Dive Brief:
- Chick-fil-A will enter Asia in late 2025 with the opening of its first Singapore store, the company said Thursday in an announcement.
- The company will invest $75 million over 10 years in Singapore.
- Chick-fil-A also plans to open its first five stores in the United Kingdom over a two-year period as part of a $100 million investment.
Dive Insight:
Chick-fil-A will face stiff competition in Singapore, where KFC, Jollibee and Popeyes already have a strong presence. KFC has 74 locations on the island while Jollibee and Popeyes have over a dozen locations each. The city-state does provide significant opportunity, as consumer spending on restaurants and hotels is expected to grow 11% to over $20 billion between 2024 and 2029, according to Statista. The country’s total economic output is roughly $525 billion according to the International Monetary Fund.
Chick-fil-A (Asia) Pte Ltd hosted a pop-up event in Singapore in June to introduce the brand and gain a better understanding of guest preferences. Over 1,000 people attended the three-day event, signaling early interest by Singaporeans. The company said that Singapore will serve as a gateway to the rest of the continent.
The company will rely on local owner-operators as part of its growth, differentiating itself from other chains that tend to sign large, country-by-country master franchise agreements with one operator, who then expands the brand. Most of Chick-fil-A’s system is run by individual owners/operators, the company said. Its high average unit volumes of over $9 million also could make it attractive for new franchisees, but it’s unclear if stores outside the U.S. can sustain that volume.
The chain is also investing heavily in growth within North America, with plans to open at least 15 more restaurants in Puerto Rico by 2030. In Michigan, the chain expects to add 25 to 30 franchised units by 2028. It also will open four more locations in Canada by the end of the year, bringing its presence in that country to 20 units.
