Tony Townley, cofounder of Zaxby’s, helped turn a single Georgia chicken restaurant launched in 1990 into one of America’s most successful fast-casual chains. Building the brand alongside childhood friend Zach McLeroy, he played a central role in Zaxby’s growth into a multibillion-dollar business with more than 900 locations, establishing it as a major force in the competitive chicken segment. Known for long-term brand building and disciplined expansion, Townley remains one of the key entrepreneurs behind Zaxby’s rise.
Zaxby's is an American fast casual restaurant chain specializing in chicken fingerz, bone-in and boneless wings, sandwiches, and salads known as Zalads, all served with a variety of signature sauces including the iconic Zax Sauce.[1][2] Founded in 1990 in Statesboro, Georgia, by childhood friends Zach McLeroy and Tony Townley, the company began as a modest 40-seat eatery near Georgia Southern University, aiming to offer fresh, flavorful chicken options in a casual dining environment.[1][3]Headquartered in Athens, Georgia, Zaxby's has expanded significantly through franchising, operating 991 locations across 19 states as of August 2025, with the majority concentrated in the Southeastern United States, including 258 stores in Georgia alone.[4] The chain reported $2.5 billion in systemwide sales in 2023 and plans to open more than 50 new restaurants in 2025, targeting a milestone of 1,000 locations nationwide.[3][5]The brand emphasizes Southern hospitality, innovative flavors, and modern convenience, with menu highlights including customizable chicken fingerz platters, the Asian Zensation Zalad, and recent additions like redesigned group meals and veggie egg rolls made permanent in 2024.[6] Founders McLeroy and Townley, who met in seventh grade, achieved billionaire status by 2025—Townley with a net worth of $1.2 billion after selling a stake to Goldman Sachs in 2020, and McLeroy with $1 billion—reflecting the company's evolution from a local venture to a national chicken powerhouse built on relationships and entrepreneurial spirit.[3]
History
Founding and early development
Zaxby's was founded in March 1990 in Statesboro, Georgia, by childhood friends Zach McLeroy and Tony Townley, who together invested $16,000 to launch the venture—$8,000 from each, with McLeroy funding his share by selling a prized drum set. McLeroy, who had gained early experience working on a chicken farm at age 13, drew inspiration from his background to center the concept on high-quality chicken, while Townley, his high school partner, shared a vision for a casual dining spot emphasizing fresh, flavorful meals. The duo secured additional support through credit cards and a small business loan to open their first location, an 800-square-foot restaurant near Georgia Southern University, which quickly appealed to the local college community.[7][8][9][10]The inaugural restaurant featured a simple, sauce-driven menu focused on chicken fingers and wings, paired with signature dipping sauces like the original Zax Sauce, all infused with bold Southern flavors to evoke regional hospitality and taste. This approach differentiated Zaxby's from typical fast-food options, prioritizing hand-breaded, fresh-fried chicken over more common burgers or broad variety. Early operations remained modest and locally oriented, serving primarily the Statesboro area without expansion beyond Georgia until 1994, as the founders navigated tight finances through careful management and consistent customer loyalty built on quality ingredients. The first year generated $350,000 in sales.[1][9][8]The period marked a foundation of resilience, with McLeroy and Townley personally overseeing operations to refine the brand's commitment to flavorful, approachable dining.[11][8]
Expansion and milestones
Zaxby's began its expansion beyond Georgia with the opening of its first out-of-state location in Bowling Green, Kentucky, in September 1994.[12] This marked the chain's initial step into interstate growth, setting the stage for broader regional development in the Southern United States.By 2013, Zaxby's ventured into Western markets for the first time, signing a franchise agreement to open locations in Utah, with the initial restaurants debuting that year.[13] This expansion represented a significant departure from its Southeastern focus, aiming to introduce its chicken-focused menu to new demographics. As of November 2025, Zaxby's operates approximately 1,000 locations, predominantly in the Southern U.S., reflecting steady scaling through franchised units.[4]In 2025, the company accelerated its growth with more than 50 new openings nationwide, including its first restaurant in Las Vegas, Nevada, which debuted in April, and an inaugural non-traditional location on a military base later that year.