Wingstop Targets Middle East Markets

FEATURE

Wingstop Targets Middle East Markets

Wingstop is a dynamic and growing brand, looking for growth in many regions. Our sights are set on opening over 6,000 restaurants globally. The Middle East region offers great opportunities for our expansion plans. Following our success across our European markets, gives us a great position to strengthen our presence in the Middle East as well. Continued expansion and social media push in the UK, as well as the recent marketing campaign and large increase in social followers following the launch of UAE’s TikTok account are examples that could translate well in the Middle East markets.

Our small-box formula in Singapore is a great solution for the markets with high occupancy costs. This can also be transferred to some of the markets in GCC as well, as we know large metropolitan markets can lead to expensive real estate, and we’ve seen our small-box footprints lead to tremendous success for Wingstop. This supports our interest in expanding further into the Middle East while exploring similar deals to our recent Canada and UK growth agreements.

Canada Expansion – Looking for Similar Size of Deal in Saudi Arabia

We’re extending our global reach by expanding into Canada through an agreement with JPK Capital to develop 100 Wingstop locations across Canada in the next 10 years, with the first set to open in Toronto in early 2022. “As technology entrepreneurs, we’ve been impressed with Wingstop’s investment in innovation and look forward to offering a best-in-class digital and in-restaurant experience to Canadians,” said Joe Poulin, Founder and CEO of JPK Capital.

Charlie Morrison

CEO Wingstop

We see the Middle East and Saudi Arabia having similar attributes as Canada especially in consumer behaviors, digital engagements and off premise dining.

Digital - The Future of Ordering

To help fulfill our objective of “digitizing every transaction,” we’re planning to heavily advertise delivery, 100 percent of which is digital. “Our pillar of sustaining same-store sales growth is supported by our strategies around delivery and digital expansion,” said Charlie Morrison, Wingstop CEO.

Wingstop’s investments in digital and technology have enhanced speed of service and been a driver of our business in international markets.

UK Success

We opened our first Wingstop in the UK in late 2018. Our brand partner Lemon Pepper Holdings successfully opened in the heart of central London and its portfolio now has a mix of high street, shopping mall and ghost kitchen locations. “We’ve been delighted by the overwhelming response from guests and look forward to bringing our brand to more regions of the UK in coming years.” Said Tom Grogan, Director of LPH.

Small Footprint

Prior to the pandemic, offpremise represented the majority of Wingstop’s sales in the U.S., which quickly pivoted to 100% off-premise overnight at the onset of the pandemic. This off-premise approach has been outlined as a key growth driver for our business. Ghost kitchens also present an opportunity for the brand to enter trade areas that otherwise might have been challenging for opening traditional restaurants.

Small-box solutions for markets with high rent have been key for the brand with expansion in Singapore, UK and other major metropolitan markets. The idea behind these locations’ feeds into Wingstop’s continued focus on delivery.

“A good example might be a business hub in a large market where there’s a lot of daytime population, a lot of businesses that are there, but there’s no real retail presence,” said Charlie Morrison, Wingstop CEO. “We could drop a kitchen making it available for delivery to our guests. There are areas that if we believe the brand awareness is sufficient that we can start to drive a delivery-only model through dark kitchens.”

Moving Forward in 2022

Wingstop has a great business model with a 4:1 sales/ investment ratio. Overall, the right business model, small footprint approach, digital platform, and social media focus are key areas we’ll continue to grow and evolve as we expand into other markets. Our recent successful openings and upcoming expansion into Canada encourages us to bring the above strategies and experiences to new territories.