Zaxby's confidence in its preparation for further expansion
In the latest episode of the Restaurant Business podcast, "A Deeper Dive," host and editor-in-chief of the podcast, a longtime industry journalist with a focus on restaurant finance, mergers and acquisitions, and the economy, delves into the operations of Zaxby's, a fast-casual chicken chain based in Atlanta.
The podcast is available on Spotify, Apple Podcasts, and other platforms. This episode discusses various aspects of Zaxby's operations, such as new management, unit economics, drive-thru speed, digital sales, and AI.
Bernard Acoca, the CEO of Zaxby's, is the guest on the podcast. Acoca, who became CEO three years ago, is the first non-founder to lead the company. He has spent the past three years focusing on fixing Zaxby's operations.
The podcast episode sheds light on why Zaxby's sales have not been as strong as its competitors. Rival chains like Raising Cane’s and Dave’s Hot Chicken have higher sales growth rates than Zaxby's.
Acoca discusses the key factors contributing to this, including Zaxby's regional focus and late expansion, its expansion strategy, modernization and delivery innovation, and competition from focused brands.
Zaxby's has been traditionally strong in the Southern U.S., which limited its sales growth outside this core area. In 2025, it is only now aggressively entering new states (e.g., Arizona, Nevada) and expanding to new markets with goals to surpass 1,000 locations nationwide.
Acoca also talks about the steps Zaxby's is taking to boost sales growth, such as increasing growth via franchise partnerships, offering incentives such as reduced building costs and better returns to attract franchisees, and launching delivery-only "ghost kitchens" to capture off-premise sales in urban areas.
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In conclusion, while Zaxby's has strong brand recognition and a loyal following, its sales growth has lagged because its national footprint and fast-casual modern strategies have been slower to scale compared to competitors who moved earlier or more aggressively into new markets. However, with 2025 marking a phase of accelerated expansion, franchise incentives, and new market entries, Zaxby's has significant potential to boost sales growth going forward.
- The podcast episode on Spotify, Apple Podcasts, and other platforms extensively discusses the finance and business aspects of Zaxby's, a fast-casual chicken chain, with a focus on restaurant finance, as the host is an industry journalist with expertise in this area.
- In his discussion, Bernard Acoca, the CEO of Zaxby's, highlights the importance of finance in their lifestyle business, mentioning strategies like increasing franchise partnerships, offering incentives, and launching delivery-only "ghost kitchens" to improve food-and-drink sales and growth amidst competition.
