Popeyes Louisiana Kitchen Purchases Recipes in $43 Million Deal
(ATLANTA) -- On Monday, Popeyes Louisiana Kitchen announced that it had purchased the recipe for many of its main menu items for $43 million from the supply company owned by Popeyes' founder Al Copeland.
According to a company release, the company had been paying Diversified Food and Seasonings, LLC, $3.1 million annually for the use of the recipe in a deal that lasted until 2029. Cheryl Bachelder, CEO of Popeyes Louisiana Kitchen said that the agreement to purchase the recipe for $43 million allows the restaurant chain to avoid "uncertain" supply terms beyond 2029 and eliminate the annual payments.
"Going forward," Bachelder said, "we will convert the $3.1 million we were previously paying as a royalty into hard-working invested dollars to materially improve the Popeyes employee and guest experience."
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