Who Owns Church’s Chicken? The Complete Ownership History of the Iconic Fried Chicken Chain

Have you ever bitten into that crispy, juicy Church’s Chicken and wondered who’s actually behind this tasty fast-food chain? Well, I’ve been wondering the same thing so I did some digging to find out exactly who owns Church’s Chicken today and how the ownership has changed throughout its 70+ year history.

Current Owner of Church’s Chicken

Church’s Chicken is currently owned by High Bluff Capital Partners, a private equity firm that acquired the chain in August 2021. The acquisition was made through High Bluff’s REGO Restaurant Group platform, which also owns other fast food brands like Quiznos and Taco Del Mar.

This recent change in ownership represents yet another chapter in the long and winding history of Church’s Chicken’s corporate journey. Let’s dive deeper into how this iconic chicken chain has changed hands over the decades.

The Complete Ownership Timeline of Church’s Chicken

1952-1968: Founder George W. Church Sr. and the Church Family

Church’s Chicken began as a humble walk-up fried chicken stand called “Church’s Fried Chicken To-Go” in San Antonio Texas, across from the Alamo. George W. Church Sr., a retired chicken incubator salesman founded it on April 17, 1952.

Initially, the restaurant only sold fried chicken – two pieces and a roll for just 49 cents! In 1955 they expanded their menu to include fries and jalapeños.

When Church Sr. passed away in 1956, the company had grown to four restaurants. His family, including his son Bill Church Jr., took over operations and continued expanding the business. By 1962, there were eight Church’s restaurants in San Antonio.

1968-1989: Public Company Era

The Church family sold the company in 1968, and Church’s Fried Chicken went public in 1969. This marked the beginning of rapid expansion for the chain.

Under public ownership, Church’s grew dramatically:

• By the end of 1968, there were more than 100 Church’s restaurants in seven states
• Between 1969 and 1974, the company added 387 more locations
• The chain began international expansion in the 1970s, entering markets in Canada, Mexico, Japan, and Puerto Rico

During this period, Bill Church Jr. served as the top executive until 1980, when he resigned as corporation chairman and was replaced by his childhood friend, Roger Harvin.

1989-2004: AFC Enterprises/Popeyes Era

In 1989, after a four-month legal dispute to avoid a takeover, Church’s was acquired by Popeyes (a competing chicken chain) for $330 million. The acquisition made Church’s the second-largest chicken restaurant chain at the time.

The merger wasn’t exactly smooth sailing. According to court documents, the plan included:

• Closing 250 Church’s restaurants
• Keeping 92 with the Church’s name
• Renaming 303 others as Popeyes
• Selling 440 others for about $160 million

The acquisition ultimately led to financial trouble. In 1992, Popeyes’ parent company, Al Copeland Enterprises, was forced to file for Chapter 11 bankruptcy due to the more than $400 million debt from the Church’s buyout.

In 1993, Al Copeland Enterprises was renamed AFC Enterprises (later known as America’s Favorite Chicken), becoming the parent company of both Church’s and Popeyes.

2004-2009: Arcapita Era

In 2004, Arcapita (a Bahrain-based Islamic investment firm) purchased Church’s Chicken from AFC Enterprises. This marked a significant shift in the company’s direction.

Under Arcapita’s ownership:

• Harsha Agadi, former executive at Domino’s Pizza and Little Caesars, became president and CEO
• In 2005, pork products were removed from Church’s menu to comply with Shari’ah principles (as Arcapita invests in companies that respect these principles)

2009-2021: Friedman Fleischer & Lowe Era

In August 2009, San Francisco-based private equity firm Friedman Fleischer & Lowe bought Church’s Chicken from Arcapita for an estimated value of $390 million.

Unfortunately, this ownership period saw declining performance:

• By June 2019, after years of declining sales and store counts, FFLput the company up for sale
• According to data from Technomic, Church’s 2020 sales were down 14.8% from 2019 to 2020
• The chain’s unit count dropped almost 10% during that same period

2021-Present: High Bluff Capital Partners

In August 2021, High Bluff Capital Partners acquired Church’s Chicken through its REGO Restaurant Group platform. The financial terms of the deal weren’t disclosed, but it marked the beginning of a new chapter for the chicken chain.

