Why Franchisees Join Our Fleet
I knew that Captain Ds was the perfect brand to help me meet my franchise development goals, but it has continued to exceed my expectations with its industry leadership and ongoing support. It has been a pleasure to grow alongside the brand.
Multi-Unit Franchise Owner
The biggest thing that sets us apart is that were in a category of one. Nobody else in the fast-casual space is doing the same thing, and thats really unique as a brand.
Multi-Unit Franchise Owner
Quality seafood at a QSR price point plus family and value meals, you cant get that with any other franchise. Were #1 in the seafood category, and I think thats all you need to know.
Multi-Unit Franchise Owner
Why Is The Steak ‘n Shake Buy
According to Sardar Biglari, CEO of Steak ‘n Shake’s parent company Biglari Holdings, the initial investment is so low compared to how much it really costs to open many franchises in order to open the door to cash-strapped entrepreneurs like Biglari once was. In 2018, Biglari stated, per QSR, that he “started company with $15,000 and built a thriving enterprise,” adding that he “want to provide an opportunity to other entrepreneurs who are highly motivated to excel but lack the financial means” and that what the company is looking for in Franchise Partners “is not great capital but great ability.”
While that may give you the warm fuzzies, the Franchise Partner deal may not be the golden ticket it seems. For one thing, sales vary enormously at Steak ‘n Shake locations . The brand has been struggling to stay open since before starting the buy-ins in 2018 and, according to Restaurant Business, nearly filed for bankruptcy in 2021.
However, QSR reported in February 2022 that Biglari’s grand plan seemed to have turned things around for the burger vendor and that the low entry fee really was key to his vision. Steak ‘n Shake’s current plan relies on go-getter Franchise Partners to whip failing locations into shape. The aim of the lower-than-industry-average fee is to encourage energetic, hands-on management overhauls by providing hands-on managers a vested interest in the location’s outcome. Receiving 50% of profits seems pretty vested from here.
Steak And Shake Franchise Cost
The estimated total investment necessary to begin operation of a traditional Steak n Shake free-standing Quick Service restaurant ranges from $1,208,000 $1,687,000.
Steak n Shake also offers various operating formats and their costs are different from the traditional free standing restaurant.
In-Line Quick Service Format:$454,000 $1,371,000
Non-Traditional: $316,000 $715,000
Roadside Format: $705,000 $1,199,497
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Steak N Shake Franchise Information
Steak N Shake is a popular American restaurant chain with more than 450 locations across the United States. The company was founded in 1934 and the first Steak N Shake was located in a small gasoline station.
Today, Steak N Shake is known for its delicious hamburgers and fries. The chain has a wide variety of menu items, including salads, onion rings, and milkshakes. Steak N Shake is also known for its generous portions and affordable prices.
Steak N Shake is a popular franchise opportunity for individuals looking to start their own businesses. The chain has a strong reputation with its customers and franchises.
|Steak N Shake Franchise Information|
|107 S Pennsylvania St Indianapolis, IN, 46204-3667|
Challenges Of Steak N Shake
A potential challenge is the lack of 100% ownership of the franchise. As a franchise partner, you are given 50% of the profits, despite running 100% of the day-to-day operations. If you look at the financial requirements, however, you will see that the small investment fee could make up for the lack of total ownership among some operators.
Steak n Shake seems to be using a similar approach to franchising as Chick-fil-A. After all, Chic-fil-A franchise doesnt actually own their business. The owners are actually the operators of the business. One of the requirements of becoming a Chic-fil-A partner is youll need to actively operate the store you open and it cant be used as a passive investment.
Heres another reason you should be concerned about the Steak n Shake company. The company has been losing a significant amount of money in recent years. For example, in 2020 the franchise lost $4.6 million and shuttered 70 locations over the past two years. No company can continue losing money year after year and expect to remain in business.
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About Steak N Shake Franchise
Steak N Shake franchise has been in the business of offering a wide variety of quality menu items since 1934.
Among its major categories are steakburgers, fries, and milkshakes. These are served to over 370,000 customers daily across its multiple franchise outlets across America.
It poses a unique franchise opportunity for persons seeking to be part of its success story. Owned by Biglari Holdings, it started from humble beginnings and gradually warmed its way into the heart of its clients.
As a testament to that fact, there is over 550 Steak n Shake restaurants scattered in about 28 states across the United States and growing.
With this brief introduction out of the way, lets consider the ideal Steak n Shake candidate.
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- This range includes certain on-going monthly expenses you may incur during the first 3 months of operation, including fees paid to Steak n Shake and third parties after the Restaurant opens for surveillance cameras, broadband internet service, software and music licensing fees, IT support center, hardware maintenance and repair, and drive-thru headset maintenance and repair.
- These figures are estimates, and Steak n Shake cannot guarantee that you will not have greater expenses. These amounts do not include rent, any estimates for debt service on loans that you obtain to finance your business, payroll, inventory expenses, or additional working capital.
