Panama's thriving economy means increasing amounts of disposable income among more people. Popeyes is attempting to cash in on the prosperity, though its six stores remain largely unknown on the isthmus.

De Leon's company, Landmark International Holdings, is the third owner of the six-unit franchise since the Cajun-chicken chain opened its first restaurant in Panama in 2001. “That past owner was OK,” recalls Smith, COO of international for Atlanta-based AFC Enterprises, franchisor of Popeyes Chicken & Biscuits, “but he didn't have the same kind of fire that Jey brings to the brand. He was more of a banker than a restaurant guy.”

Co-owner De Leon has agreed to open 10 Popeyes over the next four years. It won't put Popeyes close to fried-chicken rivals KFC (22 units) or Pio Pio (45), but it's a start after seven years of slow development.

“We have a lot of room for growth,” declares De Leon, a former foodservice-distribution executive who once owned a restaurant. He expects all 10 will be in inline or endcap units in strip centers or in malls.

Popeyes' Panamanian franchisee acts as its own distributor, loading containers and maintaining a warehouse from which it ships goods to the restaurants.

First, however, De Leon must boost brand presence. A recent marketing study he commissioned showed that many fast-food customers didn't know Popeyes existed or believed it wasn't up to snuff with competitors. “Others thought it was seafood,” De Leon says dryly.

The units do serve sea bass and calamari. De Leon has also added mini-desserts and Buffalo chicken wings with the franchisor's blessing. He's also revving up motorcycle delivery, a crucial component in the battle for market share. “It's a very important part of our business,” he says, adding his company owns a call center in Panama City.

Still, the brand's relative obscurity is worrisome given strong competition from bigger and well-established fried-chicken rivals. McDonald's and Burger King also peddle fried chicken.

To get the message out, De Leon launched an image-building campaign early August using TV, radio, outdoor and print. A humorous 30-second spot uses the tagline “the chicken is in your head” and shows men at work, in a gym and at a bus stop distracted by images of fried chicken.

The campaign runs through October but may extend into November. The reason: Sales shot up 35 percent in the first month. De Leon won't share sales figures, citing his rivals. Smith, however, estimates the units were ringing up between $15,000 and $20,000 a week when Landmark took over.

For the second quarter 2008 (ended July 13), same-store systemwide sales among Popeyes' international restaurants open for 15 months or more rose 1.7 percent, continuing a positive trend that began last year. AFC officials credited the Middle East and Latin America for the increase. At the end of 2007, Popeyes franchised 322 restaurants in 29 markets outside the United States.

De Leon's first Popeyes, slated to open in October in a mall in the Colon Free Zone, will add to the total. The two-story structure will feature a kids' playground on the second level and New Orleans-style decor. Next year, he'll open Popeyes in Panama City on the Pacific Ocean side of the isthmus, hoping to draw customers from cruise ships. “That's another chunk of business,” De Leon says.

Jey De Leon is the third owner of Popeyes' six-unit franchise in Panama. Although the fried-chicken chain remains far behind larger rivals KFC and Pio Pio, De Leon expects to boost market share with an agreement calling for 10 new restaurants over four years.

Economic Prosperity

The biggest source of revenue, however, could come from the thousands of people seeking work on the Panama Canal expansion, a $5.25 billion project overwhelmingly approved by the country's voters two years ago. The Panama Canal Authority estimates some 44,000 jobs will be created by 2010, and twice that many by 2020, five years after the project is completed.

De Leon is planning to open at least one store near the housing developments already under construction near the old Canal Zone. The area, he says, is also a magnet for American and foreign companies setting up their Latin American headquarters.

Foreign investment is part of the reason Panama's economy is thriving; another is the free-trade agreement with the United States. The World Bank reports real gross domestic product has grown an average of 7.5 percent annually since 2004. “Today, the Panamanian economy is among the fastest growing and best managed in Latin America,” it notes on its Web site.

De Leon is taking advantage of the prosperity. He mentions opening a unit in a high-end area of Panama City within the next two years and boasts its architecture will be so unique he'll need AFC approval. “It will be a store with drive-thru, playground, big dining room—the whole nine yards,” he declares.

De Leon has his work cut out for him, though there's good news: Panamanians consume 60 pounds of chicken per capita each year, according to WattPoultry.com. That's more than anywhere else in Central America. “Fifty percent of the population eats it three times a week,” he declares.