TOP 10 QSR Brands to franchise

Top 10 QSR Franchises

Choosing the right Franchise!

Australia's Quick Service Restaurant (QSR) market is robust and continues to grow, offering promising opportunities for new franchisees. Factors like increasing demand for convenience, established brand recognition, and innovative business models (including drive-thru and delivery) contribute to the sector's stability and potential for financial returns.

However, choosing the right franchise requires careful consideration of the offer, the brand's stability, financial performance, and the level of support provided. Here's a comparative report on some of the top QSR franchises in Australia, keeping a potential new franchisee in mind:

Key Considerations for a New Franchisee:

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Initial Investment & Ongoing Fees: Understand the total capital required, including franchise fees, fit-out costs, equipment, working capital, and royalty and marketing fees.

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Brand Recognition & Market Share: How established is the brand? Does it have a loyal customer base?

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Operational Support & Training: What training programs, marketing support, and ongoing operational assistance does the franchisor provide?

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Menu & Offerings: Is the menu appealing, adaptable to changing tastes, and competitive?

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Financial Performance & Stability: What is the franchise's average unit volumes, profitability, and growth trajectory?

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Franchisee Satisfaction: Are current franchisees satisfied with the system and the level of support they receive? (This is harder to quantify externally but is often discussed in industry forums.)

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Growth Potential: Is the brand expanding, innovating, and adapting to market trends (e.g., plant-based options, digital ordering)?

It's important to note that specific financial returns can vary significantly based on location, management, local market conditions, and economic factors. It is highly recommended to seek independent financial and legal advice before committing to any franchise agreement.

Here are 10 notable QSR franchises in Australia, assessed across the key criteria:

Top 10 Food QSR Franchises in Australia for a New Potential Franchisee

1. McDonald's

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Offer: Global powerhouse with a highly recognisable brand, extensive menu (burgers, fries, breakfast, coffee, desserts), and constant innovation in digital ordering and delivery. Strong marketing and operational systems.

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Stability: Exceptionally stable. One of the largest and most resilient QSR chains globally, with a strong presence and loyal customer base in Australia. Highly adaptable to market changes.

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Financial Returns: Generally strong, but requires a significant initial investment. McDonald's franchisees often achieve high unit volumes. Profitability depends on managing costs and leveraging efficiency.

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Performance: Consistently high performing in terms of sales volume and brand recognition. Benefits from strong drive-thru and delivery capabilities.

2. Hungry Jack's (Burger King in other markets)

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Offer: A major competitor to McDonald's, known for its flame-grilled burgers and value offerings. Has a strong Australian identity.

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Stability: Very stable and well-established in the Australian market. Part of a global chain, providing significant resources and a proven business model.

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Financial Returns: Good potential for returns given its market position and consistent demand. Investment is substantial, but the brand's footprint is strong.

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Performance: A consistent performer in the Australian burger market, with steady

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customer traffic and brand loyalty.

3. Subway

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Offer: Known for customizable sandwiches, salads, and wraps, often positioned as a healthier fast-food alternative. Lower initial setup costs compared to some larger QSRs.

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Stability: Has faced some challenges in recent years with store closures, but remains one of the biggest fast-food chains by location in Australia. The brand is actively working on revitalising its image and offerings.

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Financial Returns: Lower initial investment compared to many other QSRs, which can be attractive for new franchisees. Returns depend heavily on location and operational efficiency.

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Performance: While it's seen some shifts in its network, Subway continues to be a popular choice. Its emphasis on digital and delivery options, and menu innovation, aims to boost performance.

4. KFC

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Offer: An Iconic fried chicken brand with a strong and unique product. Offers a range of chicken products, sides, and meals.

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Stability: Highly stable and globally recognised. KFC has a very strong and dedicated customer base in Australia.

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Financial Returns: Strong financial potential due to high demand for its product. Initial investment can be considerable. Benefits from strong delivery partnerships.

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Performance: Consistently performs well, with significant growth in sales through partnerships with food delivery platforms.

5. Domino's Pizza

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Offer: Leading pizza delivery franchise, focusing on convenience and value. Strong technological integration for online ordering and delivery.

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Stability: Very stable and a dominant player in the pizza segment. Continues to innovate with technology and menu.

