[ALERT] Layne's, a Tiny Texas Chicken Chain, Looks to Land 18 Locations in Georgia

If you thought Atlanta had too many chicken joints, you're not alone, but yet another chicken brand is looking to enter the metro area.  Layne's Chicken Fingers, a 17-unit franchise based in College Station, Texas, has signed a franchise agreement with three local entrepreneurs to open 18 Layne's locations in metro Atlanta. 

The first location, planned for Holcomb Bridge Road in Roswell, is reportedly on track to open in late October or early November.  The Roswell restaurant will be located at 2000 Holcomb Bridge Road in a drive-thru enabled endcap of a newly built strip center (Shops at Alstead) that also recently welcomed metro Atlanta's second location of The Great Greek Mediterranean Grill.  The Human Bean, a new-to-market coffee shop, is also on the property in a separate standalone drive-thru outparcel.

The Atlanta restaurants are being opened by franchisees Alvin Shah, Shahid Panjwani, and Seth Bickle.  Shah’s father owned several quick-service restaurants, and Panjwani also grew up in the industry, having watched his parents run Dunkin’ franchises, according to a press release. Bickle has worked in corporate and ownership positions for brands such as Subway and Moe's Southwest Grill where he was a Franchise Business Consultant.  

The Roswell space was originally leased to Panjwani to serve as a relocation of a nearby Moe's that he owns at 2354 Holcomb Bridge Road, but the trio later did the deal with Layne's and opted to open the chicken restaurant there instead.  Panjwani's Moe's, located in an out parcel of the Kroger-anchored Centennial Village, will remain there.  Panjwani opened a second Moe's in the food court of North Point Mall in Alpharetta in 2013, but it closed a few years ago. 

The group is definitely bullish on Layne's despite the tremendous amount of competition and nearly non-existent local brand awareness.  

The company has not revealed a timetable for the other 17 units, but their opening will undoubtedly depend on the success (or failure) of the Roswell restaurant.  

Established in 1994 near the Texas A&M campus, Layne's features a menu similar to Guthrie's (established 1965) and Raising Cane's (established 1996) with tenders, sandwiches, crinkle fries, Texas toast, sweet tea, and lemonade.  As opposed to their larger, more established competitors, Layne's also features the option for "spicy" chicken in addition to a variety of milkshakes.     

That said, shakes and spicy chicken are unlikely to be differentiated enough to make this brand stand out.  

News of Layne's planned arrival in metro Atlanta was first revealed earlier this spring but only earlier this week did local media take note.  Given the onslaught of coverage, we asked a few industry veterans including the CEO of a multi-state casual dining brand, a restaurant consultant and investor, a multi-unit franchise restaurant operator, and several local foodies if they had heard of the brand, and if so, what they thought of it.  None of them had heard of it.

Atlanta, now the home of Chick-fil-A, Zaxby's, and gas station favorite Krispy Krunchy Chicken, is not a market that out-of- state brands, especially quick-serve brands, tend to thrive in.  

Joella's Hot Chicken, Blue Coast Burrito, Nothing But Noodles, Babacoa, The Hummus & Pita Co., Mojo Burrito, Pancheros Mexican Grill, El Pollo Loco, Smashburger, Fatburger Capital Tacos, PDQ, Pollo Tropical, and Pieology, among others, have all exited the Atlanta market entirely after first opening one or multiple locations with stated plans for more.  

Shockingly, Smashburger announced plans last July to open 15-20 locations in "the greater Atlanta region" over the next five years, marking their third attempt at the market, but thus far, none have opened nor is there any mention of any "coming soon" on the company's website.  

For context, the 18-unit Layne's franchise deal in Atlanta is one more unit than the entire Layne's portfolio today.  To be fair, Layne's is looking to grow, and following its entry into franchising in 2021, the brand has awarded more than 200 restaurants to franchisees with a goal of having 50 units open by 2025.  In addition to the Georgia growth, the company has signed franchise development agreements to expand into Arkansas, Florida, and Tennessee, too.  

Ambitious plans are great, but over promising and under delivering either at the restaurant itself, or in the promised growth, can have serious consequences.  Just ask this once high-flying Atlanta brand.  

Thirteen of the chain's 17 open and operating locations are in Texas, with one unit open in Morgantown, West Virginia, two in Pittsburgh (with another coming soon), and one in Janesville, Wisconsin.  

Chick-fil-A, the 800 pound gorilla in the state, currently operates more than 260 restaurants in Georgia with several more, including those planned for Ponce de Leon Avenue near Ponce City Market and a revolutionary new unit planned for Stockbridge, coming soon.  Texas, where Layne's is headquartered, is home to nearly 500 Chick-fil-A restaurants or nearly 20 percent of the overall chain!  

Zaxby's, which moved its company headquarters to Brookhaven earlier this year and announced plans for a new location near Children's, is also well-entrenched in the market with about 250 of its overall roughly 1,000 restaurants in Georgia.  The company also earlier this week followed Chick-fil-A, Whataburger and other quick-serve chains into CPG (consumer packaged goods) with the release of several sauces at southeastern Walmart locations and grocery stores.  The product launch extends the brand's reach and strengthens their connection to consumers in ways Layne's will be unable to compete with.  

While Chick-fil-A and Zaxby's dominate the state, Huey Magoo's, Slim Chickens and Super Chix are picking up a few crumbs here and there, mostly in tertiary markets, with Raising Cane's also making a significant push but with far better brand awareness.  Guthrie's, "America's Original Chicken Finger Restaurant," is also on a growth spurt of late, having in recent months opened new locations in Columbus, Cartersville, and Woodstock, with another coming soon to East Cobb. 

Have you ever heard of or been to Layne's?  Do you think Layne's will find success in metro Atlanta?  What is your favorite restaurant for chicken tenders?

Please share your thoughts below.