Wingstop: Franchise Economics, Chicken Sourcing, & US Store Growth
Former Vice President at Wingstop
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Wingstop: Franchise Economics, Chicken Sourcing, & US Store Growth(November 8, 2021)
Scott Lack
Former Vice President at Wingstop
Scott is a Former VP at Wingstop and has over 25 years running fast-casual restaurants. In 2004, he joined Wingstop when they had around 150 stores and scaled the business to over 1,000 units. Scott was responsible for managing franchise operations across the US and reported directly to the CEO. Scott enjoyed 15 years at Wingstop before joining Popeye’s running operations and is now running 4 Rally’s units and looking at more franchise opportunities.
In Practise Notes
- The original WING concept
- The quality of the food and cook-to-order setup delights customers which drives SSS growth
- Southeastern US store AUV's are lower because of higher mom and pop competition
- Fortressing enables WING to leverage marketing dollars in each region which drives higher brand awareness and AUV's
- 2-year levered return on a new WING store even at $1m AUV in Year 2 is ~100%
- The volatility in wings not only hurts the margin but also reduces the value proposition as consumer prices increase
- How WING source wing and breast chicken and why breast bought 1-year fixed in advance vs wings on the spot market
- One potential risk is KFC or MCD's rolling out more wing offerings and taking up all the wing supply from WING
Interview Transcript
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