Introduction: KFC’s Legacy in the Australian QSR Market

Few brands symbolize Australian fast food culture like KFC Australia. Since its first store opened in Guildford, Sydney in 1968, KFC has grown to more than 785 outlets nationwide, making it one of the largest and most profitable QSR franchises in Australia.

The chain’s success is powered by a proven franchise model, a focus on consistent quality, and the operational strength of its master franchisee, Collins Foods Limited. In 2025, KFC continues to combine heritage with innovation—showing exactly how a legacy brand can stay ahead in a fast-moving market.

Solid Financial Results Show KFC’s Strength

The franchise’s focus on operational efficiency, digital transformation, and regional expansion has translated into steady, multi-year revenue growth.

The company’s revenue rose 3% to about $1.15 billion for FY2025. This growth was driven by strong consumer demand for KFC’s offerings and effective digital sales strategies. Same-store sales grew by 0.3%, showing steady interest in the brand across Australia.

Digital sales now make up 34.2% of total revenue, boosted by KFC App adoption and better store formats. This digital push benefits KFC franchises in Australia by enhancing customer convenience and helps them compete strongly among other fried chicken franchises in Australia.

Franchise Network Expansion

Collins Foods, which operates a large share of KFC outlets across the country, opened 10 new KFC restaurants in FY2025 and closed just one — finishing the year with 288 stores under its management.

Across Australia, KFC operates more than 785 restaurants nationwide, including both company-managed and independently franchised stores.
In addition, 40 stores were refurbished, with new drive-thru layouts and updated interiors to improve speed and service.

Looking ahead, Collins Foods plans to open 7–10 new KFC restaurants in FY2026, and another 30 or so by 2028 — showing strong confidence in Australia’s growing QSR franchise market.

Innovation: Driving Growth in a Competitive QSR Market

Innovation is at the heart of KFC’s growth strategy in 2025. Beyond its famous fried chicken, the brand is investing heavily in digital transformation to streamline ordering and enhance customer engagement. Some of its locations combine kiosks and a drive-thru to make ordering easier, reflecting KFC’s focus on convenience and modern customer experiences.

• Launch of Australia’s first-ever fried chicken vending machine serving limited-edition Sweet Tokyo Hot & Crispy chicken with teriyaki glaze.
• Opening the world’s first Drive Thru Only store in Newcastle, delivering faster, contactless service via app and drive-thru lanes.
• AI-powered personalised digital marketing campaigns increasing digital sales and brand loyalty.
• Enhanced ordering channels with kiosks and app options streamlining customer experience.

Menu Evolution: The Secret Recipe Meets Modern Taste

KFC’s ongoing menu innovation ensures that the brand stays fresh and relevant to Australian consumers.

• Introduction of Sweet Tokyo Hot & Crispy chicken, a Japanese-inspired teriyaki-glazed flavour with toasted sesame seeds
• New spicy chicken options including Habanero Hot & Crispy
• New shared meal deals like Mega Burger Feast and Value Feast combos for group dining
• Broadened plant-based menu to attract health-conscious and flexitarian customers
• Ongoing featured deals such as Luxe Lunch specials and 10 for $10 Original Tenders offer

Conclusion

For more than five decades, KFC Australia has set the standard for success in the franchise industry—combining financial strength, innovation, and an evolving menu that connects with Australian consumers.

Backed by Collins Foods’ operational expertise and an expanding digital ecosystem, KFC remains a model for what a leading QSR franchise in Australia can achieve.

(source: Collins Foods, KFC Newsroom, QSR Media)