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You are here: News Journos » U.S. News » Rival Chain Surpasses KFC to Claim No. 3 Spot in Chicken Market
Rival Chain Surpasses KFC to Claim No. 3 Spot in Chicken Market

Rival Chain Surpasses KFC to Claim No. 3 Spot in Chicken Market

News EditorBy News EditorJune 30, 2025 U.S. News 7 Mins Read

Raising Cane’s, a fast-food chicken chain known for its simplicity, has recently surpassed KFC in annual U.S. sales, solidifying its position as the third-largest chicken restaurant in the country. With over 900 locations and ambitious growth plans, the company attributed its success to its straightforward menu and a recent surge in system sales, which reached $5.1 billion last year. Founder Todd Graves has expressed aspirations for Raising Cane’s to join the ranks of the top restaurant chains, with an eye on exceeding $10 billion in sales.

Article Subheadings
1) Capitalizing on the chicken boom
2) New rivals
3) Self-made
4) Expansion plans
5) Industry outlook

Capitalizing on the chicken boom

Founded by Todd Graves in August 1996, Raising Cane’s started with a vision centered around chicken fingers. Using his savings from a job in an oil refinery and fishing in Alaska, he opened the first location near Louisiana State University. The name “Raising Cane’s” was inspired by his labrador retriever, leading to a brand that has remained consistent in its offerings over the years.

In a relatively short time, Raising Cane’s has amassed a robust presence with over 900 locations across the United States. This exponential growth is not merely due to specific regional popularity, as the chain has expanded into diverse markets outside its original Louisiana and Texas strongholds. This expansion is a testament to the increasing popularity of chicken as the meat of choice for American diners.

The chain’s unwavering focus on a simple menu — featuring chicken fingers, crinkle-cut fries, Texas toast, coleslaw, and its signature dipping sauce — has evidently resonated with customers. As many chicken chains attempt to diversify and introduce limited-time offers, Raising Cane’s remains committed to its minimalist approach, ensuring customers know exactly what to expect when they visit.

New rivals

However, the fast-food landscape is changing as chicken-centric offerings from established competitors increase. Raising Cane’s faces fierce competition not only from traditional chicken chains like Chick-fil-A and Popeyes but also from major players like McDonald’s and Taco Bell, who have introduced their own chicken products. Nonetheless, Raising Cane’s co-CEO AJ Kumaran expressed confidence in their unique position within the market.

Kumaran stated,

“We are the chicken finger meal experts. We don’t think anybody can do it better than us at the scale that we do.”

His assertion highlights Cane’s focus on quality and efficiency, which distinguishes it from its competitors, allowing them to thrive even in a competitive culinary landscape.

It’s important to point out that while many competitors suffer from sales declines, Raising Cane’s has achieved significant growth. According to recent data from industry analysts, Cane’s is rapidly adapting to the changing marketplace while maintaining its core values, solidifying its place as a leader in the chicken restaurant industry.

Self-made

Raising Cane’s decision to operate its own restaurants rather than adopting a franchising model has proved effective in maintaining quality and consistency across all locations. While most fast-food chains grow through franchise development, Cane’s has kept approximately 97% of its locations company-owned. This approach, according to Kumaran, offers full control over operations and the ability to maintain quality standards across all outlets.

As Kumaran highlighted,

“We quickly realized that, in our hearts, we are operators, and we’re good at it.”

This philosophy has allowed Cane’s to sustain not just profitability but also customer loyalty — factors crucial for long-term success in this highly competitive space.

The financial strength of Raising Cane’s can be evidenced by its impressive average unit volume, reported at $6.6 million per restaurant compared to the industry average of $4 million. This level of financial performance places Cane’s in a strong position relative to its competitors, establishing further credibility in its growth strategy.

Expansion plans

Looking ahead, Raising Cane’s has ambitious expansion plans, aiming to nearly reach the 1,000 restaurant milestone by the end of 2025. Their expansion strategy revolves around intelligent site selection, focusing on high-traffic areas with good population density. The company intends not just to increase the number of locations, but also to establish a sustainable presence in varied markets.

Kumaran has emphasized the importance of thorough research before choosing locations. “We look at potential traffic drivers such as schools and neighborhood dynamics, seeking to plant roots in communities that could foster long-term relationships with our customers,” he noted. This forward-thinking strategy aims not only for increases in revenue but also for cultivating enduring consumer relationships.

Expansion isn’t limited to the U.S.; Cane’s is exploring international opportunities in the Middle East, with locations currently in the UAE and Saudi Arabia. The thought process here appears to be influenced by adapting to the market needs and conditions of various regions.

Industry outlook

While the future looks promising for Raising Cane’s, the fast-food industry poses challenges that cannot be ignored. Experts suggest that consumer spending habits may remain cautious, and economic uncertainty could impact the chain’s growth trajectories. Nevertheless, many analysts believe that the ongoing fascination with chicken and its versatility may well counterbalance any adverse economic factors.

Industry analysts have projected that per capita chicken consumption in the U.S. will reach 104 pounds by 2025, reflecting a sustained trend that favors chicken-based offerings. Andrew Sharpee, a co-leader at AlixPartners, notes,

“Chicken is still a cheaper alternative compared to beef. It’s a more favorable option for consumers, allowing these companies to execute their menus efficiently.”

This creates a favorable environment for chains focused on chicken.

As Raising Cane’s aligns itself with shifting dietary trends, its model appears well-equipped to sustain its current growth trajectory against a backdrop of competitive and economic challenges. Continually investing in both product quality and expansion metrics will be critical as the landscape transforms over time.

No. Key Points
1 Raising Cane’s has surpassed KFC in annual U.S. sales, making it the third-largest chicken chain in the country.
2 The chain plans to operate nearly 1,000 restaurants by the end of 2025, focusing on strategic location selection.
3 Cane’s has reported significant increases in system sales, attributed to its straightforward menu and operations.
4 Raising Cane’s maintains a unique operational model by largely avoiding franchising, allowing better control over quality.
5 Despite economic concerns, the chain remains optimistic, riding the wave of ongoing chicken popularity.

Summary

Raising Cane’s has effectively grown into a formidable competitor in the fast-food chicken sector by adhering to its core principles of quality and simplicity. Its remarkable expansion strategy, combined with strong financial performances, positions it favorably against both established leaders like Chick-fil-A and emerging competitors. As the company looks to maintain its growth trajectory through intelligent site selection and a focus on customer experience, the future appears bright for Raising Cane’s, albeit not without challenges.

Frequently Asked Questions

Question: What is Raising Cane’s primary menu item?

Raising Cane’s specializes in chicken fingers, complemented by crinkle-cut fries, Texas toast, coleslaw, and their signature dipping sauce.

Question: How does Raising Cane’s differentiate itself from other fast-food chicken chains?

The chain focuses on a simple menu and operates the majority of its locations directly, allowing them to maintain quality and consistency without relying heavily on franchise agreements.

Question: What are Raising Cane’s future growth plans?

The chain aims to operate nearly 1,000 restaurants by the end of 2025, expanding into both domestic and international markets while carefully selecting locations based on community dynamics.

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