KFC Franchise in India: Cost, Process & Profit [July’24]

Currently, KFC is not giving franchise in India. This blog post is solely for informational purposes and should not be considered as professional advice. Always consult with a qualified expert before making any legal, financial, or business decisions based on this information.

In India, Sapphire Foods India Limited operates the franchise of KFC. It does not hold rights to offer Franchisee and/or Sub-Franchisee for the Brands ‘KFC’ & ‘Pizza Hut’, in any manner whatsoever.

Do not respond to SMS/Calls/Emails/WhatsApp/Telegram messages from anyone, if they try to allure you citing huge financial gain in this regard.

 

KFC Franchise in India

 

 

No matter how many chicken joints come and go, KFC has leached into the hearts of people from all over the world and is almost impossible to get bested. 

KFC or Kentucky Fried Chicken is one of the largest QSR (quick service restaurant) chains in the world. The fondness of their popular fried chicken has grown into the hearts of the people so much that its demand doesn’t seem to decrease in the foreseeable future.

The mystery of the 11 herbs and spices used in the recipe is one of the reasons why KFC has still not come across a viable competitor.

Many sharp-witted entrepreneurs have made the correct decision to invest in a KFC franchise, and now is your time to take that astute step!

KFC recorded a whopping valuation of $5.43 Bn in 2011 which later grew to a whopping sum of $6.09 Bn in the next year, 2012.

 

Beginning of KFC

KFC is a star set on a pile of failures. Established in September of 1952, KFC was founded by Colonel Sanders who undoubtedly carried through a variety of hurdles.

Colonel Sanders lost his father at a very young age and being the man of the house, he had to abandon his studies and work as a farmhand to feed his family which helped him turn into a tough young man.

He tried his luck in a variety of other fields including, a streetcar conductor, insurance seller, railroad firemen, steamboat operator, tire seller, lawyer etc. But none of them worked in his favour.

After coming such a long way, Colonel Sanders finally hit the jackpot in 1930 when he got a job to operate a gas station in Corbin, Kentucky. For some extra bucks, he prepared a few dishes including fried chicken and offered them to his customers. 

Word circulated about his highly appetising fried chicken and people from all over started coming over. The popularity experienced a great rise and he eventually removed the gas pumps and converted the gas station into a fully developed restaurant. 

In 1936, Colonel Sanders was bestowed upon with the title of Kentucky Colonel by the Governor of Kentucky.

A year later, Colonel Sanders grew his empire further, by the establishment of a motel, a cafe, Sanders cafe and courts that could serve a great number of 142 consumers.

After extensive experimenting, he finally came up with his famous fried chicken recipe in 1938 which included 11 herbs and spices. But to our misfortune, the much loved, fried chicken’s recipe is a secret to this day.

 

KFC Outlets

The first KFC franchise was established in 1952 in the United States whereas the first overseas KFC franchise was established in the United Kingdoms in 1965.

Colonel Harland Sanders passed away from pneumonia at the age of 90 years. During that period, there were around 6,000 KFC outlets in 48 countries. And by 2013, there were an estimated 18,000 KFC outlets in 118 countries.

As of 2022, there are an estimated sum of 25,000 KFC outlets in 147 territories and countries all around the globe. 

 

Read Also: Vending Machine Price List in India 

 

Launch of KFC in India

The Indian government imposed the LPG policy in the 1990s, making KFC the first overseas fast- food chain in India.  KFC entered the Indian market with its scrumptious taste in the summers of June, 1995 in Bangalore.

KFC acquires more than 342 open restaurants in the top 100 cities of India according to their site.

KFC Menu

After years and years of attempts by a variety of competitors, no one has been able to match the taste of the original KFC.

They offer a wide variety of both vegetarian and non- vegetarian speciality items including, rice bowls, drinks, burgers, snacks, chicken strips, wings etc at economical rates. 

KFC chicken burgers are made entirely with 100% real chicken and are served with sauces and vegetables. 

KFC is also known for its one of a kind ‘krusher’ drinks.

