Top 10 Fast-Growing Fast Food Franchise Chains in Australia

Accounting for Franchises

Are you considering purchasing a fast-food franchise in Australia? Then, you’re in the right place. As specialist franchise accountants who have been in the business of helping franchise owners for the past 20 years, we are here to guide you through the process of selecting the right franchise by combing through some of the biggest and most successful fast food chains across Australia. If you’re new to franchising in Australia or you’re looking to expand your business portfolio, this blog post will nourish you with the essential details of each chain to help you make an informed decision. Let’s begin.

Subway

Basic Information: Boasting of 1,232 locations, this company has been franchising since 1974. They’re headquartered in Brisbane and led by Shane Bracken, the managing director for Australia and New Zealand. Prospective franchisees face an initial fee of $15,000 USD, along with ongoing costs including an 8% royalty fee and 4.5% of gross sales for advertising. The total investment fee ranges from $229,050 to $522,300 USD. Thier franchise agreements run for 20 years, and opportunities for multi-unit ownership are available.

Background Information: Subway is one of the biggest fast food chains in Australia, known for its ever-fresh foods and customisable sandwishes. With over 1,200 stores in Australia alone, Subway has become a beloved restaurant for quick, healthy meals. The franchise offers a galaxy of food options, from traditional sandwiches to salads, making it a popular choice among customers seeking a healthier alternative to typical fast food.

Subway is a mouthwatering option for franchisees due to its relatively low setup costs compared to other fast food chains. The brand’s global recognition and its adaptable menu ensure consistent demand. With over 50 years of success, the brand is continuously improving their restaurants, food, and experience. They are known to always strive to better their guest experience by meeting changing trends and streamlining operations. With their innovative digital and delivery options, they provide better accessibility that helps increase guest traffic. They place a strong emphasis on healthy eating. Hence, Subway remains a solid investment in the fast food industry.

McDonald’s

Basic Information: Since its inception in 1971, this company has expanded to a total of 1,043 locations. Headquartered in Thornleigh, NSW, it is led by CEO Antoni Martinez. Opening a McDonald’s franchise requires a total investment of $1.5 million, which includes a one-time initial fee of $45,000 for a 20-year term. Ongoing costs involve a royalty fee of 4%–5% of monthly gross sales. The company offers comprehensive support, including a 12-month full-time training programme for registered applicants, designed to immerse them in the strategies that have fueled McDonald’s success for over 50 years.

Background Information: McDonald’s, often referred to as the “king” of fast food, is a name that needs no introduction. Like they proclaim, running a McDonald’s franchise is a once-in-a-lifetime career experience. McDonald’s has established itself as one of the leading fast food chains in the country. The brand is renowned for its consistency, extensive menu, and innovative marketing strategies.

Investing in a McDonald’s franchise comes with a higher price tag, but the brand’s strong market presence and proven business model offer substantial returns. McDonald’s menu includes everything from burgers to breakfast options, catering to a broad customer base. If you’re seeking a well-established brand with a loyal following, McDonald’s is a top contender.

KFC

Basic Information: Since beginning its franchise operations in 1968, KFC has expanded to 771 locations across Australia. Headquartered in Frenchs Forest, NSW, and led by managing director Richard Wallis, the fast-food giant offers franchise opportunities to aspiring business owners. Opening a KFC franchise requires a substantial investment of approximately $1,310,000, which includes an initial fee of $45,000. Franchisees should also expect ongoing costs, with a monthly royalty fee ranging from 4% to 5% of gross sales. The franchise agreement typically spans a generous 20-year term, providing ample time for operators to establish and grow their business.

Background Information: KFC is another fast food giant, coming in 2nd place in the world after McDonalds, with a strong presence in Australia. Known for its fried chicken, KFC has over 770 stores across the country. The brand’s popularity has been driven by its iconic menu items, including its secret-recipe fried chicken and a range of other chicken-based offerings. As a renowned brand, they offer full-time training, coupled with marketing support and third-party financing for those who might need assistance with funding.

