McDonald’s and Wendy’s Amp Up the Fried Chicken Sandwich Wars

Published Jul 5, 2024, 12:24 PM

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Bloomberg News Consumer Reporter Deena Shanker provides the details of her Businessweek Magazine story McDonald’s and Wendy’s Amp Up the Fried Chicken Sandwich Wars.
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This is Bloomberg Business Week with Carol Messer and Tim Stenebeck on Bloomberg Radio. Katie actually had a chicken sandwich for lunch.

It was just chicken nuggets.

Oh, chicken nuggets.

Yeah, but they were absolutely fried.

From Chick fil A.

Yeah, exactly, a few few steps from the door of the Bloomberg office.

The reason we were talking about this is because the fried chicken sandwich wars are back, if they ever ended at all, And we're not talking just about Chick fil A versus Popeyes, versus McDonald's, KFC, Shakesheck and the like. As Bloomberg News consumer reporter Dina Shanka writes for Bloomberg Business Week, fried chicken sandwiches are no longer just the domain of fast food giants. They now appear on forty seven percent of restaurant menus. That's according to industry research and consulting firm Technomic, while burgers are only on forty one percent and are tracking slightly downward. Dina joins us right now from New York City. Dina, you get in the history of the chicken sandwich wars, which really brought me back, I'll be honest, what's going on now and sort of share your own personal experience finding a chicken sandwich in like a very unlikely place.

So basically, the chicken sandwich has gone from like this hot new thing to you better have one on your menu and it better be more interesting than your basic chicken sandwich with some mayo and maybe some pickles. The one that really got our attention was at Dig because Dig is a salad chain and they started offering a crispy chicken sandwich. Not their sandwich, they like to point out, is baked, it's not fried, and it is antibiotic free chicken. So it's a bit of an upgrade from your typical fast food chicken sandwich, but it is very much not what you would expect to find at a typical salad restaurant.

How much is a DIG chicken sandwich?

Oh, a DIG chicken sandwich is definitely going to cost you more than one at KFC or at Chick fil A that much. I can tell.

It's a bougie chicken sandwich. That's exciting though. I was so excited to read your story and read the Dig is now offering a chicken sandwich because I love dig.

You remember when it was called dig in.

Oh yeah.

I still have to stop myself from saying to get yeah. But the fact that it just feels like the American consumer is so in love with chicken sandwiches, and I'm wondering if that is like a uniquely American thing, whether other countries cares deeply about their chicken sandwiches as we do. If there's a chicken war going on in Europe, for example.

Well, I don't know if they love them as much as Americans do. But McDonald's, for example, has talked about how they have built their chicken sandwich into a one billion dollar worldwide brand, so they are just you know, going international with it. This is not just for Americans by any means.

I'm wondering about gen Z and how gen Z plays into this, because, as you right, they like their chicken.

Yeah, gen Z loves chicken. You know, we've seen decline in beef for a long time. And actually it was like last year, maybe two years ago, we were talking to some gen Z consumers about why they like chicken so much, and they seem to be just like pretty well aware of the fact that chicken is you know, tends to be healthier than beef and better for the environment. They don't really seem to care too much that it's easier to cook. That's like something us old people seem to notice. But they really really like chicken, and the restaurant companies have noticed. We noticed when Taco Bell was like, we're going to do more chicken for gen Z and so seeing these chicken sandwich wars, one of the research firms pointed to gen Z as a big part of the reason why.

That's so interesting. And I guess if you think about where the future growth opportunities are and what sort of demographics you want to prioritize, if you're a Chick fil A, if you're a KFC, if you're a McDonald's, you're thinking deeply about what gen Z likes.

Oh yeah, for sure, I mean definitely. This is this is where the market, this is where everybody's looking. And one thing that gen Z really likes is sauces and variety. And you know, we see I think millennials, I think we should take some credit for, you know, all of the condiments that we kind of brought into mainstream, but gen Z has really taken it further. I love having like lots of different sauces to dip in, et cetera. So that's you know, I think that's really a lot of the differentiator from one chicken sandwich to the other. A lot of it has to do with the sauce, which might explain why now so much of the you know, so called chicken sandwich wars is moving into nuggets and being like super saucy nuggets.

I had nuggets for lunch. I love the Chick fil A nuggets. Yeah, I mean, how many times are we going to bring it up on a three hour broadcast? But just the Chick file A sauce?

You can buy a bottle of that.

Yeah, they tried to know they were offering it too. They said, do you want to buy a bottle of sauce for three dollars and twenty five cents? And I said no, because I'm not gen Z apparently. But the conversation that we're having and the points that you made about gen Z values options and choices, I mean, it kind of finds me of another tectonic ship that's underway going on in the soda world right now, where you had Doctor Pepper become the second most popular brand and that they overtook pepsi, which is hard to do. They're like neck and neck right now. Coke is in a whole different lea. But part of the reason that that happened is because you have Doctor Pepper going viral on social media, and Doctor Pepper has also really leaned into introducing new flavors on a pretty regular schedule because gen Z likes flavors and they like new things. But I wonder how social media plays into all of this, these chicken sandwich wars. I mean, it feels like every once in a while these sandwiches go viral for example.

Yeah, I mean, you know, it's really funny on social media because I think every brand wants to like dominate social media and become part of, you know, the conversation that beyond their own tweets. But it's really hard to do that.

It's really rare.

But that's what launched so much of the craze on this was that when Popeyes launched there, they launched their chicken sandwich, they talked about it on they tweeted about it, and then Chick fil A tweeted sort of what seemed like a response a subtweet, if you will, and then Popeyes responded with y'all good, and that was that was that was the beginning of everybody needed a chicken sandwich. And of course, you know, the chicken sandwich wars are a special kind of war because in these wars, everybody wins instead of everybody loses. So Chick fil A and Popeyes both, you know, saw sales go up. And now all the fast food restaurants and more are you know, doing really well on this.

The rest, as they say, is history. Check out Dina's story on the Bloomberg terminal and at Bloomberg dot com. She writes it for BusinessWeek. Dina is a Bloomberg News consumer re quarter. Uh and uh. She joins us from New York City.

Everyone wins.

You gonna get a dig dig sandwich now.

Literally tomorrow, maybe tonight.

Okay, there's time. You're listening to Bloomberg BusinessWeek, and this is Bloomberg

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