[14][15] These developments underscored Zaxby's ambition to surpass 1,000 stores by the end of the year. Additionally, the chain entered Maryland with its first location opening in Waldorf on November 12, 2025, and multiple additional sites planned for late 2025, primarily along the Eastern Shore and in the Baltimore metro area.[16][17]To support this expansion, Zaxby's adopted the Modern Farmhouse store prototype starting in 2024, featuring a customizable design that enhances operational efficiency through flexible seating and streamlined layouts.[18] This prototype, which blends contemporary aesthetics with practical functionality, debuted in select markets and has been rolled out to facilitate quicker builds and adaptations to diverse sites. In tandem with growth initiatives, Zaxby's reintroduced handcrafted milkshakes permanently in May 2025, accompanied by a limited-time half-off promotional deal to celebrate its 35th anniversary and boost customer engagement.[19]
Corporate structure and operations
Leadership and ownership
Zaxby's was co-founded in 1990 by Zach McLeroy and Tony Townley, childhood friends who each invested $8,000 to open the first location in Statesboro, Georgia. McLeroy, who began his career with a job on a chicken farm at age 13, served as CEO from the company's inception until transitioning to the role of Chairman in January 2022 after more than 30 years leading the brand. Townley, who played a key role in the early development and growth of Zaxby's, stepped back from operational involvement following the sale of his ownership stake to Goldman Sachs in 2020, though he remains a major franchisee.[7][3][20][3]In January 2022, Bernard Acoca was appointed as Zaxby's first external CEO, succeeding McLeroy, with a mandate to accelerate national expansion and enhance operational performance drawing from his prior experience as CEO of El Pollo Loco. Under Acoca's leadership, the executive team has emphasized strategic growth, including the integration of technology for improved efficiency across the chain's operations.[20][21]Zaxby's is owned through Zaxby’s Franchising, Inc., a privately held entity backed by a significant investment from Goldman Sachs since 2020, following the buyout of Townley's stake, with McLeroy retaining a substantial ownership interest. The company operates a mix of corporate-owned and franchised stores, with approximately 15% of locations (around 145 out of 968 as of September 2025) under corporate ownership to support brand standards and testing of new initiatives.[22][23]Recent leadership efforts have prioritized operational efficiency, notably achieving a 20-second reduction in average drive-thru times through process optimizations and technology implementations like AI-driven camera timers rolled out in 2025. These changes aim to boost customer satisfaction and support the chain's goal of reaching 1,000 locations by the end of the year.[24][25][26]
Franchise model
Zaxby's operates a predominantly franchised business model, with over 85% of its locations managed by independent franchisees. As of September 2025, the chain has approximately 968 restaurants across the United States, including 823 franchised units and 145 company-owned outlets. This structure allows for rapid expansion while leveraging the operational expertise of franchise partners, who are encouraged to commit to multi-unit development to support the brand's growth toward 1,000 locations.[23][22]Prospective franchisees must meet specific financial requirements, including a minimum liquid capital of $500,000 and a net worth of $1,000,000, in addition to paying an initial franchise fee of $35,000. The total estimated investment to open a single Zaxby's restaurant ranges from $1,445,000 to $3,810,500, covering costs such as real estate, construction, equipment, and initial inventory, as outlined in the Franchise Disclosure Document issued on April 25, 2025. Zaxby's Franchising, Inc. prioritizes experienced multi-unit operators with a proven track record in restaurant management, requiring them to undergo background checks and personally guarantee the franchise agreement.[27][22][28]The franchisor provides comprehensive support to franchisees throughout the process, including an initial training program at a certified facility that covers operations, menu preparation, and customer service, followed by on-site assistance during pre-opening phases. Site selection is handled collaboratively with the franchise development team, which evaluates trade areas and assists in securing locations that align with brand standards for drive-thru and dine-in formats. Ongoing operational support encompasses supply chain management to ensure consistent sourcing of ingredients, as well as guidance from new store development consultants for hiring, marketing, and grand openings.[29][30]In recent developments, Zaxby's has expanded into non-traditional franchising agreements to diversify its footprint, including a new agreement signed in October 2025 for additional military base locations, building on the initial Fort Benning site opened in 2016.[15]
