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Wingstop makes minority investment in UK master franchisee

Wingstop makes minority investment in UK master franchisee

Financial backing reflects market’s “tremendous long-term potential," company’s CFO says

Wingstop has announced a minority investment in Lemon Pepper Holdings, the UK master franchisee for the fast casual chicken wing chain.

The funding follows the company’s strong performance in the UK.

The brand enjoyed its highest sales growth in 2020, opening seven new location despite a series of national lockdowns due to the coronavirus pandemic.

Wingstop chief financial officer Michael Skipworth says: “We’re thrilled to partner with the Lemon Pepper team as they grow their brand presence in the UK, a market with tremendous long-term potential.

“We believe this strategic use of our capital will strengthen the development pipeline in that market and I’m excited to join the Lemon Pepper Holdings board of directors and play a role in helping achieve the potential for the Wingstop brand in the UK.”

Wingstop entered into a 100-restaurant sole franchisee agreement with Lemon Pepper Holdings in 2017, which was founded by Saul Lewin, Tom Grogan, Herman Sahota and Paddy Bamford.

The business opened Wingstop’s first restaurant in central London and its portfolio now includes a mix of high street, shopping mall and ghost kitchen locations. 

The investment comes after the opening of a new Wingstop restaurant in Reading last month, the first outside of London and one of several planned openings this year, which will include Manchester, Kingston upon Thames, Birmingham Bullring and Bristol.

Tom says: “Since launching in the UK market, Wingstop has brought its flavoursome chicken wings to thousands of hungry guests across several high profile 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 the coming years.”

Wingstop has 1,500 locations worldwide and is planning on opening its first restaurants in China and Canada next year.

In 2020, total sales increased 28.8 per cent year on year to $2 billion, Wingstop’s 17th consecutive year of same store sales growth.

The company, which is headquartered in Dallas, Texas, was founded in 1994.

Franchisees account for more than 98 per cent of its total restaurant count.

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