How Much Does A Steak N Shake Franchise Cost

The Chain Has Lost A Large Number Of Locations

Steak n Shake has been on a shrinking streak since 2018. In fact, earlier this year it was reported that it lost about 12% of its 550 nationwide locations.

The most recent filing shows that the trend continues. Steak n Shake shuttered an additional 16 stores between January and the end of September this year, while its corporate-owned store count, which brings in higher revenue, continues to shrink in favor of franchisee-owned restaurants.

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Why Are All The Steak And Shakes Closing

Steak n Shake has been permanently closing locations all year due to the pandemic. The COVID-19 pandemic has adversely affected our restaurant operations and financial results, Biglari Holdings said in a filing.

Similarly, Why is Steak n Shake giving away fries?

French fries are now free at fast-food chain Steak n Shake. As the coronavirus pandemic continues to hit the United States, the brand announced in a statement that it will offer the free food for Americans on and off the front lines of the fight.

Subsequently Are all steak and shakes going out of business? Steak n Shake permanently closed at least 82 locations in 2020, some cited for poor performance, with some funds from sold stores going to the implementation of the new service model. Fifty-seven locations remain temporarily closed, but the company said it intends to reopen most of them.

Will Steak n Shake ever reopen?

Parent company Biglari Holdings annual report said that 57 of its 276 company-operated locations were closed as of Dec. 31, following the reopening of the 33 units. The report indicated that it would ultimately reopen those locations.

Steak ‘n Shake Franchise Opportunities

Steak ‘n Shake is an American casual restaurant chain which was founded in February, 1934 in Normal, Illinois and started franchising since 1945. The menu consists of the company’s signature steakburgers and hand-dipped milk shakes, along with sandwiches, hot dogs, salads and sides. Many S& S restaurants are open 24 hours a day, seven days per week. As of 2018, 628 restaurants were in operation 414 corporate operations and 214 franchised establishments. Company is seeking entrepreneurial Franchise Partners with vision, passion and an unwavering desire to take hold of the American Dream.

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Why Work With A Franchise Broker

A good franchise broker can help you to find the right franchise. They provide:

Recommendations based on their assessment of historical financial performance instead of just franchise marketing materials.

Franchise matches based on your goals, strengths, and passions.

Demographic analysis to find franchises that could work in your area.

A portfolio of franchises to meet almost any budget, interest, or goals.

Referrals to other specialists, like franchise lawyers.

Information on financing sources.

Steak N Shake Wants To Sell 400 Corporate Stores For Cheap

flickr: George Thomas

Steak n Shake isnt fooling around with its refranchising plans. The company announced August 13 its looking to deal its 400-plus company units , to would-be entrepreneurs who want to be hands-on, single-unit owner-operators for a paltry initial investment of $10,000. For comparison, the initial franchise fee for a Taco Bell operator is $45,000. Its $30,000 at Blaze Pizza. Per franchise disclosure documents, the initial investment for a classic Steak ‘n’ Shake runs between $1.6$2.6 million.

I started my company with $15,000 and built a thriving enterprise, said Sardar Biglari, CEO of Biglari Holdings, owner of Steak n Shake, in a statement. I want to provide an opportunity to other entrepreneurs who are highly motivated to excel but lack the financial means. What will be important to become a franchisee is not great capital but great ability. We are seeking to harness the power of entrepreneurs and to create a company of owners.

Steak n Shake added that the offering to buy into the company as a franchise partner requires operators to successfully complete a six-month training program. The franchise partner would then get 50 percent of the restaurant’s profits. This is a partnership, shared-profit deal similar to the system Chick-fil-A deploys.

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Steak N Shake Franchise Rankings

Steak N Shake is a fast food restaurant that specializes in hamburgers and fries. The company has a cult following and is often compared to McDonalds.

The company has a reputation for being an affordable and convenient meal. It has a variety of burgers and fries to choose from and is also known for its milkshakes. The company has been listed as one of the most profitable fast food chains in the United States.

In terms of rankings, Steak and Shake ranked #27 in the top 50 sorted franchises list by QSR magazine.

Steak N Shake Training Expenses: $16000 To $55000

For the initial standard training that Steak n Shake offers, there is no fee. These costs do not include the wages paid to ones management, hourly employees, or franchise owners.

These projections are based on the expenses one will have for travel, meals, and lodging while ones managers are through training. Depending on how many people you train and how far you and your employees must drive to the approved training location that Steak n Shake specifies, your fees may vary. The minimum requirement is that ones general manager and restaurant manager attend a new restaurant opening and travel to Steak n Shakes San Antonio or Indianapolis office for some of the training. The maximum requirement is that one is located in close proximity to Steak n Shakes certified training restaurant. The top end range includes the projected cost for flights, ground transportation, meals, and housing and is based on the assumption that ones management will travel to a licensed training restaurant.

Real Estate/Rent: Not Included

In-line fast service restaurants are frequently rented spaces. Rent prices vary widely depending on a number of variables, such as market demand for specific places, the propertys location, accessibility, and local demographics.