Locations and store formats
As of September 2025, Zaxby's operates 968 locations across 18 states in the Southern and Midwestern United States, including Alabama, Arkansas, Arizona, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Nevada, North Carolina, Oklahoma, South Carolina, Tennessee, and Virginia. The chain's highest density is in Georgia, its home state, where it maintains 258 restaurants, representing about 26% of its total footprint. This regional focus has supported steady growth, building on historical expansions into adjacent markets since the 1990s. A new location in Waldorf, Maryland, opened on November 12, 2025, bringing the total to approximately 969.[4][22][16]Zaxby's is expanding westward, with an emerging presence in states like Nevada and Arizona. The brand opened its first Nevada location in Las Vegas in April 2025 and its first Arizona location in Queen Creek in August 2025, marking key steps in its national growth strategy.[31][32] For 2025, the company plans to open more than 50 new restaurants, including its first Maryland location in Waldorf (opened November 12, 2025) and additional sites like Cambridge planned for late in the year, alongside further pushes into West Coast markets and additional Midwestern sites.[33][34]The chain employs a mix of store formats tailored to diverse sites. Traditional freestanding units typically average 3,300 square feet, featuring dual-lane drive-thrus to emphasize quick-service efficiency and accommodate high-volume traffic.[35][24] Smaller prototypes, around 1,650 to 2,700 square feet, support 30 to 56 seats and are designed for urban or high-density areas.[36] Non-traditional formats include drive-thru-only outlets and locations on military bases, such as the initial opening at Fort Benning in 2016 and a new agreement in October 2025 to develop additional base sites nationwide.[15][37]
Restaurant experience
Design and atmosphere
Zaxby's restaurants have incorporated whimsical, regionally inspired decor since their early openings, featuring elements that reflect local culture and history to create a personalized dining experience. For instance, locations in college towns often display objects and decorations related to the nearby university, while a site in Orlando, Florida, includes citrus-industry themed decorations lining the walls. This approach, complemented by vintage memorabilia and local art in many stores, fosters a sense of community connection and inviting ambiance.[38][39]In recent years, Zaxby's has evolved its design toward a Modern Farmhouse prototype introduced in 2025, emphasizing open layouts with exposed kitchens, natural materials like wood beams and distressed brick, and warm earth tones to evoke a welcoming Southern vibe. This updated aesthetic builds on earlier farmhouse-inspired concepts from 2015, incorporating flexible seating and technology integrations while maintaining the brand's rustic charm. The design prioritizes efficiency and guest comfort, with spacious dining areas that enhance the overall atmosphere.[18][40][41]Zaxby's emphasizes a family-friendly atmosphere across its locations, with bright, open interiors and features like Coca-Cola Freestyle machines, which were first introduced in select stores in 2010 to offer customizable beverage options and add an interactive element to the dining experience. In recent years, some locations have transitioned to newer Coca-Cola Legacy dispensers. Unlike chains with a uniform corporate aesthetic, Zaxby's allows franchisees to customize interiors to suit local communities, further strengthening regional appeal and adaptability to diverse store formats.[42][43][18][44]
Service and operations
Zaxby's operates on a fast-casual model that emphasizes counter ordering, drive-thru service, and limited table service in select locations, allowing for customizable restaurant formats to suit varying market demands. Many outlets feature dual drive-thru lanes to prioritize speed and convenience, with some prototypes eliminating indoor dining rooms entirely to focus on off-premise orders. This approach supports efficient customer flow, influenced by streamlined interior designs that guide patrons toward quick service points.[18][45]To enhance operational efficiency, Zaxby's has implemented digital technologies including app-based ordering, in-queue tablets for payments, and AI-augmented systems for drive-thru management. These innovations have reduced drive-thru times by 20 seconds on average since 2022, contributing to faster transactions and higher throughput during peak hours. The mobile app, recognized as one of the fastest-growing in the restaurant sector, enables pre-orders and seamless integration with loyalty programs, boosting digital sales, which were projected to exceed 20% of total revenue by the end of 2025.