The world of franchising is constantly growing and evolving, but one constant remains year after year—the popularity of food franchises.
The UK food and drink industry generates a huge £230 billion each year and employs around 450,000 people across 10,000 businesses, many of which are franchises.
These franchises offer franchisees a unique opportunity to operate under an established brand with a proven business model and customer base. This is especially enticing in the food sector, where brand loyalty and operational consistency are crucial for success.
This article will examine some of the most popular restaurant franchises and their starting costs.
Why to Buy a Fast Food Franchise in the UK
The food sector is an excellent option for those looking to enter the lucrative and rewarding world of franchising. Here are a few reasons why:
The Popularity of UK Food Franchises
No matter what’s going on, food remains a central part of our lives. Many people use food as a treat, visiting a restaurant, or ordering a well-deserved Friday night takeaway.
Food franchises remain the go-to for many customers largely due to consistency — consumers know they can visit a food brand anywhere in the world and receive the same meal at the same high quality.
Intellectual Property and Customer Base
Becoming a food franchisee gives you access to a prominent company’s intellectual property, reputation, and customer base, almost guaranteeing success before you even open your doors.
Recession-Proof Industry
Food’s recession-proof nature is significant for investors. Despite financial challenges, demand for fast food remains stable due to its affordability, comfort, and convenience.
Franchises quickly adapt to changing economic conditions with special deals and diverse menus, maintaining broad appeal and customer loyalty.
Training
As a food franchisee, you’ll be investing in a full support system. Franchisors provide extensive training programs that cover everything from daily operations to strategic marketing.
This training ensures you are well-equipped to handle all aspects of the business. Additionally, ongoing support from the franchisor means you’re always supported.
The Most Popular Fast Food in England
Let’s explore some of the UK’s most beloved fast-food franchises. These brands dominate the market and offer appealing opportunities for potential franchisees looking to make their mark in the food industry.
Greggs
As the leading bakery chain in the UK, Greggs is celebrated for its delicious pasties and iconic sausage rolls. It boasts widespread appeal, offering customers quick, affordable, and hearty food options.
This franchise requires an initial investment between £260,000 and £390,000, which includes franchise fees, shop fitting, stock, and equipment costs.
Burger King
Burger King is synonymous with rich, flame-grilled burgers and offers a powerful brand presence in the UK. Franchisees benefit from strong corporate support and a loyal customer base driven by a passion for hearty meals.
The initial investment ranges from £250,000 to £800,000, a hefty fee for most franchisees.
Pizza Hut
A household name, Pizza Hut continues to enchant families and pizza lovers with its innovative approach to pizza and casual dining. The franchise provides comprehensive support, ensuring franchisees have all the tools they need for success.
Though the franchise fee is only around £30,000, you must have a minimum net worth of £400,000 and liquid assets totalling £150,000.
McDonald’s
With 1300 outlets in the UK, the McDonald’s franchise remains one of the most popular fast food choices for us Brits.
Despite its popularity, McDonald’s is pretty selective about who it sells franchises to, and the selection process can take up to six months. If you’re lucky enough to bag your very own set of the golden arches, it’ll set you back £100,000 in start-up fees.
KFC
This world-famous finger-licking good brand has around 850 UK outlets, 75% owned by franchisees.
Unfortunately, KFC franchise opportunities are only for those with fat bank accounts, as you’ll need to have £5 million available in assets and £2 million in liquid capital.
Subway
The famous Subway franchise empire has over 43,000 outlets across 110 countries and is a firm favourite with franchisees.
If you’ve got the bread, you can bag your own Subway branch for an initial investment of £85,570.
Pizza Express
Chic and delightful, Pizza Express brings authentic Italian dining experiences to the UK. This franchise attracts culinary enthusiasts eager to deliver high-quality, stylish meals in a welcoming environment.
To franchise, you’ll likely need to pay between £350,000 to £750,000.
Dominos
This pizza franchise has over 1000 outlets and serves a staggering 90 million pizzas yearly.
It is possible to grab a slice of the action as a Domino’s franchisee. A Domino’s franchise will cost you £280,000 in initial start-up fees, and you’ll need an additional £120,000 in liquid funds.
Open Your Fast Food Chain in the UK
Clearly, you need a fair amount of money to open one of the top food franchises. However, there are plenty more options across the UK for realistic budgets.
Our options include:
- The Dirty Vegans — Initial Investment: £15,000
- The Spitting Pig Co — Initial Investment: £17,500
- Cakes & Bakes — Initial Investment: £10,000
- SesamMe — Initial Investment: £35,000
While these food franchises aren’t as inherently popular, they’re on their way up, and getting in early might help with future opportunities.
Who knows? You may even be opening the next big thing.
What to Expect Running a Restaurant Franchise
As a food franchisee, you’ll be responsible for running your business, including hiring staff, promotion, and paying monthly fees to your franchisor.
While franchising is a great way to make money, it requires some knowledge. Follow our Tips & Advice blog for all the best know-how. We’ll teach you how to start a catering company or cafe franchise. Meanwhile, our Ultimate Guide will get you up and running with virtually all the necessary resources.
If you’re considering buying a food franchise, always study the terms and conditions carefully and seek legal advice before signing a contract.