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Youth unemployment surge linked to rise in UK chicken shops

Created at 18 Aug · 9:55 AM1 source↑ Market-relevant
IN SHORT

A consultancy has linked a surge in UK youth unemployment to the rise of chicken shops, dubbing the phenomenon the "Chicken Wing Economy." Data suggests fast food restaurant growth has outpaced traditional restaurants, with young people turning to cheaper options amid joblessness.

Key Numbers

16.2%UK youth unemployment rate
10.9%Youth unemployment low in 2017
over 1 millionEstimated number of Neets
five timesFast food vs traditional restaurant growth ratio
2018-2025Period for fast food growth analysis
£5bnProjected UK fast-food chicken market value by 2029
£2.3bnChicken outlet market value in 2022
£25bnEstimated business tax hike by Labour government
73%Wingstop revenue uplift last year
100thWingstop UK location opened
50 sitesSlim Chickens expansion target
100 venuesPopeyes UK locations
350Popeyes UK expansion target

Who's Involved

Baringa
Consultancy linking youth unemployment to chicken shop rise
Paddy Winters
Partner at Baringa, consumer products and retail
Amelia Dimoldenberg
Creator of 'Chicken Shop Date' social media content
Office for National Statistics
Published UK youth unemployment data
Mintel
Market research firm that valued the chicken outlet market
Nicola Frampton
New chief executive of Domino's Pizza
Youth unemployment surge linked to rise in UK chicken shops

↳ Why This Matters

The trend highlights the economic challenges facing young people in the UK, with rising unemployment driving shifts in consumer spending towards cheaper food options and impacting the growth of the fast-food sector.

Key facts

  • Youth unemployment in the UK has risen to 16.2%, up from 10.9% in 2017.
  • The number of young people not in employment, education, or training (Neets) is estimated to exceed one million.
  • Fast food restaurant growth has outpaced traditional sit-down restaurants by approximately five times between 2018 and 2025.
  • The UK's fast-food chicken market is projected to reach over £5 billion by 2029.
  • Domino's Pizza is expanding its fried chicken offerings, and Wingstop reported significant revenue growth.

A surge in youth unemployment across Britain has been linked to the proliferation of chicken shops, a phenomenon dubbed the "Chicken Wing Economy" by consultancy Baringa. Analysts suggest that young people not in employment, education, or training (Neets) are increasingly turning to fast food outlets like KFC, Popeyes, and Morley's due to economic pressures.

Data analysed by Baringa indicates that the growth rate of fast food restaurants has significantly outpaced that of traditional sit-down establishments between 2018 and 2025. This trend coincides with a rise in youth unemployment, which has climbed from 10.9% in 2017 to 16.2%, a level comparable to Greece. The number of Neets is estimated to be over one million.

Paddy Winters, a partner at Baringa, noted the association of chicken shops with Gen Z, influenced by online content and influencers. The expansion of US brands such as Popeyes and Chick-fil-A into the UK market suggests the "Chicken Wing Economy" is likely to persist. The consultancy predicts that young people's spending on fast food will continue to grow significantly faster than spending in high street restaurants.

Economists attribute the rise in youth unemployment partly to the Labour government's tax increases on businesses, including higher employers' national insurance contributions, and increased worker rights regulations. These factors, combined with higher costs for firms, have reportedly hindered job recovery.

Other food industry players are also capitalizing on this trend. The former boss of Domino's Pizza announced plans to expand into fried chicken, with the company's new chief executive confirming that chicken sales have boosted revenue. Wingstop has experienced substantial revenue growth, opening its 100th UK location. American chains like Slim Chickens and Popeyes are also actively expanding their presence in the UK market.

Frequently asked questions

The "Chicken Wing Economy" is a term coined by consultancy Baringa to describe the phenomenon of rising youth unemployment fueling the growth of chicken shops and fast-food outlets in the UK.

The youth unemployment rate in the UK has spiked to 16.2%, up from a low of 10.9% in 2017.

US brands such as Popeyes and Chick-fil-A are expanding, alongside UK-based chains like Domino's (expanding into fried chicken) and Wingstop, which has opened its 100th UK location.

What Happens Next

01The UK's fast-food chicken market is projected to be worth over £5bn by 2029.
02Popeyes aims to expand its UK presence to 350 venues.

How It Developed

Youth unemployment has risen to 16.2% from a low of 10.9% in 2017.
The number of young people not in employment, education, or training (Neets) is estimated at over one million.
Fast food restaurants have grown around five times faster than traditional sit-down restaurants between 2018 and 2025.
Chicken shops are increasingly associated with Gen Z through online influencers and social media.
US brands like Popeyes and Chick-fil-A are expanding in the UK market.
The UK's fast-food chicken market is projected to be worth over £5bn by 2029.
Domino's Pizza plans to expand into fried chicken, reporting boosted chicken sales.
Wingstop reported a 73% revenue uplift last year and opened its 100th UK location.

Sources

T1
Jobless Banquet: Youth unemployment surge ‘sends Neets to KFC’City AM

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