Key takeaways
- A new KFC store in Australia typically costs $1,500,000 to $2,500,000+ to open, and up to $3,750,000+ for premium formats.
- Ongoing fees total around 10% of gross revenue (5% royalty + ~5% advertising levy).
- Two costs most guides ignore decide the outcome: labour (typically 28–35% of revenue) and the lending gap on your fit-out.
- Controlling labour percentage through demand-based rostering is the main operational lever on your profit.
Opening a new KFC franchise in Australia typically costs between $1,500,000 and $2,500,000+, and premium or large-format stores can push past $3,750,000. That buys a full-scale quick-service restaurant: a franchise fee of around $45,000, a fit-out and building program of $1.2M–$2M+, commercial kitchen equipment and working capital. But the setup cost is only half the story — the numbers that decide whether the store makes money are your labour cost and how you fund the fit-out, and they’re the ones most franchise cost guides barely mention. This guide covers both, and how franchise workforce management keeps the labour side under control from day one.
KFC franchise costs at a glance
- To open a new store:
$1,500,000–$2,500,000+ total investment ($3,750,000+ for premium formats)
- Franchise fee:
~$45,000 one-off (up to $50,000)
- Ongoing fees:
~10% of gross revenue (5% royalty + ~5% advertising levy)
- The cost that decides profit:
Labour, typically 28–35% of revenue — controllable through rostering
KFC is one of Australia’s biggest fast-food brands, with more than 750 stores nationally. The network is dominated by large operators — ASX-listed Collins Foods owns roughly a third of them — and prime territories are largely locked down. In practice that means most new operators buy an existing store rather than build a new one from scratch. Figures below are indicative and were last verified in July 2026 — always confirm the current numbers against KFC’s and Collins Foods’ franchise disclosure document before committing.
How much does it cost to open a KFC franchise?
The total upfront investment for a new KFC store generally falls between $1,500,000 and $2,500,000+, and premium or large drive-thru formats can exceed $3,750,000. The wide range reflects differences in land, building works, location tier and fit-out complexity. For context, see how this compares to lower-cost brands in our cost to open a franchise in Australia guide.
Indicative upfront cost to open a new KFC store (Australia, verified July 2026)
| Cost item | Typical range (AUD) |
|---|---|
| Initial franchise fee | ~$45,000 |
| Fit-out, construction & equipment | $1,000,000–$2,000,000 |
| Working capital | $60,000–$150,000 |
| Total initial investment | $1,500,000–$2,500,000+ |
Indicative only. Premium and large-format stores can exceed $3,750,000. Because territories are largely allocated, most new operators buy an established store rather than build new. The total range also reflects site, lease, professional fees and other costs beyond the itemised rows.
Ongoing KFC franchise fees
Once you’re trading, KFC takes a combined around 10% of gross revenue:
- Royalty fee — 5% of gross revenue. Paid for the use of the brand and system.
- Advertising levy — around 5% of gross revenue. Funds national and local marketing.
These come off the top of revenue, before rent, wages, stock and utilities. On a store turning over $20,000 a week, that’s around $2,000 a week — roughly $104,000 a year — in franchisor fees alone.
What you need to qualify
Applicants generally need a minimum net worth of around $1,500,000, with at least $750,000 in liquid capital. KFC is a capital-intensive brand, and clearing that financial bar is only the first hurdle — you also need to fund the gap between what a fit-out costs to build and what a bank will lend against it.
The lending gap most operators miss
Banks often value a fast-food fit-out below its build cost. If a store costs $2.1M to build, a bank may value it at only about $1.7M and lend around 70% of that (~$1.2M) — leaving you to bridge the rest with cash. That funding gap catches out buyers who budget for the purchase price but not the difference between valuation and construction cost. Model it before you sign.
The labour blind spot most cost guides skip
Setup cost is a one-off; wages recur every trading day. For a KFC store, labour typically runs 28–35% of revenue — noticeably higher than a counter-service brand because every order involves cooking and prep, not just assembly. A single store leans on 15–25+ crew, and KFC’s notorious turnover above 100% a year means you’re almost permanently hiring and training, which quietly loads cost on top of the wages themselves. Yet almost every “cost to open a KFC” article stops at the franchise fee and never explains where that labour percentage really comes from — or how an operator keeps it in check.
KFC crew are covered by the Fast Food Industry Award (MA000003), enforced by Fair Work — see our Fast Food Award rates guide. What pushes the labour percentage up isn’t just the base rate — it’s who works and when:
- A big roster. A single store runs 15–25+ staff, far more than a lighter QSR format.
- Very high turnover. KFC is known for staff turnover above 100% a year, which adds hidden training and rostering cost most budgets ignore.
- Casual loading of 25% on top of the base rate, and most crew are casual.
- Evening, weekend and public-holiday penalty rates hit hardest — because those are exactly KFC’s peak trade.
