Red Rooster vs Guzman y Gomez
Figures as at July 2026 (Red Rooster) and July 2026 (Guzman y Gomez). Confirm both against the disclosure document.
Side by side
| Red Rooster | Guzman y Gomez | |
|---|---|---|
| Total investment (all-in) | $400,000–$800,000 | $1,700,000–$2,000,000 |
| Initial franchise fee | $50,000 | $90,000 |
| Fit-out & equipment | $300,000–$600,000 | $900,000–$1,400,000 |
| Working capital | $100,000 | $150,000 |
| Royalty | 5.0% | 8.0% |
| Marketing levy | 5.0% | 5.0% |
| Term | 10 years | 10 years |
| Australian outlets | 360 | 185 |
| Category | Quick-Service Food | Quick-Service Food |
Establishment ranges include working capital. Every figure is dated to its source, see each brand’s profile for the full breakdown and provenance.
Which is cheaper to get into?
Red Rooster is the cheaper way in, its establishment range starts at $400,000 against $1,700,000 for the other. Remember the all-in figure includes working capital; the gap can narrow or widen once you cost fit-out for a specific site. On ongoing cost, Red Rooster takes the smaller royalty (5.0% vs 8.0%), which compounds over the life of the agreement.
Both in context
Red Rooster and Guzman y Gomez are both quick-service food systems. The category median all-in investment is $350,000–$900,000 with a 7.0% median royalty (Fee Index, n=96). See where each sits against the field in the Quick-Service Food Fee Index.
Common questions
Is Red Rooster or Guzman y Gomez cheaper to buy?
Red Rooster has the lower entry cost. Red Rooster costs $400,000–$800,000 all-in versus $1,700,000–$2,000,000 for Guzman y Gomez. These are establishment ranges including working capital, always verify against the disclosure document.
Which has more locations, Red Rooster or Guzman y Gomez?
Red Rooster is the larger network, with 360 Australian outlets versus 185 for Guzman y Gomez.
What royalty do Red Rooster and Guzman y Gomez charge?
Red Rooster charges 5.0% royalty and a 5.0% marketing levy. Guzman y Gomez charges 8.0% royalty and a 5.0% marketing levy. Both are ongoing percentages of gross sales, confirm the current rates with each franchisor.
Should I choose Red Rooster or Guzman y Gomez?
It depends on your budget, which territories each has available near you, and the format you want to run. This comparison uses each franchisor's published figures; before deciding, request both disclosure documents, check territory availability, and have an accountant review the numbers.