In the face of rising costs and challenging conditions in the UK hospitality sector, some fast-food operators are reporting significant growth by tapping into shifting consumer preferences. Notably, Popeyes, the southern-fried chicken chain that entered the UK market in 2021, has experienced rapid expansion and increased foot traffic, bucking the broader slowdown seen across the fast-food industry.
Tom Crowley, CEO of Popeyes UK since its launch, highlights the chain’s strategy of appealing to a broad demographic as key to its success. The brand’s ability to attract customers throughout the day—from families to young people—has helped it maintain busy locations even during traditionally slower hours. This approach is particularly advantageous amid rising wages and operating costs, which have made off-peak trading increasingly expensive for many restaurateurs.
According to the company’s 2025 annual accounts published in September, Popeyes UK generated £178 million in revenue, a 50% increase from £119 million in the previous year. The chain currently operates over 100 sites across the UK and has ambitions to reach 150 outlets, including expansion into the Republic of Ireland this year. Despite growth in sales, the company reported a net loss of £6 million due to rising costs exceeding £180 million.
Popeyes' growth parallels broader consumer trends favoring fried chicken. Data from the hospitality analytics firm Meaningful Vision indicates that while overall fast-food foot traffic in the UK declined slightly by 0.9% in the first half of 2026, chicken-focused outlets saw an 8.9% increase. The popularity of chicken has drawn increased competition, with the number of chicken shops in the UK rising 6.3% in the same period, outpacing the 1% growth in the total fast-food market. Private equity-backed Popeyes sees this category as a growing segment that continues to draw market share from more expensive proteins such as beef.
Crowley downplays concerns about competition from emerging brands like Dave’s Hot Chicken and Wingstop, noting that the market has room for multiple players. To remain competitive, Popeyes has expanded its value-oriented menu options, including lower-priced items such as the £1.79 Chicken Cruncher, designed to attract budget-conscious customers. At the same time, the chain continues to innovate with limited-time offerings like the Ghost Pepper Sandwich.
Beyond chicken-focused outlets, other areas of the fast-food sector are also showing resilience through innovation and diversification. Wafflemeister, a UK-based waffle maker, recorded £13.6 million in revenue in 2025 and has found success by creating a multichannel business model, distributing products through hospitality, retail, and wholesale channels. The company’s CEO, Rikos Leong-Son, attributes growth to menu innovation, with new varieties such as low-sugar waffles and internationally inspired flavors generating social media interest.
Both Crowley and Leong-Son acknowledge the ongoing challenges posed by elevated costs in energy, labor, and property. Their strategies focus on broadening product appeal throughout the day to maximize customer visits and revenue in a competitive and cost-sensitive environment. These dynamics underline how some food businesses are navigating headwinds by combining menu development with strategic pricing and distribution.