Are you looking to start a fried chicken business and want to be your boss?
Great idea! It is a profitable business opportunity.
Establishing a fried chicken restaurant can be an exciting opportunity, and It is not difficult to start; by following the right steps, you can also establish your shop.
Fried Chicken is a favorite dish that has captured the hearts and taste buds of people all over the world; It may be your favorite dish, too.
Many people wish to start their business, but they don’t have an idea to set it up. Always ask where to begin; if you are one of them, then worry not; we will discuss everything.
Through this post, we’ll discuss the complete process, including market research, planning, requirements, legal, marketing, staffing, etc.
So keep reading till the end.
What we will discuss in this post:
- Basics of the business
- The process of opening a shop
- Setup plan, steps, and process
- About essential requirements
- Legal and financial planning
- Marketing and sales strategies
Fried chicken business introduction
Fried chicken is a popular dish, and it is in demand all over the world; it is a type of poultry food that is deep fried in oil with the addition of various flavors.
The process of frying, preparing, packaging, and serving is called a fried chicken business.
To start, one should have the proper plan, entrepreneurial skills, and knowledge of preparation methods, ingredients, and marketing strategies to be successful.
Is the fried chicken business profitable?
Yes, starting a fried chicken business is profitable, but still, it depends on your target market, competition, and demand.
According to a recent report from Technavio.com, the fried chicken market is expected to expand by USD 1.92 billion and grow at a CAGR of 5.32% from 2021 to 2026.
Nearly 40% of this growth is anticipated to come from the APAC region during the forecast period, making it the region that will contribute the most.
The image shows the trend of the search term “fried chicken” over the last 5 years. The trend shows steady and slow growth over time.
Consider the pros and cons:
- High demand
- Good profit margins
- Versatility Food Item
- Branding potential
- Scalability and growth
- Growing food sector
- Repeat customers
- Easy to setup
- Low startup cost
- Start from your city
- Intense competition
- Operational challenges
- Staffing and training
- Long hours
- Equipment and maintenance
By analyzing the market growth, pros and cons, it is easy to understand the profitability.
Fried chicken profit margin:
The profit margin of fried chicken is not similar everywhere; it depends on location, demand, competition, business model, cost of chicken in this area, seasons, and others. Still, you will get a good profit margin.
To know the actual profit margin, you can conduct your research and explore potential sources.
However, the profit margin is around 30%-50% (we collected the data from some magazines).
How to start a fried chicken business?
Starting a fried chicken shop is not difficult, but you need proper resources, a business plan, business capital, and a brief understanding of market demand and competition.
Understand the target market and potential customer base, and build your successful business.
However, you should choose a high-potential location where there is more foot traffic.
Here, we covered all the steps in this post.
- Decide shop model
- Write a business plan
- Find a suitable location
- Calculate your startup cost
- Prepare business funds
- Learn fried chicken preparation
- Obtain license and permits
- Promote your shop
- Partner with food delivery services
- Create a professional website
- Hire staff and employees
Follow the given process to set up your venture successfully.
Step 1. Decide on an independent or franchise shop
To establish a successful venture, acquire the necessary information, prepare an effective plan of action, and heed the advice of experts.
To start, one needs to set up one’s physical establishment like a restaurant or store; this is an independent shop; another one is by taking a franchise for opening a shop.
You can also start with other business models; no matter which one you want to choose, you should always focus on quality and good customer service.
Here are other fried chicken business ideas you can consider.
- Restaurant or shop
- Food truck
- Delivery service
- Catering service
- Franchise resturant model
There is no straightforward answer to this query – “Should I start a franchise or independent shop?” It depends on your planning, budget, goal, location, and other factors.
However, here are mentioned some points (pros and cons) you can consider.
Independent fried chicken shop
If you want to establish your brand, consider opening a local shop. While there are risks involved, you also have the opportunity to invest in a way that reflects your preferences.
Pros and cons of opening your shop:
- Flexibility in menu and branding.
- Complete control over business decisions.
- Higher profit potential as you retain all earnings.
- Ability to customize operations to the local market.
- Opportunity to build a unique brand and loyal customer base.
- Higher initial investment
- Need to establish brand reputation from scratch.
- Market research, recipe development, and operations setup.
- Limited support compared to a franchise.
- Marketing and advertising
The basic requirement:
- Business plan and funding
- Need licenses and permits
- Location selection and lease/rental
- Good location, where more target customers
- Need to buy equipment and supplies
- Menu development and recipe testing
- Hiring and training staff
- Marketing, promotion, and branding
- All the requirement is your responsibility
In franchising, they have to open a shop under another established brand name and follow the recipe and quality guidelines given by them.
That is why the company trains you.
If you are risk-averse and have a significant amount of capital, buying a franchise may be the right decision.
