As Wingstop UK embarks on its most significant year of growth yet, co-founders of its master franchisee, Tom Grogan and Herman Sahota, say a laser focus on British youth culture is what is helping maintain a solid position in the QSR market.
“There’s nothing like Wingstop,” Grogan tells MCA, “We actually don’t see a direct competitor anywhere in the market.”
“We think there’s easily room for 300 or more locations in the UK.”
The product offering of freshly cooked-to-order chicken, unique flavour range, alongside an “authentic” bond with its core Gen Z demographic, Grogan asserts, “No one’s got that.”
2024 will mark a milestone for the US-born brand, as it looks towards a record 15 UK store openings.
The anticipation is particularly high for the opening of the largest Wingstop UK restaurant to date, at Westfield Stratford City, a project Sahota says was five years in the making.
Behind this, Grogan discloses that the brand is seeing record performance indicators this year, after average unit volumes exceeded 50,000 a week in 2023.
“That positive like-for-like momentum is continuing into 2024”, he adds.
Looking ahead, the company is on track to “comfortably surpass” nine figures in revenue this year.
New site selection
Wingstop’s strategic approach to flagship locations reflects its commitment to a premium positioning and capacity to work in a range of asset types, says Grogan.
“Westfield really is going to be a jewel in the crown this year.
“I think the beauty that we’ve got at Wingstop, is that we can sit front and centre in a premium shopping centre.
“Or we can go into high street locations, retail boxes in a high performing retail scheme, leisure parks, coupled with implementing dark kitchens.”
He also revealed that a move into drive-thru sites was “potentially under consideration”, over the next few years, but that for now, the brand would concentrate on drive-to locations, alongside other asset classes.
Given the founders’ collective backgrounds in real estate, he added, “We’re seeing very good deal flow. With the maturity of the brand, we’re able to negotiate trusted brand terms and we are a top choice for landlords in premium locations.”
Looking forward, the brand plans to build its retail estate positioning, after success at Gallions Reach Shopping Park, Beckton, in addition to further penetration in key UK cities.
“We have the infrastructure set up to take opportunities anywhere”, he added.
On whether Wingstop would consider a move into travel hub locations, Grogan explained, “I think in those locations, the consumer values speed of service, whereas we are a cook-to-order operation.
“We don’t need to pull that lever at the moment with the strength of our trading. We have some things to figure out before we can unlock that as a class.”
Dark kitchens and delivery
Site selection strategy is “data driven” through comparable performance of QSR brands and footfall figures, and engagement with social media followings.
“We lean on Deliveroo to provide us insights,” adds Grogan; the brand’s sole delivery aggregator since it launched in 2018.
“We are working very closely with Deliveroo to optimise that channel and provide the best experience to our customers.”
Grogan said the brand would not investigate becoming multi-aggregator “anytime soon”.
“We have so much volume going through with one aggregator that it makes sense to double down on operations and customer experience.
“Our relationship with Deliveroo has gone from strength to strength after we started working together five years ago.”
The rise of dark kitchens and delivery operations has presented new opportunities for Wingstop.
“I want to make it clear that all our dark kitchens stand on their own two feet in terms of profitability,” says Sahota.
“The delivery volume that we’re seeing across the estate, across all asset classes is unprecedented. We have some dark kitchens that are doing two to three times the average high street QSR restaurant,” he added.
Youth Culture
Wingstop sets itself apart in the market with a unique focus on British youth culture.
Grogan emphasised the company’s “authentic” engagement with this UK consumer, leveraging social media and brand partnerships.
“Back in 2018, we launched in the market with a strategy to connect on a cultural level authentically, very much how fashion brands such as JD sports and Footasylum engage with their audiences.
“At the time we were 26, we were listening to UK rap, we knew what the latest music trends and fashion brands were out there.
“We have really doubled down on that,” Sahota explains.
The brand maintains relationships with music labels, directly with artists, and has their “ear to the ground”, with Gen Z moving through the ranks of their own workforce and marketing teams.
Grogan is keen to point out that the brand has more followers on TikTok that any other comparable chicken QSR brand and has even overtaken Wingstop’s following in the US.
“That shows you the true connection we have with our consumer and the level at which the content resonates with them,” he says.
As a new generation enters the market, Sahota adds, “The way we shift that focus is really through the social apps we are using, so Gen Alpha now is more engaged on Tik Tok and Snapchat.
“We’ve pivoted our marketing strategy to focus on more playful content on those platforms as opposed to targeting an Instagram demographic that have grown up with us and engage with more mature content which showcases our events, for example.”
“It has to be authentic,” Grogan emphasises, “We’re aiming to maintain laser focus on that consumer set, moving forward.”
New flavours
As Wingstop celebrates its sixth year in the UK, it reveals plans to import some new flavours from the US, alongside a summer milkshake launch.
“We are looking to add one or two more flavours this year just to keep the brand refreshed.
“We are cautious that we’re opening so many new sites in the UK, that we don’t want to confuse the consumer with lots of different menu innovation. However, those consumers that have been with the brand for five or six years, we want them to explore more of the Wingstop flavour range,” Sahota explains.
