How much does it cost to join a KFC

KFC and McDonald's "joining" war has resumed, how many of them are insider and secrets! Recently, KFC's franchise policy has been adjusted, and the starting point of the franchise fee will be reduced from 8 million yuan to 2 million yuan, which is the first time that KFC has lowered its price since it launched its franchise business in China in 1999. When McDonald's threw out a low price of 2.5 million yuan in franchise fees, KFC once said that it would "never lower the threshold".

And this adjustment, in the view of Guo Geping, president of the China Chain Store & Franchise Association, must be related to KFC's expansion strategy. Although McDonald's ranks first and KFC ranks seventh in his hometown in the United States, KFC is far behind its rivals in the Chinese market with 1,500 chain stores (twice as many as McDonald's). In terms of turnover, McDonald's also lags behind KFC.

At the end of 2004, McDonald's opened up franchise rights in more than 30 cities across the country, including Chongqing, and has received more than 1,000 applications so far. But after a series of tests, McDonald's claimed that by June 2006, there could be 10 people in China who were qualified to operate McDonald's restaurants, and that it would be limited to second-tier cities. In fact, as early as 1999, KFC began to implement the "zero-start franchise" franchise, and there are more than 60 franchise stores so far.

However, in the fight for the franchise with McDonald's again and again, KFC began to realize its alienation from investors. A KFC franchisee told reporters: "In the past, KFC required investors to invest 8 million yuan as franchise fees and store decoration, equipment introduction and other expenses; The duration of the first concession is at least 10 years; All franchisees do not enjoy regional exclusivity; The concession program is limited to areas with a population of more than 150,000 and less than 400,000 and an annual per capita consumption of more than RMB 6,000.

After looking at the previous ones, there are actually those that do not count the cost of raw materials and do not count taxes. I don't know much about the situation at McDonald's, so I won't mention it, let's talk about KFC 1, KFC's franchise has always been a franchise, that is, you are not allowed to open a new store, but to give you a store that has been operating steadily. This policy is good or bad.

Although you won't give you any good stores, it's much easier than opening a new store on your own. When you go to open a new store, how much can you talk about the rent of the property and how much is the entrance fee? How many years can you sign a contract?

Yum is basically 10 years old. Can you handle firefighting? And so on, these problems are all money.

Many people talk about how much it cost to join a KFC many years ago, and now it must have risen, in fact, this ** has not changed much, because the ** calculated by KFC franchise is about 300,000 brand usage fees, training fees, etc. + the money that sells this store to you. That is, the specific cost depends on the love of the store you join, including the number of years, the size of the venue, etc. 2. A store that is too good will definitely not give you a franchise, and it is impossible to lose money, that is, it will give you a store that makes a little money, and then deduct your 7% business management fee, basically according to the current situation, it is good that you can protect your capital.

3. So how can you make money and how much can you earn? For example, in the past, the direct store delivered food was a bicycle (company requirements), and the franchise stores were all riding electric vehicles, spending more attention on turnover expansion and activities, and the turnover must be able to rise, how much can it rise? This must be limited, in the case of no change in the business district, it is estimated that 7% of the management fee will not rise back, if you are a business wizard, this aspect is particularly powerful, then why do you join?

The real reliable method is to throttle, how much money can be saved, it depends on how far you can go, 1. Manpower, first cut the social security or buy it according to the minimum standard, everyone will raise the salary, and most people have no opinion. On the premise of reducing manpower and raising wages, it is necessary to cut off some people and increase the enthusiasm of employees. Labor costs can be saved by 5%.

2. Materials, KFC can account for 2% to 3% of the cost of a month due to loss, unknown differences, and production rate problems, and the franchisees themselves can reduce the cost of materials by about 2%, and all kinds of water and electricity, small appliances are desperately saved, absolutely not wasted, and can also account for about 2%. 3. Finally, there is the tax, so I won't say much about this. If the above total is a store with a monthly business of 60w, the franchise fee will be about 3 million, and the profit of a month through the efforts of the franchisee can be 6 to 70,000.

About 700,000 to 800,000 a year. It's a relatively optimistic estimate. In addition, although I have worked in Yum, I have not been in contact with franchisees, the above is my deduced based on the restaurant's operating conditions and experience, for reference only, do not spray if you don't like it.

