurant Brands International showed the major operator’s two major brands struggling. While Burger King’s sales have taken a hit on the road to recovery, its golden child Popeyes surprisingly showed a sales decline as well.

Here’s what’s happening at the beloved chicken chain, including the disruptions you may notice on your next visit. For more, check out Here’s Why Popeyes Almost Disappeared From the Fast-Food Scene.

popeyes interior
Shutterstock

Popeyes’ same-store sales were down by 4.5% in Q2, a decline which was blamed on labor struggles felt across the industry. Popeyes is having a hard time staffing its restaurants properly, and as a result, almost half of its locations are currently operating under “reduced service modes.”

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popeyes restaurant
Courtesy of Popeyes

That’s right, in case you haven’t noticed, you’ll now have a harder time finding an open Popeyes dining room. The chain has shuttered dinings rooms in as many as 40% of its 2,700 domestic locations. Numerous restaurants are currently operating as drive-thru, takeout, and delivery-only hubs. In some cases, even the drive-thrus have been shuttered temporarily.

popeyes
Shutterstock

Another change coming from labor shortages is reduced hours of operation. Popeyes restaurants are closing up shop earlier, which is cutting into the brand’s late-night business. According to Restaurant Business, those late-night orders tend to be larger and the loss is felt in the chain’s bottom line.

“Outside of late-night, we saw daily sales either flat or improving modestly throughout the quarter,” CEO Jose Cil said in an earnings call. “So the real drag and the real impact from a labor standpoint was the late-night daypart.”

popeyes chicken sandwich combo
Bill G./ Yelp

The chain was battling staffing shortages at its distribution centers, too, which supply the food to the restaurants. A shuttered distribution center in the Northeast temporarily affected some 10% of Popeyes’ stores in the region. Now, the company is transitioning to a more diversified distribution setup so these kinds of disruptions don’t happen again.

“While in-restaurant staffing may take time to improve, we’re well into the process of further diversifying our distribution network in the region to mitigate the impact of any future distribution center disruptions on our supply chain,” Cil said.

popeyes drive-thru
Shutterstock

Even with the labor shortages, the chain plans on continuing its aggressive domestic expansion. Since 2019, Popeyes has expanded its restaurant footprint by 10% and still sees a major opportunity in adding even more stores across the United States.

According to Josh Kobza, Popeyes chief operating officer, about half of the chain’s customers travel more than 10 miles to get to one of the locations, and bridging that convenience gap for them is something Popeyes plans to do in the future.

For more, check out the 108 Most Popular Sodas Ranked By How Toxic They Are.

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