Claire Thompson
Chicken Licken is a popular South African fast-food fried chicken restaurant chain with a loyal customer base. The company was founded in 1981 by George Sombonos, and the first franchises were offered for sale in Soweto and Alexandra in 1982. With 268 profitable units worldwide, the brand boasts awards such as the second-biggest fast-food brand in South Africa and the biggest non-American-owned fried chicken franchise globally. Starting a Chicken Licken franchise in South Africa requires a minimum initial investment of R4.8 million, and the typical franchise agreement spans ten years. This investment opportunity offers a well-known brand name, strong marketing strategies, and affordable costs and fees. Before applying, it is essential to evaluate prior business experience, assess market availability, and ensure adequate capitalization.
| Characteristics | Values |
|---|---|
| Initial Investment | R4.8 million to R6.8 million |
| Franchise Agreement Duration | 10 years |
| Business Model | Drive-thru/Fly-Thru |
| Market Availability | Check market availability for franchises in your location |
| Application Process | Submit an application for review by the Chicken Licken franchise team |
| Approval | Approval depends on financial and background checks |
| Training | Comprehensive training for franchisee and staff |
| Support | Ongoing support and marketing resources |
| Target Customer | Value-conscious customers |
| Competition | KFC and Nando's |
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What You'll Learn
Investment and costs
Starting a Chicken Licken franchise in South Africa requires a significant financial investment. The cost of opening a Chicken Licken franchise in South Africa ranges from approximately R4,800,000 to R6,800,000. This range takes into account variations in landlord contributions, the chosen store location, and the suitability of the store for the area. The initial franchise fee is R180,000, with a royalty fee of 6% and an advertising cost of 6%, totalling 12% of the franchise's turnover. It is important to note that Chicken Licken does not offer financing options, and financial organisations typically require applicants to contribute approximately 50% of the loan amount.
Prior to investing in any franchise, it is crucial to conduct thorough research and due diligence. This includes evaluating your suitability for the role of a franchisee, your personal interests, and your financial capacity. Entering a declining industry or one plagued by price cutting is generally not advisable. Assessing the stability of the franchisor and the brand's reputation in the market is also essential.
Real estate costs, equipment, signage, licenses, permits, uniforms, and insurance are among the costs to consider when investing in a Chicken Licken franchise. Efficient cost control is a key factor in Chicken Licken's success, allowing them to offer competitive prices while maintaining product quality. Their adaptable business approach and strategic use of technology further contribute to their efficient operations.
Chicken Licken's Fly-Thru model is a unique drive-thru concept that caters to the increasing demand for convenience and speed, attracting a diverse customer base. The brand recognition and proven business model further enhance the investment opportunity, providing instant name recognition and minimising risk for franchisees. Comprehensive training, ongoing support, and marketing resources are provided to ensure smooth operations and business growth.
In summary, the investment and costs associated with establishing a Chicken Licken franchise in South Africa are substantial, but the potential for financial success and personal fulfilment are also notable.
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Prior experience and strengths
Before applying to become a Chicken Licken franchise owner in South Africa, it is important to evaluate your prior experience and strengths. This includes assessing your business acumen and financial stability, as well as your ability to manage a fast-paced, quick-service restaurant.
Chicken Licken is a well-known and trusted brand in South Africa, with a history of success and a loyal customer base. As such, prior experience in the restaurant or fast-food industry would be advantageous. Understanding the unique challenges and opportunities presented by the South African market, including the busy nature of the fast-food scene with its mix of well-known chains and new entrants, will be key.
Additionally, given the competitive nature of the industry, experience in marketing and brand management could be beneficial. Chicken Licken has a strong brand and distinctive idea, and building on this legacy will require creativity and a deep understanding of the target market.
Financial stability and business acumen are also crucial. Chicken Licken's success is partly due to its efficient cost control, allowing it to offer high-quality products at competitive prices. As a franchise owner, you would need to manage internal costs meticulously and make strategic financial decisions to ensure the profitability of your outlet.
Finally, leadership skills and the ability to manage and motivate a team are important strengths. Chicken Licken provides comprehensive training and support for franchisees and their staff, but as a business owner, you would be responsible for driving the success of your outlet and ensuring smooth operations.
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Market availability
Chicken Licken is a well-known and trusted brand in South Africa, with strong brand recognition and a history of success. The company was founded in South Africa and has since expanded its operations beyond the country. As of 2013, there were 247 Chicken Licken outlets in South Africa, with 12 outlets in Botswana. The company has also attempted to establish a presence in other African countries, such as Zimbabwe, Nigeria, Mauritius, Lesotho, and Swaziland, but these attempts were unsuccessful due to various challenges.
