Top 10 Most Profitable Fast Food Franchises
In the competitive landscape of the fast-food industry, profitability serves as the key indicator of success. The fast-food sector in the UK features a variety of franchises, all competing for a share of the expanding market. The Top 10 most profitable fast food franchises in the UK distinguish themselves due to their extensive reach and consistent ability to generate substantial profits each year, encompassing both established players and newer entrants. These franchises have mastered the art of combining high demand with efficient operations, creating strong revenue streams that ensure their position at the top.
UK 10 Most Profitable Fast Food Franchises
This is an in-depth look at the top 10 most profitable fast food franchises in the UK. It emphasises the main elements that play a key role in their achievements, as well as the strategic approaches they employ to remain competitive in a continually changing industry. Whether it’s through innovative menus, exceptional service, or savvy business management, these franchises have set the bar for profitability in the fast-food sector. Here are The Top 10 most profitable fast food franchises in the UK:
McDonald’s
McDonald’s stands as the largest fast-food chain globally, catering to over 69 million customers each day across more than 40,000 locations in over 100 countries. The company was established in 1940 by Richard and Maurice McDonald in San Bernardino, California, and it transformed the fast-food industry by introducing the “Speedee Service System,” which became a cornerstone for modern fast-food operations. In 1955, Ray Kroc stepped in and was instrumental in transforming McDonald’s into a widespread international franchise, greatly enhancing its reach and impact.
McDonald’s has greatly broadened its menu since it first started, evolving from its initial selections of hamburgers, fries, and milkshakes to now feature chicken items, salads, coffee, and plant-based choices. Items like the Big Mac, McNuggets, and Happy Meals have transformed into iconic symbols of the brand. The company has also rolled out various innovations for customer convenience, such as drive-thrus, self-service kiosks, and mobile ordering.
In the UK, McDonald’s has around 1,450 locations and brings in over £1.7 billion in yearly revenue. Most of these restaurants function as franchises, with startup costs varying from £400,000 to £1.8 million. Franchise owners gain advantages from McDonald’s recognised brand, wide-ranging global marketing initiatives, and efficient supply chain, all of which aid in their operational success.
- UK Revenue: ~£1.7+ billion (2023)
- Number of Locations: ~1,450 UK stores
- Franchise Fee: £30,000
- Total Investment: £400,000 – £1.8 million
- Royalty Fees: Around 5% of sales + rent (varies by location)
- Profitability: High – Strong brand, global presence, consistent customer base.
- Why It’s Profitable:
- Industry leader in fast food.
- Large customer base & strong brand loyalty.
- McDelivery and mobile ordering boost revenue.
- Efficient franchise model with extensive support.
Despite challenges like health concerns and environmental impact, McDonald’s continues to thrive by adapting to consumer trends, expanding its delivery services, and investing in sustainability initiatives, including reducing packaging waste and sourcing sustainable ingredients.
KFC (Kentucky Fried Chicken)
KFC (Kentucky Fried Chicken) is one of the world’s largest fast-food chains, specialising in fried chicken. Founded by Colonel Harland Sanders in 1952, the brand originated from a roadside restaurant in Corbin, Kentucky. Sanders created his unique blend of 11 herbs and spices, which continues to be a tightly held secret. KFC became a pioneer in franchising, rapidly expanding across the United States and globally.
KFC is a beloved restaurant chain that has spread its wings to over 27,000 locations across more than 150 countries, with over 1,000 spots in the UK alone! It’s famous for its delicious Original Recipe chicken, tasty Zinger burgers, and mouthwatering popcorn chicken, not to mention those iconic buckets of crispy fried chicken. Recently, KFC has been stepping up its game by adding some plant-based options, wraps, and rice boxes to the menu, so there’s something for everyone to enjoy!
In the UK, KFC generates approximately £1.3 billion in revenue annually. Most restaurants are franchised, requiring an investment of £1.5 million+, with franchisees benefiting from KFC’s strong brand recognition, digital ordering systems, and delivery partnerships.
- UK Revenue: ~£1.3+ billion (2023)
- Number of Locations: ~1,000+ UK stores
- Franchise Fee: £38,000
- Total Investment: £1.5 million+
- Royalty Fees: 6% of revenue + marketing contributions
- Profitability: High – Popular chicken-based fast food, strong brand.
- Why It’s Profitable:
- High demand for fried chicken.
- Strong digital ordering and delivery presence.
- Aggressive UK expansion strategy.
