Church's Chicken(R) Marketing Strategy Yields Recipe for Success and Positive Sales

Brand Also Attributes Domestic and International Franchise Growth to Fifth Year of Positive, Consecutive Same-Store Sales

Atlanta--(BUSINESS WIRE)--Church's Chicken® continues to see a successful fifth year stride of positive same store domestic sales. Company officials attribute Church's strong performance to breakthrough marketing strategies and aggressive expansion domestically and internationally. Church's recipe for success focuses on successful new product introductions, strong creative campaign and an appealing and affordable value menu that align with Church's tried and true focused value proposition.

Church's Executive Vice President and Chief Marketing Officer, Farnaz Wallace said, "Our marketing team as well as the research and development team work hard to ensure they develop thoughtful strategies, creative campaigns and relevant product offerings that will resonate well with our customer base. We take pride in our value proposition and target customers and in knowing that our customers are satisfied with our great food and great prices."

Company officials say that Church's is remaining true to its core values of a no-frills approach to serving great chicken items and signature sides while never compromising on quality. Thanks to a commitment to ongoing research, Church's proactively responds to today's current economic climate and rising food costs. Church's new value menu is an example of a direct response to the changing climate, as well as an increase in the brand's limited time offers. Church's also consistently brings back old classic favorites like Tender Crunchers and Country Fried Steak which are contributors for increased sales.

"With rising produce prices people are expecting more value these days, and our recent menu items and limited time only offers feed our customers with a variety of quality meals while stretching their dollar," Wallace added.

With the increase of poultry prices well into the double digits, Church's has shifted customers away from absorbing these inflated costs. One way is to increase the limited time offers from two per year to eight per year. In fact, some limited time offers take advantage of efficient use of the chicken. From time to time, Church's will offer Chicken Chili or a Barbeque Chicken Sandwich, for example, during colder months to satisfy customer's craving for these regional favorites while creating new revenue-streams for the operator at the unit level.

"We made a strategic decision not to pass on all of our commodity cost increases to our customers. Instead, we focused on some cost-cutting initiatives that do not impact our customer experience, coupled with strategic value menus and limited time only product offerings with limited price increases," according to Wallace. "We also targeted a less price-sensitive customer base by providing them with premium items. This is how we have alleviated sales and profit erosion while experiencing strong sales," she continued.

While other competitors are revamping and reengineering their brands, Church's is staying right on target by focusing on their growing consumer market and expanding brand, which is allowing them to gain market share everyday. "We don't need to reposition ourselves because our marketing strategy and differentiators are grounded in our never-wavering commitment to quality and value. We also have our ear close to the ground in regards to what our customers need, want and expect," Wallace said.

Franchise growth has also been a major contributing factor to the company's sustained positive sales. Domestically, Church's has added 25 new franchisees, recently entered the Seattle and Philadelphia markets and added franchise commitments for 125 new stores. In the coming months the brand will be rolling out new 1,200 sq. foot in line prototypes, fully modular free-standing prototypes that are completely assembled in factory while setting another record for domestic openings with 60 stores.

The brand's recipe for success has also translated overseas where Church's is experiencing their sixth consecutive year of positive comps. The Church's international brand, also known as Texas Chicken, has recently opened their first of 30 restaurants in India with plans for expansion scheduled for Syria, Egypt and Canada.

About Church's

Founded in San Antonio, Texas, in 1952, Church's Chicken® is a highly recognized brand name in the QSR sector and is one of the largest quick-service chicken concepts in the world. Church's Chicken® serves freshly prepared, high quality, flavorful chicken and tenders with signature sides and hand-made from scratch biscuits at low prices and differentiates from its competitors in care and attention given in preparation of food, and is positioned as the Value Leader in the Chicken QSR category. As of November 2008, the Church's system consisted of more than 1,600 locations worldwide in 20 countries, with system sales exceeding $1 billion.

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