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Expansion Plans Hatching in Philly

Expansion Plans Hatching in Philly

Rob Samtmann | Dec 18, 2024 |

A recent CoStar article reports on how multiple fried chicken restaurants are expanding in Philadelphia: new leases for these establishments have doubled over 2023.

The Philadelphia area has experienced a significant increase in the number of new fried chicken restaurants opening in the past year, with more on the way. Both local and national brands are tapping into the region’s growing demand for poultry, securing spots across the city and its suburbs.

In 2024, the fast-casual and quick-service fried chicken sector saw at least 22 new leases signed in Philly — double the number from 2023. Although some leases may have been signed without public announcements, the surge points to a rapidly expanding market for fried chicken.

The fried chicken trend is not just a local phenomenon. Since the “chicken sandwich wars” of 2019, where major chains like Popeyes, Wendy’s, KFC, and Chick-fil-A launched viral marketing campaigns, chicken has grown in popularity across the nation. As beef prices rise due to inflation, chicken has become an affordable and attractive alternative. This trend presents a prime opportunity for businesses to boost profit margins while capitalizing on chicken’s broad cultural appeal.

In Philadelphia, local companies are leading the charge in growth. Federal Donuts & Chicken, a well-known Philly chain, has been particularly active, opening a 5,000-square-foot flagship location in South Philadelphia and signing leases for four additional spots. These include three suburban locations in Willow Grove, Radnor, and Conshohocken, as well as a fourth at Philadelphia International Airport, which is set to open in spring 2025.

Another local startup, OMG Hot Chicken, is also expanding, with three new locations in the pipeline. After debuting its first store in Northeast Philadelphia in the spring, the brand is now planning outlets at Temple University, along City Line Avenue, and in Pennsauken, New Jersey.

Meanwhile, Love & Honey Fried Chicken, which launched its franchising program last year, continues to grow its regional footprint. It has secured new leases in Radnor and Conshohocken and is finalizing deals in University City, Newtown, and Marlton, New Jersey. The franchise is also scouting for locations in South Philadelphia, Ardmore, King of Prussia, and Washington, D.C.

Other fried chicken brands making moves in the region include Popeyes, BlackHen Fried Chicken, Dave’s Hot Chicken, Chickos Chicken, Crisp Chik’n, and Hen Solo.

According to IBISWorld (an industry researcher), the fast-food chicken restaurant industry has seen a compound annual growth rate of 7.2% over the last five years, reaching a projected $61.1 billion nationally in 2024. As the demand for fried chicken continues to grow, both established brands and emerging local players are poised for success in Philadelphia’s vibrant food scene.

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Rob Samtmann

Rob is Managing Principal of Equity Retail Brokers and he specializes in tenant representation and leasing.

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