The amount of rent you will pay may also be affected by rent credits or landlord-provided allowances for tenant upgrades.

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Can Owning A Franchise Make You Rich

The bottom line is that while a franchise can make you independently wealthy, it isn’t a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.

Steak And Shake Consolidated Statements Of Comprehensive Income

Steak n Shake Income Statement Key Insights

Overall, Steak n Shake is not a profitablebusiness, with a net earnings loss of $24.6 million in 2020. This has been a trend in both 2019 and 2018 as in these respective years there were recording losses of $ 6.6 million and $46.9.

Revenues also have seen a decline YoY. In 2018 revenues were $760 million but in 2019 revenues declined 21% to $594 million and further declined another 42% to $343 million in 2020.

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Types Of Steak And Shake Franchises Available

Please note that Steak n Shake® has alternatives to build out a new restaurant franchise, a range of investment options and floor plans: conversions, existing in-line space, and full ground up construction are all ways to build your new successful restaurant.

• Steak N Shake Classic Franchise

The new Steak n Shake design entertains guests by providing the theater to showcase the production of their famed made-to-order Steakburgers and tasty hand-dipped milkshakes. Conversion opportunities exist to develop a Classic restaurant franchise location.

Square Footage:

• Building 3,315 3,800 square feet with drive-thru
• Land .7 acres 1 acre
• Dining Area & Menu:
• Dining area of 99 seats plus a quick serving drive-thru
• Open 24 hours, seven days a week, with full menu

Limited-Menu, In-Line Burger Franchise Concept

This new format provides prospective franchisees with the opportunity to own a Steak n Shake restaurant franchise at a less costly investment, smaller footprint, and a more simplified operation centered on limited menu items. This new more rapid counter service model is ideal for lifestyle centers, universities, shopping centers and urban centers.

Square Footage:

• In-line: 2,000 2,500 square feet
• Dining Area & Menu:
• In-line: Limited menu with 40+ seats
• Drive-Thru: If possible

Non-Traditional Restaurant Franchise Development

Square Footage:

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Fdd Talk: Steak N Shake Franchise Costs Fees Average Revenues And/or Profits

Last updated on June 30, 2022in FDD Talk: Food Franchises, Franchise Earnings, Hamburger Franchise

In this FDD Talk post, youll learn the following:

• Section I Estimated initial investment for a Steak n Shake franchise, based on Item 7 of the companys 2022 FDD

• Section II Initial franchise fee, royalty fee, and marketing fee for a Steak n Shake franchise, based on Items 5 and 6 of the companys 2022 FDD

• Section III Number of franchised and company-owned Steak n Shake outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the companys 2022 FDD

• Section IV Background information on the Steak n Shake franchise opportunity, including relevant news updates

• Section V Presentation and analysis of Steak n Shakes financial performance representations , based on Item 19 of the companys 2022 FDD, including information on the:

• 2021 average, median, highest, and lowest sales and percentage of Steak n Shake restaurants that achieved certain annual sales levels for the 81 traditional franchise Steak n Shake restaurants and the 97 franchise partner Steak n Shake restaurants that had been in continuous operation for at least 18 consecutive months as of December 31, 2020

• Section VI Key ratios, comparables, computations, and analyses for the Steak n Shake franchise opportunity

What Is Steakn Shake Known For

Steak n Shake has been assigned a letter grade based on our most current study. Steak n Shake, located in Normal, Illinois, was established in 1934 with the goal of providing the best burgers and shakes in the industry. It is a pioneer in the notion of premium burgers and milkshakes, and it has won several awards. How much does it cost to start a Steak n Shake franchise?

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Furniture Fixtures And Equipment: $307000 To $374000

The price of furniture, fixtures, and equipment may differ significantly depending on the size of the restaurant, the likelihood of reusing existing equipment, labour and material costs, installation costs, the location of the restaurant, the requirements set by regional governmental bodies, and shipping costs from suppliers.

Steak n Shake offers assistance with the majority of IT equipment purchases, so you gain access to its bulk discount. The initial payment made to Steak n Shake as well as any costs paid directly to outside vendors for the following items: headsets, in-store music, installation services, menu boards, order confirmation boards, and initial fees paid to Steak n Shake.

Hardware and Software Maintenance Fees, Surveillance Video System Fee, and Custom Integration: $6,000 to $7,000 annually.

You must pay Steak n Shakes then-current hourly rates for reviewing the non-standard POS system and for any necessary integration work Steak n Shake provides if Steak n Shake permits you to utilise a custom POS system.

You must pay Steak n Shake annual software maintenance fees for the IT support desk, POS, DT Timer, Polling, and Reporting systems, as well as annual fees to cover the infrastructure costs for video monitoring at the restaurant.

Steak And Shake Owner Salary

Franchise partners made an average of $161,079 in 2020, with some on pace to make more than $300,000 in only their first year.

Steak n shake Conclusion

Fast-casual eatery Steak n Shake is proud of its American brand and serves excellent burgers and milkshakes. However, the industry has not been profitable in the past three years, and the number of restaurants closing has increased over that time.

