Subway vs Pizza HutFranchise Comparison 2026
Subway 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 | Subway | Pizza Hut | Difference |
|---|---|---|---|
| Franchise Fee | $15,000 | $25,000 | -40% |
| Total Investment (Low) | $116,000 | $367,000 | -68% |
| Total Investment (High) | $263,000 | $1.8M | -85% |
| Cash Required | $80,000 | $350,000 | -77% |
| Royalty Rate | 8.0% | 6.0% | Higher |
| Advertising Fee | 4.5% | 5.0% | Lower |
| Estimated Revenue | $490,000 | $900,000 | -46% |
| Number of Locations | 20,133 | 6,400 | More |
| Year Founded | 1965 | 1958 | Newer |
| Training Duration | 2 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 Subway
Lower-cost franchise option with flexible footprint. Lower per-unit sales but easier entry point for new franchisees.
About Pizza Hut
Dine-in and delivery pizza with broader menu. Part of Yum! Brands. Higher investment for traditional format.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to Pizza Hut(avg $1.1M), making it more accessible for first-time franchisees. However, Pizza Hut may offer higher revenue potential.
Fee Structure
Pizza Hut has lower ongoing fees (11.0% total) compared to Subway(12.5% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Subway has a significantly larger footprint with 20,133 locations compared to Pizza Hut's 6,400. 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 Subway vs Pizza Hut franchise?
Subway requires an initial investment of $116,000 to $263,000, while Pizza Hut requires $367,000 to $1.8M. Subway has the lower average investment at $189,500.
What are the ongoing fees for Subway vs Pizza Hut?
Subway charges a 8.0% royalty plus 4.5% advertising fee (12.5% total). Pizza Hut charges 6.0% royalty plus 5.0% advertising fee (11.0% total). Pizza Hut has lower total ongoing fees.
Which franchise makes more money: Subway or Pizza Hut?
Based on estimated average unit revenue, Pizza Hut generates $900,000 per location compared to $490,000 for Subway. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Subway have vs Pizza Hut?
Subway has 20,133 locations, while Pizza Hut has 6,400 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Subway or Pizza Hut a better franchise investment in 2026?
Both Subway and Pizza Hut are established QSR brands with proven models. Subway offers a lower entry point, while Pizza Hut 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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