Franchising with KFC can be a lucrative venture due to its strong brand recognition and loyal customer base. The initial investment may be on the higher side, but KFC’s consistent revenue stream and well-established operational systems make it a sound choice for potential franchisees. If you have the deep pockets to get past the hefty start-up costs and accept the fact that it will take anywhere from 10 to 20 years to get your initial investment back, serving up that finger-lickin’ goodness could be your calling.

Domino’s Pizza

Basic Information: Domino’s Pizza has cemented its place as a heavyweight in the Australian fast-food industry, boasting an impressive 728 locations across the country. Since beginning its franchise operations in 1983, the pizza giant has been dishing out slices and opportunities from its headquarters in Hamilton, Queensland. Under the leadership of CEO David Burness, Domino’s continues to expand its reach. For aspiring pizza moguls, joining the Domino’s family requires an investment of $450,000 to $600,000, which includes an initial franchise fee of $60,000. Ongoing costs comprise a 7% royalty fee and a 6% marketing fee, both based on sales. To ensure franchisees are primed for success, Domino’s offers a comprehensive 12-week training program. This robust structure allows entrepreneurs to leverage a globally recognised brand while receiving thorough support to build their own thriving Domino’s franchise.

Background Information: As one of the largest pizza chains in Australia, they are known for their quick service and efficient delivery model. Domino’s has consistently ranked among the top fast food franchises in Australia.

The franchise offers a proven business model with low operational costs and high returns, thanks to its streamlined delivery service. Domino’s has also embraced technology, making it a leader in online ordering and customer engagement. For those seeking a fast food franchise with strong growth potential, Domino’s is a top choice.

Hungry Jack’s

Basic Information: Hungry Jack’s, a staple in the Australian fast-food landscape, has been franchising since 1971 and has expanded to an impressive 470 locations across the country. Under the leadership of CEO Chris Green and headquartered in Sydney, NSW, the burger chain continues to grow. For entrepreneurs interested in joining the Hungry Jack’s family, the initial investment is relatively accessible at $225,000, which includes a franchise fee of $33,000. Ongoing costs are manageable with a royalty fee of 4% of gross sales. This structure has allowed Hungry Jack’s to maintain a strong presence in the competitive fast-food market while offering opportunities for franchisees to build their own successful businesses.

Background Information: Hungry Jack’s, often referred to as Australia’s version of Burger King, has been a staple in the fast food industry for decades. With over 400 stores in Australia, Hungry Jack’s offers a menu that’s similar to its US counterpart but with a distinctly Australian flair.

As an iconic Australian brand with over 42 years of innovation and achievement in Australia, franchising with Hungry Jack’s offers the advantage of being part of a well-established brand with a recognisable menu. The brand’s strong marketing presence and consistent performance make it a reliable investment for those interested in the fast food industry. They provide quality ingredients and appetising flavours, which makes them a top choice for hungry customers looking for a tasty meal on the go.

Red Rooster

Basic Information: Red Rooster, a familiar name in Australian fast food, has been serving up chicken favourites since 1979. Under the leadership of CEO Clint Ault and headquartered in Sydney, the chain has expanded to an impressive 352 stores nationwide. For those looking to join the Red Rooster family; the investment ranges from $350,000 to $900,000, depending on the store type, with an initial franchising fee of $50,000. Ongoing costs include a 5% royalty fee and a 6% marketing fee, both calculated from weekly sales. To ensure franchisees are well-prepared, Red Rooster offers a comprehensive 10-week initial training programme for $12,500 plus GST. This structure allows entrepreneurs to tap into an established brand while receiving thorough support to launch their own successful Red Rooster outlet.

Background Information: Red Rooster is a classic Australian fast food chain with over 360 stores nationwide. Specialising in roast chicken, Red Rooster has maintained its popularity by offering traditional meals with a fast food twist. The brand’s extensive menu includes family meals, burgers, and salads, catering to a broad audience.