A worked example
A store turning over $20,000 a week at a 30% labour cost spends about $6,000 a week on wages — roughly $312,000 a year. Let it drift to 34% through over-rostering quiet periods and you’ve added about $800 a week — roughly $42,000 a year — in wages for the same sales. That difference is often the whole store’s profit. Model your own numbers with the franchise labour cost calculator.
The lever is rostering to demand — staffing each cooking station to the trade in front of it instead of copying last week’s roster. KFC’s load is spiky: evening and weekend peaks need a full cook line, quiet mid-afternoons don’t, and the constant turnover means half your roster may be new hires still learning the fryers. Match staffing to your actual trade pattern, keep hours off penalty windows where you can, and track rostered versus actual hours every shift. That discipline is the difference between a KFC that clears a healthy margin and one that runs the owner into the ground — see reducing labour costs without understaffing for the playbook.
Is a KFC franchise profitable in Australia?
It can be, but KFC is a capital-intensive brand and results swing hard from site to site. Two levers do most of the work:
- The deal and the site. With Collins Foods and a handful of large operators holding roughly a third of the network and prime territories effectively locked out, most newcomers buy an established store rather than build. That means the price you pay and the site’s existing trade set your ceiling before day one — there’s little room to “out-open” a weak location. See our are franchises profitable in Australia? guide for how the maths plays out across brands.
- Labour control. With franchisor fees fixed near 10% and food cost dictated by the supply chain, wages are the one big number you actually steer. On a cooking-heavy, high-turnover roster, a tightly-run store and a loosely-run one on identical sales can finish the year tens of thousands apart.
This is where the ongoing decision matters more than the opening one. If you go on to run more than one store, multi-site rostering for franchise operators becomes the core skill — and it’s the problem RosterElf’s franchise workforce management is built to solve. Weighing other brands? Compare the numbers in our Subway franchise cost and Grill’d franchise cost guides.
On a cooking-heavy, high-turnover roster, small drift costs real money. RosterElf prices every KFC shift live against your sales as you build it, with Fast Food Award rates applied automatically — so even with new hires cycling through the fryers, the store holds its target labour percentage instead of chasing it after payroll. Run your own figures through the free franchise labour cost calculator.
Related RosterElf resources
Franchise labour cost calculator
Franchise workforce management
Fast Food Award rates
Subway franchise cost
Rostering software
Multi-site franchise rostering
Disclaimer
Cost and fee figures in this article are indicative, were last verified in July 2026, and will vary by site, lease and store format. They are general information only, not financial or franchising advice. Always verify current figures against KFC’s and Collins Foods’ franchise disclosure document and seek professional advice before committing. RosterElf is not affiliated with, endorsed by, or sponsored by KFC or Yum! Brands; all trademarks are the property of their respective owners.
Frequently asked questions
How much does it cost to open a KFC franchise in Australia?
A new KFC store typically costs between $1,500,000 and $2,500,000+ to open, and premium or large formats can exceed $3,750,000. That includes a franchise fee of around $45,000, fit-out and construction of $1.2M–$2M+, roughly $400,000 in kitchen equipment, and working capital. Because territories are largely allocated, many operators buy an established store instead of building new.
What are the ongoing fees for a KFC franchise?
KFC charges a combined ~10% of gross revenue: a 5% royalty fee and an advertising levy of around 5%. These are deducted before rent, wages, stock and other running costs.
What do you need to qualify for a KFC franchise?
Applicants generally need a minimum net worth of around $1,500,000 and at least $750,000 in liquid capital. Beyond that financial bar, watch the lending gap — banks often value a fast-food fit-out below its build cost, so you may need extra cash to bridge the difference between the valuation and the construction cost.
How much does a KFC franchise owner make in Australia?
Earnings vary widely with turnover, the site, rent and wages. Because franchisor fees (~10%) and food costs are largely fixed, labour cost is the biggest lever on profit — a well-rostered store can out-earn a poorly-rostered one on identical sales by tens of thousands a year.
How many staff do you need to run a KFC?
A single store usually runs on 15–25+ crew plus managers, scaling up for lunch, dinner and weekend peaks. Labour typically works out to 28–35% of revenue, and KFC’s high staff turnover (above 100% a year) adds hidden training and rostering cost, so how you roster those peaks strongly affects profit.
What award covers KFC staff in Australia?
KFC crew are generally covered by the Fast Food Industry Award (MA000003). It sets the base rates, a 25% casual loading, junior rates and the penalty rates for evenings, weekends and public holidays — the exact windows a cooking-heavy store like KFC trades hardest. Because those peaks are also when a big, high-turnover crew is on the floor, how you roster around them is what really moves the wage bill.
Is a KFC franchise profitable?
It can be solid, but KFC is capital-intensive and results vary by site. The two biggest levers are the deal and site you buy, and labour control. Controlling labour cost through demand-based rostering is often what separates a strong store from a marginal one.
