We’ve frequently expressed our amazement at the numbers produced by Chick-fil-A and rightly so. The company’s combination of overall size and average unit volumes speaks to some incredible success.
But then we attended a presentation by R.J. Hottovy, head of analytics research for the data firm Placer.ai, which featured the following graphic:
This graphic shows the visits per square foot from several fast-food chains, including the aforementioned Chick-fil-A, over the past 12 months. On a per-square-foot basis, it means the average Raising Cane’s gets more customers than the average Chick-fil-A.
It’s worth noting that Chick-fil-A has both large drive-thru locations that make a lot of money and in-mall units that make a lot less money and get fewer customers.
But measuring by traffic per square foot in some respects is the best indication of a chain's ability to expand. And the numbers suggest that Cane's customers want the company to open more units. That is a testament to just how remarkably strong Raising Cane’s has been over the past couple of years.
Cane’s U.S. system sales have doubled over the past three years. Its average unit volumes last year were nearly $4.9 million on some 600 locations, according to data from Restaurant Business sister company Technomic.
Its unit volumes easily outdistance other fast-casual chains like Chipotle and Sweetgreen. Only Portillo’s (which has just 69 locations) and Chick-fil-A do more. But the typical Cane’s operates in a smaller box than either of those chains.
Raising Cane’s has been a beneficiary of a handful of trends. Consumers love chicken, for instance, and they flocked to drive-thrus during the pandemic. A Cane’s near me would have cars wrapped around its building twice, even late into the evening.
At the same time, it’s also a symbol of the direction the industry is currently headed. The most remarkable element of Cane’s is the simplicity of its menu. Cane’s sells just chicken fingers. And it has steadfastly resisted calls to add items to said menu, though that is easy to do when your unit volumes jump by nearly half over just three years.
Consumers not only love chicken. But they prefer getting their chicken from companies they believe do chicken well.
It’s been a traditional barrier that kept bone-in chicken chains from selling chicken sandwiches, for instance, until Popeyes broke that barrier in 2019. It’s why KFC probably can’t sell a burger and it’s why breakfast is so hard to come by at fast-food chains.
In other words, customers are almost demanding that restaurants have focused, narrow menus of items they do well with, rather than broad-based menus that target a larger number of customers. And Cane’s is the narrowest of menus.
Both Chick-fil-A and Cane’s have proven that companies don’t need expansive menus or be open seven days a week or longer hours to be successful. They just need a product customers love and strong customer service.