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Popeyes vs KFC: Which Fried Chicken Franchise Wins?

Popeyes vs KFC compared on revenue, cost, royalties, and SBA charge-off rates. Which fried chicken franchise has the stronger unit economics?

FranchiseVerdict Research7 min readReviewed against SBA & FDD data

Popeyes and KFC are the two giants of franchised fried chicken. Since the 2019 chicken-sandwich wars, Popeyes has been the momentum brand, but momentum and franchise economics are not the same thing. The FDD and SBA data let us settle which is the stronger investment, not which has the better marketing.

The numbers side by side

MetricPopeyesKFC
Total Investment$504,545–$3,923,245$1,052,825–$3,771,550
Franchise Fee$50,000$45,000
Royalty Rate5.0%4.0%
Avg. Gross Sales (Item 19)$1,974,468$1,346,365
Total Units3,1773,638
SBA Loans on File332281
SBA Charge-Off Rate10.4%12.3%
Avg. SBA Loan Size$697,836$645,119

Revenue: Popeyes pulls ahead

Popeyes discloses average gross sales of $1,974,468, ahead of KFC at $1,346,365. On the top line, the average Popeyes unit out-earns the average KFC, which tracks with Popeyes' post-2019 surge in same-store sales. Higher revenue against a similar cost base is the clearest single advantage in this matchup.

Cost of entry

Popeyes opens for $504,545 to $3,923,245 with a $50,000 fee. KFC runs $1,052,825 to $3,771,550 with a $45,000 fee. KFC's higher entry floor reflects its larger standard build, while Popeyes offers a somewhat lower way in. Royalties are close: 5.0% for Popeyes versus 4.0% for KFC.

SBA performance: Popeyes defaults less

Both brands have statistically meaningful SBA records. Popeyes shows a 10.4% charge-off rate across 332 loans; KFC sits higher at 12.3% across 281 loans. Lower defaults plus higher revenue is a strong combination, and it favors Popeyes. KFC's higher rate is consistent with its higher entry cost and the maturity of many of its locations. Put both against the QSR category average in our failure rate by industry analysis.

The verdict

On the data, Popeyes is the stronger investment today: higher disclosed revenue, a lower charge-off rate, and a lower entry floor. KFC remains a larger, globally proven system with more U.S. units, and its scale brings supplier and marketing advantages. But for a new franchisee underwriting unit economics, Popeyes' combination of higher revenue and lower defaults is hard to argue against.

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See the Popeyes franchise cost, KFC franchise cost, and Raising Cane's franchise cost.

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Frequently Asked Questions

Is Popeyes or KFC a better franchise to own?
On the data, Popeyes leads: it discloses higher average gross sales ($1,974,468 vs $1,346,365) and a lower SBA charge-off rate (10.4% vs 12.3%). KFC is a larger, globally proven system with strong scale advantages.
How much does a Popeyes vs KFC franchise cost?
Popeyes costs $504,545 to $3,923,245 with a $50,000 fee. KFC costs $1,052,825 to $3,771,550 with a $45,000 fee.
Which fried chicken franchise has the lower default rate?
Popeyes has the lower SBA charge-off rate at 10.4% across 332 loans, versus 12.3% across 281 loans for KFC. Both samples are large enough to be reliable.