Layne's Chicken Fingers Signs 44-Unit West Texas Deal as Franchise Surge Accelerates

A College Station chicken finger brand that launched near the Texas A&M campus is now making a calculated push toward statewide dominance. Layne's Chicken Fingers has signed a 44-unit franchise agreement with C5 Restaurants, led by operator Eli Cohen, covering West Texas, San Antonio, and the Coastal Bend region. The deal is one of the largest multi-unit commitments in the brand's history and arrives on the heels of what management calls a doubling of its franchise footprint in 2025.

For a brand that grew from a single location into a regional cult favorite, the C5 agreement represents a different kind of ambition. CEO Garrett Reed put it plainly: "Sealing an over-40-unit deal in our home state is a major milestone for us as we approach 100% market saturation across Texas."

That target, 100% Texas saturation, is either an audacious vision or a realistic near-term roadmap depending on your read of the emerging chicken QSR segment. The answer matters because Layne's is not operating in open space. It is entering a competitive landscape that includes Raising Cane's at more than 1,000 units, Wingstop at more than 2,500, Dave's Hot Chicken accelerating under Roark Capital, Slim Chickens building out aggressively, and Zaxby's holding a strong regional position across the South.

The Deal: Geography, Sequencing, and Scale

The C5 Restaurants agreement covers a carefully selected swath of Texas that Layne's has not previously penetrated in any meaningful way. The pipeline includes five sites in Lubbock, plus locations in Midland, Odessa, Abilene, Amarillo, Del Rio, Eagle Pass, San Angelo, San Antonio, Uvalde, and the Corpus Christi area.

The sequencing reflects a deliberate market entry strategy. Lubbock opens first: the initial location at 7902 University Ave is slated for March 2026, with a second at 2227 19th St following later in the year. The University Ave address is not coincidental. Layne's built its brand DNA inside college-town environments, and Lubbock is home to Texas Tech University, a campus with roughly 40,000 students and the kind of late-night, repeat-visit demand profile that chicken finger brands convert into loyal base customers.

From Lubbock, the pipeline fans out into the Permian Basin (Midland and Odessa), smaller West Texas markets, and then south into San Antonio and Coastal Bend. San Antonio alone represents a metro area of 2.6 million people, making it the most commercially significant market in the C5 deal. The first San Antonio location is expected in 2026.

Forty-four units across these markets is an ambitious buildout for any emerging brand. For context, at the end of Q3 2025, Layne's had signed franchise agreements for 68 stores total. The C5 deal represents a 65% addition to that committed pipeline in a single transaction. That is not incremental growth. It is a strategic bet on a single franchisee group covering a substantial portion of the state's remaining territory.

The Raising Cane's Parallel and Why It Matters

The Raising Cane's comparison is unavoidable in any Layne's conversation, and it is not mere flattery. Both brands share a founding premise: one simple product, done exceptionally well, targeted at college students who became brand evangelists as they aged into the workforce. Raising Cane's started at Louisiana State University in 1996 and spent its first decade growing slowly in the South before scaling aggressively. The formula was tight: chicken fingers, crinkle fries, coleslaw, Texas toast, and the signature Cane's sauce. No menu drift. No limited-time offers diluting the identity.

Layne's shares that structural discipline. The brand has not chased menu expansion to capture more dayparts or broader demographics. It has stayed inside the chicken finger lane, which is the correct strategic choice if you believe the Cane's model is replicable.

Where Layne's diverges from the early Cane's playbook is in the pace and mechanism of growth. Raising Cane's spent years as a company-operated brand before leaning into franchising. Layne's is explicitly running a franchise-first expansion, with 10 new franchisees joining the system in 2025 alone. That approach accelerates unit growth but introduces execution risk: the brand's operational consistency is now dependent on franchisee quality, not just company culture.

The 2025 doubling of the franchise footprint, combined with the 44-unit C5 agreement, means Layne's is growing fast enough that the franchisee vetting process is load-bearing. One underperforming multi-unit operator in a major market can damage brand equity that took years to build.

Franchise Unit Economics: What Operators Need to Know

Layne's has not published its Franchise Disclosure Document data publicly in summary form, so this analysis works from segment benchmarks rather than brand-specific figures. For emerging chicken QSR concepts in the 2,000 to 2,500 square foot inline and end-cap format that Layne's typically occupies, the relevant metrics from Technomic and broader industry data look like this:

Average unit volumes for emerging chicken finger brands in the 10 to 50-unit range typically fall between $1.2 million and $1.8 million annually, well below the Raising Cane's system average, which the brand has reported exceeding $5 million per location. That gap is not a knock on Layne's; it reflects stage of development. Early Cane's units ran comparable volumes to what Layne's is likely generating today.