Red Rooster’s franchise model is designed to be accessible, making it a good option for first-time franchisees. With strong customer loyalty and a recognisable brand, Red Rooster remains a trusted name in the fast food landscape.

Pizza Hut

Basic Information: Pizza Hut, a beloved pizza chain in Australia, has been serving slices and offering franchise opportunities since 1970. Under the leadership of Phil Reed and headquartered in Sydney, the company has expanded to 266 locations across the country. For aspiring entrepreneurs, owning a Pizza Hut franchise is an attainable goal, with initial investments ranging from $250,000 to $550,000, plus additional business set-up costs. Once operational, franchise partners contribute a 6% royalty fee and a 5.5% marketing fee, both calculated from gross monthly sales. To ensure the success of its franchisees, Pizza Hut provides a comprehensive 8-week training programme, equipping new owners with the skills and knowledge needed to run a thriving pizza business.

Background Information: Since Pizza Hut opened their first restaurant like 50 years ago, they’ve grown really fast. Pizza Hut is an Australian household name known for its wide range of pizzas and quick service. With over 250 stores across the country, Pizza Hut remains one of the top choices for those looking to invest in a pizza franchise.

The brand’s strong recognition and adaptable business model make it an attractive option for franchisees. Pizza Hut’s ability to cater to both dine-in and delivery markets provides franchise owners with diverse revenue streams. If you’re looking for a versatile fast food franchise, Pizza Hut is a solid option.

Oporto

Basic Information: Oporto, the Portuguese-style chicken chain, has been spicing up Australia’s fast-food scene since 1986. Under the leadership of CEO Samantha Bragg and headquartered in Chatswood, the company has expanded to 170 locations across the country. Aspiring franchisees can join the Oporto family with an investment ranging from $450,000 to $900,000, depending on whether it’s a drive-through, in-store, or food court location. This includes an initial franchise fee of $50,000. Ongoing costs comprise a 6% royalty fee and a 4-6% advertising fee, both based on sales. To ensure franchisees are well-prepared, Oporto provides a comprehensive training programme lasting 10–12 weeks. This structure offers entrepreneurs the opportunity to leverage Oporto’s established brand while receiving thorough support to launch their own successful outlet.

Background Information: They were founded on the principle of bringing authentic flavour to Bondi Beach. They focus deeply on fresh, flavoursome food coupled with a youthful, fun and vibrant experience that Australians love so much. They are highly recognised in Australia due to their festive, youthful, eccentric vibe. Oporto’s franchise opportunities are appealing due to the brand’s innovative menu and distinctive store designs. If you’re interested in bringing a bit of international flair to your fast food franchise portfolio, Oporto is worth considering.

Nando’s

Basic Information: Nando’s, the popular peri-peri chicken chain, has been franchising in Australia since 1987 and has grown to 136 restaurants nationwide. Headquartered in Abbotsford, Victoria, the company has been under the leadership of CEO Amanda Banfield since 2020. Aspiring franchisees can expect an initial investment ranging from $950,000 to $1,000,000, which includes a franchise fee of $48,500. Nando’s provides comprehensive support, offering a 12-month training programme for new owners. Ongoing costs include a royalty fee of 8% (which may vary by state or region) and an advertising fee of 4.5% of gross sales. This structure allows franchisees to benefit from Nando’s established brand while receiving continued operational support.

Background Information: Nando’s is a fast food chain that offers a unique take on the traditional fast food model by specialising in Portuguese flame-grilled chicken with a peri-peri twist. With over 300 locations in Australia, Nando’s has carved out a niche in the market for those looking for a spicier, more flavour-packed meal.

Nando’s franchisees benefit from the brand’s distinctive positioning and cult following. The chain is known for its vibrant store designs and engaging marketing campaigns. If you’re interested in offering something different in the fast food space, Nando’s could be the perfect franchise for you.