It generally takes 7 million to open a KFC, and the specific cost has to be explained from the following aspects, and we will open a KFC store in a third-tier city as an example to break down in detail, I believe everyone can't wait to know.

First, the initial investment cost of joining.

1. Restaurant purchase fee: from 2 million yuan.

The KFC restaurant purchase fee refers to the cost required by the franchisee to purchase the KFC restaurant under the "no zero franchise" model, that is, the store transfer fee. This includes all decorations, equipment and facilities in the restaurant, and trained restaurant staff, and includes future cash flow and profits generated in the course of operations, but does not include the restaurant's property and rental costs. The amount of the purchase fee is based on the KFC company's assessment of the value of the restaurant, and the pricing will vary from restaurant to restaurant.

This fee must be paid in a lump sum prior to the official handover of the restaurant. At present, the restaurants that can be transferred are basically distributed in small cities with high consumption levels".

2. Initial fee for joining: about RMB 300,000.

The initial fee refers to the cost required for the franchisee to obtain a 10-year KFC franchise, which is also a one-time fee when the franchisee initially opens the store.

3. Restaurant training fee: RMB 53,000.

The KFC restaurant training program mainly includes the operation and duty management of KFC workstations, and the training location is arranged by KFC according to the actual situation. Before accepting the transfer of the store, the franchisee must complete the restaurant training and learning, and the main operator must participate in the training in person, and cannot be replaced by others.

2. Pay fees during the operation period.

1. Franchise continuation fee: 6% of turnover

2. Advertising fee: 5% of turnover

3. Rent. To open a KFC, the location of the location must be good, and the amount of this lot is large, so the rent in these areas is generally very expensive, and the KFC store is generally not small. Open a 200-square-meter KFC store in a good location in a third-tier city, with an annual rent of about 1 million.

Fourth, the salary cost of personnel.

Generally, there are about 20 employees in a KFC, and the salary of one person is about 3,000 yuan a month. The total salary of employees is 60,000 yuan a month, and 720,000 yuan a year.

5. Water and electricity bills: about 10,000 yuan a month.

6. Material costs: about 300,000 yuan in January.

7. Other miscellaneous expenses: about 30,000 yuan a month.

So, how much does it cost to open a KFC? We will know from the various costs of opening a KFC in the above third-tier cities, which will cost about 7 million. However, if you want to open a KFC, you not only need so much money, but you also need to meet the joining conditions of KFC before you can join, and KFC has high requirements for franchisees.

KFC is a subsidiary of Yum Restaurant Group, one of the largest restaurant groups in the world. Everyone is no stranger to it. Since opening the first restaurant in Chinese mainland in 1987 on Qianmen Street in Beijing, after more than 20 years of development, KFC has opened more than 3,000 chain restaurants in more than 500 cities in Chinese mainland, making it one of the largest and fastest-growing fast food chain enterprises in China.

Stores began to bloom all over the place, but it did not affect the number of customers. It is loved by white-collar children. However, entrepreneurs are curious to know how much it costs to join KFC.

Now for you. [KFC intention to join registration form].

KFC: The first phase of investment of 8 million yuan is not from scratch for domestic franchises, and how to join KFC stores with the transfer of ready-made direct stores, with an initial investment of 8 million yuan.

1 KFC's franchise business opened in Chinese mainland currently only adopts one method - restaurant transfer. That is, how to choose some suitable KFC restaurants to join KFC stores, and select qualified franchisees for resale. With authorization, franchisees can purchase one or two or three restaurants in the same area, and in the future, they can open new KFC restaurants in the same area.

At present, the restaurants that can be transferred are basically distributed in small cities with high consumption levels", this is the franchise condition that He Zhizhong, director of the franchise department of Yum Group in China, the parent company of KFC, shouted at the "China Franchise Conference" that ended a few days ago.

28 million yuan "not from scratch" for 10 years. KFC's current franchise is limited to the transfer of existing stores, and does not adopt the method of opening new stores in its own store locations, which is generally popular in the United States, that is, KFC adopts a "not starting from scratch" strategy in China. He Zhizhong said that the reason is to reduce the risk of investors and cultivate the Chinese market.

