According to the CEO, the Main Driver of Wingstop’s Growth is Existing Franchisees Reinvesting

Wingstop

Wingstop CEO Michael Skipworth discussed the restaurant chain’s growth strategy, highlighting the significant role played by existing franchisees reinvesting in the business. Skipworth revealed that over 90% of the new restaurants opened in the past year were the result of existing franchisees reinvesting, underscoring the strength of the company’s franchise model.

Despite already having a global presence with over 2,000 restaurants, Wingstop aims to increase brand awareness and average unit volume (AUV), a key metric calculated by dividing sales by the number of restaurants. Skipworth pointed out that television advertisements, particularly during live sports events, have been effective in attracting new customers. Additionally, partnerships with food delivery companies like DoorDash and Uber Eats have been instrumental in driving business growth.

In terms of the impact of inflation on franchisees, Skipworth stated that widespread inflation hasn’t adversely affected the company’s franchise partners. He emphasized Wingstop’s growth plans, with expectations to open approximately 250 new restaurants this year, making it a potentially record-breaking year for expansion. Moreover, Skipworth highlighted the relatively low capital required to open a Wingstop restaurant, which contributes to the brand’s appeal to prospective franchisees.

Wingstop‘s success in retaining and attracting franchisees, combined with its strategic marketing efforts and partnerships, positions the company for continued growth and expansion in the highly competitive restaurant industry.

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