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How Much It Costs to Own a Fast-Food Franchise in South Africa in 2025

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The fast-food industry in South Africa is a thriving sector, catering to the nation’s love for convenient, affordable meals. However, entering this lucrative market as a franchisee requires a substantial financial investment and a strong business acumen.

South Africa boasts a vibrant fast-food industry with iconic brands like KFC, McDonald’s, Debonairs, and Chicken Licken dominating the market. As of 2025, KFC leads the pack with over 1,000 outlets nationwide, capturing 25% of the market. Other notable franchises such as Debonairs Pizza (710 outlets), Steers (652 outlets), and Wimpy (458 outlets) also maintain a significant presence.

Consumer research reveals that 90% of the 20 million South Africans who dined at fast-food outlets in the last month chose one of the top 10 brands. This highlights the immense potential for investors, despite challenges like economic pressures and rising operational costs.

What It Costs to Own a Franchise

1. KFC

  • Estimated Investment: ± R6 million
  • Key Notes: KFC is not actively seeking new franchisees but offers opportunities to buy existing franchises.

2. McDonald’s

  • Application Fee: R37,500
  • Franchise Fee: R250,000
  • Average Investment:
    • Drive-Thru: ± R6.7 million
    • Inline: ± R5.4 million
  • Unencumbered Cash Contribution:
    • Drive-Thru: R3.5 million
    • Inline: R2.8 million

3. Spur

  • Establishment Cost: R5.5 million
  • Upfront Fee: R175,000
  • Working Capital: R120,000
  • Royalties: 9% of monthly net sales

4. Debonairs Pizza

  • Initial Fee: R50,000 – R68,000
  • Setup Costs:
    • Standard Store: ± R2.24 million
    • Mall Store: ± R2.38 million
  • Royalties: 12% of monthly turnover

5. Steers

  • Franchise Fee:
    • Drive-Thru: R75,000
    • Inline: R68,000
  • Investment:
    • Drive-Thru: ± R3.75 million
    • Inline: ± R1.97 million
  • Royalties: 11% of monthly net sales

6. Nando’s

  • Application Fee: R37,500
  • Franchise Fee: R250,000
  • Investment:
    • Drive-Thru: ± R6.69 million
    • Inline: ± R5.47 million
  • Unencumbered Cash Contribution:
    • Drive-Thru: R3.47 million
    • Inline: R2.86 million

Smaller Fast-Food Chains

1. Chicken Licken

  • Franchise Fee: R180,000
  • Investment:
    • Fly-Thru: ± R6.8 million
    • Inline: ± R4.8 million
  • Royalties: 12% of monthly net sales

2. Roman’s Pizza

  • Franchise Fee: R90,000
  • Investment: ± R3.39 million
  • Unencumbered Cash: R1.6 million

3. Simply Asia

  • Commitment Fee: R20,000
  • Franchise Fee: R100,000
  • Investment:
    • Sit-Down: ± R1.8 million
    • Express: ± R1.5 million
  • Royalties: 10% of monthly net sales

Owning a fast-food franchise in South Africa is a lucrative yet capital-intensive endeavor. Top franchises like KFC, McDonald’s, and Nando’s require millions of rand in startup costs, while smaller brands like Simply Asia and Roman’s Pizza offer relatively affordable options.

Given the rising popularity of fast food, especially among South Africans, franchises continue to be a promising investment. However, prospective franchisees must consider operational challenges, including economic pressures, theft, and infrastructure costs.

If you’re planning to invest, ensure you have the required financial resources and align with a brand that resonates with your goals.

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