Why Did Chicken Salad Chick Close? The Surprising Truth Behind the Shutdowns

Have you ever driven to your favorite Chicken Salad Chick location only to find it mysteriously closed? You’re not alone. As a food blogger who’s been tracking restaurant trends for years, I’ve noticed a pattern of Chicken Salad Chick closures that have left many customers confused and disappointed. Let’s dig into the real reasons why some Chicken Salad Chick locations have shut their doors.

The Steele Creek Shutdown: A Case Study

In March 2024, customers in Steele Creek were shocked to find their local Chicken Salad Chick location dark with a “closed” sign hanging in the window. While the company’s Facebook page claimed the restaurant was “temporarily closed” the reality told a different story.

A letter posted on the door revealed the harsh truth

• The landlord (DKC Freeman Crossing) had taken possession of the premises
• The tenant (Ashglen Inc.) had defaulted on their lease
• The lease was terminated on February 22
• The property and equipment were subject to a lien held by Fifth Third Bank

This Steele Creek location had only been open for about two years, having launched in January 2022. It was owned by franchise operators Peter and Susan Volk of Ashglen Inc.

Tom Reda, a disappointed customer who discovered the closure when trying to have lunch after a dental visit, summed up what many felt: “I always wanted to try it out and you can imagine my disappointment walking up here and seeing it closed.”

Not Just One Location: Understanding the Pattern

The Steele Creek closure isn’t an isolated incident. While Chicken Salad Chick continues to expand with over 250 restaurants across 18 states (including 31 in North and South Carolina), individual locations have been shuttering for various reasons.

Common Causes for Chicken Salad Chick Closures

From my research, several key factors seem to contribute to these closures:

1. Poor Location Performance

The restaurant business lives and dies by the mantra “location, location, location.” When a Chicken Salad Chick closes, it’s often because that specific spot failed to generate enough business due to:

• Shifting Demographics: Changes in the surrounding population can dramatically impact customer base
• Increased Competition: New restaurants offering similar products can steal customers
• Construction or Roadwork: Access issues can drive away business
• Poor Visibility: Locations hidden from view struggle to attract customers
• High Rent and Operating Costs: Prime locations often come with hefty price tags that sales can’t justify

2. Franchise Agreement Disputes

The franchise model that helped Chicken Salad Chick grow so quickly can also lead to closures when things go wrong between franchisees and corporate:

• Royalty Payment Issues: When franchisees struggle financially, they might fall behind on required payments
• Marketing Disagreements: Conflicts over advertising strategies and spending
• Operational Compliance Problems: Failure to meet brand standards
• Contractual Disputes: Disagreements about interpreting franchise agreements

3. Market Conditions and Competition

The restaurant industry is brutal, and even a niche concept like Chicken Salad Chick faces challenges:

• Changing Consumer Preferences: Health trends and food fads impact what customers want
• Economic Downturns: When money gets tight, dining out is often first to be cut from budgets
• Delivery Service Competition: Third-party services have changed how people get restaurant food
• Rising Labor and Food Costs: Inflation hits restaurants particularly hard

4. Overexpansion Issues

Sometimes, Chicken Salad Chick’s own success has contributed to problems:

• Market Saturation: Too many locations in one area can cannibalize each other’s sales
• Stretched Resources: Rapid growth can make it difficult to maintain quality and consistency

The Oklahoma Situation: A Complete Withdrawal

The most dramatic example of Chicken Salad Chick closures happened in Oklahoma, where the chain shuttered ALL of its locations in the state in late 2019. This wasn’t just one underperforming restaurant – it was a complete market exit.

What went wrong in Oklahoma? A few key factors:

1. Legal Troubles: Two former franchisees filed a lawsuit against Chicken Salad Chick, alleging breach of the franchise agreement
2. Support Issues: The lawsuit claimed inadequate training and marketing support
3. Declining Sales: The negative publicity from the lawsuit hurt the brand’s reputation
4. Franchise Owner Problems: The company struggled to find suitable franchise operators in the area

The Oklahoma experience shows how quickly things can go south, even for a popular chain. What started as a promising expansion ended with a complete withdrawal from the market.

Is Chicken Salad Chick Actually Failing?

Despite these closures, it’s important to note that Chicken Salad Chick as a brand isn’t failing. In fact, they’re continuing to expand in many markets.

Founded in 2008 by Stacy Brown, who was inspired by her grandmother’s chicken salad recipes, the chain has seen tremendous growth. Even with occasional setbacks in specific locations, the overall trajectory remains positive.

The company continues to attract investors, with private equity firm Brentwood Associates acquiring the chain in a deal reportedly worth over $300 million in 2020.

What Should You Do If Your Local Chicken Salad Chick Closes?

If you’re a fan who’s lost your neighborhood Chicken Salad Chick, here are some options:

• Check their website for other nearby locations
• Follow their social media for updates about potential reopenings
• Try their recipes at home – many fans have created copycat versions of their famous chicken salads
• Explore similar local options – support small businesses offering comparable menu items

Signs Your Local Chicken Salad Chick Might Be in Trouble

Worried about your favorite location? Watch for these warning signs:

• Reduced operating hours
• Consistently low customer traffic
• Frequent employee turnover
• Limited promotional activity
• General lack of investment in upkeep and maintenance

The Future of Chicken Salad Chick

Despite the setbacks, Chicken Salad Chick’s future looks promising. The company continues to:

• Open new locations across the country
• Innovate their menu offerings
• Invest in marketing and brand awareness
• Address operational challenges

They’ve even expressed interest in potentially returning to markets they’ve previously exited, like Oklahoma, if they can find the right franchise partners.

My Take on the Chicken Salad Chick Situation

As someone who’s followed the restaurant industry for years, I believe Chicken Salad Chick’s concept remains strong despite these closures. Their focus on a niche product (chicken salad in various flavors) gives them a clear identity in a crowded market.

However, the challenges they’ve faced highlight the difficulties of maintaining consistency across a franchise model, especially during rapid expansion. Each closed location represents real disappointment for loyal customers and lost jobs for employees.

The company seems to be learning from these experiences, being more selective about locations and franchise partners. This measured approach might mean slower growth but should lead to more sustainable success in the long run.

When a Chicken Salad Chick closes, it’s rarely about the quality of their chicken salad. Instead, it typically comes down to business fundamentals: location performance, franchise relationships, market conditions, and strategic decisions.

For fans of the chain, these closures can be disappointing. But the restaurant industry has always been volatile, with concepts constantly opening, closing, and evolving.

Have you experienced a Chicken Salad Chick closure in your area? What was your favorite menu item? Share your thoughts in the comments below!

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FAQs About Chicken Salad Chick Closures

Is Chicken Salad Chick going out of business completely?
No, the company continues to operate over 250 restaurants and is expanding into new markets. Individual location closures don’t indicate overall business failure.

Will closed Chicken Salad Chick locations reopen?
It depends on the specific circumstances. Some locations close permanently, while others may reopen under new management or in new locations.

How much does it cost to open a Chicken Salad Chick franchise?
The initial investment ranges from approximately $600,000 to $800,000, including franchise fees, construction costs, equipment purchases, and initial operating expenses.

What ongoing fees do Chicken Salad Chick franchisees pay?
Franchisees typically pay royalty fees and marketing fees based on a percentage of gross sales.

Has COVID-19 impacted Chicken Salad Chick closures?
Yes, the pandemic created additional challenges for many restaurants, including Chicken Salad Chick locations that were already struggling.

Can I find Chicken Salad Chick products in grocery stores?
Currently, their products are primarily available only at their restaurant locations, though this could change in the future as the company explores new distribution channels.