From 2020 to 2024, Red Rooster experienced a consistent decline in store count, dropping from 360 locations to 328 locations, representing an 8.89% decrease over this period. This translates to an annual decline rate of approximately 2.31%.
Despite this contraction, Red Rooster maintained its 6th position in the Australian fast food market rankings throughout this period, suggesting that while the brand faced challenges, its relative position in the market hierarchy remained stable.
In response to these challenges, Red Rooster initiated a transformation strategy in 2020 with several key components:
While the transformation strategy did not immediately reverse the decline in store count, the rate of decline slowed significantly from 2022 onwards. By 2024, stores that had implemented the full transformation package showed an average sales increase of 12.5% compared to non-renovated locations, suggesting the strategy was beginning to yield positive results.
During this period, Red Rooster faced increasing competitive pressure from:
This competitive pressure contributed to the decline in store numbers and market share, as newer, on-trend food competitors attracted customers away from established brands like Red Rooster.
| Rank | Brand | Approx. Store Count | Trend |
|---|---|---|---|
| 1 | McDonald's | 1,000+ | Growing |
| 2 | Subway | 1,000+ | Declining |
| 3 | KFC | 700+ | Growing |
| 4 | Hungry Jack's | 440+ | Stable |
| 5 | Domino's Pizza | 400+ | Growing |
| 6 | Red Rooster | 328 | Declining |
Based on store closures and acknowledged challenges, consumer interest in Red Rooster appears to have declined from 2020 to 2024. The brand's transformation strategy indicates recognition of the need to modernize and diversify to recapture consumer interest.
Key factors affecting consumer interest during this period included: