Written By: Bandana Gupta

Five Star Chicken, a brand under CP Food PCL, was founded in 1985 in Thailand and entered the Indian market in 2012 with its first franchise outlet in Bengaluru. Since then, it has rapidly expanded, now operating over 1,100 outlets across multiple cities. The brand specializes in fried chicken, chicken nuggets, fingers, hot & crispy chicken burgers, and other quick-service snacks, offering affordable, Thai-inspired flavours. With a strong franchise network, serving nearly five lakh customers daily, Five Star Chicken has established itself as a key player in India’s quick-service restaurant industry.

Five Star Chicken Franchise Investment Breakdown (2025)

To start a Five Star Chicken franchise in 2025, the total investment is expected to range between 6 to 15 lakhs rupees, including the franchise fee, infrastructure costs, equipment, and other initial expenses, with the franchise fee itself typically falling between 1 to 2 lakhs rupees depending on the location and outlet size. 

Break-down of the Key cost components of a Five Star Chicken franchise:

• Franchise Fee: This is a one-time payment to secure the rights to operate a Five Star Chicken outlet, usually ranging from 1 to 2 lakhs rupees based on factors like city, outlet size and potential footfall.
• Infrastructure Investment: Setting up the outlet involves costs related to store construction, interior design, flooring, seating (if applicable), and necessary modifications to ensure it meets Five Star Chicken’s brand standards
• Equipment Costs: Purchase of kitchen equipment like fryers, ovens, grills, and point-of-sale systems. 
• Branding and Signage: Maintaining brand consistency is crucial. The investment includes: Storefront signage, Interior branding elements (menu boards, posters, digital displays)Promotional material.
• Initial Inventory: To begin operations, franchisees must stock up on: Fresh chicken & other meats, Sauces, spices, and seasonings Packaging materials (boxes, wrappers, bags) Beverages (if applicable)
• Training Costs: Franchisees and their staff receive comprehensive training, covering: Food preparation techniques, Customer service standards, Hygiene and safety protocols, POS system usage & billing procedures

Factors impacting the total cost:

• Location: High-traffic areas like malls and commercial hubs may have higher rental costs but offer greater revenue potential. 
• Outlet Size:  Larger outlets require additional seating, equipment, and storage, increasing costs.
• Local Regulations: Some regions may have higher licensing fees, health permits, or GST requirements.

How to Open a Five-Star Chicken franchise?

Owning a Five Star Chicken franchise requires a low investment while offering high profitability, strong ROI, and a good work-life balance. With its expertise in the QSR industry, the brand provides multiple benefits for franchise partners.

1. Ensure Adequate Capitalization:

To open a Five Star Chicken franchise, a minimum initial investment of ₹9,00,000 INR is required. Be prepared for additional costs such as real estate, equipment, signage, licenses, permits, uniforms, and insurance.

2. Evaluate Your Experience and Strengths:

Before applying, assess your previous business experience and determine if you possess the skills and resources to manage a franchise successfully.

3. Assess Market Availability:

Research the market for Five Star Chicken franchises in your desired location. Ensure there are available opportunities before submitting your application.

4. Submit Your Application:

Once ready, submit your online application. Upon receipt, you’ll receive a confirmation email with the contact details of the franchise team.

5. Receive Approval and Open Your Franchise:

After a thorough review of your application, financials, and background, approval will be granted to qualified candidates. Once approved, you can proceed with opening your Five Star Chicken outlet.

Benefits of Owning a Five-Star Chicken Franchise:

With the immense growth potential in the food & beverage industry, opening a Five Star Chicken outlet can be a highly rewarding franchise opportunity, because of the following reasons:

• Diverse Menu: Five Star Chicken is renowned for offering a diverse range of affordable, delicious chicken products, which helps attract a large and loyal customer base.
• Proven Expertise: With over 30 years of expertise, Five Star Chicken understands market needs and continuously innovates its menu to stay ahead
• Strong Supply Chain: The Five Star Chicken franchise provides a robust supply chain, ensuring consistent flavour and quality across all outlets.
• High ROI: The franchise offers a promising return on investment, with an expected gross margin of 35-40%.
• Powerful Digital Presence: Five Star Chicken has a strong social media presence, helping to build a loyal customer base and attract new consumers to its outlets.

How much does a Five-Star Chicken Franchise Cost?

To open a Five Star Chicken franchise, an initial investment of Rs. 4-5 lacs is required, along with a minimum space of 100-150 sq. ft and a store frontage of 10-15 ft. Before selecting a location, it's essential to conduct thorough market research to assess the potential and growth prospects of the chosen area or city.

Initial Investment Breakdown:

1. Franchise Fee (Initial Fee):
   • Rs. 4-5 lacs
   • Covers the franchise license and branding.
2. Floor Area Requirement:
   • 100-150 sq. ft.
   • Necessary space to run the outlet efficiently.
3. Profit Margin:
   • 30-35%
   • Expected profit margin from sales.
4. Return on Investment (ROI):
   • Approximately 2 years
   • The anticipated time to recover the initial investment.

