Dive Brief:

• Popeyes partnered with the National Urban League, a civil rights organization, as part of its initiative to increase franchisee diversity across its system, the QSR announced Tuesday.
• The two entities created a webpage to recruit and screen diverse Popeyes franchisee applicants. 
• Franchisee diversity is a target of the diversity, equity and inclusion policies at major restaurant chains, including Wendy’s and McDonald’s.

Dive Insight:

As part of this collaboration, NUL will vet applicants for Popeyes and pass qualified candidates along to the company. Popeyes didn’t respond to a request for comment about the diversity of its existing franchisees, or its specific diversity goals.

The first phase of the screening process “will see the National Urban League inviting individuals from within its network to learn more about this opportunity and submit materials for review by the Popeyes team,” according to Popeyes’ press release. 

NUL president and CEO Marc Morial said the organization’s first conversations with Popeyes about the partnership began more than a year ago.

“We're not selling franchises, we're not guaranteeing franchises, we're not dealmaking for franchisees. We're basically identifying people. And once we identify them, we'll just introduce them to have conversations with Popeyes,” Morial said.

The NUL seeks to enhance the economic self-reliance of Black people and other underserved urban residents. The civil rights group works through a national network of affiliates to achieve its goals, and often distributes grants to small businesses, including a number of restaurants, according to its 2021 990 form.

This means the NUL is in contact with local leaders and some experienced restaurant operators, which could facilitate franchisee recruitment. The NUL works with thousands of small businesses through its grant programs, entrepreneur support programs, lending arm and small business conferences, Morial said. 

Morial said it was important to increase the diversity of restaurant operators.

“[Franchising] is a way that a small business owner can own a component of a large national brand. It is a way to build wealth. It's the way to build community sustainability,” Morial said. 

Popeyes has demonstrated a commitment to diversity and inclusion in its business, he said, but argues the QSR sector overall lacks diversity, which could hurt efforts to build relationships with Black communities.

“African American consumers are very important to the fast food or quick food industry,” Morial said. “There's not a single [chain] doing enough [to promote minority franchise ownership]. And this moment, I think, is an opportunity.”

Popeyes has grown by about 650 net units since it was acquired by Restaurant Business International in 2017, reaching 2,858 stores in the US in Q3 2022, according a post from the NUL on this partnership.