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As Shahroz Khan assessed which franchise to open between Raising Cane’s, Chick-fil-A and Layne’s Chicken Fingers, he landed on the third option, going into the venture with seven of his cousins who plan to open 15 locations from Austin to Waco.
He chose Frisco-based Layne’s Chicken Fingers for a few reasons.
When Khan, with a background in engineering and an MBA — and his cousins with engineering, doctorate and CPA degrees — decided they wanted to go the entrepreneurial route, chicken restaurant franchising was the most appealing because chicken is often cited as the most consumed meat in the United States.
But Chick-fil-A was quickly ruled out as an option because of the corporation’s minimum 10-year experience requirement, though Khan has some restaurant experience under his belt.
Khan said he ultimately chose Layne’s because of the culture, where he felt welcomed and because the corporation walks franchisees through every step to ensure success.
"The one thing that actually sold the deal for me was when the owner of Layne’s told me, 'Imagine that Chick-fil-A had 15 locations today, would you join?'" Khan said.
Layne's Chicken Fingers has 17 open locations, eight stores in development to open this year and 220 units signed for by franchisees. Many locations will be in Texas with the Houston metro, East Texas, Austin area and North San Antonio markets already sold out. The business also is expanding nationally with franchises coming to Ohio, Arkansas, Georgia, Florida, Virginia and more.
Khan is not the only one bringing the chicken chain to the Austin area. Noah Cara also has signed to add about five locations in the southern part of the metro, said Layne's Chief Operating Officer Samir Wattar. Central Texas could sustain between 20 to 25 Layne’s Chicken Fingers quick service restaurants, Wattar said. Though the search for franchisees in Austin is over, Khan and Cara are looking for places to open here, where the retail occupancy rate hovers around 97%, according to fourth quarter data from real estate giant CBRE.
"Out of that 3% (available real estate), most of those already have deals," Khan said. "So, it's a very competitive market out here. We've been working deals for the past four months, and it's very tough to get the right deal for the right place in the right moment."
To open one Layne's Chicken Fingers location in Austin, it will take a minimum of $700,000 for an in-line site and can range up to $1.5 million for ground-up builds, Khan said — more costly than the franchise’s average. The minimum to open one Layne’s Chicken Fingers costs $446,000, ranging up to a little over $1 million, Wattar said.
Khan plans to roll out his 15 locations over nine years. The franchisee is working with Austin-based commercial real estate agency, The Retail Strategy, with broker Mark Stanislawski. Layne’s corporate office also uses The Retail Strategy but asks its franchisees to work with local brokers as well, Wattar said.
On average, one Layne’s Chicken Fingers is expected to yield $1.9 million in revenue annually, Wattar said.
Khan has signed his first lease in Leander — at 11312 Hero Way, near an H-E-B Plus grocery story. It's slated to open in spring of 2026. Additionally, Khan has sent a letter of intent for a second location in Austin.
The franchisee wants to find something near the University of Texas at Austin's campus to reach students and a late-night crowd. The ground floor of student housing or something on Guadalupe Street — AKA The Drag — would be nice, Wattar said. The risk of being near the university is the limited parking, hence the desire to be under a residential building with clientele literally built in.
The average franchise location should be about 2,300 square feet, Wattar said, and each location would need between 25 to 30 employees. Customer demographics for the quick service restaurant chain is middle to upper-middle income, Wattar said. Additionally, the company seeks convenient locations that can capture customers on their commutes home — think busy intersections. The company also likes to station locations by other fast-food businesses, such as McDonald's, Taco Bell, Raising Cane's and others, Wattar said.
The South Austin area franchisee has already begun construction on a store in San Marcos. The address is 1617 Aquarena Springs Drive.
The Austin metro has become a fertile franchising ground. Dozens of businesses have announced plans to enter the market in the past year.