Early expansion, franchising and sale
The company had four restaurants by the time of Church Sr.'s death in 1956.[7] After his death, family members took over operations. In 1962, with Church Sr.'s son Bill Church Jr. as top executive, there were eight restaurants in San Antonio. To begin expanding and franchising in 1965, Church Jr. and his brother Richard developed a signature marinade that could be prepared at any location. Former vacuum cleaner salesman J. David Bamberger, who first met Church Jr. when he joined Bamberger's vacuum cleaner distributorship,[8] joined Church's Chicken in 1965 to oversee the franchising. In 1967, the chain opened restaurants in five Texan cities outside of San Antonio and operated 17 restaurants in 1968.[9]
In 1966, a contract between Church's Fried Chicken, Inc. and Jim Dandy Fast Foods, Inc. gave Jim Dandy the right to use the trade names and trademarks "Church's Fried Chicken" or "Church's" within fifty miles of Houston's city hall and within the city limits of Galveston, Texas for ten years, as long as Church's Chicken received the agreed upon royalties.[10][11]
In 1968, the Church family sold the company, which became incorporated and went public in 1969. By the end of 1968, there were more than 100 Church's Chicken restaurants in seven states, making the chain the first from Texas to become a national one. Between 1969 and 1974, Church's Chicken gained 387 more restaurants.[7][12]
In the late 1970s, the chain briefly operated a hamburger franchise in Texas called G.W. Jrs. The roughly 60 locations were shuttered in 1985.[7]
In 1980, Church Jr. resigned as corporation chairman, and was replaced by childhood friend, Roger Harvin.[9]
In March 1996, Hala Moddelmog was appointed president of Church's Chicken, making her the first female president of a fast food restaurant chain.[13]
Global and national expansion
Church's Chicken began its international expansion in the 1970s, in Canada, Mexico, Japan, and Puerto Rico.[14][15] In the 1980s, it gained popularity in Indonesia when it opened under the trade name, "Texas Chicken".[15][16] The first reason of changing the name to "Texas" is because the brand name "Church" was not popular in countries with majority non-Christian religions, such as Indonesia.[17] Afterwards, locations in Malaysia, Taiwan, Singapore, and the Philippines were also opened under the trade name "Texas Chicken".
In February 2008, Church's Chicken entered the UK market under the "Texas Chicken" name, claiming to have signed up 50 former Dixy Chicken
Acquisitions
In 1989, after a four-month legal dispute to avoid a takeover, Church's Chicken became the second-largest chicken restaurant chain when it was acquired by Popeyes for $330 million.[12][28] The acquisition court documents stated that Church's Chicken would close 250 of its restaurants, "keep 92 with the Church's name, rename 303 others as Popeyes and sell 440 others for about $160 million over the next four years".[28] Merrill Lynch and a group of banks led by Canadian Imperial financed the acquisition.
In 1992, Popeyes' parent company, Al Copeland Enterprises, Inc., was forced to file chapter 11 bankruptcy for the more than $400 million debt it owed its creditors for the Church's Chicken buyout. In 1993, Al Copeland Enterprises, Inc. was renamed AFC Enterprises, Inc., or America's Favorite Chicken, and became the parent company of Church's Chicken and Popeyes.[29][7]
Co-franchising
By the mid-to late-1990s, Church's Chicken and hamburger chain White Castle announced their co-franchise, in which both companies would sell their own separate products, while operating in some shared restaurant spaces, with some shared personnel.[37] In Canada, Church's Chicken items were once available in Harvey's restaurants, but the co-venture was discontinued.[38]
