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Major fried chicken franchisee closes stores in bankruptcy filing

Hamburger chains dominated the fast-food sector in the 1980s and 90s after the “burger wars” launched among McDonald’s, Burger King, and Wendy’s. The burger wars transitioned into an original chicken sandwich war, also in the 1980s, among the same three rivals and was revived in the new millennium with Popeyes’ launch of its chicken sandwich […]

Hamburger chains dominated the fast-food sector in the 1980s and 90s after the “burger wars” launched among McDonald’s, Burger King, and Wendy’s.

The burger wars transitioned into an original chicken sandwich war, also in the 1980s, among the same three rivals and was revived in the new millennium with Popeyes’ launch of its chicken sandwich in August 2019.

Rival Chick-fil-A countered Popeyes’ new sandwich with a statement on Twitter that its sandwich was the original, introduced in 1964, and fast-food chains everywhere began introducing or reintroducing chicken sandwiches.

Fried chicken chains become most popular

With all of these chicken sandwiches launching, fried chicken restaurants became the most popular concept in fast food.

Fried chicken dining chains are likely to remain the most popular subsector of the fast-food industry in 2026, if the concept continues the trend it set over the last year.

Traffic to chicken concepts rose 3% in the year ending September 2025, while all concepts dropped 1% compared to the previous year, according to market research firm Circana, as reported by Fast Company.

The variety of chicken options offered, such as chicken pieces, chicken fingers, or chicken sandwiches, and how consumers enjoy their choices, may contribute to the continued popularity of the concept, an expert says.

“This is due to the experiences the brands are creating as well as the variety of chicken and how you can enjoy it,” industry expert Reilly Newman of Motif Brands told The Food Institute. “This comes to no surprise, as the experience economy has been taking root across the globe.

“Chicken allows for (ample) customization, sauces, and forms, depending on the buyer’s preferences,” Newman said.

Not every fast-food chicken restaurant benefited from increased traffic in 2025, as some operators suffered financial difficulties that led to bankruptcy filings.

Popeyes franchisee rejects leases of 17 locations after filing for Chapter 11 bankruptcy.

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Popeyes franchisee shuts 17 unprofitable restaurants

A bankrupt operator of over 130 Popeyes Louisiana Kitchen franchise restaurants has closed 17 underperforming locations in Florida and Georgia and filed a motion to reject all of the stores’ leases.

The franchisee, Sailormen Inc., which declared Chapter 11 bankruptcy protection on Jan. 15, filed a motion in the U.S. Bankruptcy Court for the Southern District of Florida in Miami to reject the leases after closing eight locations on Jan. 19, five locations on Jan. 20, and four locations on Jan. 22, according to court papers.

The debtor asserts that the leases should be rejected as of the petition date, since the restaurants were closed within one week of the petition date and before the hearing on the debtor’s first-day motions.

More closings:

The Miami, Fla.-based wholly owned subsidiary of Interfoods of America Inc. believes that closing the 17 unprofitable locations will reduce the debtor’s selling, general, and administrative expenses by over $1 million annually.

The debtor is removing equipment and other personal property from the locations to be reallocated or sold.

Franchisee files for bankruptcy after series of failures

Sailormen filed for Chapter 11 protection after a failed sale of certain locations, a default on credit facilities, and a series of lawsuits and store closings caused the company financial distress, RK Consultants reported.

Sailormen, which was founded in 1987 with 10 locations, is one of the largest domestic Popeyes franchisees in the company’s system, with more than 136 locations in Florida and Georgia. It currently employs about 2,900 workers.

Sailormen downsized its portfolio

The debtor, at one time, owned many more locations, but streamlined its portfolio in 2018 by divesting assets in Alabama, Louisiana, and Mississippi to focus on its core Southeast markets.

Sailormen needed to file for bankruptcy after suffering severe liquidity constraints, which worsened after a proposed $1 million divestiture of 16 Georgia locations collapsed, leading to lawsuits and restaurant closures, according to court papers.

The debtor also defaulted on credit facilities totaling about $130 million, held by BMO Bank N.A. The lender filed a complaint against the debtor in December 2025 and sought to appoint a receiver in early January 2026, which prompted the bankruptcy filing, Bondoro reported.

Sailormen closed Popeyes locations

  • 2005 Ohio Ave., North Live Oak, Fla.
  • 1833 Kings Road, Jacksonville, Fla.
  • 649 S. McDuff Ave., Jacksonville, Fla.
  • 2015 North Wickham Road, Melbourne, Fla.
  • 200 Green Way, Keystone Heights, Fla.
  • 812 South 6th Street, Mcclenny, Fla.
  • 27740 US 27, Leesburg, Fla.
  • 1124 N. Young Blvd., Chiefland, Fla.
  • 175 South Highway 17, East Palatka, Fla.
  • 2729 S.E. Highway 70, Arcadia, Fla.
  • 1601 South US Highway 1, Ft. Pierce, Fla.
  • 5156 S. Dale Mabry Highway, Tampa, Fla.
  • 3319 Altama Ave., Brunswick, Ga.
  • 68 West Coffee St., Hazlehurst, GA
  • 401 N. 1st Street, Jesup, Ga.
  • 2106 Memorial Drive, Waycross, Ga.
  • 1610 S. Georgia Parkway West, Waycross, Ga.

Related: Bankrupt restaurant chains permanently close popular locations

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