Chicken Treat

Basic Information: Chicken Treat, a flavorful addition to Australia’s fast-food scene, has spread its wings to encompass 60 locations across the country. Headquartered in Perth and led by CEO Mimma Battista. This chicken-centric chain offers enticing franchise opportunities. Aspiring restaurant owners can join the Chicken Treat family with an initial investment ranging from $350,000 to $650,000 (plus GST). This includes a franchise fee of $40,000 (plus GST), which grants operating rights for a decade. With its focus on tasty chicken dishes and a growing presence, Chicken Treat presents an appealing option for those looking to break into the restaurant business, with an established brand backing them up.

Background Information: Chicken Treat is a fast food chain that has become a household name in Western Australia. Known for its fried and rotisserie chicken, Chicken Treat operates around 60 stores in Australia, predominantly in WA. The brand is well-regarded for its locally sourced ingredients and community-focused approach.

Chicken Treat’s smaller footprint allows franchisees to focus on regional markets while benefiting from strong brand recognition. For those interested in expanding in specific Australian states, Chicken Treat offers a unique opportunity to operate within a more localised market.

Conclusion

The world of franchising offers a wealth of opportunity, but understanding the financial complexities requires specialised knowledge. By understanding franchise accounting fundamentals and the value a franchise accountant brings, you’re well on your way to achieving franchisee success.

A franchise accountant becomes your trusted advisor, ensuring your financial house is in order. They’ll help you manage cash flow, comply with franchise agreements, and maximise tax benefits. Franchise accounting expertise empowers you to make informed decisions, grow your business, and ultimately thrive within the franchise network.

Are you ready to take the next step? Contact us today for a free consultation and learn how our team of franchise accounting experts can help you get started on the right foot. Don’t let accounting challenges hinder your entrepreneurial journey. Invest in your success with The Franchise Accountants accounting services.

FAQS

What are the initial costs associated with starting a fast-food franchise in Australia?

The initial costs for starting a fast-food franchise in Australia can vary significantly depending on the brand. For example, McDonald’s requires a total investment of around $1.5 million, while Subway’s costs range from $229,050 to $522,300. Some lower-cost options, like Hungry Jack’s, require an investment starting at $225,000.

How long are typical franchise agreements for fast-food chains in Australia?

Most fast-food franchise agreements in Australia span between 10 and 20 years. For instance, both Subway and McDonald's offer 20-year terms, providing ample time for franchisees to establish and grow their businesses.

Are there financing options available for fast-food franchises in Australia?

Yes, many fast-food franchises offer financing assistance. For example, KFC provides third-party financing options to help with startup costs, while other brands may offer payment plans or financial support for approved applicants.

How profitable is owning a fast-food franchise in Australia?

Profitability varies depending on the brand, location, and management. Well-established franchises like McDonald’s and KFC are known for strong revenue streams, thanks to their loyal customer bases and high brand recognition. However, it’s essential to consider factors like royalty fees, marketing contributions, and operational costs when evaluating profitability.

What kind of training and support do fast-food franchises in Australia provide?

Most fast-food franchises offer comprehensive training programmes for new franchisees. For example, McDonald's offers a 12-month full-time training programmeme, while Domino’s provides a 12-week programmeme. Support usually includes marketing assistance, operational training, and continuous guidance.

Which fast-food franchise has the highest growth potential in Australia?

Franchises like Domino’s Pizza and Subway have shown strong growth potential due to their focus on technology, delivery models, and healthy eating options. Brands with innovative business strategies and adaptability to market trends tend to have higher growth potential.

How long does it take to see a return on investment for a fast-food franchise?

The time it takes to recoup your initial investment varies by brand and business strategy. On average, it can take anywhere from 10 to 20 years, depending on factors such as the franchise model, operational efficiency, and market conditions. Brands like KFC and McDonald’s, with their higher initial costs, may take longer to deliver a return on investment compared to lower-cost franchises.

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