Food cost for chicken finger concepts runs high relative to burger formats. Chicken tenders and fingers are labor-intensive cuts, and the breast meat market has been volatile. Restaurant-level margins for well-run emerging chicken concepts typically land in the 15% to 20% range after food, labor, and occupancy. That is not exceptional by fast casual standards, but it is defensible for a brand with a loyal repeat customer base and limited SKU complexity.

For C5 Restaurants and Eli Cohen, the 44-unit commitment represents a capital deployment decision that will play out over several years. Multi-unit agreements of this size typically include development schedules with annual milestones. The franchisee has skin in the game via area development fees paid upfront, creating an incentive structure that aligns C5's financial exposure with Layne's brand buildout.

The West Texas and Coastal Bend markets in the C5 territory have different unit economics profiles than Austin or Dallas. Lower real estate costs in Lubbock, Midland, and Abilene reduce the occupancy drag, which can actually improve franchisee-level profitability even at lower average unit volumes than in top-tier Texas metros. That is a legitimate argument for why these markets, which might look secondary on a population map, can be attractive franchise development territory.

The Crowding Problem in Chicken QSR

No analysis of Layne's franchise momentum is complete without a direct look at how tight the competitive environment has become. The chicken QSR segment has attracted more capital and more concept development in the past five years than any other protein category. Dave's Hot Chicken went from a parking lot pop-up to a Roark Capital acquisition target in under a decade. Wingstop has compounded unit growth while building a digital loyalty ecosystem. Slim Chickens crossed 200 units and is accelerating. Zaxby's operates more than 900 locations concentrated in the South.

Raising Cane's, the brand most analogous to Layne's, is now past 1,000 units and has the brand recognition and financial firepower to enter any Texas market at scale.

The question is not whether Layne's competes well in markets where it is already established. The brand's cult following is real and generates the kind of repeat visit frequency that franchise concepts need to sustain unit economics. The question is whether it can acquire new customers quickly enough in unfamiliar markets, like Midland or Del Rio, where it has no existing brand presence, against competitors who have national marketing budgets and established loyalty programs.

Texas-centric brands have proven this is achievable. Whataburger built an identity so strong that it successfully resisted national chains for decades in its home state. But Whataburger had 50 years to do it. Layne's is compressing that timeline, which means the brand building and operational excellence have to happen simultaneously with rapid unit expansion.

The Texas Saturation Play

Reed's stated goal of 100% Texas market saturation is unusual for a brand at Layne's current scale, and it reveals something important about the company's strategic logic. Rather than pursuing the conventional emerging brand path, which involves proving out a few markets, attracting institutional capital, and then expanding nationally, Layne's appears to be anchoring its initial saturation strategy inside its home state.

That choice has strategic merit. Brand recognition compounds faster when you are concentrating locations in a defined geography. Texas consumers who encounter Layne's in Lubbock and then move to San Antonio or Corpus Christi carry the brand with them. A dense Texas footprint also provides negotiating leverage with regional suppliers, reduces distribution costs, and creates a training and support infrastructure that can be redeployed efficiently as new locations open.

The 68 signed franchise agreements as of Q3 2025, now expanding with the C5 deal, suggest the system will cross 100 committed units before mid-2026. Not all of those will be open and operating simultaneously, since development pipelines lag signed agreements by anywhere from 12 to 36 months depending on site availability, permitting, and construction. But the committed pipeline is the leading indicator that investors and franchisee prospects watch.

For operators considering franchise opportunities in the chicken QSR segment, Layne's trajectory offers a case study worth monitoring. The brand has the core ingredients that produce durable franchise concepts: product simplicity, cult customer loyalty, and a clear geographic expansion thesis anchored in its strongest market. What it is now testing is whether operational discipline and franchisee quality can scale at the pace the C5 deal demands.

The first answer will come from Lubbock. When the University Ave location opens in March 2026, the brand's ability to transplant its college-town energy into a new market gets its first real test at scale. If Lubbock works, the rest of the C5 pipeline becomes much more than an agreement on paper.

QSR Pro covers franchise expansion, unit economics, and industry trends for restaurant operators and investors. This article is based on publicly available company announcements and industry data.