Fried chicken market heats up as ex-hotelier leads $450m BirdShack investment
Published:Sunday | March 27, 2022 | 12:08 AMKarena Bennett - Business Reporter
United States-based fried chicken franchise BirdShack’s trademark bird atop a weathervane has flown Jamaica’s way, promising to ignite a new round of competition in the local fast food market, particularly the apparently lucrative fried chicken segment now dominated by KFC and Popeyes. BirdShack, headquartered in Birmingham, Alabama, is being introduced to Jamaica by Arya Holdings Limited, the reorganised holding company for the group that also includes Arya Resort Management Company and is headed by hospitality veteran Wayne Cummings. Arya Holdings has added a food subsidiary, Arya QSR Limited, as the vehicle to drive its entry into the quick service restaurant (QSR) business, one of the fastest growing business segments in Jamaica, with more than 50 per cent of the market estimated by the Food and Agriculture Organization to be controlled by US fast food franchises.
While the estimate of the local segment’s total value is not immediately know, the global fast food market was valued at near US$700 billion in 2020 with growth projected upwards of five per cent through 2027.
Arya is committing some $450 million as proof of its commitment to staking out its share of the market and building out its business in the segment for the long haul.
The agreement appointing Arya QSR as the exclusive local operator of BirdShack Fried Chicken in Jamaica requires the local company to open a minimum of nine locations across the country by 2027. Cummings, the company’s CEO, is confident that the new fast food business will eat into the market share of other popular fast food joints. These include KFC, Burger King, Popeyes, Quick Chick, Island Grill, Mother’s, Tastee, Juici Patties, Wendy’s, among others.
He is looking to push the number of BirdShack stores to 15 over the five years, with the first location slated for the Whitter Village Shopping Centre on the heavily trafficked resort strip in the affluent Ironshore suburb of Montego Bay, St James. With the store’s scheduled April opening just mere weeks away, a second location in the bustling downtown Montego Bay shopping district is now being scouted for activation by year-end.
“We were not to do the second store this year, but we have a strong feeling that the market will respond well to the business. Afterwards, we will look outside of St James for our next opportunity,” Cummings told the Financial Gleaner in speaking of the business plans.
The target locations are shopping centres in the heart of each city to introduce the BirdShack branded fried chicken.
“We want to be a mainstream brand, we really want to be right in the middle of pedestrian traffic. Our competition goes where footfall is and we have a similar vision,” the Arya Holdings CEO said.
At minimum, the build-out of the 15 locations is expected to cost Arya QSR $450 million, or $30 million per location. Cummings did not speak on how quickly the company will be able to make a return on its investment but said BirdShack will be coming into the market at prices similar to its competition.
The quick-serve restaurant has six menu options, most of which are served with fried potato wedges.
“We will also have a chicken sandwich, possibly two, but we will start out with an original sandwich,” Cummings said of the food offering.
Arya QSR is working alongside BirdShack LLC’s Jamaica area developers, CookSmart Equipment and Supplies Limited, to perfect the Cajun-styled recipe before coming to market. The first restaurant is expected to provide employment for some 20 people.
Arya QSR is the second company formed under banner of Arya Holdings Jamaica Limited. The other, Arya Resorts Management Company Limited, a tourism and hospitality consultancy, was launched in last quarter of 2020.
Its core business is the provision of hospitality consultation services to include management of hotel and resort properties, property turnarounds, service quality and regulatory aligned audits, team member training and recruitment, and hospitality supply chain management.
Cummings, a 30-plus year veteran of the hotel industry, is CEO of Arya Resorts Management, while another experienced industry operator, Director of Operations Robert Headley, will take the lead role in Arya QSR. The business also includes Omar Robinson, who is also experienced in tourism management. Cummings and Robinson are past presidents of the Jamaica Hotel and Tourist Association.