[24][46][47]A core aspect of Zaxby's operations is its commitment to fresh preparation, with chicken items hand-breaded and cooked to order in each restaurant. Signature sauces are produced in-house to ensure consistent flavor profiles across locations, distinguishing the brand from competitors reliant on pre-packaged condiments. This made-from-scratch approach is supported by standardized kitchen layouts that maintain quality while accommodating high-volume service.[48][49]Operational standards are rigorously enforced through comprehensive corporate training programs, including a four- to eight-week initial curriculum covering food preparation, customer service, and safety protocols. Franchisees receive ongoing support from dedicated store opening teams, which have improved new location satisfaction scores by 3%. These efforts, including initiatives like color-coded sauce systems and accuracy checks, have driven systemwide sales growth of 4.4% in 2025, alongside a 2.9% increase in units.[50][24][22]
Menu
Core chicken items
Zaxby's core chicken menu revolves around its hand-breaded Chicken Fingerz™, which have been a staple since the chain's founding in 1990 by childhood friends Zach McLeroy and Tony Townley in Statesboro, Georgia. These tenders are prepared from whole chicken breast meat, seasoned and breaded in-house, then fried to a crispy exterior while maintaining juiciness inside, and are typically served in portions of 3 to 5 pieces as part of meals or 5, 10, or 20 pieces for sharing.[51][52][53]The chain also offers wings as a key chicken entrée, available in both bone-in Traditional Wings and boneless varieties made from all-white breast meat. These come in servings of 5, 10, or 20 pieces and can be tossed in various flavors such as hot honey mustard, buffalo, nuclear (an intensely spicy option), or sweet and spicy, providing options for different heat levels and tastes.[54][55][56]Sandwiches form another pillar of Zaxby's chicken offerings, featuring both fried and grilled preparations on toasted buns or Texas Toast. The Signature Sandwich consists of a hand-breaded chicken fillet topped with dill pickles and Zax Sauce® on a potato bun, while the Grilled Chicken Sandwich includes a grilled fillet with lettuce, tomatoes, and Ranch dressing. The Signature Club Sandwich features the brand's Signature Sandwich (hand-breaded chicken fillet, dill pickles, and Zax Sauce or Spicy Zax Sauce on a potato bun) topped with American cheese and bacon, and the Kickin' Chicken Sandwich layers Chicken Fingerz™ with Tongue Torch® sauce and Ranch on Texas Toast. These are often paired briefly with signature sauces for dipping or spreading to enhance flavor.[57][58][59][60]In 2025, Zaxby's introduced Giant Quesadillas as a limited-time chicken-focused item, launched on April 28 and available through July 6 at participating locations. These oversized quesadillas feature hand-breaded chicken in two varieties: Chicken Bacon Ranch, with chicken, bacon, ranch, and cheeses folded in a flour tortilla; and Chicken Fajita, incorporating grilled chicken, peppers, onions, and Monterey Jack cheese.[61][62]
Accompaniments and specialties
Zaxby's offers a selection of standard side items that complement its chicken-focused entrees, including crinkle-cut fries, Texas toast, and coleslaw, which have been core menu components since the chain's founding in 1990.[63] These sides are typically served as part of combo meals, with the crinkle-cut fries providing a crispy, seasoned texture, the Texas toast offering a buttery, grilled bread option, and the coleslaw delivering a creamy, tangy cabbage-based dish made fresh daily.[64]In addition to basic sides, Zaxby's introduced its line of Zalads—customizable salads featuring fresh mixed greens—in 2004 to appeal to health-conscious customers seeking lighter alternatives.[9] The flagship House Zalad, the first in the series, includes toppings such as grilled or fried chicken tenders, cheddar jack cheese, Roma tomatoes, and crispy onions, allowing diners to personalize with various proteins and dressings while maintaining a focus on fresh ingredients.[65] Other varieties include the Cobb Zalad with bacon, egg, and avocado ranch dressing, the Blue Zalad with blue cheese crumbles, fried onions, and blue cheese dressing, and the Zensation Zalad with Asian slaw and wonton strips, which was made permanent in October 2024 along with the Blue Zalad, emphasizing the chain's blend of Southern and innovative flavors.[66][6]Zaxby's periodically features non-chicken proteins as limited-time or regional specialties, such as Southern Fried Shrimp, which debuted in 2024 and returned in 2025 for a seasonal run through April.