Even with heavy competition, KFC remains a dominant player in the fast-food industry, continually innovating with new menu items, mobile ordering, and sustainability initiatives such as reducing packaging waste and responsibly sourcing chicken.
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Subway
Subway ranks among the largest fast-food chains globally and is known for its freshly cooked sandwiches, wraps and salads. Fred DeLuca and Peter Buck launched it in Bridgeport, Connecticut, in 1965 as Pete’s Super Submarines before changing its name to Subway in 1972. The brand became renowned for its customisable, fresh sandwiches and swiftly grew through franchising.
Subway has more than 37,000 locations across over 100 nations, making it the biggest fast-food chain in the world by number of outlets. The Subway brand connects with a variety of cultures, with around 2,300 locations in the UK generating about £500 million in annual revenue. Its key menu items, including the iconic footlong and six-inch subs, Meatball Marinara, Chicken Tikka, and Tuna subs, cater to a wide range of tastes and a growing range of healthier and plant-based options.
Subway’s franchise model stands out in the fast-food industry for its affordability. With an investment range of £150,000–£250,000 and a franchise fee of £8,500–£10,000, it is one of the most accessible options for independent entrepreneurs. The appeal of low startup costs, simplified operations (no grills or fryers), and strong brand support makes it an attractive proposition for potential franchisees.
- UK Revenue: ~£500+ million (2023)
- Number of Locations: ~2,300 UK stores (largest fast-food chain in store count)
- Franchise Fee: £8,500 – £10,000
- Total Investment: £150,000 – £250,000
- Royalty Fees: 8% of revenue + 4.5% marketing fee
- Profitability: Moderate to High – Lower upfront costs, high foot traffic.
- Why It’s Profitable:
- Lower investment than other franchises.
- Strong focus on healthier fast food.
- Simple operations, no need for fryers or grills.
Subway continues to innovate by enhancing its digital ordering, expanding delivery services, and introducing new menu items to meet evolving customer preferences.
Domino’s Pizza
Domino’s Pizza is one of the world’s biggest pizza delivery companies, recognised for its quick service, digital innovation, and large franchise network. Tom and James Monaghan founded the company in the United States in 1960, and it has since expanded globally to become a dominating force in the pizza market.
Domino’s Pizza Group has exclusive master franchise rights for the brand in the United Kingdom, Ireland, and portions of Europe. The business in the UK has grown significantly, with over 1,200 stores and yearly revenues reaching £1.5 billion. Popular menu selections include the Pepperoni Passion, Mighty Meaty, and Vegi Supreme, as well as sides like chicken wings, garlic bread, and desserts.
Dominoes has taken advancements in technology into another level, including smartphone apps, GPS tracking, and AI-powered ordering, drives Domino’s success in delivery efficiency. The company operates under a franchise model, where each store owner invests between £280,000 and £600,000. This investment includes a £25,000 franchise fee and ongoing royalties of 5.5% of sales.
- UK Revenue: ~£1.5+ billion (2023)
- Number of Locations: ~1,200 UK stores
- Franchise Fee: £25,000
- Total Investment: £280,000 – £600,000
- Royalty Fees: 5.5% of revenue + marketing fee
- Profitability: Very High – Dominates UK pizza delivery.
- Why It’s Profitable:
- Best-in-class pizza delivery system.
- High demand for takeaway & online orders.
- Strong brand recognition in the UK.
Competition from Pizza Hut and Papa John’s has not stopped Domino’s from leading the UK pizza market, benefiting from strong brand loyalty, aggressive marketing, and an emphasis on convenience, including contactless delivery and an expanded store network.
Greggs (Not a traditional franchise, but very profitable)
Greggs is the largest bakery brand in the UK and has become a beloved staple known for its affordable, freshly baked products and convenient on-the-go options. The company was founded in 1939 by John Gregg in Newcastle upon Tyne, starting out with a focus on delivering fresh eggs and yeast to local customers. It wasn’t until 1951 that Greggs made a huge stride forward by opening its first bakery, allowing them to bake their own products.
Greggs has expanded considerably over the years, from a single bakery to a nationwide chain of outlets. Their menu includes a variety of scrumptious items such as croissants, burgers, and desserts. It has gained popularity as a spot for breakfast, lunch, and quick bites.
Greggs now has over 2,400 outlets in the UK, earning more than £1.5 billion in yearly revenue. Its menu features classic sausage rolls, steak bakes, sandwiches, and pastries, as well as a growing selection of vegan and healthier options. Greggs has also expanded into hot beverages, competing directly with coffee businesses such as Costa and Starbucks.
