The UK’s fast-food sector doesn’t require an introduction. In recent decades, it has experienced rapid growth and expansion.
KFC Franchise, Kentucky Fried Chicken, is the biggest restaurant corporation in the world and one of the most well-known fast-food brands.
With over 12,000 locations across 123 countries, KFC is a well-known worldwide brand with a sizable consumer base. People love KFC because of its delicious, crispy fried chicken, which has made it a household name.
Since KFC is such a strong brand, it is not surprising that prospective business owners are interested in purchasing a franchise from this multinational company.
Given the brand’s ongoing national expansion, business owners in the UK should consider the cost of the KFC franchise.
In this guide, we will provide you with in-depth information about KFC franchise costs in the UK so you can decide for yourself whether starting a KFC location is the best course of action.
What Is So Unique About KFC Franchising?
KFC franchising has several special benefits that make it a desirable choice for business owners:
Brand Recognition: KFC has a devoted following of customers and is a well-known brand throughout the world. You are instantly linked to a well-known and prosperous brand in the fast-food sector when you franchise with KFC.
Proven business plan: KFC has a business plan that has worked well in several international regions. You will receive a road map for operating a profitable shop as a franchisee, which lowers the risks involved in launching a new company.
Broad Support: From site selection and building to marketing and training, brands provide their franchisees with broad support. This guarantees that franchisees have all they need to operate their businesses effectively and profitably.
Local market diversification: KFC’s capacity to accommodate regional preferences is one of its advantages. This flexibility guarantees that the brand will continue to be desirable and relevant across various markets.
Innovation and Growth: Whether it’s adding new items to its menu or integrating new technologies into its business processes, KFC is always coming up with new ideas.
Being a franchisee gives you the advantage of being a part of a company that is constantly changing and staying ahead of the competition.
How Does The Franchise Model for KFC Operate?
The number of KFC franchises in the UK varies, and many prosperous franchisees own many locations. The majority of businesses are franchised.
The goal is to have 98% of the world’s population franchised, compared to 95% in the UK. Regarding the kind of Kentucky Fried Chicken franchise, there are several choices:
- Drive-Thru: Customers place and pick up their food orders while still in their cars.
- Small box: These tiny establishments prioritise grab-and-go ordering and have very little seating.
- Restaurant: These offer lots of seating so that customers can eat on-site.
- Food court: These are grab-and-go establishments where customers use communal seating. Each of these has extremely particular needs regarding dimensions, layout, and adjacent facilities.
How Much Does a KFC Franchise Cost in the UK?
The cost of purchasing a KFC franchise is high, even though KFC UK is not currently taking on new franchise owners. Becoming a KFC franchisee requires a certain amount of capital. These are:
- An initial franchise cost is between £38,000 and £42,000.
- A liquid capital of £2 million and £5 million
- Prior worth of assets
- Prior experience in hospitality
The location of the restaurant, the size of the building, and the particular market conditions can all affect the cost of buying a KFC franchise.
Generally, to open a new KFC restaurant, you need to have a budget between £1,800,000 and £3,700,000. £45,000 is the total of the original franchise fees.
You must pay several recurring fees and levies after opening. Among them are:
- Royalty fee: 4% to 5% of monthly gross sales, with a minimum of £1,440
- Co-op for national advertising: 4.5% of total revenue
- Digital fee: 3.5% of total gross revenues from all digital (app) sales.
- £9,600 is the renewal fee.
- Transfer fee: £2,400 for subsequent outlets and £4,800 for the first outlet
- Audit: Total audit expenses
- Weekly additional/refresher training cost: £500 per person.
- Late royalty charge: 1.5% per month on the past-due amount.
- Checks for outlet compliance: £276 to £346 per assessment
- Monthly technology fees: £240.
- £180 a month for each outlet is the system fund fee.
How Much Money Is a KFC Franchise Paying in the UK?
Potential profits that a KFC franchise can earn are very high but are dependent on different variables such as market conditions, management, and location. However, a successful KFC franchise can do reasonable business in the UK, earning anything around £50,000 to £100,000 every year.
This amount may increase or decrease depending on the above-mentioned factors. Moreover, this and KFC also provide marketing assistance and training as well as well-known brand names that tend to multiply your chances of making money.
However, one’s earnings can largely depend on their commitment towards quality, customer service, and knowledge of the local market.
How to Register for a KFC Franchise in the UK?
Following are some of the procedures you have to follow if interested in establishing your KFC franchise in the UK.
First Inquiry: Send your primary inquiry through the official website of Yum! Brands or submit an application form providing details of your profile, finances, and inclination for franchising.
Screening and Approval: The determining factor regarding whether or not you qualify to be a franchisee is the examination of your application and the interview. In addition, they will conduct a financial check to ensure your capability to purchase the franchise.
Site Selection: Upon acceptance, the next stage is the location determination for setting up the KFC restaurant. Brands will help you plan a location that satisfies their requirements and is expected to draw large crowds.
Training and Setup: The brands will provide the complete training to you and your employees once the site is decided. It will include theoretical training as well as on-the-job training to ensure you are ready to handle your outlet.
Conclusion
In the UK’s growing market of quick service restaurants, a KFC franchise could easily turn out to be a very profitable venture for someone who has investment capacity and passion for cooking.
Investing in a KFC franchise in the UK is truly a lucrative opportunity for business people.
It comes with an established brand presence, a proven business model, and a vast network of support essential for making the venture very enticing. Of course, much financial commitment and serious effort must be invested from the start since the cost is very high.
The KFC franchise trains the franchisee for his business, and operational support and gives site location assistance in setting up a business.
Because of the very strong marketing and supply network developed by the company, the support is guaranteed to its franchisees as required for becoming a success throughout its business.
