Proposed additional tax on fast-food outlets as numbers grow in France
Potential bill amendment aims to halt rapid expansion of eating establishments
Fast-food chains in France could face extra taxes next year, particularly if located near a school
Henry Saint John/Shutterstock
Fast-food chains looking to open new restaurants in France could face extra taxes, following a government proposal aimed at halting their expansion.
Green MPs have suggested amending the 2026 budget’s projet de loi de finances (PLF), to introduce a double tax on franchised fast-food establishments.
The text outlines plans for an initial tax of €50,000, which would apply upon the opening of a fast-food restaurant under a franchise agreement. A second operating tax of €10,000 would be paid annually thereafter, from the year following its opening.
Restaurants located less than 300m from a school would be taxed double these rates, resulting in an opening tax of €100,000, and an annual operating tax of €20,000.
If adopted, the law would come into place from July 1, 2026.
Fast-food expansion in France
This proposal comes in a bid to limit the country’s number of fast-food establishments, which has “increased significantly” in recent years, according to Green MPs.
Politicians also pointed out that the expansion of these eateries contributes to the “standardisation” of fast-food, which “poses real public health challenges.”
Earlier this year it was revealed that American fast-food giant McDonald’s, with some 1,560 establishments across the country, aims for there to be a restaurant “within 20 minutes” of every French home.
Between 20-30 new McDonald’s venues typically open per year in France, however the chain planned 50 restaurant openings in 2025, with a focus on rural areas.
Independent restaurants not subject to extra taxes
Despite Green MPs citing McDonald’s and Burger King as examples of fast-food chains, the proposal does not specifically outline which franchised establishments would be concerned by the extra taxes.
French franchises such as O’Tacos and Pokawa could also be targeted, as well as bakery chains including La Mie Câline.
Independent restaurants that are not part of a fast-food chain would be exempt from the double tax proposal.
Backlash from food unions
Five organisations published an open letter to MPs on October 22, highlighting that the proposal “would be an unprecedented blow to the purchasing power of the middle and working classes” in France.
“This measure is completely out of touch with the social, economic and financial realities of our country. Neither restaurants nor their customers can afford to bear the burden of an increase in VAT,” reads the statement signed by the Groupement des Hôtelleries et Restaurations de France (GHR), the Fédération des Entreprises de la Boulangerie (FEB), the Groupement National des Chaînes Hotellières (GNC), the Syndicat National de l’Alimentation et de la Restauration Rapide (SNARR) and the Traiteurs de France.
The unions also estimate that adopting this proposal would lead to a €7.5 billion drop in turnover, a net loss of more than €3 billion, and threaten between 15,000 and 40,000 restaurants as well as 42,000 jobs.
