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Explore Chicken Franchises & Businesses

Chicken Restaurant Industry

General Industry

The chicken industry is a significant contributor within regional economies and to the U.S. economy. It is a relatively stable industry, and the market size has been steadily increasing over the past five years, reaching around 36.49 billion USD in 2020, a 6% growth compared to the previous year’s 34.4 billion USD. The food sector accounts for about 5% of gross domestic product (GDP) and the chicken sector accounts for around 8% of that. In addition, the chicken restaurant industry employs over 525,000 workers in over 21,000 business. It is an industry that has developed important innovations over time, quickly responding to the changes in consumer demand and meeting the needs of 320 million American consumers

Chicken Industry Trends

Entering a new decade, the Chicken Industry continues to change. From flexible menu types to delivery and take out playing a huge part in the industry, chicken restaurants are constantly adapting to keep up with the times. With that said, the public is requesting several new types of dining experiences, including (but not limited to) customization, dietary options, global foods, sustainability, ethical sourcing, value and convenience. The solution is for businesses in the industry to innovate together with the trends positioned by the consumers.

Key Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 8 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 44,851

Chicken Franchise Review

The first thing that comes to mind when most people hear of “franchising” is notable food concepts like McDonald’s, Popeye’s, and KFC. In fact, many people are not very familiar with franchise concepts outside of the food and beverage industry, and fried chicken is a particular favorite of the American population. Chicken has been increasing in popularity as a franchise in recent years. Though this trend was initially driven by the relatively low cost of chicken compared to other meats, the chicken trend has expanded as consumers have developed a taste for the brands associated with it. Even franchises that have traditionally been burger businesses have added chicken options to their menus.

Chicken Franchising Trends

One major trend in the chicken franchise industry is a shift toward healthier menu options. Many franchises are moving to source fresher ingredients with less additives, free-range and grilled chicken is showing up on more menus to counter the less healthy reputation of chicken franchise restaurants. Another major trend in chicken franchises is increased demand for online ordering and delivery services. In response to this demand, many chicken restaurants increased their focus on the structure and ease of the online ordering process, be it on the website or an app.

Food & Beverage Franchising Trends

Convenience stores are becoming a force in food service footprint. Convenience store franchises have been increasing their food offerings in recent years. Featured convenient stores such as 7-Eleven has over 8600 stores in the United States.

Another major trend in fast food franchises is slimming down the menu. For instance, McDonald’s menu has ballooned by 70% over the years, leading to a slowdown in service is affecting customer satisfaction. The solution has been to cut down the menu to re-energize sales.

How much can a Food & Beverage franchise cost?

Through our online platform Vetted Biz, we have reviewed over 2,900 businesses and franchises. Currently, almost 25% of the businesses on our platform are food and beverage franchises.  Of the food and beverage concepts we have reviewed, total investment amounts can start as low as $3,000 for smaller kiosk concepts all the way up to $6,732,615 for a full-service restaurant. Many factors will affect the investment amount, including but not limited to heavy-duty equipment like grills, or where the food and beverage concept needs to be located. In our research, the average royalty fee takes up 5.3% of gross revenue, and the average marketing fee is 2.3% of the gross revenue.  From 2016 to 2018, an average of 2.78% of franchise units ceased operations for reasons other than terminations or non-renewals. Moreover, of the 100 franchises we reviewed, there are approximately 3100 franchise units projected to open next year.

Average Food & Beverage Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Food & Beverage Franchise Industry Investment

$ 0 K

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 523 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 9 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted. 

*SBA Franchise Loan Data from 2010-2019

*Franchise Businesses taken into account: 15,203

Franchise Industries: Free Guides Available

Learn more about the Food & Beverage Industry

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