KFC is the fourth largest restaurant chain in the world and is known for its fried chicken. Are you willing to know how much a KFC owner makes or a KFC franchise owner makes in a year? Then you are in the right place.
In this article, we are going to tell every aspect of profit and other facts related to this franchise, like its cost, expense, fees, and charges, and whether buying a KFC franchise is worth it or not.
What Is KFC?
In 1952, KFC (Kentucky Fried Chicken) was founded in Utah by Harland. He created his one-of-a-kind formula using 11 herbs and a few different flavors.
This formula became the secret to the success of KFC, and now it has a comprehensive market of 25,000 franchise stores worldwide.
Today, KFC is a worldwide fast-food chain that focuses on serving southern fried chicken. KFC franchise is a good opportunity for those entrepreneurs who are willing to invest in the restaurant business.
The requirement list of the franchise is not long as others. They require you to have prior experience and need a high net worth to buy this franchise.
However, financial assistance is available, but in some cases, they can deny your financial assistance.
Apart from this, they also provide training program support to all new franchises, but it also has some obligations and restrictions which franchisees have to follow.
How Much Does A KFC Employee Earn?
KFC employees’ hourly rate ranges from $7.98 to $14.21 an hour. However, employees’ hourly rate varies depending on their position.
The company pays its employees an average of $10.34 an hour. An employee of KFC with the job title- of Assistant manager can earn an average of $13.10 an hour, while other employees, like a chief, can earn an average rate of $9.42 an hour.
It pays the lowest earning, $18,000 per year, while the top 10% are paid over $35,000.
How Much Does A KFC Franchise Owner Make?
As per data, KFC generates around $5.7 billion through its sales annually. An individual KFC franchise owner can make an estimated $942,000-$1,000,000 per year. However, this is the average profit estimated.
There are possibilities that KFC franchise owners can make more than that or less than that. The profit varies on different factors like the perfect location, business management, and goodwill.
What Is KFC Known For?
KFC is known for its fried chicken. There are many competitors of KFC, but still, they manage to remain in the top four restaurant position because KFC chicken is often much juicer and contains more flavor as compared to other competitors.
And all credit goes to the cooking process. They used pressure cooking which led to juicer chicken. These are some of the popular items of KFC.
Let’s have a look at them:
- Chicken Pot Pie.
- Original Recipe Chicken Breast.
- Chicken Sandwich.
- Popcorn Chicken Nuggets.
- Mashed Potatoes with Gravy.
- Mac & Cheese Bowl.
- Original Recipe Chicken Drumstick.
- Secret Recipe Fries
- Popcorn Chicken Large
- Cole Slaw
Pros & Cons Of KFC Franchise
Pros Of KFC Franchise
- Provide financial assistance
- Provide training and different supports
- Global presence
- Highly profitable
- Larger customer following
Cons Of KFC Franchise
- Long approval time
- High-costs investment
- Denial of financial assistance
- Limited menu
- External competition
Is KFC Franchise Profitable?
As per the profit rule, if you’re making more than what you have invested, then that is profit. If we follow this rule, then the KFC franchise has the potential to earn a decent amount of profit.
As per data, the KFC franchise requires an investment of $1,000,000 – $2,000,000, and in return, a single franchise store owner can make around $942,000-$1,000,000, which is good enough if we compare it with the profitability of other restaurant franchises.
As we discussed above, KFC is a restaurant franchise that offers opportunities for entrepreneurs who has experience in managing business before.
The policies of the KFC franchise are a bit rigid. Buying KFC requires a high cost of investment and huge liquidity.
They provide financial assistance to new franchisees, but sometimes they reject applications for financial assistance if franchisees don’t meet the required condition.
Moreover, the process of buying a franchise is very long. You have to wait for a long time, around one month, because Yum! Brand review your qualification and even take your interview.
However, once you finish the process of buying, then you don’t need to worry about anything. Because the profit potential of KFC is very high, you can make a good income from the franchise.
Read: Underdog BBQ Franchise
Frequently Asked Questions
How many KFC franchises are there?
KFC has more than 25,000 outlets around the world.
What is the annual revenue of the KFC Franchise?
An individual KFC franchise owner makes approximately $942,000-$1,000,000 annually.
How much does it cost to buy a KFC franchise?
An initial investment required to open a KFC franchise is $1,000,000 – $2,000,000.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank #1 on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.