Pros and cons of the franchise business model:
- Established brand recognition and customer base.
- Proven business model and operational processes.
- Training and support from the franchisor.
- Access to marketing materials and national/regional advertising.
- Assistance with site selection and lease negotiations.
- Initial franchise fee and ongoing royalty payments.
- Less flexibility in menu and branding decisions.
- Limited control over business operations and policies.
- Potential competition from other franchisees.
- There is less room for customization and local market adaptation.
- Research and selection of a suitable franchise.
- Agreement negotiation and signing.
- Payment of franchise fees and royalties.
- Training and compliance with the franchisor’s operational guidelines.
- Location selection and lease/rental agreements.
- Staff hiring and training.
- Marketing and advertising strategies Support.
- Ongoing communication and collaboration with the franchisor.
Best fried chicken franchise:
If you want to start with a franchise business model, then consider the given franchise brand as others, depending on your research, budget, and location.
The given information is based on our research, so if you want to access more information about every particular brand, then visit their official franchise page.
|Brand||Franchise cost||Royalty fees||Offering|
|KFC||$45,000 to $200,000||6% of gross sales||Original recipe chicken, chicken tenders, chicken sandwiches, and sides|
|Popeyes Louisiana Kitchen||$250,000 to $500,000||5% of gross sales||Spicy chicken, chicken tenders, chicken sandwiches, and sides|
|Chick-fil-A||$10,000 to $100,000||5% of gross sales||Chicken sandwiches, chicken nuggets, waffle fries, and milkshakes|
|Church’s Chicken||$300,000 to $500,000||6% of gross sales||Hand-battered, all-white meat chicken, chicken tenders, and sides|
|Raising Cane’s||$45,000 to $75,000||6% of gross sales||Made-to-order chicken fingers, Texas toast, coleslaw, and dipping sauce|
Step 2. Write A fried chicken business plan
Before taking any action, the step is writing a proper plan for your business. We also tell beginners to write a plan, but it can be difficult without knowing the process.
First, know why a business plan is important; a business plan helps to reach goals and objectives. Also provides a road map for making strategies, plans, and other activities.
Focusing on your vision, target, and goal, write down those ideas in a notebook or spreadsheet.
Those outlines not only help in your business action but are also important for success.
Follow the given steps to create a well-written business plan.
- Write a summary of the business: Target market, business location, funding, startup cost, marketing plan, team building, etc.
- Create a business description: Your product type, menu, target, goals, customer service, pricing, etc.
- SWOT analysis: Conduct a SWOT analysis – strengths, weaknesses, opportunities, and threats.
- Business model: Decide your business model (online delivery, restaurant, food truck, or catering service).
- Research the market: Fried chicken trend in your area, research demographically, competition and competitors, etc.
- Products and services: Description of your fried chicken menu, your unique selling proposition, best taste, and quality ingredients.
- Marketing and Sales Strategy: Prepare to promote your food service through online and offline marketing channels.
- Operational Plan: You need to select a high foot traffic location, require equipment and supplies, find a good supplier, staffing, and other ongoing plans.
- Financing and funding request: Your expenses, revenue, and profit margin, and try to get funding from different sources to grow your business as a brand.
Step 3. Find a suitable location for your shop
After preparing your business plan, find a good location to open your shop where you can get more potential customers.
Many people face difficulties when finding a good location, but for opening a food-based shop, Your street and city is the best option.
Hope you are familiar with your city, so before selecting a spot, you can easily determine whether this place is good or not.
From finding the proper city to choosing a spot with good foot traffic, parking area, near a shipping mall, and schools, there are also many factors to consider.
With careful research and analysis, identify the best location for your business, which will be part of your success.
Below, you can consider the points for choosing an ideal location:
- Choose a place where there are a lot of people.
- Make sure the customer is easy to reach.
- Consider the population of the area and if they would be interested in fried Chicken.
- Find a location with fewer competing fried chicken shops nearby.
- Make sure there is enough parking space nearby.
- Find a visible location where people can easily see your store.
- Make sure there is enough space for your kitchen and seating (if applicable).
- Choose a place that suits your budget for rent or lease.
- Follow local laws and obtain necessary permits.
- Check if utilities like electricity and water are available.
Step 4. Plan and calculate the startup cost
It would help if you calculated the business’s initial startup cost with ongoing expenses; depending on your operational plan and business size, the expenses can be high or low.
For the average startup cost for a fried chicken business, calculating the expenses is not straightforward.
Such expenses needed:
- A commercial space (rent or purchase)
- Buy kitchen equipment and supplies.
- Furniture, tables, chairs, signage, etc.
- Inventory (Chicken, cooking oil, and spices).
- Licenses and permits
- Marketing and advertising
To run a successful fried chicken business, you need to create a budget for ongoing expenses.