Unlike many fast-food chains, Greggs is mostly a company-owned business with only a few franchise outlets, primarily in service stations and convenience stores. This enables the organisation to maintain stringent quality control standards and pricing uniformity.
- UK Revenue: ~£1.5+ billion (2023)
- Number of Locations: ~2,400 UK stores
- Franchise Fee: N/A (mainly company-owned, but franchises in some areas)
- Total Investment: N/A (franchisees typically large partners like Moto service stations)
- Royalty Fees: N/A (company-owned)
- Profitability: Very High – Low-cost, high-volume bakery chain.
- Why It’s Profitable:
- Strong brand loyalty.
- Affordable menu with mass appeal.
- High-profit margins on baked goods & coffee.
Recent growth strategies include drive-thru locations, app-based loyalty programs, and partnerships with delivery services like Just Eat. Despite competition from supermarkets and fast-food chains, Greggs remains one of the UK’s most profitable and beloved food brands, thanks to affordable pricing, a loyal customer base, and continuous menu innovation.
Costa Coffee
Costa Coffee is the UK’s largest coffeehouse chain and is a fierce rival of Starbucks. It was founded in 1971 by Sergio and Bruno Costa in London, initially a wholesale coffee roastery supplying premium beans to restaurants and hotels. In 1981, Costa opened its first retail store, and the brand quickly grew into a national coffee chain.
Today, Costa operates over 2,700 stores in the UK and more than 1,100 international locations across 41 countries. It generates over £1.1 billion in annual UK revenue and has expanded its presence through drive-thrus, vending machines (Costa Express), and delivery partnerships.
Costa’s menu includes handcrafted coffees, teas, hot chocolates, and various sandwiches, pastries, and snacks. It is mainly known for its signature Mocha Italia coffee blend and innovations like plant-based milk options and seasonal drinks.
In 2019, The Coca-Cola Company acquired Costa for £3.9 billion, significantly boosting its global expansion. While most UK stores are company-owned, Costa offers franchises for smaller locations, such as petrol stations, airports, and convenience stores.
- UK Revenue: ~£1.1+ billion (2023)
- Number of Locations: ~2,700 UK stores
- Franchise Fee: Varies (depends on location & agreement)
- Total Investment: ~£250,000+
- Royalty Fees: 5%+ of revenue (varies)
- Profitability: High – Leading coffee chain in the UK.
- Why It’s Profitable:
- UK’s biggest coffee chain (stronger than Starbucks).
- Expanding drive-thru and delivery services.
- High customer retention with loyalty programs.
Costa maintains its dominant position in the UK market due to strong brand loyalty, strategically chosen store locations, and an increasing emphasis on sustainability and digital innovation.
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Burger King
The world-famous fast-food restaurant Burger King is well-known for its flame-grilled burgers, especially Whopper. James McLamore and David Edgerton established it in 1954 in Miami, Florida, and it soon emerged as a significant rival to McDonald’s. The brand grew globally through franchising and is now among the biggest burger franchises globally.
- UK Revenue: ~£500+ million (2023)
- Number of Locations: ~500+ UK stores
- Franchise Fee: £15,000 – £30,000
- Total Investment: £250,000 – £800,000
- Royalty Fees: 5% of revenue + marketing contributions
- Profitability: Moderate to High – Competes with McDonald’s, smaller market share.
- Why It’s Profitable:
- Recognizable global brand.
- Expanding aggressively in the UK.
- New store formats (drive-thru & digital ordering).
Today, Burger King operates in over 100 countries with more than 19,000 locations worldwide, including 500+ stores in the UK. The UK market generates over £500 million in annual revenue. The menu features Whoppers, Chicken Royale, plant-based options, fries, and milkshakes, with a focus on flame-grilled cooking, which differentiates it from rivals.
Pizza Hut
Pizza Hut is a global pizza restaurant chain, known for its dine-in, takeaway, and delivery services. It was founded in 1958 in Wichita, Kansas, by Dan and Frank Carney. The brand quickly expanded through franchising, becoming one of the largest pizza chains worldwide.
Today, Pizza Hut operates in more than 100 countries, with over 600 locations in the UK. It generates approximately £450 million in annual UK revenue and competes with Domino’s and Papa John’s in the fast-growing pizza delivery market. The menu includes classic pizzas like Margherita and Pepperoni Feast, stuffed crust options, pasta dishes, and sides such as garlic bread and chicken wings.
Most UK locations are franchised, requiring an investment of £130,000–£700,000, with a franchise fee of up to £35,000 and royalty fees of 6% of revenue. Pizza Hut UK offers both restaurant-style and delivery-only outlets, adapting to changing consumer preferences.
