While starting a restaurant franchise is a great business opportunity, many people think it will be expensive and will need to dip into their savings account just to get started. However, there are some cheap restaurant franchises out there that allow people with limited budgets to become entrepreneurs.
Owning a low-cost restaurant franchise can be a great opportunity, but it’s important to weigh the pros and cons. Startup costs, ongoing fees, and customer demand all affect success.
If you’re looking for an affordable way to enter the food franchise industry, this guide explores ten of the best options in 2025.
Why Cheap Restaurant Franchises?
Capitalizing on a Massive Market
The food service industry is huge, generating trillions of dollars each year. Fast food restaurants continue to grow year after year. From 2019 to 2024, the industry grew at a 3.2% annual rate, amounting to $402.9 billion.
Fast-casual and budget-friendly restaurants have long been popular places for people to grab a quick and inexpensive meal away from home. The fast food franchise sector offers significant opportunities for aspiring entrepreneurs, providing benefits such as lower investment costs and simplified business operations.
This fact, combined with the steady demand for these types of restaurants, makes them relatively low-risk compared to more niche or high-end restaurants.
Lower Barrier to Entry (Financially) with Initial Investment
When compared to high-end restaurants, even the most expensive fast food franchises require significantly less money to get started, with lower franchise fees and initial investments. This means that more aspiring franchise owners can own and operate a restaurant, even if they don’t have a million dollars to invest.
For example, the estimated initial investment to open a McDonald’s franchise can range from $1 million to $2.6 million, while the investment required to open a Chester’s Chicken franchise is more modest and ranges between $27,500 and $296,500. This puts the potential for entrepreneurship in the hands of far more people.
The Power of Brand Recognition
Another benefit of buying a franchise is the ability to tap into a business with an existing level of customer awareness and loyalty. This means you’ll spend less time and money building a brand from scratch and can focus on serving customers right away.
Well-Established Business Model and Ongoing Operational Support
Franchisors provide comprehensive training programs, marketing assistance, and ongoing operational support based on their proven business model. This is very helpful when dealing with the more complex aspects of the food industry, including health and safety regulations, supply chain management, and customer service.
Faster Payback
With lower start-up costs, built-in brand recognition, and ongoing support, affordable restaurant franchises can pay you back more quickly.
For example, businesses that require a larger initial investment to get started are going to take a longer time to become profitable. That said, if you are looking for something that is going to make you money faster, then low-cost food franchises are going to be an attractive choice.
10 Cheap Restaurant Franchises
1. Virtual Kitchen Concept
You’ve heard of virtual kitchens, but what exactly is a virtual kitchen? Well, a virtual kitchen is also known as a ghost kitchen. They are changing the restaurant industry by providing a fantastic business model- one that doesn’t require a dining room.
Virtual kitchens are dedicated to online ordering and delivery only. The best part is that you don’t have to spend thousands of dollars on rent, utilities, and front-of-house staff!
With the growth of food delivery apps such as Uber Eats and DoorDash, virtual kitchens are becoming an exciting alternative for you. Virtual kitchens allow you to run several restaurant brands out of one kitchen.
This flexibility can be amazing as you can try out different concepts, keep up with ever-changing food trends, and reach more customers while not having the financial burden of opening a traditional restaurant.
Did you know the global virtual kitchen market is projected to be worth $112 billion by 2030? It’s an extremely attractive and cost-effective way to become a restaurant owner. Whether you’re starting from scratch or have existing restaurants and want to expand, a virtual kitchen is a low-risk investment with huge growth potential.
Why it’s affordable:
- You don't have to worry about a pricey storefront, which can save you a lot on rent.
- You'll require fewer staff compared to a traditional restaurant.
- You'll be able to operate multiple food concepts out of the same kitchen.
2. Coffee and Cafe
Starting a business market in the food and beverage industry doesn’t have to be expensive! Just as food trucks give you an affordable alternative to traditional restaurants, coffee franchises are a more affordable way to get into the growing cafe.
The coffee industry has always been stable and healthy over the years. And it’s easy to see why – we all love a good coffee and a comfortable place to hang out. It’s no wonder that coffee shops have become such a big part of our daily lives.
Whether you’re popping in for that morning coffee on the go or you’re looking for a place for students and remote workers to sit and relax, coffee shops have become a big part of our day-to-day routine.