Anand Gowda, High Bluff’s founder, expressed optimism about the acquisition, stating:

“At a time when the entire restaurant industry has faced unprecedented challenges, Church’s has stood out as a notable bright spot, having emerged from the pandemic with considerable tailwinds that strongly position the brand for tremendous growth geographically as well as in the overall chicken category.”

High Bluff’s Plans for Church’s Chicken

Since acquiring Church’s, High Bluff Capital Partners has outlined several strategies to revitalize the brand:

1. Menu Innovation: Bringing innovative menu offerings to market more quickly (they noted Church’s was “late to the chicken sandwich wars”)

2. Technology Upgrades: Elevating the tech platform, improving the point-of-sale system, and implementing a loyalty program ASAP

3. Faster Decision-Making: Creating a more agile business model that can respond quickly to market changes

4. Expansion Plans: Growing Church’s footprint through both traditional and non-traditional means, including ghost kitchens

5. International Growth: Leveraging Church’s strong international presence (which has been one of its strongest growth drivers in recent years)

Gowda has mentioned that Church’s needs to become more nimble to compete in the intensifying chicken space, saying: “You have to be quick in this industry–especially now. We have a small group of owners and that gives us the ability to make decisions quickly.”

Interesting Facts About Church’s Chicken

While we’re talking about ownership, here are some fascinating tidbits about Church’s Chicken that you might not know:

• Dual Branding: In many international markets, Church’s operates under the name “Texas Chicken.” This is partly because the brand name “Church” wasn’t popular in countries with majority non-Christian religions.

• Kitchen Design: The founder, George W. Church Sr., designed the kitchen with fryers next to the takeout window so customers could watch their food being prepared while they waited.

• First Female President: In March 1996, Hala Moddelmog was appointed president of Church’s Chicken, making her the first female president of a fast food restaurant chain.

• Co-Franchising Experiments: In the mid-to-late 1990s, Church’s Chicken and hamburger chain White Castle announced a co-franchise arrangement where both companies would sell their products in shared restaurant spaces.

• Chess Sponsorship: From 1979 to 1986, Church’s sponsored the ChessCafe Grand Prix tournaments through the United States Chess Federation.

Church’s Chicken Today: By the Numbers

As of 2022, Church’s Chicken (officially known as Church’s Texas Chicken) had:

• More than 1,500 locations worldwide
• Presence in 26 countries and territories
• Generated approximately $1.2 billion in systemwide sales in 2020
• A growing international business that has been its strongest driver of growth

Final Thoughts: What This Means for Church’s Fans

If you’re a Church’s Chicken fan like me, you might be wondering how all these ownership changes affect your favorite fried chicken. The good news is that High Bluff seems committed to preserving what makes Church’s special while also modernizing the brand.

Under new ownership, we can likely expect:

• New menu items arriving more frequently
• Better technology for ordering and loyalty rewards
• Possibly more locations (including ghost kitchens for delivery)
• The same delicious Texas-style chicken we’ve come to love

So next time you’re munching on that crispy Church’s chicken and honey-butter biscuit, you’ll know exactly who’s behind the company that makes it all possible. And who knows? Maybe with High Bluff’s ambitious plans, Church’s might just rise to new heights in the competitive chicken chain landscape.

What are your experiences with Church’s Chicken? Have you noticed any changes since the ownership shift? I’d love to hear your thoughts!

KFC sued Church’s Chicken for alleged trademark infringement because Church’s used the phrase “Original Recipe” in its advertising to promote its own fried chicken, which KFC considered a violation of its long-standing trademark for its own secret blend of 11 herbs and spices. KFC claimed this use was likely to confuse customers into believing the product was connected to KFC and had been ignored when KFC sent a letter of objection.