Iconic Fast-Food Fried Chicken Chain Closes Over 300 Restaurants Amid Intense Market Competition
Fast-Food Fried Chicken Market Faces Intense Competition
The fast-food fried chicken space has several contenders vying for the throne. Chick-fil-A has been a market leader, but Popeyes has competed with its once-viral chicken sandwich, while Raising Cane’s has grown quickly, fueled by its cult fanbase and simple menu.
It’s an incredibly competitive space where it’s hard to differentiate your product.
The chicken category increased 5.3% in 2025, down from 9.1% in 2024 and more than 12% in 2023, according to Technomic data shared with Nation’s Restaurant News.
KFC’s Struggle Continues
Two of the biggest names in the space actually saw sales drop.
Popeyes’ sales fell 0.5% in 2025, versus 3.9% growth in 2024. KFC had a tough 2025, with sales down 4.6%, while in 2024, its sales were down 5.2%.
That’s a significant drop over a two-year period for KFC, which may explain why the chain has been closing stores.
KFC has closed 300 stores in a year, according to data shared by Local Falcon, a local AI search visibility platform.
Local Falcon compared KFC’s public store locator at the start and end of the period. Each restaurant listing that had been removed and returned a 404 error was then independently verified against Google Maps.
KFC needs an identity boost, according to RTM Nexus CEO Dominik Miserandino.