Many people want to invest in a franchise, however, smaller coffee franchises could be a good option for you if you have a limited investment budget. Smaller coffee franchises provide the same benefits as larger brands but at a much lower investment cost and are a great option for first time investors.
The US coffee market is valued at over $98.9 billion, and consumer demand is rising. If you’re looking to own a coffee franchise where you can serve fantastic coffee in a warm atmosphere for your customers, you’ll find it a great and profitable opportunity!
Why it’s affordable:
- Compact kiosk models help you reduce real estate costs.
- You'll enjoy simple equipment and streamlined menu offerings.
- You can build excellent customer loyalty and repeat business potential.
3. Quick Service Restaurant Franchise
The Quick Service Restaurant sector, also known as the fast-food industry, has been a part of American cuisine for decades. Household brands like McDonald’s, Burger King, and Dunkin’ are well-known and prominent in the fast-food industry. The fast-food industry is extremely large and has a current estimated value of $402.9 billion.
While major fast-food chains can be quite expensive, don’t worry! There are plenty of affordable franchise opportunities that come with streamlined operations, buying power, and a proven business model that is built to maximize profits. With drive-thru service, mobile ordering, and delivery on the rise, this is an industry that has some amazing revenue potential.
For example, Chick-fil-A has a relatively modest initial franchise investment and is one of the largest fast-food franchises with the lowest initial investment in its class. Another great option is Chester’s Chicken, which has one of the lowest investment costs in the industry.
Chester’s Chicken is a smart franchise business model that places locations inside convenience stores, truck stops, and supermarkets to capitalize on existing traffic. With a relatively low initial investment and a reasonable royalty rate, Chester’s is an attractive opportunity for restaurant franchisees like you!
Why it’s affordable:
- Standardized operations make management easy
- Limited service model keeps costs low
- Consistent customer demand helps ensure steady business
4. Fast-Casual Restaurant
Fast-casual restaurants offer a wonderful option that allows consumers to get the convenience they demand, as well as a healthier meal. The fast-casual dining category is rapidly growing in popularity, and for good reason. Health-conscious consumers are looking for alternatives to fast food that still offer great meals but without the wait of a traditional restaurant.
Another great benefit is the operational efficiency of fast-casual concepts. Compared with traditional restaurants, they offer small kitchen space and fewer employees, which translates to lower costs and a healthy profit margin for you.
Start-up costs for these types of restaurants are usually more affordable, giving you access to a broader range of opportunities. Moreover, this industry is expected to reach $337.8 billion by 2032, and it’s growing fast. And if you’re looking for a cost-effective and scalable restaurant investment, this could be an exciting opportunity for you!
Why it’s affordable:
- Smaller real estate footprint compared to traditional restaurants means less space to pay for.
- A slimmed-down menu offering means less ingredient waste and fewer operational steps.
- Less labor costs, thanks to self-service elements that customers don't mind doing.
5. Affordable Pizzeria Franchise Concepts
Pizza is one of the most popular meals for people of all ages. It is, without a doubt, one of the safest and most profitable restaurant concepts out there for aspiring franchise owners.
In fact, the U.S. pizza industry was worth over 50 billion USD in 2024. So, pizza franchises continue to be a great business opportunity, especially for those who are looking for an affordable way into the food service industry.
One of the main advantages of pizza franchises is their cost-effectiveness and versatility. Pizza franchise models often require fewer employees, less space, and a simpler operation compared to traditional full-service restaurants.
Delivery-style and quick-service models will have even lower overhead costs, allowing owners to make the most of a smaller initial investment.
Advances in technology, such as automated pizza manufacturing tools and AI-driven delivery tools, can help optimize operations and improve efficiency. Furthermore, the popularity of third-party delivery tools means that even smaller pizza franchises can reach a wider audience without needing a large physical footprint.
Why it’s affordable:
- A simple menu makes inventory easier to manage.
- Buying in bulk reduces costs.
- Consistent customer demand means consistent revenue streams.
6. Food Trucks
Did you know that food trucks are becoming an excellent, cost-effective way for new entrepreneurs to enter the restaurant industry? Food trucks provide excellent mobility and have lower franchise fees and startup costs than traditional restaurant locations – which means more food entrepreneurs can get started!
