Zaxbys Just Hit This Milestone That Has Raising Cane’s and Dave’s Hot Chicken Looking Over Their Shoulders

The chicken wars just got a whole lot more interesting.

One chain quietly passed a threshold that puts it in position to challenge the fastest-growing names in fast food.

And Zaxbys just hit this milestone that has Raising Cane's and Dave's Hot Chicken looking over their shoulders.

Zaxbys Crosses the 1,000-Restaurant Threshold After 36 Years

Zaxbys entered 2026 with historic momentum after surpassing 1,000 restaurants nationwide.

The Atlanta-based chicken chain now operates in 22 states after recent debuts in Las Vegas and Phoenix.

The brand is targeting more than 60 new restaurant openings in 2026, with a long-term goal of reaching 100 new stores annually.

Zaxbys launched in 1990 when childhood friends Zach McLeroy and Tony Townley opened their first location in Statesboro, Georgia.

Goldman Sachs acquired a significant stake in November 2020, buying out co-founder Townley while McLeroy moved to chairman.

Bernard Acoca became CEO in January 2022.

Now Zaxbys is pushing beyond its regional roots into the same markets where Raising Cane's and Dave's Hot Chicken have dominated headlines.

The Modern Farmhouse Design Gives Franchisees Maximum Flexibility

The rollout of Zaxbys' Modern Farmhouse restaurant prototype has been driving the chain's expansion.

The company now offers franchisees six different building types to choose from, plus conversions of existing restaurants.

That's a dramatic shift from the single 3,000-square-foot box that was previously the only option.

The smaller prototypes lower building costs by up to 70% depending on the model.

Zaxbys ended 2024 with $2.71 million in average unit volumes.

Those strong sales numbers have enabled the chain to ramp up conversions from about 5% to 10% of openings to 15% to 20%.

The flexible formats include traditional dine-in, drive-thru-only, and non-traditional locations such as college campuses and military bases.

"The new design is essentially what is enabling our growth because it's relevant, efficient, flexible," chief development officer Mike Mettler said.

The flexibility feeds into Zaxbys' goal of achieving 25% cash-on-cash returns for franchisees.

"Zaxbys is at a pivotal moment in its history," vice president of franchise sales Bert Lane stated.

"With more than 1,000 locations, combined with strong franchise demand and a modernized operating platform, the brand has built meaningful momentum."

Zaxbys Enters the Brutal Competition for Chicken Supremacy

Zaxbys is charging into a chicken market that's more competitive than ever.

Raising Cane's has become the third-largest chicken chain in America by leapfrogging KFC with system sales hitting $5.1 billion last year.

The chain opened 118 restaurants in 2024 with average unit volumes of $6.6 million — more than double the fast food industry average.

Dave's Hot Chicken sold to Roark Capital for nearly $1 billion in June 2025 as the Nashville hot chicken specialist announced plans for 180 restaurants across 10 European countries.

Chicken restaurants are crushing the rest of the dining sector.

Fried chicken chains saw visits grow 4.3% while quick-service and fast-casual chains saw only 1.3% and 2.4% growth.

The domestic unit total for all chicken concepts increased by 4.7% in 2024, far exceeding the industry's 1.5% increase.

Systemwide sales for chicken restaurants now exceed $52 billion annually.

Even McDonald's, Wendy's, and Taco Bell have added chicken tenders to their menus to compete.

Zaxbys is betting that its 36-year track record and proven franchise model combined with Goldman's deep pockets will let it compete with the flashier newcomers.

Goldman didn't buy into Zaxbys in 2020 because they wanted a hobby.

They saw what Raising Cane's founder Todd Graves saw when his fortune nearly doubled in 2024 to hit $22 billion.

The math is simple: Americans consumed 104 pounds of chicken per capita in 2025, up more than 25% over the last 15 years.

Chicken chains deliver average unit volumes that make burger joints weep.

Zaxbys crossing 1,000 locations positions the brand to compete nationally rather than staying confined to the Southeast.

The next five years will determine whether Zaxbys can challenge Raising Cane's and Dave's Hot Chicken or gets left behind watching those brands grab the growth.

---

Sources:

• Alicia Kelso, "Zaxbys surpasses 1,000-restaurant milestone," Nation's Restaurant News, February 5, 2026.
• "Zaxbys Surpasses 1,000 Locations as Brand Transformation Fuels Momentum Into 2026," International Franchise Association, February 5, 2026.
• "How Raising Cane's overtook KFC to become the No. 3 chicken chain in the U.S.," CNBC, June 30, 2025.
• "Why chicken chains are winning the Gen Z restaurant battle," Fast Company, December 15, 2025.
• "Chicken Chains Charge Ahead in 2025," Placer.ai, 2025.