How much it costs to own a fast food franchise in South Africa in 2025

The fast food industry in South Africa is a testament to the country’s deep love for convenient and affordable food.

However, joining the ranks of these industry giants requires significant financial investment.

While McDonald’s holds global dominance, South Africa’s fast food landscape reveals a unique set of market leaders.

An analysis by BusinessTech showed KFC, a subsidiary of Yum! Brands, stands out as the undisputed leader, capturing approximately 25% of the market.

With 1,057 outlets across the country—an increase from 925 stores just a year ago—KFC is firmly entrenched in South African food culture.

Other prominent local franchises, such as Debonairs Pizza (710 outlets), Steers (652 outlets), and Wimpy (458 outlets), also surpass McDonald’s footprint of 377 stores.

Meanwhile, Chicken Licken, Nando’s, Roman’s Pizza, Fishaways, Hungry Lion, Kauai, and Burger King collectively make up the rest of South Africa’s top fast food brands, each boasting hundreds of outlets nationwide.

The popularity of these brands is evident in the findings of consumer insights firm Eighty20.

Research by Eighty20, a data company, shows just how much South Africans love fast food.

Around 20 million people ate at a fast food restaurant in the past month, and 90% of them picked one of the top 10 brands.

More than 16 million people went to KFC, Chicken Licken, McDonald’s, Debonairs, or Hungry Lion—that’s even more than the number of people who voted in the last election. This shows how big fast food is in everyday life.

But it’s not all good news for fast food chains. Famous Brands, which owns many popular restaurants, has been struggling because people have less money to spend.

Their CEO, Darren Hele, said this past year has been one of the hardest for customers’ budgets. Between March 2023 and February 2024, Famous Brands had to close 47 restaurants, including Steers, Fishaways, Debonairs, Mugg & Bean, Wimpy, and Milky Lane.

They also turned 10 Fego Caffés into Mugg & Bean outlets. In the first half of the next financial year, another 18 restaurants were shut down.

How much it costs

If you want to own a fast food franchise in South Africa, it costs a lot of money. New owners need to pay for training programs that last from six weeks to a year, depending on the brand.

They also need a lot of cash ready to use, not borrowed from a bank or tied up in loans. Big franchises like KFC, Spur, McDonald’s, Debonairs Pizza, Steers, and Nando’s have strict financial rules for anyone who wants to join their business.

This means you need to plan carefully and have a strong financial base.

Below is a list of these brands and their respective financial requirements for owning and operating a franchise.

Note: where updated capital requirements to open a franchise were unavailable on the respective company’s website, estimates were taken from which franchise.co.za – as indicated under the relevant brand name.

Whichfranchise.co.za is among the leading websites for franchise information, advice, and opportunities in South Africa, and hence, it is one of the top franchisee recruitment websites.

KFC is undeniably the most popular fast-food franchise in South Africa. However, it’s important to note that KFC South Africa’s brand owner, Yum! Brands International has asserted that they are not actively seeking new franchiseee.

However, it is possible to become a new KFC franchisee by purchasing an existing KFC business, as existing franchisees may choose to sell their businesses.

According to the latest franchise data available from KFC, new franchise owners could expect to pay around R6 million for a new franchise.

This number would also vary depending on location, size, and operation requirements.

According to whichfranchise.co.za latest data, the investment required to open up a Spur includes:

• Approximate Establishment Cost: R5.5 million
• Upfront Fee: R175,000
• Recommended Working Capital: R120,000
• Advertising & Marketing Fees: 4%
• Management Fee: 5%

McDonald’s doesn’t present updated franchising costs, and one would have to apply to get an accurate idea of the total investment requirement for 2025.

However, here’s a breakdown of the estimated costs based on the most recent franchise documents and industry insights:

• Application Fee: R37,500
• Franchise Fee: R250,000
• Average Investment Required:
  • Drive-Thru: R6.7 million
  • Inline: R5.4 million
• Unencumbered Cash Contribution: (This means cash you have readily available, not from loans)
  • Drive-Thru: R3.5 million
  • Inline: R2.8 million

The total investment again depends on location, size, styling, and varying pre-operation expenses.

