Dive Brief:
- Zaxbys hired Chris Kung on July 15 to as its first chief digital officer, a new role designed to accelerate the chain’s loyalty and e-commerce initiatives, according to a press release.
- Kung previously worked at Dollar General for four years, where he oversaw initiatives that led the discount retailer to become a digital innovator. He also served in various positions at Macy’s for over 10 years, according to his LinkedIn profile.
- Kung’s expertise could bolster Zaxbys’ growing digital channels. The fried chicken chain last made structural changes to its loyalty program and mobile app nearly two years ago, which led to a 317% boost in engagement.
Dive Insight:
Zaxbys is establishing a loyalty and e-commerce division that will report to Kung. The team will take on initiatives that will lead loyalty and e-commerce to become significant contributors to growth.
The fast food chain created the chief digital officer position to free up Mike Nettles, chief technology officer, and Patrick Schwing, chief marketing and strategy office, who previously oversaw portions of this role.
The fast food chain is also expanding into new formats, like 2,000-square-foot drive-thru-only locations that emphasize digital transactions. It opened a drive-thru-only location in Mississippi, its first in the state, on July 8. Its first franchised to-go-only unit opened in Hoover, Alabama, in 2023 after the chain opened two such corporate prototypes in 2022 and 2023. The Alabama unit has a walk-up window for guests to order takeout, a double drive-thru and a payment window and drive-thru delivery door for fast pay and pickup.
Kung has over 20 years of strategy experience and has overseen successful digital growth. He helped create the Dollar General’s myDG loyalty program. During his tenure at the discount retailer, its e-commerce sales rose 40x within three years, and app usage grew from 1.8 million to 7 million monthly subscribers, according to the release.
“Chris’s expertise in e-Commerce and loyalty programs will help drive incremental growth and enhance the Zaxbys experience as digital touchpoints continue to proliferate throughout the customer journey,” CEO Bernard Acoca said in a statement. “His arrival will help us build stronger relationships with our guests by deepening our understanding of their needs and rewarding their patronage with personalized experiences.”
Other chains have been emphasizing the chief digital officer role in recent years, especially as loyalty and digital channels grow. Both KFC U.S. and Denny’s created digital officer roles last year, while Yum Brands and CKE appointed a chief digital and technology officer and chief technology and growth officer, respectively, earlier this year.
