Pepe’s Piri Piri has grown into one of the most recognisable names in the UK’s fast-casual dining market. Since its inception in 2007, the brand has expanded rapidly, now boasting over 200 locations across the UK and overseas.
For entrepreneurs considering joining the thriving food and beverage sector, Pepe’s offers a compelling business model and a strong brand presence. Understanding the costs and opportunities involved in owning a Pepe’s franchise is essential for those evaluating it as a viable investment.
This article breaks down the total investment, franchise fees, setup requirements, ongoing costs, and the potential returns of becoming a Pepe’s Piri Piri franchisee in the UK.
What Is the Total Initial Investment for a Pepe’s Franchise?
Starting a Pepe’s Piri Piri franchise in the UK requires a substantial financial commitment, with the total initial investment typically falling between £250,000 and £350,000. This amount covers various expenses such as the franchise fee, store fit-out, equipment, legal setup, and stock procurement.
The total cost may vary depending on the size and location of the unit, condition of the premises, and whether the site is newly built or a conversion.
Key Investment Components
| Cost Element | Estimated Range |
| Initial Franchise Fee | £15,000 – £30,000 |
| Fit-Out and Equipment | £100,000 – £150,000 |
| Other Setup Costs | £20,000 – £50,000 |
| Total Initial Investment | £250,000 – £350,000 |
Franchisees should also budget for early operational expenses such as staff wages, utility deposits, point-of-sale systems, and pre-opening marketing. These can further influence the overall financial requirement before the business becomes self-sustaining.
Initial Franchise Fee and Setup Costs Explained
The initial franchise fee grants franchisees the right to use the Pepe’s Piri Piri brand, systems, recipes, training, and marketing tools. This one-time fee typically ranges from £15,000 to £30,000. It does not include physical setup costs, which make up the bulk of the investment.
The setup phase involves several components:
- Store design and fit-out, which adheres to Pepe’s brand guidelines and includes flooring, signage, lighting, and kitchen installation
- Equipment procurement such as grills, fryers, refrigeration units, and food prep stations
- Initial inventory, including food products, packaging, and branded materials
- Licensing and legal documentation for franchise operations
- Staff recruitment and early-stage training prior to opening
Pepe’s requires all store designs and layouts to follow a uniform appearance to maintain brand identity. The cost of these fit-outs can range significantly depending on the condition of the premises, local labour rates, and store dimensions.
Ongoing Franchise Costs You Need to Know
Once operational, franchisees are responsible for several recurring payments that support the franchise network and ongoing operations. These costs are important to factor into financial projections to understand true profitability.
Breakdown of Ongoing Expenses:
| Cost Type | Percentage or Range |
| Royalties | 4% – 8% of gross sales |
| National Advertising | 1% – 3% of gross sales |
| Technology Usage (EPOS Systems) | Variable |
| Supply Chain Mark-Ups | Varies based on items |
| Renewal Fee (every 5–10 years) | May apply depending on agreement |
Royalties are paid as a percentage of gross sales and help fund ongoing support and brand development. The advertising contribution supports national marketing campaigns to build awareness and drive traffic across all outlets.
Technology fees may apply for the use of proprietary software, online ordering platforms, and back-office systems. In some cases, mark-ups are applied to ingredients and packaging supplied by approved vendors.
What Support Does Pepe’s Offer Franchisees?
Pepe’s Piri Piri recognises that the success of its franchise network is closely tied to the success of individual franchisees. As a result, the company offers a robust support system designed to help franchisees at every stage of their business journey. From initial planning to daily operations, the support structure is both comprehensive and hands-on.
Pre-Opening Support
Before a franchisee launches their store, Pepe’s provides extensive assistance in key startup areas:
- Site Selection and Approval: Pepe’s works closely with franchisees to identify suitable locations based on footfall, demographics, and commercial viability. Franchisees may propose their own locations, but all sites must be approved by Pepe’s to ensure strategic brand placement.
- Lease Negotiation and Legal Support: The franchisor provides advice and support when dealing with landlords and lease terms. This includes help with legal documentation and ensuring the premises meet operational requirements.
