How Raising Cane's Overtook KFC And Wingstop

About this Video

• Video Title: How Raising Cane's Overtook KFC And Wingstop
• Channel: CNBC
• Speakers: The transcript does not name the speakers.
• Duration: 00:07:58

Introduction

This CNBC video explores the rapid growth of Raising Cane's, a chicken restaurant chain, and its surpassing of KFC and Wingstop in popularity and sales. The video investigates the factors contributing to this success, including its simple menu, efficient drive-thru operations, viral marketing strategies, and its decision to remain a privately held company.

Key Takeaways

• Rapid Growth and Market Position: Raising Cane's experienced significant growth, moving from 33rd to 18th position on Technomic's top chains list in just three years, surpassing KFC and Wingstop in size. Sales more than doubled during this period.
• Simple Menu and Operational Efficiency: The chain's simple menu (chicken, fries, Texas toast, coleslaw) and efficient drive-thru operations contribute to high throughput and customer satisfaction. Its operational efficiency rivals that of Chick-fil-A.
• Strategic Marketing and Brand Building: Raising Cane's leverages viral marketing, including social media campaigns featuring celebrities and athletes, to boost brand awareness and popularity. Its TikTok presence is particularly successful.
• Remaining Private: The company's decision to remain private allows for long-term strategic planning without the pressures of quarterly earnings reports demanded by Wall Street. This fosters consistent growth and operational excellence.
• Capitalizing on Chicken's Popularity: Raising Cane's success coincided with a surge in chicken's popularity within the fast-food industry, a trend fueled by events such as the "Chicken Sandwich Wars". However, the video emphasizes that this is just one factor contributing to Raising Cane's success.