9. Inventory and Supplies for Opening: $6,000 to $15,000
10. Training Expenses : $16,000 to $55,000
- Steak n Shake does not charge you for the initial standard training it provides. These expenses do not include the salary and payroll expenses for your management and hourly staff or franchise owners.
- These estimates are based on the travel, meals, and lodging you will incur while your managers are in training. Your cost may vary depending upon how many individuals you train and the distance you and your employees must travel to the certified training restaurant Steak n Shake designates.
- The high end range assumes that your management will be traveling to a certified training restaurant and includes the estimated cost for airfare, transportation, meals, and lodging.
12. Impact and Tap Fees: $0 to $10,000
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How Much Do Steak N Shake Franchise Owners Make
According to the 2020 financial year, 192 company-operated restaurants and 84 traditional franchise restaurants operated for more than 18 months straight. the annual Net Sales figure for FY20 as per 2021 fdd appears to be
For conventional franchise eateries
Net sales on average is $1,346,332
Most profitable net sales is $2,826,778
Most cheap net sales is $524,382
Yearly Sales / Revenue Average
Each year, average sales and revenue fluctuate based on local demand, labor expenses, maintenance costs, promotion, commercial leasing rates, and other unique factors.
However, it is believed that the corporation generates $939,990,000 in annual revenue. Each unit earns an average of $1,027,000 for every systemwide sale.
There are 415 company-owned and 201 franchised Steak n Shake locations.
In 1934, the restaurant opened in Normal, Illinois. The firm swiftly expanded after franchising in 1939. Steak n Shake sold 173 franchised locations and 412 company-owned locations in 2017, it is up 17 percent from the previous year. In 2019, the restaurant had 568 total units, and also up 17 from the previous year.
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Steak And Shake Franchise
Since its inception in 1934 in Normal, Illinois, Steak n Shake has acquired significant brand strength and a devoted fanbase. Today, this 77-year-old iconic American brand, which pioneered the concept of quality Steak Burgers and hand-dipped milkshakes, has relaunched its franchising program.
And it is looking for single and multi-unit operators to help it develop its network of almost 500 QSR sites throughout 22 states.
Steak n Shake offers potential franchisees a wide range of investment and best-in-class aesthetic design options, including Steak n Shake Signature, a new smaller-footprint format well-suited for shopping centers, building on its current best-in-class string of 10 consecutive quarters of positive same-store sales growth despite the Great Recession.
Steak n Shake Signature is a low-cost variant with a more straightforward operation.
Are you want to start and run a franchise without breaking the bank?
According to Steak n Shake, anyone can own a restaurant for as little as $10,000. At first appearance, this appears to be a method to enter the franchise business without getting into debt or having half a million dollars in cash on hand.
But, as with any claim, you have to ask what the catch is.
Inside this franchise evaluation, I delved into all of the finer points and terms of this opportunity, so be sure to read all of the specifics and analysis below.
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News Result For Steak And Shake Franchise Cost
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How Much Money Are Franchise Partners Making
In 2020, the average franchise partner earned $161,079 with some on track to make more than $300,000 in their first year alone. We spoke with Press McDowell, a St. Louis, Missouri franchise partner, who shared, I earned in two months what I made in a year at my previous job.
When asked about the $10,000 one-time cost to join the program, he stated, It is the best investment I have made in my life close to 20 times that amount in the first year.
Says Steak n Shake CEO Sardar Biglari, Doubtless, a good number of our partners will become millionaires. But make no mistake: We are not minting millionaires but are merely providing the meansthey are earning every penny.
Steak N Shake Franchise Fee: $25000
The Franchise Fee is not refundable unless a location is identified within 70 days of the Franchise Agreements execution and Steak n Shake and the applicant are unable to reach an agreement on a location for the applicants Restaurant within 135 days of the Franchise Agreements execution. In that situation, Steak n Shake will return 75% of the Franchise Fee received, keep the remaining 25% as payment for the services rendered, and the Franchise Agreement will come to an end.
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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.
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.
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The Most Profitable Franchises In 2021
The following 10 franchises are representative of a range of industries, investment amounts, number of locations, and degree of brand recognition. The diversity on this list is indicative that a franchise doesnt necessarily have to be top-tier in order for you to turn a profit. That said, we would be remiss not to include some of the worlds most popular franchises on this list, as well.
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How Much Do Krispy Kreme Franchise Owners Make
How Much Does Krispy Kreme Actually Profit? Krispy Kreme franchise owners can make $60,000 $70,000 per week in sales, which works out to $3.4 million in store revenue. This is a lot of money on average for a franchise!
How much is a Cinnabon franchise? Simply Done Donuts
|Name of Fee|
What is Mcdonalds franchise fee? McDonalds franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonalds franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.
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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.
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 restaurants profits. This is a partnership, shared-profit deal similar to the system Chick-fil-A deploys.
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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.