Why does Lexington have so many new coffee, chicken and Mexican restaurants?

Lexington’s restaurant scene has a lot of turnover and changes tend to come in waves.

Remember the bagel craze? Rotisserie chicken? What about frozen yogurt? For a while every major travel corridor had at least one of those along it somewhere.

Now it seems we’re in the midst of another boom, this time it’s Mexican restaurants, “better” chicken and faster coffee.

So what gives? Why does every new restaurant announcement seem like the one before? Insiders say three key reasons are driving these three different foods: costs, drive-thrus and demand.

Does Lexington have too many fast-casual chicken restaurants?

Turns out that Lexington isn’t alone in any of these trends although we have some unique attributes that come into play.

Take chicken. Arkansas-based chain Slim Chickens has opened one spot and another is coming. But the area’s also home to Dave’s Hot Chicken, which opened just over a year ago and don’t sleep on Indiana-based chain Cluckers that opened at the end of 2022 in Versailles.

Of course this is on top of all the other chicken restaurants Lexington already has: Joella’s Hot Chicken, Gus’s World Famous Fried Chicken, Popeyes Louisiana Kitchen, TKK Chicken, Chick-fil-A, Zaxby’s, Rooster’s, Raising Cane’s, Lee’s Famous Recipe Chicken and the one that started it all, KFC.

One the local side, you’ve got Indi’s, Grimes’s, MiMi’s Southern Style Cooking, Blue Skillet and Wing KYng.

Why so much chicken? Part of the reason is price. As inflation has pushed costs up for many staples, chicken remains one of the more affordable options.

And, according to the National Restaurant Association, the chicken sandwich wars are still going strong. A survey the NRA did of culinary trends for 2023 shows that chicken sandwiches are the top trend for lunch, especially spicy options of all varieties.

Why are coffee kiosks popping up everywhere?

For coffee, one of the main drivers is ... driving. After the 2020 COVID pandemic, drive-thrus of all kinds are more in demand than ever.

Coffee kiosks, which usually have no indoor seating, can have lower overhead, too. But not always, especially if they add in breakfast food.

And breakfast is becoming a bigger part of eating out, according to Food Business News. Quick-service restaurants are adding options and breakfast sales are booming.

“I think coffee (is) so popular because it is part of everybody’s morning routine. And for some people it’s part of their afternoon and evening routine as well,” said Gary Holland, head of One Holland Group, which operates First Watch, LaRosa’s Pizzeria and Skyline Chili franchises in Lexington and is bringing Dunkin’ to Richmond Road where he recently shuttered a LaRosa’s. It’s joining 7 Brew, Human Bean, Panera, Krispy Kreme, Starbucks and Common Grounds just in that immediate area.

Why pivot to coffee and doughnuts? “It’s a fun environment to operate in and run. Everyone is happy. Customers, employees, it’s fun,” Holland said in a text.

Coffee is indeed popular here, which you can see reflected in at least two coffee-related dining events: Lexington Coffee + Tea Week in the spring and the Lexington Cold Brew Festival at the Lexington Farmers Market in the fall.

So expected to see a lot more coming, including Dutch Bros, Scooters and more.

A Mexican place on every corner?

It’s probably no secret that Mexican is a very popular restaurant category for diners.

Lots of Mom and Pop places see it too; several have opened in and around Lexington recently. Sometimes it seems like there is a new one every month: El Charro Tacos & Tequila, El Jefe Mexican Grill, La Dona, Mexico Mi Amor, Mazunte and La Chula are just some announced so far this year.

And coming to the former Lexington Diner spot on Lane Allen is ... you guessed it. Another one: Monarca Authentic Mexican Restaurant.

Flor Gonzalez, whose family owns two El Charro Authentic Mexican Cuisine restaurants and is opening a third, sums it up simply: Demand.

There’s been a great boom in Mexican restaurants in town in the last few months and I think it’s because there’s a lot of demand,” she said. “We have a lot of customers who come in two or three times a week.”

And she pointed out that margaritas are the top American cocktail and Modela is now the number one beer in the U.S.

Mexican restaurant expanding in Lexington with fast casual location near UK campus

So what’s the appeal for a business owner?

“The cost of food and price of labor,” said restaurant owner and chef Ouita Michel. “The cost of operating a restaurant has never been higher. I’ve now owned my own place for 23 years and it’s never been higher.”

But for Mexican restaurants, she said, “the food costs are historically very low.”

Michel says she’s a big fan of Mexican, which has the big advantage of appealing to a wide variety of palates.

In Lexington there’s an added reason: A broad immigrant community. Opening a family restaurant is a dream for many. It’s an easy way to open a business. And that’s the American dream.

Are there too many coffee, chicken or Mexican places?

Lexington is Kentucky’s second largest city and a population of more than 320,000. Still, it can only support so many coffee places, so much corporate chicken and so many Mexican restaurants, right?

As more of each open, competition will increase. That’s good news for customers who can benefit from competitive prices and lots of choice, at least for a while.