According to whichfranchise.co.za latest data, the investment required to open up an Anat – a chain that specialises in Middle Eastern cuisine – in South Africa includes:

• Average investment required – R1.7 million
• 60% unencumbered cash contribution – R1.02 million
• Monthly royalties:
  • Franchise royalty – 5% of monthly Net Sales
  • Marketing royalty – 3% of monthly Net sales

It’s tricky to give you an exact figure for a Debonairs franchise in South Africa. Famous Brands (who own Debonairs) prefer to have individual discussions with potential franchisees.

However, based on available information and industry trends, here’s an estimated breakdown:

• Initial Franchise Fee: R50,000 – R68,000 (depending on store format)
• Setup Costs:
  • Standard Store: R2.24 million
  • Shopping Mall Store: R2.38 million
  • Express Store: R2.05 million
• Working Capital: R250,000 – R450,000 (for initial stock and operating expenses)
• Ongoing Fees: 12% of monthly turnover (covers royalties and marketing)

It’s important to note that these figures are estimates and may vary based on location, size, and other factors.

Steers franchising fees include:

• Franchise fee – Drive-Thru: R75,000 | Inline: R68,000
• Average investment required – Drive-Thru: R3.75 million | Inline: R1.97 million
• Monthly royalties – 11% of monthly Net Sales.

According to Nando’s latest estimates, the total investment to own a branch includes the following:

• Application fee – R37,500
• Franchise fee – R250,000
• Average investment required – Drive-Thru: R6.69 million | Inline: R5.47 million
• 50% unencumbered cash contribution – Drive-Thru: R3.47 million | Inline: R2.86 million

RocoMamas has 250 restaurants nationwide.

The total investment to own a branch includes the following:

• Average investment required – over R4 million (including upfront fee and working capital)
• 60% unencumbered cash contribution – approx. R2.4 million
• Monthly royalties:
• Franchise royalty – 5% of monthly Net Sales
• Marketing royalty – 2% of monthly Net sales

According to Chicken Licken’s latest estimates, the total investment to own a branch includes the following:

• Franchise fee – R180,000
• Average investment required – Fly-Thru: R6.8 million | Inline: R4.8 million
• 50% unencumbered cash contribution – Drive-Thru: R3.4 million | Inline: R2.4 million
• Monthly royalties:
  • Franchise royalty – 6% of monthly Net Sales
  • Marketing royalty – 6% of monthly Net sales

According to whichfranchise.co.za latest data, the investment required to open up a Mochachos – a chain that specialises in Mexican cuisine – in South Africa includes:

• Franchise fee – R199,000
• Average investment required – Between R1.9 million and R2.9 million
• 60% unencumbered cash contribution – Between R1.14 million and R1.74 million
• Monthly royalties:
  • Franchise royalty – 8% of monthly Net Sales
  • Marketing royalty – 2% of monthly Net sales

Mochachos noted the investment required for a franchise will vary, depending on the size and condition of the premises available for rental.

A sales representative would be able to give interested parties a cost breakdown based on average store costing, but an accurate assessment would only be available once a specialised in-house development team has conducted a site inspection.

According to Simply Asia’s latest estimates, the total investment to own a branch includes the following:

• Commitment fee: R20,000. This will be used for any costs associated with the application process, such as assessments, interviews, and tests.
• Franchise fee –R100,000.
• Joining fee – R100,000. This includes the right to use and operate under the name, training, lease negotiations, and initial pre-opening launch.
• Average investment required – Sit-down: R1.8 million | Express: R1.5 million
• 50% unencumbered cash contribution – Sit-down: R900,000 | Express: R750,000.
• Monthly royalties:
  • Franchise Fee – 7% of monthly Net Sales
  • Marketing royalty – 3% of monthly Net sales

According to Roman’s latest estimates, the total investment is ± R3.39 million and is made up of the following costs:

• Franchise fee – R90,000
• Average investment required – R2.85 million (including R100,000 working capital).
• Unencumbered cash contribution – Minimum of R1.6 million.
• Monthly royalties:
  • Franchise Fee – 4% of monthly Net Sales
  • Marketing royalty – 4% of monthly Net sales

Read: Cut ‘work experience’ requirements for jobs in South Africa: Ramaphosa