The fast-food scene in South Africa is highly competitive, with both well-established chains and new entrants vying for market share. Chicken Licken has managed to succeed in this market by offering high-quality products at competitive prices, attracting value-conscious customers. The company's efficient cost control, adaptable business approach, and strategic use of technology have contributed to its success in the South African market.
When considering market availability for a Chicken Licken franchise in South Africa, it is important to evaluate the specific location you are interested in. The company initially focused on expanding in higher-income areas and upmarket shopping malls, targeting the growing black middle class. However, it is worth noting that Chicken Licken's presence in the townships during apartheid helped establish a loyal customer base among black South Africans, and the company continues to have a strong association with these communities.
As of 2025, there are talks about opening a Chicken Licken store in the Bronx, New York, which could indicate further expansion plans outside of South Africa. However, the company's challenges in establishing a presence in other African countries suggest that the South African market may be the most viable option for franchisees.
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Application and approval
Chicken Licken is a South African fast-food fried chicken restaurant chain. The company was established in 1981, and in the same year, its first franchise was offered for sale. Today, the Chicken Licken franchise includes 268 profitable units, operating in South Africa and other countries.
To start a Chicken Licken franchise in South Africa, you will need to go through the following application and approval process:
- Evaluate your prior experience and strengths: Before applying, assess your prior business experience and strengths to ensure you meet the requirements for becoming a Chicken Licken franchise owner.
- Assess market availability: Look at the market availability for Chicken Licken franchises in your desired location to ensure there is an opportunity for expansion.
- Submit your application: Complete and submit your application to the Chicken Licken franchise team for review. You will receive a confirmation receipt via email, along with the contact details of the franchise owner.
- Financial and background checks: The Chicken Licken team will conduct financial and background checks as part of the approval process. Ensure that you meet the financial requirements, including having adequate capitalization. The minimum initial investment required to open a Chicken Licken franchise in South Africa is R4.8 million.
- Receive approval: Once your financial and background checks are completed and you meet all the requirements, you will receive franchise approval.
- Training and support: Chicken Licken provides comprehensive training for franchisees and their staff, along with ongoing support and marketing resources to ensure smooth operations and business growth.
It is important to note that the application and approval process may involve additional steps and requirements, and it is recommended to refer to the official Chicken Licken franchise website or contact their franchise team directly for the most up-to-date and comprehensive information.
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Training and support
Chicken Licken is a well-known fried chicken fast-food chain that was founded in South Africa. The company has a strong presence in the country, with 247 outlets as of 2013, and has established itself as the second-biggest fast-food brand in South Africa.
Starting a Chicken Licken franchise in South Africa requires a significant investment, ranging from R4.8 million to R6.8 million. This investment includes the cost of establishing the franchise, as well as the rights to use the Chicken Licken brand and its associated systems and support.
Chicken Licken provides comprehensive training and support to its franchisees to ensure the smooth operation and growth of their businesses. This includes training for both the franchisee and their staff. The company offers a proven business model with a track record of success, providing franchisees with a system that has already been tested and proven effective, reducing the risk for entrepreneurs.
Franchisees receive thorough training in various aspects of the business, including operational procedures, customer service standards, and the use of technology to enhance efficiency and the customer experience. This includes training on specific platforms such as online ordering systems and mobile apps.
In addition to initial training, Chicken Licken provides ongoing support to its franchisees. This includes assistance with marketing and advertising efforts, leveraging the company's strong brand recognition and marketing strategies. The company's efficient cost control measures also contribute to the support provided, as franchisees benefit from the ability to offer high-quality products at competitive prices, attracting value-conscious customers.
Chicken Licken's adaptable business approach is another key aspect of the support provided. The company stays ahead of evolving consumer trends by introducing new products and adapting its menu to cater to changing tastes. This dynamic approach ensures that franchisees can remain competitive and relevant in the fast-food market.
The company also provides ongoing guidance and support to help franchisees build their businesses with confidence and stability. This includes assistance with financial planning, operational efficiency, and staff management. Chicken Licken's long-term commitment to its franchisees, with a typical franchise agreement spanning ten years, further demonstrates their support and belief in their franchisees' success.
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Frequently asked questions
The estimated investment amount is between R4,800,000 and R6,800,000.
It is important to evaluate your prior business experience and assess market availability in your location of interest.
Chicken Licken is a well-known brand in South Africa, offering a simplified drive-thru experience that caters to the growing demand for convenience and speed. The franchise has a proven business model with a history of success and provides comprehensive training, ongoing support, and marketing resources.
Chicken Licken has implemented efficient cost control, an adaptable business approach, and the strategic use of technology to enhance the customer experience.
