Summary
Fast food is the easiest format to export: standardized menus, predictable capex, and strong delivery. But unit economics changes a lot by region. In the U.S. typical retail rent sits in the mid-$20s/sf/year, Canada’s prime space is higher, European/UK high streets can be several times that, and Gulf malls are premium. Add local wages, energy tariffs and 15–30% delivery commissions — and you always model per country.
Fast food remains the most scalable restaurant format worldwide because it runs on clear playbooks: fixed menus, line-based production, strict food-safety rules, and marketing that can be localized. Customers in 2025 expect speed, mobile ordering, delivery, and drive-thru where it’s available — and the brands that deliver this consistently are the ones that keep unit economics stable. For a buyer, the advantage is obvious: you get a proven operating model and brand standards; for a franchisor, it’s a format you can drop into very different real-estate and labor markets.
What changes country to country is not the model — it’s the cost field around it.
How costs shift by region
United States. Recent retail data keeps average shopping-center and street-level asking rents in the mid-$20s per sq ft per year. Good suburban arterials, lifestyle centers, airport and tourist zones are higher and can easily be two to three times that. Entry-level foodservice wages in many states sit around the mid-teens per hour, but some coastal and West Coast states have materially higher floors, and large fast-food chains in California work off a $20/hour minimum. Commercial power can be inexpensive in some states and very expensive in others, so utilities must be pulled from the current state rate.
Canada. Urban and high-visibility locations in Toronto, Vancouver, Calgary or Ottawa often price above the U.S. average once converted. Wages are comparable to the U.S., and utilities are predictable, but equipment and some food items can cost slightly more because of import, freight and standards. The format still works — you just start closer to the upper part of the range.
Europe / UK. Rents are usually quoted per m² per year or £/sf/year. Prime high streets in London, Paris, Milan, Amsterdam, as well as transport hubs, can be several times more expensive than suburban or neighborhood sites. Labor is more regulated, social charges add to the bill, and delivery platforms apply similar 15–30% commissions to what they charge in North America. Because of that, European units often lean harder on takeaway, daypart planning and smaller boxes.
GCC / Middle East. Visible mall units, roadside pads on major roads and tourist locations in Dubai, Abu Dhabi, Doha or Riyadh are premium. On top of rent you often have service charges, fit-out requirements, and staff-related costs (housing, visas, transport). Energy can be fine, but the real monthly outlay is “rent + service + people,” so the P&L has to be tested on local numbers, not on a U.S. template.
Investment and Fees
| Format / Model | Initial investment (range) | Franchise fee (range) | Ongoing fees (royalty / ad fund) |
|---|---|---|---|
| Inline fast food (counter, 700–1,200 sq ft) | $300,000 – $900,000 | $20,000 – $45,000 | 4–6% / 1–4% |
| Drive-thru / pad site | $900,000 – $2,300,000 | $25,000 – $60,000 | 4–6% / 1–4% |
| Fast casual / elevated QSR | $500,000 – $1,300,000 | $25,000 – $50,000 | 4–6% / 1–3% |
| Kiosk / small box / food court | $120,000 – $350,000 | $10,000 – $30,000 | 4–6% / 0–2% |
| Delivery-first / ghost kitchen | $80,000 – $250,000 | $10,000 – $25,000 | 4–6% / 0–2% |
These ranges assume a standard fit-out, approved equipment package, POS with online ordering, signage, opening stock, training and working capital. Local building codes, venting rules, duties and utility prices can move a project closer to the top.
Cost overlay by region
| Cost driver | United States | Canada | Europe / UK | Gulf |
|---|---|---|---|---|
| Rent | mid-$20s/sf/yr; prime 2–3× | similar or higher in major CMAs | often several times higher on high streets | premium mall/street + service charges |
| Labor | mostly mid-teens $/hr; some states higher | comparable when converted | higher and more regulated | lower nominal pay but extra staff costs |
| Power | wide spread by state | predictable | can be higher in some markets | depends on tariff/landlord |
| Delivery | 15–30% | 15–30% | 15–30% | 15–30% |
This table is what explains why a “standard” fast-food P&L from a U.S. brochure doesn’t automatically work in Paris, Toronto or Dubai.
Startup costs and ongoing fees
Startup normally includes: leasehold improvements, flooring and plumbing, kitchen line (grill/fryer/holding as per brand), walk-ins or reach-ins, hood/venting where required, POS/KDS, menu boards, signage, opening inventory, staff training and working capital.
Ongoing spend looks like this:
- royalties and brand marketing contributions;
- labor (front-of-house, kitchen, shift management);
- food and packaging;
- occupancy (rent, CAM, insurance, local business taxes);
- utilities (kitchen heat load + refrigeration + HVAC for long hours);
- delivery/app commissions at 15–30% on delivery and around 6% on pickup/click-and-collect.
Because fast food is high-frequency and relatively low-ticket, three levers protect the unit economics everywhere: drive-thru or very convenient access, mobile/order-ahead to increase throughput, and tight labor scheduling to match rushes.
Popular global fast food formats
Inline counter-service. Works in malls, neighborhood strips, transit, mixed-use. Lower capex than drive-thru, but depends on footfall.
Drive-thru / freestanding. Best sales per labor hour, strongest convenience. Needs proper site planning and will pay more rent or land.
Food-court / kiosk. Rent-efficient, can be opened quickly, but is limited by landlord rules and shared seating.
Delivery-first / ghost. Good for expensive high-density cities where retail is overpriced; visibility moves to apps, photos and delivery times.
Requirements and operator profile
Franchisors generally want owners with enough liquid capital to open on time, the ability to follow strict operating manuals, and stable people management — fast food lives on shift discipline. Foodservice experience is a plus but not always mandatory if the brand has strong training and field teams. Multi-unit candidates should plan for a development schedule, shared HR/recruiting, and a standardized way to buy packaging, drinks and key food SKUs across countries.
What to tell international readers directly
- Always price with the local rent, not with a U.S. average.
- Always pull current local wages or legal minimums.
- Check the local electricity tariff if the concept is fryer-heavy or runs long hours.
- Treat delivery as a revenue channel, not a margin channel.
- If opening in malls or in the Gulf, check service charges and fit-out rules first.
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