Major fast-food chicken franchisee files Chapter 11 bankruptcy

Core Insights - Fried chicken dining chains led the fast-food industry in 2025, with a 3% increase in traffic, while overall fast-food concepts saw a 1% decline [1] - Chicken concepts experienced a 4.3% growth in 2024, outperforming other quick-service and fast-casual chains [2] - Industry expert Reilly Newman indicated that chicken chains like Chick-fil-A and KFC are likely to maintain their dominance due to the experiential offerings and customization options available [3] Industry Performance - Chicken fast-food chains have shown resilience in traffic growth, with a 3% increase in 2025 and a 4.3% increase in 2024, contrasting with declines in other fast-food segments [1][2] - Despite the growth in customer traffic, financial difficulties have led to bankruptcy filings among some chicken chains [4] Bankruptcy Filings - Southern Classic Chicken, a franchisee in Woodstock, Georgia, filed for Chapter 11 bankruptcy on November 3, 2025, to reorganize its business [5] - De'nsite Inc., operator of Harold's Chicken locations in Illinois, filed for Subchapter V bankruptcy on July 27, 2025, with assets up to $50,000 and liabilities between $500,000 and $1 million [7] - Sailormen Inc., a franchisee of Popeyes Louisiana Kitchen, filed for Chapter 11 protection due to financial distress from failed sales, credit defaults, and lawsuits [8]