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Financial Returns: Good potential for financial returns, often with multiple unit ownership opportunities. Lower overheads than traditional dine-in QSRs due to its delivery focus.

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Performance: Strong performance driven by efficient operations, aggressive marketing, and a booming online delivery market.

6. Zambrero

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Offer: Fast-casual Mexican food with a strong social mission ("Plate 4 Plate"). Focuses on fresh ingredients and healthy options.

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Stability: Growing rapidly in Australia and internationally, demonstrating strong market acceptance and a relevant brand message.

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Financial Returns: Good potential for returns given its growth trajectory and popularity. Investment is mid-range for QSRs.

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Performance: Consistently growing, with a loyal customer base attracted to its fresh food and ethical stance.

7. Oporto

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Offer: Known for its flame-grilled chicken, burgers, and fresh, Portuguese-inspired flavours. Offers a unique taste profile in the QSR landscape.

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Stability: Established brand with a strong following, particularly in its home state of NSW, but expanding nationally. Part of the Craveable Brands group, providing solid support.

Financial Returns: Attractive returns for well-run stores. Initial investment can vary based on store format (e.g., food court, freestanding).

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Performance: Continues to be a popular choice, benefiting from its distinctive menu and focus on fresh ingredients.

8. Guzman y Gomez (GYG)

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Offer: Fast-casual Mexican with a focus on fresh, high-quality ingredients and vibrant store atmosphere. Strong digital and delivery capabilities.

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Stability: One of the fastest-growing QSR brands in Australia, with significant investment and expansion plans.

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Financial Returns: Strong revenue growth and positive financial outlook for franchisees, as evidenced by recent public offerings and performance reports. Requires a significant investment.

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Performance: Exceptional performance with high average unit volumes and strong customer loyalty, driven by its quality focus and appealing brand.

9. Red Rooster

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Offer: Australian-owned chicken QSR focusing on roast and fried chicken, burgers, and sides. Strong nostalgic appeal for many Australians.

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Stability: A long-standing brand in Australia, part of the Craveable Brands group. It has undergone revitalisation efforts to modernise its offering and appeal.

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Financial Returns: Potential for solid returns, especially as the brand revives and optimises its operations. Investment is substantial.

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Performance: The brand is actively working on improving its performance and market share, with a focus on drive-thru and delivery.

10. Bakers Delight

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Offer: A well-known bakery franchise offering fresh bread, pastries, and savoury items baked daily in-store. Focuses on quality and freshness.

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Stability: Highly stable with a strong community presence and consistent demand for its products. A beloved Australian brand.

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Financial Returns: Can offer consistent returns due to daily consumer need for bread and bakery items. Investment is moderate compared to some larger QSRs.

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Performance: Reliable performance, driven by its product quality, local focus, and the ongoing demand for fresh baked goods.

Recommendations for a New Potential Franchisee:

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For High Investment / High Return / Proven System: McDonald's, KFC, Hungry Jack's, or Guzman y Gomez are strong contenders if you have significant capital and seek a robust, established system with high potential returns. GYG is particularly attractive for its current growth trajectory.

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For Moderate Investment / Good Potential: Zambrero and Oporto offer compelling propositions with popular and growing product categories and a strong brand presence.

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For Lower Initial Investment / Established Brand: Subway might be an option, but it's crucial to thoroughly investigate the current state of the particular store or new location and the franchisor's support programs.

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For Consistent Demand / Community Focus: Bakers Delight offers a stable business model with reliable daily demand.

Crucial Steps for a New Franchisee:

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Due Diligence: Thoroughly research each franchise, including its Franchise Disclosure Document (FDD).

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Financial Analysis: Get a clear understanding of the investment, operating costs, and projected revenues.

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Talk to Existing Franchisees: This is paramount. They can provide invaluable insights into the day-to-day operations, franchisor support, challenges, and actual financial performance.

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Seek Professional Advice: Engage a franchise lawyer and an accountant experienced in franchising to review the franchise agreement and financial projections.

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Understand Your Fit: Consider your skills, interests, and financial capacity. A franchise should align with your personal and professional goals.

This report provides a general overview. The best fit for you will depend on your circumstances and risk appetite.

Contact QSR Advisory for personalised support and advice on selecting the right franchise brand.

Advisor@QSRbusinessadvisory.com