The best thing about food trucks is that they are flexible. You can respond to changing food trends, take your tasty offerings to busy areas, and engage with all types of customers in different neighborhoods.
The U.S. food truck industry is estimated to be worth $1.4 billion, and it continues to grow. One of the best features of food trucks is that they can cater to busy consumers looking for convenient, quality meals. Many food truck owners have found success by targeting niche markets, such as gourmet, fusion, and healthy options, that differentiate them from other food options.
Why it’s affordable:
- Lower initial franchise fee and operating costs.
- Ability to move to high-demand areas.
- Reduced staff requirements.
7. Health-Conscious Dining
Today, Healthy eating is more popular than ever. So, it’s no wonder that establishments like salad bars and smoothie shops are great options for those looking at affordable restaurant franchises. The smoothie market is expected to reach $19.91 billion by 2025, so the demand for fresh, nutritious, and convenient food continues to grow.
As people become more health conscious, they are looking for ways to simply incorporate a healthy lifestyle into their busy day. This is why health-focused restaurants are doing so well.
Whether it is digital ordering or becoming more sustainable and sourcing ingredients that are good for you and the planet, investing in a franchise system with low start-up costs and health as your focus is a good way to get into the food service industry.
Why it is affordable:
- Menu is streamlined- less waste
- Premium products like specialty smoothies increase profitability
- Compact retail space - lower rent
8. Grill Franchise Restaurants
One of the best things about grill restaurants is that they’re affordable to start and easy to run. With simple cooking methods like open-flame grilling, these franchise systems keep equipment and staffing needs low while still serving up fresh, flavorful meals.
Customers also love the flexibility. With fresh ingredients and customizable options, they can pick their meals exactly how they like them, making every visit a personal experience.
It’s no wonder grill restaurants are on the rise—people want great food at a price that won’t break the bank. If you’re looking for a low-cost franchise with strong demand, this could be the perfect fit!
Why is this concept affordable?
- The cooking is very simple, so you don't need to worry about a lot of kitchen equipment.
- The tables turn over very frequently, so you can expect a steady flow of cash.es steady cash flow.
- You can open up shop in a non-traditional setting, like a shopping center.
9. Ice Cream Shops
By 2033, the U.S. ice cream market is expected to reach US$ 25.49 billion, driven by consumers’ love for specialty frozen treats. The rising demand for high-quality, artisanal flavors, dairy-free alternatives, and unique dessert experiences makes ice cream shops a promising business opportunity. With boutique parlors, creative soft-serve concepts, and plant-based options on the rise, the industry is reaching a broader audience and showing no signs of slowing down.
The low production costs make this franchise system highly profitable. Plus, its ability to operate in small spaces helps keep costs low. This makes it easier to manage expenses, even after factoring in franchise fees and ongoing royalty payments based on gross sales.
The strong financials are appealing, but it’s the industry’s adaptability that keeps customers coming back and ensures long-term business growth. To help new owners take advantage of this, many franchises now offer training programs that impart the skills and knowledge you need to be successful for years to come.
Why it’s affordable:
- A small footprint reduces real estate costs.
- Minimal staffing requirements.
- Exceptional profit margins on ice cream products.
10. Baked Goods
The baked goods market is booming and is expected to grow from $507.4 billion in 2023 to $827.1 billion by 2032, driven by the rising demand for artisan, organic, and specialty treats.
Paris Baguette is a favorite bakery-café franchise known for its French-inspired pastries, artisan breads, cakes, and specialty coffee. Whether it’s a quick treat or a special celebration, it’s the kind of place people keep coming back to.
If you’re ready to make the leap from corporate life to owning your own business, this industry offers affordable franchise options to help you get started. Investment costs vary based on location, store size, renovation needs, and equipment, making it accessible to a range of budgets.
Why It’s Affordable:
- A small footprint means lower rental costs.
- A limited menu means less food waste.
- Café, kiosk, or food truck formats are more affordable.
Franchise Now!
Many affordable restaurant franchises can be a great entry point for people who want to start a restaurant without spending a lot of capital. With high demand in the market, good brand recognition, and a proven business model, these franchise opportunities are great for driven entrepreneurs.
So why not franchise now? Do your research, check your budget, and find the right fit for your business needs! You could also contact a franchise consultant to help you find the cheapest food franchise in your area.
