Lee’s quest to match 2020’s boom is being challenged by a chicken category that’s filled to the brim, especially with the entrance of numerous virtual brands from major players on the full-service side like Chili’s and Applebee’s. Cooper finds the idea of a virtual concept interesting, but he insists that Lee’s will continue to focus on what it does best instead of “trying to make lasagna in one oven and fried chicken in another.” 

Cooper explains that convenience and cost are important when consumers make decisions, but ultimately, the deciding factor is based on taste, which he believes Lee’s excels at with its fresh, never frozen chicken. He considers the hand-breaded, honey-dipped, pressure-cooked approach a “complicated and delicate dance” in the back of the house.

“To get our chicken tasting like it tastes is very, very unique to us,” Cooper says. “I think that's going to be the longer-term challenge—can they really get the taste right? And are they willing to do that complicated and delicate dance in the back of the house to get that product really well.”

“We see [virtual brands] as competition, but we also know that the customer ultimately decides," he adds. “I think there's going to be a lot of trial. And I think if you're really just looking for availability and someone that can deliver it quickly, if a Lee’s is not in your market, then there's other options out there. But I like our fresh, never frozen hand-breaded, honey-dipped, pressure-cooked approach that I think sets us apart.”

The growing chicken category has contributed to a lower supply, causing prices to soar.

Using data from market research firm Urner Barry, the Wall Street Journal reported in early May that boneless chicken breast was trading at $2.04 per pound compared to roughly $1 per pound last year. The average price is approximately $1.32 per pound.

Cooper says Lee’s doesn’t want to keep increasing prices based on inflation, so it’s tried to take a deeper look and mitigate where it can. But at the end of the day, prices are in flux and it’s just trying to stay ahead. He views the supply chain as lots of differently sized cogs, where even the smallest turn can make everything else move. He used this example: If it takes one day longer to get pepper from India, then it takes one day longer to get the spice into a recipe, and so on, until it starts to become a noticeable issue at the store level.

Lee’s has tried to keep its operators up to date on what the next three to five months will look like, and they’re leaning on all of their suppliers—from chicken to flour—to provide the right information. According to Cooper, the brand prefers to evaluate products in three basic ways in this order: availability, consistency, and then pricing.

“So we have to make sure that we have the right kind of chicken or tenders or green beans, mashed potatoes, the breader, and then we need to make sure it's consistent so it's all the same size, and part of that is contractual and we negotiate with those suppliers, but part of that is just making sure that we're communicating with our operators,” Cooper says. “And then lastly, which is very important, is the price of those things. But I think we've agreed as a brand that we've got to have the product available. It's got to be a consistent size and quality. And price is also in the top three important things.”

Another major obstacle is the ongoing labor crisis. The number of job openings across the U.S. reached a record-high 9.3 million on the final business day of April, according to the Bureau of Labor Statistics. The data is part of the agency’s monthly Job Openings and Labor Turnover Survey. April was the highest amount since the series began in December 2000. The previous record occurred in March, when there were 8.1 million openings.

For Lee’s specifically, Cooper says restaurants are always actively recruiting, training, and promoting the best from within. He adds that one of the best parts of skyrocketing sales over the past year is that staff has become more efficient in dealing with higher volumes as opposed to other chains that are grappling with a recent spike in pent-up demand as restrictions have eased.

“I don't think we've ever seen this unique set of circumstances, but I do think we’ve had this boxing match before with these unknown forces against us, and not only have we survived, but I think we thrive,” Cooper says. “So part of this is just we have to get better at doing some of those things that we've always done fairly well, and our folks, I’m sure they're tired and we want to try to encourage them as much as we can to keep going, and we'll help fight the fights and fight the battles.”

Then there are challenges unique to Lee’s. Because it’s a legacy brand, some stores were built more than 25 years ago, and others longer than that. Cooper says the older restaurants weren’t built to handle the level of volume they’re seeing right now. But that doesn’t mean they can’t do it—restaurants have proven otherwise, he says.

So the path to overcoming last year’s high performance won’t be easy. One of the first things Cooper wants to know on Monday morning is how the chain performed the prior week. But there are plenty of reasons to be optimistic. Cooper says 8 to 10 percent of Lee’s customers in 2020 were new, and the brand believes it’s held on to that group a year later. Also, despite increased construction costs, franchise interest in Lee’s is at an all-time high.

As the restaurant moves through the second part of 2021, Cooper wants everyone to have perspective. Lee’s encourages fun and tries to take the pressure off of stores because he knows better days are still ahead.

“Let's keep this going,” Cooper says. “We're enjoying some successes. We want to be over last year, and we think we will be. That is our hope is that we continue to just grow."