      5.   Licenses & Legal Requirements:

• FSSAI, GST, Shop Agreement
• Essential licenses to legally operate the franchise.

      6.  Total Initial Investment:

• Rs. 8-10 lacs
• Total cost to set up the franchise, including franchise fee and other expenses.

Additional Costs to Consider:

• Tile Flooring: Essential for durability and cleanliness.
• Kitchen Partition: Needed for efficient kitchen operations.
• Interior & Furnishing: To create a customer-friendly ambience.
• Painting: For maintaining a fresh, appealing look.
• Rent: Ongoing cost for the space.
• Employee Salaries: For staff managing operations.

Profitability of a Five-Star Chicken Franchise:

1. Key Profit Factors:
   • Profitability is essential for long-term business success. Several factors influence the profitability of a Five Star Chicken franchise.
2. Influencing Factors:
   • Geographical Location: The location of the outlet plays a significant role in attracting foot traffic and customer engagement.
   • Customer Footfall: Higher footfall leads to increased sales, directly impacting profit margins.
   • Franchisee Capabilities: The skills, management, and operational efficiency of the franchisee are key to running a profitable outlet.
3. Expected Profit Margins:
   • Gross Profit Margin: Franchisees can expect a gross profit margin of 30-35%.
   • Net Profit Margin: The net profit margin typically ranges from 15-20%.
4. Brand Value and Expertise:
   • With over 30 years of industry experience, Five Star Chicken’s strong brand presence offers a significant advantage to franchisees.
   • This established reputation helps attract a loyal customer base, ensuring the potential for sustainable profitability.

Why Choose Five Star Chicken Franchise?

Nominal Investment Required

• Five Star Chicken offers an affordable entry point for aspiring franchisees, making it an attractive option for those looking to invest in the food industry.

Strategic Advantage Over Competitors

• With a well-established brand and a strategic approach to market positioning, Five Star Chicken effectively competes with other leading brands in the industry.

Low Risk, High ROI, and Strong Brand Value

• The franchise model minimizes risks while offering high returns on investment (ROI). The brand's strong recognition and trust further enhance profitability potential.

Comprehensive Supply Chain Management by CP Foods

• CP Foods, the parent company, manages every step of the supply chain, ensuring consistency in product quality and smooth operations across all franchise outlets.

Exceptional Franchisee Training and Support

• Franchisees receive comprehensive training on operational procedures, food handling, and minimizing waste. This support helps streamline operations and boosts profitability.

Proven Franchise Network

• Five Star Chicken operates over 350 successful franchises nationwide, demonstrating the strength of its business model and widespread appeal.

Expertise of CP Foods

• CP Foods brings over 27 years of expertise in food processing, ensuring that each franchisee benefits from industry-leading practices and product quality.

Part of a Family of High Standards

• By joining Five Star Chicken, franchisees become part of a family-oriented business that sets high operational and quality standards, offering a complete package of support and growth opportunities.

Ongoing Support from Day One

• From the moment you sign the franchise agreement, CP Foods provides continuous assistance to ensure your business operates efficiently, profitably, and according to best practices.

Systematic Operational Procedures (SOP)

• Five Star Chicken follows a streamlined set of operational procedures that franchisees must adhere to, ensuring consistency in quality and service across all locations.

Proven Global Business Model

• As part of a large Thai foods conglomerate, Five Star Chicken has successfully expanded its business model across nine countries in the Asia Pacific, proving its potential for global success.

Requirements to Own a Five-Star Chicken Franchise:

1. Minimum Space Requirements
   • The outlet or kiosk must have a minimum space of 100-150 sq. ft., equipped with essential utilities like electricity and water supply to ensure smooth operations.
2. Financial Investment
   • Applicants should be ready to meet the initial financial investment requirement of Rs. 4-5 lacs, covering the franchise fee, setup costs, and initial operations.
3. Commitment to the Food & Beverage Industry
   • Prospective franchisees should have a genuine interest in the food and beverage sector and be prepared to manage the demands of a fast-paced industry.
4. Preferred Location for Outlet
   • To maximize foot traffic and customer reach, it's recommended to open the franchise in high-traffic areas, such as:
     • Hypermarkets: Locations within large retail centers attract a steady stream of potential customers.
     • Near Colleges/Universities: Student populations offer a consistent customer base looking for quick and affordable meals.
     • Busy Streets: High pedestrian traffic ensures visibility and accessibility to a wide range of customers.
     • Gas/Petrol Stations: Ideal for motorists looking for quick meals during refueling breaks.
     • Tech Parks: A growing market of young professionals looking for convenient food options.
     • Townships or High-Rise Societies/Apartments: These locations often have a dense population, ensuring a reliable customer base.
     • Multiplexes: Moviegoers frequently seek quick bites before or after a show.

Concluding thought:

Five star chicken is one of the successful, rapidly growing, and niche food outlets, that primarily serves delicious fried chicken, chicken nuggets, fingers, hot & crispy chicken burgers, and other snacks.It boasts a strong franchise networkwith over 1,100 retail outlets, with plans for further expansion in the future.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.