- Rent or mortgage payments
- Utilities (electricity, gas, water, etc.)
- Inventory (Chicken, cooking oil, spices, etc.)
- Marketing and advertising
- Maintenance and repairs
The overall startup cost may be around ($10,000-$20,000) on average.
Purchase equipment and supplies
The next thing is to buy equipment, supplies, and ingredients for making fried chicken.
Find the best supplier in the market to buy fresh Chicken or ingredients, and for buying the equipment, check online stores like Amazon and Alibaba.
Fried chicken restaurant equipment list:
- Commercial deep fryer
- Coolers and freezers
- Cooking utensils: tongs, spatulas, oven, etc.
- Food thermometer
- Storage containers
- Safety equipment
- Cleaning supplies
- Other cooking equipment
- Furniture and table
- Serving and packaging equipment
Fried chicken ingredients:
- Good quality chicken
- Salt and pepper
- Different types of sauce
Research buying all those supplies and equipment from a reputed supplier; you can buy kitchen equipment from online stores (Amazon, eBay, Alibaba, Walmart, and Alliexpress).
For buying fresh ingredients (chicken), a good supplier connection is a must, so keep the point in mind.
Step 5. Prepare fried chicken business capital
Significant investment will be required to start, which will have to be prepared in advance to open a shop; the most crucial requirements are:
- Commercial space
- Equipment and supplies
- Shop setup
- Inventory cost
- Legal fees
- Marketing expenses
Prepare the capital according to the business plan; it depends on how much you want to invest in this startup, your specific goals, and your needs.
Create a detailed list of your startup costs after preparing the finance from different mediums, personal savings, and business loans, and ask your families and friends for help.
Step 6. Learn how to make fried chicken for selling
Making fried Chicken is an easy process; with some simple steps, you can make crispy Chicken using some ingredients and pieces of Chicken.
Making delicious fried chicken requires marinating all ingredients in the right quantity and with different flavorings.
To learn the proper making process, connect with professionals, follow YouTube tutorials, and also you can take online cooking classes.
If you plan to start a medium-scale shop, then hire a professional chef and staff.
Depending on shop size or operation, hire skilled staff accordingly.
- High-quality ingredient
- Fresh chicken
- Oil, spices
A few simple steps:
- 1: Prepare the chicken
- 2: Marinate the chicken
- 3: Fry the chicken in oil
- 4: Serve your customers
Step 7. Obtain a business license, permit, and insurance
Choose a business structure/entity type to register your business. It is important to consider the local, state, or federal laws.
Complete the business registration process and select the best entity (sole proprietorship, LLC, partnership, or corporation).
LLC can be a better option for your food-based shop, it is recommended to consult with your local legal advisor for assistance. For detailed information, check out the (small business administration) website.
License and permits:
Also, obtain the necessary licenses and permits to run a food-based restaurant.
Although, here is the information about basic legal requirements.
Expert guidance is still necessary; contact the local authority for this matter.
A food license, zoning permit, food handler’s permit, and other requirements may be required, depending on your location and business operation.
- Business License
- Food service permit
- Health department permit
- Fire safety permit
- Building permit
- Signage Permit
- Liquor license (if applicable)
- Employee Identification Number (EIN)
- Seller’s Permit
- Zoning permit
- Health and safety inspections
Get business Insurance:
Business insurance is crucial for every business owner to protect their finance and assets from unexpected events that help them to recover from major losses.
Insurance can provide many types of facility- Losses, including property damage, equipment breakdowns, natural disasters, and liability claims.
- General liability insurance
- Business Insurance
- For equipment and machine
- Workers Compensation
Step 8. Promote your fried chicken business
Marketing and promotion is the primary part of business success and growth. To create a good customer base of fried chicken lovers, create a well-researched marketing strategy.
Fried Chicken is the most popular food for people of all ages, so finding target customers may be easy, but the difficulty is market competition.
Here are some simple strategies for promoting fried chicken business that can help to reach more customers and increase sales initially.
There are many marketing methods that you can try; the most effective method is social media marketing and local promotion for a physical shop.
Using social media like Twitter, Instagram, Facebook, and YouTube reels and videos to build an online user base that helps with business branding and marketing.
- Create a strong online presence.
- Partner with local shops
- Involved in the local community
Next Is to create a traditional marketing plan for promoting your fried Chicken, including (print advertising, television ads, outdoor promotion, etc).
Also, word-of-mouth marketing, banner ads, newspaper ads, and some printing media marketing are useful for your venture; make sure to implement all as you want.
Step 9. Partner with online ordering services
In the digital age, everyone is looking to order delicious food online.
Partnering with an online food delivery service is an opportunity to expand your reach and attract a large customer base online.
