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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How Much To Franchise Steak And Shake
INVESTMENT AMOUNT: $10,000 TOTAL INVESTMENT We are presenting you with the option to become a business owner without the need to make a substantial financial commitment. For further information about becoming a Franchise Partner of an existing company-owned Steak n Shake store in your region, click here.
Advantages Of Steak N Shake
The popular Midwestern-focused restaurant has a lot of benefits. One of the most important benefits to franchising is that the company has withstood all types of economic circumstances without fail. For example, Steak n Shake grew from $268 million in sales to $549 million in sales, even during the economic recession of 2008. In the past decade, the All-American chain has doubled in size, proving its popularity even further.
With over 600 units already established in twenty states, theres still potential to develop in other states. Right now, Steak n Shake wants to open 1,000 units nationwide, in states that havent already been occupied by the franchise.
The franchise has a loyal following, primarily in the Midwestern United States. It is a mid-scale, casual dining option, ideal for middle class families looking for a great meal to enjoy together. The menu of steak burgers, thin and crispy french fries, milkshakes, and chili is already a popular choice amongst their loyal customers, and their menu continues to grow as new trends and ideas come into play.
As a franchise partner, you will be able to operate all aspects of the 24-hour restaurant and become successful both financially and career-wise. Financially, youll receive 50% of the restaurant profits as well as receive a guaranteed $100,000 minimum salary in your first year. Being a franchise partner means that you can reap the rewards of opening a franchise without completely emptying out your pockets.
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What Are The $4 Meals At Steak And Shake
Steak n Shake Launches New 24 Meals Under $4
- $3.99 Triple Steakburger n Fries.
- $3.99 Garlic Double Steakburger n Fries.
- $3.99 Bacon n Cheese Steakburger n Fries.
- $3.99 Cajun Double Steakburger n Fries.
- $3.99 Jamaican Jerk Double Steakburger n Fries.
- $3.99 Wisconsin Buttery Double Steakburger n Fries.
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How Much Profit Do Steak N Shake Make Per Year
This is one of the important parts to look at when youre deciding to buy a franchise. Although not all franchise stores are equal and the same as they differ in location, size, etc., it is safe to gauge how much profit a Steak n Shake franchise can make in a year and see if its a number you can accept.
An interview with Maxim revealed that in 2020, the average Steak n Shake franchisee partner earned $161,079 in 2020. Some of the top performers were on track to earn $300,000 in their first year.
Press McDowell, a St. Louis, Missouri franchisee shared that he earned in 2 months what he made in 1 year in his previous job and that the $10,000 payment to join the franchise program is the best investment he ever made. McDowell made close to 20 times the amount of his previous job the first year of franchising the store.
Thinking about Franchising? Take Our 8-Minute Franchise Quiz to Find the Best Option For You.
Remember that this is just one Steak n Shake franchisee and it doesnt mean that all franchise partners are smiling from ear to ear like with the example reported here.
If possible, interview 4 to 5 more franchisees and ask them the right questions about their experience. Find out what these operators struggle with. What makes them happy? Take the time to understand the pros and the cons of the business model from a variety of perspectives.
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*** Thanksgiving Recipes ***
These roasted brussels sprouts get a fair amount of spice from the crushed red pepper flakes, which cuts
We love how the cinnamon-scented streusel topping lets the juicy berries peek through.
Poach quince in rosé with a dash of cocktail bitters and a few warm spices, then assemble into a tart
Alton Browns turkey brine recipe from Good Eats will give you a flavorful Thanksgiving turkey with juicy
Bone-in turkey breasts are easy to find, and as impressive as a whole bird when you roast them in butter
Leave the sausage, nuts, dried fruit behind in favor of this easy, vegetarian-friendly stuffing recipe
After trying every turkey-roasting method under the sun, Ive finally settled on this as absolutely the
Italian sausage and a heap of Parmesan cheese lend signature flair to the easy Thanksgiving dressing
Its all about the layers and ruffles in this dramatic seasonal pie.
This recipe was handed down by my great-grandmother. It is a family favorite that we make every Thanksgiving.
Cutting leeks into large pieces gives them a presence equal
This crunchy crumble is the perfect topping for an ice cream sundae, easy apple crumble, or our Build-Your-Own
I adapted this from a 50-year-old peach crisp recipe. Although it works well with peaches, it works even better with fresh, crisp cooking apples.
A simple dessert thats great served with ice cream.
It takes a little work, but it is worth it.
Steak N Shakes Transformation Continues But At A Price
The classic chain is flipping to quick service, and more franchises.
Steak n Shakes two-pronged transformation remains an uphill trek. The company reported Q3 revenue of $57 million, a 27 percent decline from $78.3 million in the year-ago period. The company credited much of the slide to its continued effort to shift company restaurants to franchise-partner locations.
Its a multi-year effort that began in fall 2018, where company stores are sold to single-unit operators for $10,000. The brand then assesses a fee of up to 15 percent of sales as well as 50 percent of profits.
At these stores, however, Steak n Shake only records its portion of restaurant profits and certain fees as revenue. We are therefore fully affected by the operating results of the business, unlike in a traditional franchising arrangement, where the franchisor obtains a royalty fee based on sales only, the company noted in filings.
After the initial franchise fee of $10,000, recognized when the operator becomes a partner, the company reports franchise partner fees monthly as underlying restaurant sales occur.
The brand had 221 corporate stores as of September 30. There were 276 at the end of last year. In addition, 42 of those company-operated venues were temporarily closed as of September 30.
The franchise-partner tally is up to 140 from 86 at years close.
How Much Does Steak N Shake In The United States Pay
Average Steak N Shake hourly pay ranges from approximately $8.00 per hour for Specialist to $15.75 per hour for Performer. The average Steak N Shake salary ranges from approximately $17,890 per year for Cook/Dishwasher to $124,103 per year for Director of Technology.
Please note that all salary figures are approximations based upon third party submissions to Indeed. These figures are given to the Indeed users for the purpose of generalized comparison only. Minimum wage may differ by jurisdiction and you should consult the employer for actual salary figures.
From Corporate Ownership To Franchisees
Strange things are afoot at the Steak n Shake. When QSR Magazine announced they had closed the doors on 44 locations, they also noted that the company said the closures were only temporary, and would only last until such time that a franchise partner is identified.
And it gets stranger. The previous August, the company had announced they were going to be selling off some of their corporate-run locations for a shockingly low price: just a $10,000 initial franchise fee.
Head honcho Sardar Biglari announced he was making the shift for almost philanthropic reasons: I want to provide an opportunity to other entrepreneurs who are highly motivated to excel but lack the financial means. Those entrepreneurs would have to complete a six-month training program, and would get 50 percent of their restaurants profits, which doesnt sound like a bad deal. A month later, they announced the response had been amazing, but that it would be a while before any location made it into franchisee hands.
But by May 2019, IBJ reported that they had only signed four of these new franchisees, making it look likely that the majority of the locations are going to remain closed for some time.
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Steak N Shake Breakfast Menu
Steak n Shake breakfast menu is the perfect place to start your morning off right. You can get anything from oatmeal, eggs and bacon all the way up to steak sandwiches with extra cheese! Steak n Shake is a popular restaurant that offers great food, large portions at an affordable price. The majority of Steak n Shakes are open 24-hours so you can order from them any time day or night!
The restaurants breakfast menu is fantastic. And were not just saying that because it tastes good or you can see us eating our own food! Check out the menu below and revel in all your morning glory:
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How Much Does It Cost To Open A Steak N Shake Franchise
According to estimates, an investment of between $672,000 and $1835,000 will be required to launch a Steak & