Wingstop CEO Michael Skipworth isn't worried about growing wing competition
Wingstop’s CEO remains optimistic amid competitive wing landscape with new loyalty program and growth plans.
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Wingstop's CEO, Michael Skipworth, reflects on the chain’s recent sales decline but expresses optimism following the launch of its loyalty program, Club Wingstop. The chain aims to grow from over 2,500 locations to approximately 6,000 U.S. restaurants, leveraging new marketing strategies and menu innovations to acquire new guests and drive sales.
Why It Matters
Wingstop's expansion plans and new loyalty program may enhance unit economics, while its marketing shifts could affect franchisee territory performance as it increases consumer engagement.
Wingstop CEO Michael Skipworth is maintaining a positive outlook amid increased competition in the wing market, despite the company's first quarter performance revealing an 8.7% decline in same-store sales, marking the worst quarterly results since its 2015 IPO. He emphasized potential growth stemming from the recent launch of Club Wingstop, which is the chain's first loyalty program focused on enhancing guest engagement rather than data acquisition. Skipworth noted, “We’re very excited about the program’s effectiveness so far,” with over half of active guests enrolling and a significant portion being new customers, achieved without dedicated marketing efforts.
Wingstop aims to expand from just over 2,500 locations to approximately 6,000, and the new loyalty initiative is expected to drive guest acquisition, contributing to what Skipworth described as a "virtuous cycle." To reach new consumers, Wingstop is increasingly focusing on marketing through live sports events and streaming platforms, shifting ad spending to leverage the fragmented audiences. “That’s where the eyeballs are and the most efficiency,” he remarked, emphasizing the importance of digital engagement.