- Store Design and Layout Planning: A dedicated team supports the architectural and design aspects of the new store. The fit-out must align with Pepe’s brand guidelines, which include interior layout, equipment installation, branding, and signage. While franchisees can use their own contractors, Pepe’s must approve the builders and designs in advance.
Training and Onboarding
Training is a cornerstone of Pepe’s franchise programme. The company has invested in a multi-level learning system that prepares new franchisees to operate efficiently and confidently from day one.
- Online Training Portal: This platform offers 29 courses across three levels, covering all areas of the business. Modules include food safety, product preparation, customer service, store management, health and safety, and team leadership.
- In-Person Training: Conducted at Pepe’s head office in London, this component focuses on hands-on experience in a live environment. Franchisees observe and participate in the daily operations of a model store, gaining insight into best practices.
- On-Site Opening Support: During the opening week of a new store, an experienced Pepe’s representative is present on-site to provide guidance, troubleshoot issues, and ensure operations run smoothly. This hands-on launch support is a critical confidence booster for new operators.
Post-Opening Operational Support
Once the store is operational, Pepe’s continues to support franchisees with various business functions:
- Ongoing Business Reviews: Area managers or support teams conduct regular performance reviews. They help identify areas for improvement, offer strategic advice, and benchmark performance against other franchisees in the network.
- Marketing Assistance: National advertising campaigns are coordinated centrally, but franchisees receive guidance for local marketing initiatives. This may include social media strategy, promotional campaigns, and grand opening events to attract footfall.
- Technology and POS Systems: Pepe’s provides access to approved point-of-sale (POS) systems, back-office software, and digital tools that streamline inventory management, reporting, and customer data analysis. Technical support is also available for troubleshooting.
HR and Staff Development
Franchisees receive support with recruitment strategies, onboarding materials, and staff development. Pepe’s training platform can also be used by employees, ensuring consistent knowledge of hygiene standards, customer interaction, and kitchen procedures.
- Training Resources: Access to staff-level modules through the training portal
- Staff Handbook and Policy Templates: Ready-to-use documentation for store-level management
- Health and Safety Compliance: Guidance on best practices to meet food and workplace safety regulations
Supply Chain and Inventory Support
Pepe’s has a centralised supply chain for key ingredients and branded items. This ensures quality consistency across all outlets while helping franchisees maintain competitive pricing.
- Approved Suppliers: Access to vetted vendors for core products and packaging
- Inventory Guidelines: Advice on stock levels and waste reduction
- New Product Rollouts: Updates and training on introducing new items to the menu
Ongoing Innovation and Community Engagement
Pepe’s continuously innovates its product offering, marketing tactics, and operational tools. Franchisees are regularly updated with new initiatives, seasonal campaigns, and opportunities to give feedback. The company maintains an open communication channel with its franchise community to encourage collaboration and continuous improvement.
This comprehensive level of support helps reduce the risk typically associated with starting a new business. It also empowers franchisees to focus on customer satisfaction, team leadership, and revenue growth rather than navigating the operational challenges alone.
Financing Your Pepe’s Franchise: What Are the Options?
Given the significant capital required to open a Pepe’s Piri Piri outlet, prospective franchisees often explore financing options to help cover the initial costs. Pepe’s has established relationships with major UK banks that specialise in franchise finance.
Lenders such as Lloyds, NatWest, and HSBC offer tailored finance packages for new franchisees based on creditworthiness and the strength of the business plan. Pepe’s also works with asset finance providers to help spread the cost of equipment purchases over time.
In addition to bank loans, some entrepreneurs use personal savings, business loans, or investment from family and partners. Pepe’s can provide templates and data to help franchisees present a professional business case to lenders.
Franchisees may:
- Finance up to 70% of the total setup cost through loans
- Access asset finance specifically for kitchen and IT equipment
- Negotiate better terms with landlord support from Pepe’s corporate team
Franchisees also have the option to select their own premises, subject to final approval from the franchisor. While it is acceptable to use independent contractors for the fit-out, they must follow the Pepe’s brand specifications and submit required health and safety documentation.
