Five Guys vs Pizza HutFranchise Comparison 2026
Five Guys and Pizza Hut represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Five Guys | Pizza Hut | Difference |
|---|---|---|---|
| Franchise Fee | $25,000 | $25,000 | 0% |
| Total Investment (Low) | $306,000 | $367,000 | -17% |
| Total Investment (High) | $641,000 | $1.8M | -64% |
| Cash Required | $300,000 | $350,000 | -14% |
| Royalty Rate | 6.0% | 6.0% | Same |
| Advertising Fee | 1.5% | 5.0% | Lower |
| Estimated Revenue | $1.4M | $900,000 | +56% |
| Number of Locations | 1,700 | 6,400 | Fewer |
| Year Founded | 1986 | 1958 | Newer |
| Training Duration | 3 weeks | 6 weeks | Shorter |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Five Guys
Premium burger concept with fresh ingredients and no freezers. Higher food costs but strong brand loyalty and per-unit sales.
About Pizza Hut
Dine-in and delivery pizza with broader menu. Part of Yum! Brands. Higher investment for traditional format.
Investment Comparison
Five Guys requires a lower initial investment (avg $473,500) compared to Pizza Hut(avg $1.1M), making it more accessible for first-time franchisees. However, Pizza Hut may offer similar revenue potential.
Fee Structure
Five Guys has lower ongoing fees (7.5% total) compared to Pizza Hut(11.0% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Pizza Hut has a significantly larger footprint with 6,400 locations compared to Five Guys's 1,700. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Five Guys vs Pizza Hut franchise?
Five Guys requires an initial investment of $306,000 to $641,000, while Pizza Hut requires $367,000 to $1.8M. Five Guys has the lower average investment at $473,500.
What are the ongoing fees for Five Guys vs Pizza Hut?
Five Guys charges a 6.0% royalty plus 1.5% advertising fee (7.5% total). Pizza Hut charges 6.0% royalty plus 5.0% advertising fee (11.0% total). Five Guys has lower total ongoing fees.
Which franchise makes more money: Five Guys or Pizza Hut?
Based on estimated average unit revenue, Five Guys generates $1.4M per location compared to $900,000 for Pizza Hut. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Five Guys have vs Pizza Hut?
Five Guys has 1,700 locations, while Pizza Hut has 6,400 locations. Pizza Hut has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Five Guys or Pizza Hut a better franchise investment in 2026?
Both Five Guys and Pizza Hut are established QSR brands with proven models. Five Guys offers a lower entry point, while Five Guys shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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