The transfer fee for each restaurant is more than 8 million RMB. The operating area of KFC restaurants ranges from 350 to 400 square meters, and the $8 million is a reference for the purchase of a KFC restaurant based on a number of composite indices**, and the actual transfer fee will depend on the sales and profit status of the target restaurant. After paying this fee, the franchisee can take over an operating KFC restaurant, including all the decorations, equipment and facilities in the restaurant, and trained restaurant staff, as well as the cash flow and profits generated in the future operation.

KFC franchise fees; Initial investment in joining: initial fee for joining. Basic management training fee for store pick-up.

Restaurant purchase fee of more than RMB 2 million. Fees apply during the going concern period. Franchise Continuation Fee:

By 6% of the restaurant's turnover. Advertising & ** Expenses: Not less than 5% of the restaurant's turnover

How much does it cost to join KFC? The purchase fee for each restaurant will be calculated based on the specific circumstances of that restaurant. The franchisee can arrange a certain percentage of the loan by himself, but the proportion of the franchisee's own funds invested in the project shall not be less than 50%.

Reference: KFC official website.

Initial investment cost of joining.

Initial fee: USD 53,300.

New store construction costs: according to the area and type of restaurants (under the new store mode) Restaurant purchase fee: according to the actual situation of the restaurant pricing ** under the franchise mode) to pay the fee during the operation period.

Franchise Continuity Fee, System Support Service Fee, Advertising** The above fees are charged as a percentage of the restaurant's turnover.

It has a long-term plan for the development of the catering industry.

In addition, after the official operation, you need to pay 6% of the monthly turnover as a franchise fee, which seems not cheap, but in fact, after joining KFC, it doesn't take long for the investment to be fully repaid, after all, the name of KFC is famous all over the country. The conditions for joining KFC are still very simple, as long as you agree with the brand concept and business model of KFC, obey the work arrangements and rules and regulations of the headquarters, have enough funds to maintain, and be able to bear hardships and stand hard work.

This is the latest.

This is not counted, it needs to look at the local population, whether they like to eat, whether the place is convenient or not, the profit is to see the sales, the sales volume is enough, the profit is high, and the high and low ratio, the difference is not one or two times.

Nowadays, KFC stores can be found not only in first-tier cities, but also in the counties where you are located. Although the scale in the county is not very large, the business is very prosperous. How much does it cost to open a KFC in the county?

Different cities require different amounts of money to open a store. Generally speaking, the cost of investment in provincial capitals will definitely be much higher than that of county-level cities. If you plan to open a store in a county-level city, you also need to analyze the size of the store and the development level of the city to estimate the cost of opening a store.

Let's analyze the KFC franchise fee together!

KFC KFC Franchise Application Form.

If you run a fast food restaurant like KFC in the county, the franchise fee that entrepreneurs need to prepare is generally 500,000 yuan, and the opening of a store here also requires people to prepare a deposit of 200,000 yuan and a store management fee of 100,000 yuan. In the process of opening a store, the cost of raw materials, equipment, rent, etc. also needs to be prepared by the franchisee. Next, let's take the county-level city to open a 100-store as an example to analyze its cost.

Rent cost: The rent cost in county-level cities is low, and if you want to rent a 100 store to run KFC here, you need to invest 500,000 yuan in rent per year. If converted, you need to prepare a rent cost of 10,000 yuan every month.

Raw material cost: To open a Western-style fast food restaurant, entrepreneurs need to be able to order various raw materials from the headquarters continuously, and the general raw material cost in the early stage will be about 100,000 yuan. In addition to purchasing various semi-finished ingredients for opening a store, it is also necessary to order ingredients for drinks.

In terms of the distribution of raw materials, its headquarters will provide corresponding support, so every raw material can be delivered to the store.

Labor costs: If you open a fast food restaurant in a county-level city, the investment cost in all aspects will be reduced. The labor cost here is generally 3,000 yuan per month, so even if investors recruit 10 employees here, they only need to prepare 30,000 yuan per month.

Of course, it also requires an investment of 360,000 yuan in labor costs a year.

How much does it cost to open a KFC in the county? With the above analysis, you can know that the funds invested in opening a Western-style fast food restaurant in a county-level city include a franchise fee of 500,000 yuan, a deposit of 200,000 yuan, a rent cost of 500,000 yuan, etc., and the total entrepreneurial cost needs to be prepared by franchisees about 1.98 million yuan. Therefore, if there is an idea of opening a fast food restaurant in the county, entrepreneurs can refer to this data to prepare their own start-up capital.

KFC official website.