- UK Revenue: ~£450+ million (2023)
- Number of Locations: ~600 UK stores
- Franchise Fee: £130,000 – £700,000
- Total Investment: £130,000 – £700,000
- Royalty Fees: 6% of revenue + marketing fee
- Profitability: Moderate to High – Strong brand, but high competition.
- Why It’s Profitable:
- Recognizable pizza brand.
- Dine-in, takeaway, and delivery options.
- Competes with Domino’s & Papa John’s.
With an emphasis on digital ordering, discounts, and loyalty programs, Pizza Hut continues to be a significant participant in the UK pizza market despite fierce competition. Recent advancements include vegan menu alternatives, sustainability initiatives, and collaborations with outside delivery firms like Uber Eats and Deliveroo to broaden their customer base.
Papa John’s
John Schnatter created Papa John’s, an American pizza restaurant business, in Jeffersonville, Indiana, in 1984. It is the world’s third-largest pizza delivery firm, with over 5,500 sites in 49 countries. The company is famous for its “Better Ingredients, Better Pizza” slogan. While it has grown and expanded significantly globally, it has also faced controversy regarding its founder’s conduct and company leadership.
- UK Revenue: ~£250+ million (2023)
- Number of Locations: ~500+ UK stores
- Franchise Fee: £18,500
- Total Investment: £185,000 – £250,000
- Royalty Fees: 5% of revenue + marketing fee
- Profitability: Moderate – Smaller than Domino’s but still profitable.
- Why It’s Profitable:
- Focus on “Better Ingredients, Better Pizza” branding.
- Lower investment than Domino’s.
- Strong digital & delivery presence.
Today, it remains a major player in the pizza industry, offering pizzas, chicken wings, and desserts.
Taco Bell
Mexican-inspired cuisine is the speciality of the American fast-food restaurant Taco Bell. Founded in 1962 by Glen Bell, it operates thousands of locations worldwide. Known for its value-focused menu, Taco Bell offers a variety of tacos, burritos, and speciality items like the Doritos Locos Taco. It is a subsidiary of Yum! Brands also owns Pizza Hut and KFC.
- UK Revenue: ~£100+ million (growing rapidly)
- Number of Locations: ~120+ UK stores (expanding fast)
- Franchise Fee: £20,000 – £35,000
- Total Investment: £300,000 – £1 million
- Royalty Fees: 5.5% of revenue + marketing fees
- Profitability: Growing Fast – Still small in the UK, but expanding.
- Why It’s Profitable:
- Mexican fast food is a growing market.
- High demand for unique, affordable options.
- New digital & delivery strategies boosting sales.
Taco Bell is recognised for its innovative marketing and diverse menu, catering to different tastes and regions.
Final Thoughts
- Best for High Revenue: McDonald’s, KFC, Domino’s.
- Best for Low-Cost Entry: Subway, Papa John’s.
- Fastest Growing in the UK: Taco Bell, Greggs.
- Best Coffee Chain: Costa Coffee.
Related articles:
The Top 5 Fast Food Restaurants In The UK
How To Start A Fast Food Restaurant
Restaurant Management Structure
FAQ’s
Which fast food franchise makes the most money in the UK?
In the UK, McDonald’s leads in revenue among fast-food franchises, with annual sales exceeding £1.5 billion across its 1,300 outlets.
Following McDonald’s, KFC generates approximately £791 million in revenue from its 847 locations.
Greggs, a bakery chain, also plays a significant role, with revenues of around £2.03 billion and over 2,000 outlets nationwide.
In terms of the number of establishments, Greggs has the most locations, with roughly 2,300, followed by McDonald’s, which has around 1,400.
Other significant fast-food chains include Burger King, which recorded revenues of £381.8 million in 2023 from over 500 locations, and Five Guys, which reported revenues of £316.4 million from 172 locations.
What is the most profitable fast food chain in the world?
Chick-fil-A stands out as the most profitable chain in the global fast-food industry when considering sales per location. Each of its approximately 2,552 outlets generates an average of $7.5 million in sales annually.
According to Statista.com, McDonald’s boasts the highest brand value globally, estimated at $191 billion in 2023. In addition to this impressive brand valuation, the company reported systemwide revenues of $37 billion in the United States, highlighting its substantial market presence and penetration.
These figures highlight McDonald’s broad influence and strong brand presence, whereas Chick-fil-A’s elevated sales per location indicate its effective operations and profitability.