 

Reasons to Choose a KFC Franchise

  • KFC is one of the leading fast food chains globally.
  • KFC has a well- established reputation due to its trust and visibility.
  • Best and fastest growing business.
  • You have the opportunity to utilize the operating systems and trademarks of one of the world’s leading brands.
  • KFC provides an excellent network of supply chain partners who make sure the restaurants are provided the highest-quality products at the economical prices.
  •  KFC is already a successful business model.
  • Training is also provided by the KFC team at the initial steps.
  • KFC is one of the most popular and biggest US- originating QSR chains.
  • It is a subsidiary of the brand, YUM! Which owns other big brands including Taco Bell, Pizza Hut and WingStreet.
  • Extensive training is provided by the KFC team.
  • Strong advertising and marketing campaigns and support.
  • Bulk buying power which enables them to lower their manufacturing costs and earn better profits.
  • Increased chances of success.

 

KFC Franchise Cost & ROI

There are  2 kinds of KFC stores, a traditional KFC store which requires an estimated investment of INR 50 L and a non- traditional KFC store which requires an estimated investment of INR 1 Cr.

An estimated royalty charge of 4% – 5% is applied on the total sales.

Listed below is a thorough estimated breakdown of the total cost and other requirements of establishing a KFC Franchise in India.

 

Essentials Cost & Other Requirements
Franchise Fee INR 36 L (estimated)
Rent INR 90,000
Salary of workers and their expenses INR 1 L
Space Requirement 1,000 – 1,500 sq. ft.
Food Cost @35% INR 2.1 L
Aggregator Commission (Swiggy, Zomato) INR 20,000
Transport INR 20,000
Royalty Charge 4% – 5% (of total sales)
Electricity & Water supply INR 27,000
Equipment Cost INR 10 – 20 L
Ad Royalty Fee 2%
Royalty Fee @5%+GST INR 33,000
Agreement Period 20 yrs (renewable)
Miscellaneous  INR 40,000

 

For the commencement of a KFC franchise in India, a hefty investment of INR 1 – 2 Cr with a space requirement of 1000 – 1500 sq. ft. is needed.

 

The franchise fee required to establish a KFC franchise is an estimated sum of INR 35 L.

 

KFC Profit & Profit Margin

 

KFC has unmountable fans all over India, hence, a ton of investors are always interested in doing business with the KFC trademark.

A KFC franchise is an extremely profitable business venture in India but the profit and profit margin is variable in accordance to the outlet type, location, size, expenditure, footfall etc.

In the initial days, the profit margin will stand at 20% of total sales but will grow gradually. We encourage you to carry out a thorough research before investing in any franchise outlet. 

 

Steps to Apply for a KFC Franchise 

 

Some thorough steps are to be followed to establish your own KFC franchise. The procedure involved is listed below –

STEP 1: Visit the official KFC website and click on the apply section.

STEP 2: Fill out the necessary details including name, contact number, and other details.

STEP 3: If you’re found to be eligible, the KFC executives will contact you and guide you on how to proceed further. 

STEP 4: A franchise form will be required to be filled out with the necessary details including-

 

  • Location photographs
  • Name of the owner/s of the property
  • Address of potential of KFC outlet
  • Parking space details
  • Investment amount
  • Contact details of the owner/s
  • Space available

 

STEP 5: You will be guided regarding the next steps by the KFC team.

 

Eligibility Criterion for KFC Franchise

 

KFCis a globally renowned big- named brand. KFC is one of India’s most expensive and well-established finger food restaurants and hence requires its future owners to tick a few criterions, including-

  • Managerial experience is ideal to overstep your venture.
  • Open to learning.
  • Entrepreneurial spirit.
  • Keep customer satisfaction on priority.
  • Ability to train and develop people’s skills.
  • A location of high-purchasing capacity population with a minimum of 100000 people.

 

Documents Required to Own a KFC Franchise

 

A number of documents or certificates are required to own your very own KFC franchise, the list is given below-

  • Personal Documents- Aadhar and PAN Card
  • Passport Size Photographs
  • PD Cheques- if necessary
  • Outlet Rental Agreement- if necessary
  • Bank Passbook
  • Brand Agreement
  • GST License
  • ITR Documents
  • Other documents if required

 

Befriend success once you invest in a KFC franchise. KFC is globally one of the leading QSR chains and is a well-established and much-loved brand. It is well reputed and has a loyal and reliable fanbase. Investing in a KFC franchise is indeed risk-free and provides nothing but cap-free income flow! 

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