Leases   ·   Retail

Chicken Shop Chain Zaxby’s to Open First NYC Location on Upper East Side

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America’s chicken joints are certainly on the rise.

Zaxby’s, a fast-casual chicken chain operating primarily in the Southern U.S., will open its first New York City location on Manhattan’s Upper East Side this summer, Commercial Observer has learned.

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The chicken shop has signed a 10-year lease for 3,600 square feet on the ground floor and lower level of 1267 First Avenue in Lenox Hill, according to landlord broker Isa Realty Group. Asking rent was $35,000 per month, or $233.33 per square foot.

The five-story residential and retail building between East 68th and East 69th streets is owned by Debar Realty, property records show.

“We are really excited to be in New York City and look forward to opening this summer,” a spokesperson for Zaxby’s said in a statement.

Ripco Real Estate’s Sam Martorella and Andrew Mandell brokered the deal for the tenant, while Isa Realty Group’s Joseph Isa and Louis Franco represented the landlord.

“This marks a major milestone for Zaxby’s entering Manhattan for the first time,” Franco said in a statement. “The corridor benefits from consistent foot traffic driven by the surrounding hospitals and dense residential base, and Upper East Side retail demand is especially strong right now.” 

Martorella did not immediately respond to a request for comment.

The deal comes as part of Zaxby’s broader expansion strategy. In December, the chain opened its first-ever New Jersey location in Magnolia in a deal that represented the chicken shop’s debut in the Northeast. This month, the chain opened its 1,000th outpost in the U.S. amid plans to open at least 60 locations in 2026, according to the trade website Nation’s Restaurant News.  

Zaxby’s expansion also comes during somewhat of a renaissance for chicken joints around the U.S., with popular brands such as Chick-fil-A, KFC, Raising Cane’s, Wingstop and Dave’s Hot Chicken opening hundreds of locations across the country in recent years. By the end of 2024, KFC operated the most U.S. locations of any brand, with 3,669 spots, Commercial Observer recently reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.