[67] These shrimp are hand-breaded and fried, available as a standalone side, in meals, or atop salads, providing a seafood option that diversifies the menu during Lenten or promotional periods without altering the core chicken emphasis.[68]In October 2024, Zaxby's made several fan-favorite items permanent, including Veggie Egg Rolls (crispy wonton wrappers filled with shredded vegetables and seasonings, served with Sweet & Spicy sauce).[6]For desserts, Zaxby's permanently reintroduced handcrafted milkshakes in 2025 after an eight-year absence, marking the chain's 35th anniversary with year-round availability in flavors including chocolate, vanilla, strawberry, and birthday cake.[69] These milkshakes are made-to-order using whole milk, real ice cream, and mix-ins like sprinkles for the birthday cake variant, offering a creamy, indulgent treat that rounds out meal options. In October 2024, Fried Cheesecake Bites (fried cheesecake pieces served with strawberry sauce) were also added permanently.[70][6]
Sauces and beverages
Zaxby's features 12 signature sauces that form a cornerstone of its menu, allowing patrons to customize chicken fingerz, wings, and sandwiches with diverse flavors and heat intensities served as dips.[71] The lineup includes the original Zax Sauce, a creamy, tangy condiment blending signature spices, created in 1990 by co-founder Zach McLeroy as the chain's inaugural offering.[72][49] This mayo-based sauce incorporates herbs for its distinctive zesty profile, setting the tone for sauce customization across all chicken-based meals.[73]The sauces span a spectrum of heat levels, from mild options to intensely spicy varieties like Nuclear, which delivers extreme heat through aged peppers and bold spices, appealing to spice-tolerant diners.[74] Other notable examples include Spicy Zax Sauce for a kicked-up version of the original and Tongue Torch for a fiery garlic-mustard blend, ensuring versatility in pairing with core chicken items to elevate their taste.[49]Over the years, Zaxby's sauce portfolio has expanded and evolved, with bottled versions of select favorites like Zax Sauce, Spicy Zax Sauce, and Tongue Torch Sauce introduced for retail availability in 2024 to meet growing consumer demand beyond the restaurant.[75]Zaxby's beverage selection complements its meals with non-alcoholic options, primarily Coca-Cola products dispensed via Freestyle machines that enable over 100 customizable flavor mixes, a feature integrated into locations since the early 2010s.[76] The menu also highlights house-made sweet tea and lemonades, served over Zaxby's Ice for a refreshing contrast to spicy fare, with no alcoholic beverages offered.[77]
Marketing and promotions
Advertising campaigns
Zaxby's advertising has historically emphasized the brand's playful personality and flavorful offerings, with early efforts in the 1990s highlighting fun dining experiences through local promotions and word-of-mouth appeal as the chain expanded from its Georgia origins.[53] These initial campaigns laid the foundation for a lighthearted tone, focusing on the enjoyment of chicken fingers and signature sauces without heavy national media buys during the chain's formative years.[78]In 2008, Zaxby's ventured into digital gaming with in-game advertising in the video game Midnight Club: Los Angeles, where virtual Zaxby's restaurants appeared on the streets of the game's Los Angeles setting, allowing players to interact with branded elements.[79] This tie-in included a companion website featuring game trailers and downloadable content to drive awareness among younger audiences.[79]The chain's commercials have consistently incorporated humor rooted in Southern culture, such as the 2007 "Indescribably Good" campaign, which featured unscripted reactions from regional celebrities enjoying Zaxby's menu items to capture authentic, relatable delight.[80] This approach evolved post-2020 with a shift toward digital platforms, including social media videos and TikTok spots that amplify quirky, charm-filled scenarios—like awkward Southern greetings tied to menu promotions—to engage online communities.[81][82]In 2025, Zaxby's launched the "Who's Got The Sauce?" campaign, starring actor Omar Epps as the "Sauce Boss," a charismatic figure who guides consumers to discover their preferred sauce among the chain's 12 varieties through humorous TV spots, digital ads, and social media content.[71] The initiative, which debuted in April, uses Epps' suave persona to blend swagger with flavor education, appearing across broadcast and online channels to highlight sauce pairings with chicken items.[83]
Sponsorships and partnerships
