Fried Chicken Restaurant Costs - What’s the Real Profit Per Order?

Fried chicken is one of America’s most beloved foods. The fast food chicken industry hit $63.7 billion in 2025, and chicken consumption per person has crossed 100 pounds annually. With numbers like these, opening a fried chicken spot seems like a solid bet.

But what does it actually cost to make and sell each order? Let’s break down the real numbers.

Cost of One Fried Chicken Order

Let’s calculate the ingredient cost for a standard 8-piece chicken meal.

If you sell this meal for $15.99, with $8 in ingredient costs:

Food cost percentage = ($8 ÷ $15.99) × 100 = about 50%

The restaurant industry typically targets 28–35% food cost. At 50%, you’re already running tight. But the real pressure comes from everything else.

Hidden Costs That Cut Into Margins

1. Third-Party Delivery Fees

Delivery apps have transformed the restaurant business—and their fees add up fast.

Typical delivery app structure:

On a $15.99 order through a delivery app (25% commission):

That’s only about 22% margin before any other costs.

Direct pickup or in-house orders:

Same chicken, but double the margin when customers order directly.

2. Fixed Monthly Costs

The money from each order still needs to cover:

Based on federal minimum wage of $7.25/hour; actual costs vary significantly by state (DC is $17.95/hour, for example)

Real-World Profit Calculation

Scenario: 60 orders per day, average ticket $15.99

Monthly revenue = 60 × $15.99 × 30 = $28,782

Channel mix: Delivery 60% + Pickup 25% + Dine-in 15%

Fixed costs of $15,000:

Owner's income = $9,342 - $15,000 = -$5,658 (loss)

At 60 orders/day with this channel mix, you’re losing money. You’d need about 100 orders/day just to break even at these margins.

According to industry data, average restaurant profit margins run 3–5%, with fast food doing slightly better at 6–9%. The tight margins are real.

Why Margins Are So Thin

Issue 1: Delivery App Dependency

When 60%+ of orders come through delivery apps taking 25–30% commission, your effective margin on those orders drops dramatically. Every percentage point matters.

Ways to shift the balance:

• Loyalty programs for direct ordering
• Catering and bulk orders (typically pickup)
• Strong walk-in traffic from location

Issue 2: Rising Ingredient Costs

Chicken prices have increased significantly over the past few years. Wholesale chicken costs have risen, but menu prices can only increase so much before customers push back.

Issue 3: Labor Costs

With minimum wages rising in many states (and ongoing labor shortages), staffing costs are a major factor. Some operators are exploring smaller footprints or limited-service models to manage this.

What Profitable Chicken Shops Do Differently

1. Maximize Direct Orders

• Invest in a simple online ordering system
• Offer pickup-only specials
• Build a text/email list for regulars

2. Know Every Menu Item’s True Cost

Wings and combo deals often have better margins than whole chicken pieces.

3. Leverage High-Margin Add-Ons

Sides, drinks, and desserts typically run 20–35% food cost:

• Fries: ~25% food cost
• Coleslaw: ~20% food cost
• Drinks: ~15% food cost
• Mac & cheese: ~28% food cost

Bundling these with chicken meals improves overall order profitability.

Before You Open: Break-Even Analysis

Calculating Your Break-Even Point

Required revenue = Fixed costs ÷ (1 - Variable cost ratio)

Example: $15,000 fixed costs, 65% variable costs
Required revenue = $15,000 ÷ 0.35 = $42,857/month
Daily = $1,429 = about 90 orders at $16 average

You need to sell 90+ orders daily just to cover costs. Profit requires going beyond that.

Key Questions Before Starting

1. Location: What’s the traffic pattern? Lunch rush? Dinner crowd? Late night?
2. Competition: How many chicken spots within a 1-mile radius?
3. Channel strategy: Can you realistically get 40%+ of orders without delivery apps?
4. Staffing model: Can you run with minimal staff initially?

Related Guides

• Find Losing Menu Items
• Bunsik Cost Analysis

Summary

1. Ingredient cost for fried chicken runs 50%+ of menu price (higher than industry targets)
2. Delivery app fees can take another 25–30%, leaving thin margins
3. After fixed costs, many small chicken shops see owner income of $0–50,000/year
4. Successful operators focus on direct orders + side items + tight cost control

The numbers don’t lie. Before opening any food business, run the calculations thoroughly. “It’ll probably work out” is not a business plan.

Want to calculate exact costs for your menu items? Try KitchenCost — it’s free.

References

• Fast Food Chicken Restaurants Industry Analysis, 2025 - IBISWorld
• Average Restaurant Profit Margin 2025 Data - Toast
• KFC Franchise Costs, Fees and ROI - 1851 Franchise
• Most Profitable Fast Food Chains 2025 - Toast