In a very congested market, Steak n Shake competes against names like Shake Shack, Five Guys, and the typical fast food chains like McDonalds and Burger King.

The fact that the franchise is not wholly owned is a possible obstacle. Despite managing 100% of the day-to-day operations, you receive 50% of the profits as a franchise partner. However, if you look at the financial requirements, you will realise that the minimal investment cost might compensate for certain operators lack of full ownership.

Steak n Shake appears to be franchising in a manner akin to Chick-fil-A. Since they are a franchise, Chic-fil-A doesnt actually own their company. Actually, the business is run by its proprietors. You must actively run the store you build and it cannot be treated as a passive investment if you want to become a Chic-fil-A partner.

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Does Mcdonalds Use Real Ice Cream In Their Shakes

All of McDonalds shakes are made with a combination of its soft serve ice cream, vanilla shake syrup, and whipped cream. Its soft serve ice cream, which CNBC says is the main ingredient for more than 60 percent of its desserts, underwent an ingredient overhaul in 2017, to shed all artificial ingredients.

Additional Funds For 3 Months: $15000 To $20000

This range takes into account some ongoing monthly costs you might incur in the first three months of business, such as payments made to Steak n Shake and other parties after the restaurant opens for surveillance cameras, broadband internet service, software and music licencing fees, an IT support centre, hardware maintenance and repair, and drive-thru headset maintenance and repair.

Steak n Shake cannot promise that your actual costs wont be higher given that these are only estimates. Rent, any projected debt service on loans you take out to fund your company, payroll, inventory costs, or additional working capital are not included in these sums.

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Ideal Candidate & Qualifications

We seek out people who:

• Are vision-driven, passion-minded, and have an unwavering desire to achieve the American Dream
• Have a successful track record in business leadership with proven positive results
• Are free of any other active business ventures and can operate the restaurant on a full-time hands-on basis
• Are results-oriented self-starters
• Have a servant heart committed to improving the lives of others
• Have a passion for excellence

Steak N Shake Swot Analysis

Aside from the numbers, a potential franchisee must take into consideration the strengths and weaknesses of a business because getting into the franchise industry is a longterm commitment.

So before you sign a franchise agreement, make sure you familiarize yourself with the good and bad of a franchise. You want to be prepared for whatever this restaurant concept throws your way.

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Where Steak N Shake Lost Its Way

Steak n Shake

Steak n Shake emerged out of the Great Recession as one of the industrys steadiest performers. After same-store sales plummeted 7.1 percent in 2008, the brand put together seven straight years of positive gains, including a 7.5 percent run in 2010 that stacked on a 4.1 percent increase the year before.

If you track back to when present management took over on August 5, 2008, Steak n Shake was losing $100,000 per day. By the end of 2009, it was generating $100,000 per day, the company said. Over the next nine years, its aggregate pre-tax earnings were about $185 million and those earnings translated into an even greater sum of distributable cash.

Accelerate to the present, and the comeback story has lost its rosy undertone. Sardar Biglari, CEO of Biglari Holdings, wrote in a letter to shareholders, signed February 22: The decade of control under current management ended much like it startedwith heavy losses.

Steak n Shakes average-unit volumes have been on the decline, too. The company posted AUVs of $1,839.51 in 2017 and had total systemwide sales of $939.99 . The year before it reported AUVs of $1.9 million and systemwide sales of $1,027 .

Ever since we took control of Steak n Shake, we have been steadfast in our formula for success: providing the highest quality burgers and shakes at the lowest possible profit per customer from an ever-increasing number of customers, Biglari wrote.

We failed customers by not being fast and friendly, he said.

Does Steak N Shake Franchise Provide Financial Assistance

There is no direct franchise financing provided by Steak N Shake. Any lease or note obligation cannot be guaranteed by the franchisor for the franchisee. Given that the business has a relationship with investors, it can offer third-party financing options that will cover startup costs, inventory, equipment, payrolls, and accounts receivable. SBA financing may be available to help with franchise purchases.

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Steak And Shake Franchise Cost Really $10k In 2022

Free Download Our Exclusive Food and Beverage Industry Guide

This article is based on its most recent FDD.

Steak And Shake franchise is a classic American brand serving premium burgers and milkshakes.

Contents

The mission at Steak n Shake is to serve customers the highest quality burgers and shakes along with extending them great service at the lowest possible prices.

In 1939, Steak n Shake began offering a limited number of franchises for Steak n Shake restaurants, but it did not make a general offering to sell franchises until 1991. As of December 30, 2020 there were 159 franchise locations and 272 company-operated Steak n Shake restaurants within the U.S. Steak n Shake offers franchises for restaurants with various operating formats: Freestanding Quick Service Format, In-line Quick Service, Non-traditional, and roadside.

The Steak n Shake Company is a wholly-owned subsidiary of Biglari Holdings Inc. , an Indiana corporation founded by Sardar Biglari. Biglari Holdings common stock is quoted under the symbols BH.A and BH on the New York Stock Exchange. Sardar Biglari is the Founder, Chairman and Chief Executive Officer of Biglari Holdings.