Zaxby's established itself as a prominent sponsor in college sports through its "Official Chicken of Sports Fanz" designation, secured via a multi-year agreement with IMG College in 2013 that granted intellectual property rights at nearly 30 Division I institutions across 25 states, including Southeastern Conference (SEC) schools and a dedicated presence at Clemson University's football and basketball games.[84][85] This partnership, which extended through 2015, allowed Zaxby's to integrate branding into game-day experiences and fan engagements at these venues.[84]In motorsports, Zaxby's maintained a significant presence in NASCAR, serving as the primary sponsor for driver John Wes Townley from 2008 onward in the Camping World Truck Series and later the Xfinity Series, with the backing continuing until Townley's retirement at the end of the 2016 season.[86][87][88]Zaxby's also held naming rights for the Heart of Dallas Bowl from 2014 to 2017, signing a four-year title sponsorship deal in October 2014 that featured the chain's branding for the annual college football postseason game at Dallas's Cotton Bowl Stadium.[89][90] The 2014 edition pitted Louisiana Tech against Illinois, while the 2015, 2016, and 2017 games showcased matchups including Washington versus Southern Miss, Army versus North Texas, and Utah versus West Virginia, respectively, enhancing fan experiences with on-site activations.[91][92][93]On the charitable front, Zaxby's has partnered with the Make-A-Wish Foundation since 2011, contributing over $1.9 million by 2015 to fund approximately 240 wishes for children with critical illnesses, with the collaboration described as ongoing through dedicated donations and promotional campaigns.[94][95][96]As of 2025, Zaxby's sponsorship activities have shifted toward localized initiatives, such as university athletics programs and community events, without renewals of prior major national sports agreements.[97][98]
Additional offerings
Retail products
Zaxby's extends its brand through retail products focused on its signature sauces, allowing customers to replicate restaurant flavors at home. In July 2024, the company launched three varieties of bottled dipping sauces—Zax Sauce, Spicy Zax Sauce, and Tongue Torch Sauce—in 16-ounce resealable plastic bottles.[49][99] These products are distributed regionally in the Southeast United States at major grocery chains such as Walmart, Kroger, and Winn-Dixie, with nationwide availability through Amazon.[100][101]The sauces, originally created in 1990 as a core menu element, emphasize smoky, creamy profiles with varying heat levels for versatile use.[72] Retail packaging highlights the "Zaxby's at home" concept, featuring instructions for pairing with home-cooked chicken, fries, burgers, and wings to mimic the restaurant experience.[102][103] Priced around $4 to $5 per bottle, they target fans seeking the brand's proprietary recipes outside dining locations.[104]Beyond sauces, Zaxby's does not produce full frozen meals for retail but offers occasional limited merchandise, such as apparel, through targeted promotional campaigns to further engage consumers. This approach diversifies brand touchpoints without expanding into comprehensive packaged food lines.
Loyalty and digital programs
Zaxby's introduced its Zax Rewardz loyalty program in October 2022, replacing the earlier Zax Fanz club that had been active since the 2010s.[105][106] The program enables customers to earn 10 points for every dollar spent on qualifying purchases, whether in-store or online, with points redeemable for free menu items such as chicken fingerz or sandwiches once thresholds like 500 points are reached.[107][108] New members receive a welcome offer, including a free Big Zax Snak meal upon signing up via the app or website.[109]The Zaxby's mobile app serves as the primary platform for the loyalty program, offering features for seamless ordering, extensive meal customization, and access to exclusive deals tailored for members.[110][111] Users can save favorite orders, select delivery options through integrated partners, and redeem rewards directly during checkout. Drive-thru integration has been available since at least 2020, allowing app-based orders to be picked up efficiently at participating locations via QR code scanning or curbside notification.[112][113]In 2025, the app introduced updates enhancing user engagement, including a half-off promotion on milkshakes available exclusively to Rewardz members from October through the end of the month.[114][115] These features build on the app's sauce-focused rewards, such as the Sauce Sampler offer in April, enabling members to sample combinations from the chain's 12 signature sauces at no extra cost. The platform also provides personalized deal notifications based on purchase history to encourage repeat visits.[116]Digital initiatives have driven significant growth in Zaxby's sales channels, with app and online orders comprising approximately 16% of total transactions in early 2025 and projected to surpass 20% by year-end.[47] This expansion reflects the program's success in boosting customer retention.