Is a Background in Catering Required to Start?
Pepe’s does not require applicants to have prior experience in catering or hospitality. The franchise model is structured to be accessible to individuals with diverse professional backgrounds.
That said, certain characteristics are considered beneficial for prospective franchisees:
- Experience in managing a retail or customer-facing business
- Leadership skills with the ability to manage a team
- Strong interpersonal and communication skills
- Financial literacy and the ability to handle budgeting and reporting
Applicants should also be willing to commit full-time to running the business, particularly in the first year. The initial months are critical for building a loyal customer base, training staff effectively, and understanding operational details.
Pepe’s believes that passion, commitment, and the ability to follow a proven system are more important than technical food knowledge. The support and training provided are designed to bridge the gap for those without previous industry experience.
Profit Potential: How Much Can You Make with a Pepe’s Franchise?
While specific earnings will vary between locations, a well-run Pepe’s Piri Piri franchise has the potential to generate healthy profits. Profitability is influenced by a range of factors including customer footfall, local competition, cost management, and marketing effectiveness.
A typical store located in a busy urban area or near high-traffic locations can generate significant weekly sales. After deducting ongoing royalties, operational expenses, and staff wages, many franchisees aim for a net profit margin of around 10% to 20%.
Table: Factors Affecting Profitability
| Factor | Impact on Profit |
| Store Location | High footfall increases sales potential |
| Staff Efficiency | Reduced payroll costs improve margins |
| Local Competition | Directly affects customer retention |
| Marketing Strategy | Drives visibility and new business |
| Inventory Management | Influences cost of goods sold |
Franchisees who actively manage the business, implement effective local marketing, and ensure consistent product quality are more likely to achieve strong financial returns.
By combining Pepe’s national brand recognition with local execution and a customer-first mindset, franchisees can tap into the growing demand for peri-peri dining across the UK.
Is Opening a Pepe’s Franchise Right for You?
A Pepe’s franchise represents a considerable investment but comes with the advantage of a well-established brand, robust training, and a scalable business model.
Pros:
- Established UK brand with over 200 stores
- Strong customer base for peri-peri products
- Comprehensive training and support
- Proven franchise model
Cons:
- High initial capital requirement
- Requires full-time commitment
- Ongoing royalty and marketing contributions
If you have the financial capability, commitment, and ambition to operate a customer-facing business, Pepe’s may be a strong opportunity to explore.
Conclusion
Investing in a Pepe’s Piri Piri franchise offers a pathway into one of the UK’s fastest-growing food segments. With strong brand equity, extensive support, and a clear operational model, it provides a sound opportunity for the right candidate. However, like any business venture, careful due diligence and financial planning are key.
Understanding the Pepe’s franchise cost is just the beginning long-term success depends on smart management, dedication, and leveraging the resources offered by the franchisor.
Frequently Asked Questions
How long does it take to open a Pepe’s franchise in the UK?
The time frame from initial application to store opening can range between 3 to 9 months, depending on site selection, financing, and construction schedules.
Are there exclusive territories with a Pepe’s franchise?
Yes, franchisees are often granted exclusive operational territories to avoid competition with other Pepe’s outlets in close proximity.
Can I own multiple Pepe’s franchises?
Yes, multi-unit ownership is encouraged for high-performing franchisees who meet financial and operational standards.
What kind of training does Pepe’s provide to new franchisees?
Pepe’s provides online and in-person training covering business management, food preparation, customer service, health and safety, and marketing.
Do I need prior experience to succeed with Pepe’s?
No prior catering experience is required. Pepe’s values transferable skills such as leadership, customer service, and team management.
How does Pepe’s help with site selection and lease negotiations?
Pepe’s works with a national property agency to help franchisees find suitable locations. They also assist with lease negotiations and store development planning.
What are the profit margins for Pepe’s franchisees in the UK?
Profit margins can vary by store but typically range between 10% and 20% after accounting for royalties and operational costs, depending on sales volume and location efficiency.
