Zaxby’s founders become billionaires after decades of growth

In the United States, Tony Townley and Zach McLeroy founded Zaxby's in 1990 near Georgia Southern University, contributing $8,000 each to establish their fried chicken chain. The first restaurant opened under the name 'Zax,' derived from McLeroy's name, and quickly targeted college campuses to expand its presence. The business thrived over the years, leading to significant sales growth, with Zaxby's reaching a systemwide sales total of $2.5 billion in 2023. Although sales continued to rise from $2 billion in 2020, store growth slowed after a major investment from Goldman Sachs in Townley's share of the business, which he sold for nearly $1 billion in 2020. Under McLeroy's leadership as chairman of the board, Zaxby's has weathered increased competition from larger chains like Chick-fil-A and Raising Cane's, positioning itself below them in terms of revenue generation and customer satisfaction metrics. The relationship between Townley and McLeroy remains strong, with Townley still actively participating as a franchisee in Zaxby’s operations while they both enjoy substantial wealth from their business success, making them influential figures in the fast-food industry.