KFC Philippines expects 73% of its new stores by the end of 2025 to open under a sub-franchising model, where it grants franchise rights to individuals through local partners, as it targets investors seeking passive income opportunities.
“KFC anticipates substantial growth through this sub-franchising model, with a projected 73% of new restaurant openings by end-2025 following this successful approach,” it said in a statement on Tuesday.
Under the sub-franchising model, investors provide the capital while KFC handles all restaurant operations. The agreement allows investors to earn from the business over a 10-year period.
“Our sub-franchising model is meticulously crafted for investors who seek the stability and profitability of a world-class brand without the complexities of day-to-day restaurant operations,” said Adrian Kent C. Galindo, franchise management director at KFC Philippines.
“We handle the heavy lifting, so our partners can focus on the significant returns.”
In particular, KFC would manage staffing, marketing, and operations on behalf of franchisees, ensuring zero operational burden for investors.
It noted that KFC restaurants generate consistent rental income for property owners, transforming idle assets into stable revenue streams.
“The presence of a KFC restaurant significantly enhances the value and appeal of any development — be it malls, commercial buildings, or townships — attracting more customers and substantially increasing an area’s overall foot traffic and commercial vibrancy,” KFC also said.
“This unique approach allows investors to capitalize on the accelerated growth of a globally recognized brand, transforming passive assets into productive revenue streams,” it said.
An investment in a KFC sub-franchise typically costs P25 million for branches within malls or commercial buildings, with a minimum area requirement of 150 square meters (sq.m.).
Meanwhile, full-sized stand-alone drive-thru stores, with a minimum area requirement of 600 sq.m., would require up to P40 million in investment, it said.
“These dynamic strategies ensure the KFC brand remains vibrant and relevant, driving heightened brand visibility, stronger customer loyalty, and increased foot traffic,” Mr. Galindo said.
“For prospective sub-franchisees, this translates directly into sustained customer engagement and, ultimately, enhanced long-term profitability and appeal of their investment.” — Beatriz Marie D. Cruz