Founded 51 years ago, Lee’s Famous Recipe® Chicken is preparing to grow further

with innovative technology and a pared-down menu.

By Bianca Herron

Lee Cummings, nephew of KFC’s Colonel Sanders, founded Lee's Famous Recipe® Chicken as a quick-service restaurant in 1966. Specializing in chicken, homestyle sides and biscuits, today Lee’s has 150 stores in 13 states across the country.

The Shalimar, Fla.-based company has had 31 consecutive quarters - almost eight years - of same-store sales growth. This year’s sales are up more than three percent, President Chuck Cooper says. “In 2016 we beat the previous year’s sales by about six percent, and the year before that we beat by seven percent,” he notes.

Although Lee’s has been around for 51 years, the company’s significant growth earned it the top spot last year on Nation’s Restaurant News’s “The Next 20,” which names restaurant chains best positioned to crack the top 200.

“Our average sales per store are about $1.3 million so far this year,” Cooper says. That’s a big difference from the same store sales of $800,000 when Cooper joined the company 15 years ago, he adds.

“We had two stores hit more than $3 million in sales last year and anticipate more stores to do it again this year,” Cooper notes. “Overall, 20 percent of our stores have nearly $2 million or more in annual sales, which is significant in the chicken business.”

Hatching Interest

Lee’s will add four new franchise stores by the end of the year. Not only has its significant sales volume contributed to its growth of new franchisees, but also to its reputation.

“I always tell potential franchisees that there are great brands out there, but that they have to consider if they’ll be around in 20 years,” Cooper says. “They’re signing a 20-year deal and some brands aren’t even that old. As a concept we’ve proven ourselves. Our franchisees that have the chance to renew do so because of it.”

Lee’s isn’t interested in bringing in franchisees that would like to open 20 stores either at this time, Cooper notes. As a small brand, the company is more interested in remaining nimble and personable for its franchisees and partnerships.

“We want to bring in those who want to operate one to five stores, which is what we think is our sweet spot,” he says. “Our current owners are really involved in helping to make the brand better. We’re a chain that’s on the rise, but we’re small enough where they can visit other stores, talk to the owners and learn from them, which we really encourage.”

A key to its success in the industry and with new franchisees has been its consistent, quality product. “We have stuck to the same original Famous recipe for 51 years,” Cooper says. “I think that’s part of our success because it’s the same flavors that people grew up with when they were a kid.”

Lee’s has also pared down its menu, focusing on hot-selling items like fried chicken, chicken tenders, jumbo breast strips and homestyle sides such as mashed potatoes and gravy, cole slaw, green beans and baked beans.

“We’ve focused on making them the best that we can,” Cooper says. “We bring out a new product every so often, but we don’t really focus on it like other brands just to get sales. Again, we have been successful in sales; our traffic is up year-over-year. So not only are we gaining more dollar sales, but also more customers every year.”

Remodeling The Nest

Lee’s is a mature brand at 51 years old, Cooper notes, adding that is the reason why the company has to constantly think outside of the box when it comes to its products and restaurants.

With many of its restaurants built in the 1970s and 1980s, Lee’s has begun remodeling its stores to adopt a more modern look to cater to younger generations. “We’ve seen a real trend in our product offering where some of our stores are selling about a third of boneless chicken and chicken tenders,” Cooper says. “We’re also expanding into healthier foods with our fantastic oven roast chicken, which comes with low carb sides.”

Lee’s has also integrated technology into its operations. “We want to serve our customers faster, so we’ve implemented technology like a point-of-sale system,” Cooper says.

Ultimately, Lee’s wanted to make its stores more efficient in the most cost effective way. “We’ve worked with some equipment partners to utilize equipment that will work in the same footprint so we don’t have to build bigger buildings,” Cooper says. “This way our franchisees won’t have to invest more money, and can still grow their sales.”

Although Lee’s makes a lot of its own products – such as tea, biscuits, sauces and spices – the company has strong relationships with many of its vendors, or partners, as it likes to call them.

“Our stores get fresh chicken daily, so we have very few products that are taken out of boxes and put into a fryer, which is very different from our competition,” Cooper notes. “We have fantastic partners like C.H. Gunther, George’s Chicken, Case Farms and Ken’s Sauces.”

He notes the company has been able to maintain these longstanding relationships through trust and honesty, which has contributed to Lee’s success. “We try to stay with the same vendors because it’s continuity,” Cooper says. “Partner is a good word for them.”

No matter the market Lee’s operates in, when it comes to competition, the company is very confident because of its partnerships, he adds. “We’re always on our game and can compete with the best, including KFC, Popeye’s and Church’s Chicken,” Cooper says.

Something Great

As Lee’s looks ahead, its goal is to help keep its franchisees successful. “That’s where we live,” Cooper says, noting that the company also needs to figure out how to continue building stores more efficiently. “How are we going to help owners when they want to remodel, and how do we make that as cost effective as possible,” he says. 

The next “big idea” for Lee’s is also on the horizon as the company is currently developing innovative concepts to differentiate itself further from its competition.  “We’re considering working with some of our franchisees on a breast strip-only concept,” Cooper says. “We’re also looking into developing a smaller, cost-effective concept that can operate inside a strip mall. We’re going to take, what I call, the sweet spots of what we do well and concentrate on those.”

Ultimately, the sky is the limit for Lee’s after 51 successful years in the industry, Lee concludes. “We operate in both rural and urban areas,” he says. “Looking ahead, you might see Lee’s in more areas like convenience stores. I think we’ll be able to provide c-stores across the country something great.”