Popeyes, a popular US fast-food chain known for its Louisiana-style chicken, is significantly expanding its UK presence. Having already opened 33 locations in 2024, the company plans to launch 45 more in 2025, targeting major cities like Birmingham, Leeds, Bristol, Manchester, Liverpool, London, and locations across Scotland. This expansion includes diverse formats such as traditional dine-in restaurants, drive-thru locations for on-the-go customers, delivery kitchens catering specifically to takeaway orders, and conveniently located outlets near train stations. This ambitious growth strategy reflects the brand’s confidence in the UK market and its aim to capitalize on the increasing demand for fast-food options. Popeyes UK reports a strong financial performance, with an annual sales run rate of £150 million at the end of 2024, further fueling its expansion plans.
This expansion is part of a broader trend of American fast-food brands entering and expanding within the UK market. Despite economic challenges and rising costs impacting the restaurant industry, fast food remains a relatively affordable treat for consumers, explaining the sector’s continued growth. A Barclays report indicated a 2.8% increase in spending on takeaways and fast food in 2024, demonstrating the resilience of this segment. Alongside Popeyes, Wingstop, another American chicken chain, is also planning a significant expansion, adding 20 new locations in the UK. This move follows a recent acquisition of Wingstop UK by a US private equity firm, highlighting the investment potential seen in the UK fast-food market.
The influx of American fast-food brands reflects a growing appetite for these offerings in the UK. Several other US chains, including Carl’s Jr, Dave’s Hot Chicken, and Chick-fil-A, are also planning to expand their presence in the UK this year. This competition is likely to intensify the battle for market share within the fast-food sector, potentially leading to more choices and competitive pricing for consumers. The success of these American brands will depend on their ability to adapt their menus and marketing strategies to the UK market and cater to local preferences.
While American brands are making a significant push into the UK, domestic companies are also looking to expand. Hotel Chocolat, a British chocolatier, plans to open 25 new stores in the UK and create 200 jobs. This includes a flagship store in Manchester and two new locations as part of a US expansion plan. The company’s strong sales performance during the 2024 festive period, with a 10% increase compared to the previous year, demonstrates the continued demand for its products. Sephora, the French makeup giant, is also continuing its UK expansion, with plans to open a new store in Liverpool, following recent launches in other major cities. Sephora’s re-entry into the UK market after previously withdrawing demonstrates the attractiveness of the UK beauty market.
The expansion of both domestic and international brands indicates a positive outlook for the UK retail and food service sectors, despite economic uncertainties. The growth of these companies contributes to job creation and increased consumer choice. The competitive landscape across these sectors will likely continue to evolve, driven by factors like consumer demand, innovation, and economic conditions.
Specifically within the fast-food segment, the arrival and expansion of US brands like Popeyes, Wingstop, Carl’s Jr, Dave’s Hot Chicken, and Chick-fil-A signal a growing trend. Each brand brings its unique offerings, from Louisiana-style fried chicken to spicy chicken sandwiches and Tex-Mex cuisine, further diversifying the UK fast-food landscape. Established US chains like Wendy’s are also expanding their UK footprint. This influx of American fast-food options provides consumers with more choices and introduces them to a variety of culinary styles. The long-term success of these brands will depend on their ability to resonate with UK consumers and establish a strong presence in the competitive market.