Which will also help to increase your sales; here are some points you can follow:
- Find the best online food delivery platform
- Contract and build a partnership with them
- Provide the important details (menu options, pricing, location, delivery charges, etc).
- Follow the terms of online food delivery services
- Negotiate commission rate, delivery fees, and other terms
- Understand the online delivery model and promote your services to potential customers
Best online food ordering services:
- Uber Eats
Step 10. Create a professional website
Having a website is vital for creating an online presence, branding, and promotion.
With this website, you can engage your audience and also provide them with information about the business, including menu items, prices, operating hours, location, and contact details, so that they will come to your shop.
As well as, having a website can help to represent your business as a brand’s personality, value, and unique selling points through visual design, imagery, and content.
Steps of creating a website:
- 1. Choose a domain name
- 2. Buy the best hosting
- 3. Set up Your Website
- 4. Create essential pages
- 5. Start creating content
- 6. Promote your website
Here are some tips for creating a user-friendly website:
- Make sure your website is mobile-friendly.
- Create engaging and high-quality content.
- Add your service and food details.
- Menu and pricing should be added.
- Use high-quality images and videos.
- Keep your website updated.
- You need to add your content information
- As well as include your social channels
A website can facilitate online ordering and payment, making it more convenient for customers to place orders and increase sales.
Also, for targeting the local area, a website can help to improve search engine optimization for (Google My Business), which makes it easier for customers to find a business online and increase its visibility.
Choose a business name:
Choose a business name for your fried chicken business that is essential for creating your branding and identity in the market.
Also, for creating a website, the business name is required; that’s why brainstorm a good name for your business (the name should be – memorable, creative, easy to remember, unique, related to fried Chicken, and simple).
Step 11. Hire staff and employees
The final step for this business is: You need to create a powerful, skilled staff to manage your business properly, which will help in building a successful brand.
Also, teamwork motivates you, and it will help you in many tasks, such as operations management, food preparation, customer service, marketing, accounting, etc.
So you have to hire some employees who have the right skills and qualities to provide good customer service.
As well, your responsibility is to work as a team leader and provide proper training as their roles in this business.
Job roles in a fried chicken shop:
- Customer service representative
- Food preparation worker
- General manager
- Shift Supervisor
Please provide them with clear roles and responsibilities, set performance goals, and communicate effectively to ensure everyone is aligned with the business objectives.
Regular feedback and ongoing training can help the team to continually improve and adapt to changing market conditions.
How to successfully run a fried chicken business
Need certain skills to run a business successfully, so you have to have the right strategy and proper marketing strategy.
Also, you need to learn different skills (marketing skills, communication skills, business management skills, etc.) to run a fried chicken shop properly.
- Create proper menu
- Provide good customer service
- Hire workforce and employees
- Manage your expenses
- Improve your marketing strategy and product quality
Software and tools can be essential for a fried chicken business to streamline operations, manage inventory, monitor sales, track customer orders, optimize kitchen workflows, and provide valuable data insights to improve business performance.
Fried chicken has a huge consumer base, which is also your target customer. If you are interested in starting this business, it can be profitable in 2024 and upcoming years.
As the competition and challenges are increasing in all the business sectors, in the same way, there is a lot of opportunity arising.
Hopefully, you got to learn something from this guide about the frying chicken business; if you have any doubts, you can comment below.
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FAQs (frequently asked questions)
Check out the frequently asked questions and their answer in short.
Let’s check them.
How much does it cost to start a chicken restaurant?
There is no straightforward answer, but we can give you a hint of the startup cost. It may cost around $10,000 to $20,000, depending on your planning, budget, operation size, and location.
How do we promote the fried chicken business?
For promoting any new business, the most effective way is social media (Facebook, Pinterest, Instagram reals, etc.); with this, you can create a website for marketing.
What equipment do you need to fry chicken?
Need a few basic pieces of equipment such as a deep fryer, oven, fire suppression system, tongs, spatulas, and some safety kits.
How do I open a fried chicken store?
To open a fried chicken store, you need to secure financing, select a prime location, create a menu, purchase equipment and supplies, hire staff, obtain necessary licenses and permits, and promote your business through marketing and advertising.
What do you need for profitable Fried chicken?
You need high-quality ingredients, a unique recipe, efficient operations, good pricing, proper customer service, and an effective marketing strategy.
Is fried chicken a good business?
Yes, fried chicken can be a good business if it is executed well; make sure to focus on quality, unique offerings, location, and effective marketing.
How much does it cost to make a fried chicken?
The cost of making fried chicken depends on ingredients, chicken type, and oil; generally, $2-$3 (per pound) is required for making fried chicken.
Chicken: $1-2 per serving
Breading: $0.25-$0.50 per serving
Oil: $0.25-$0.50 per serving
Spices: $0.25-$0.50 per serving
Total: $2-3 per serving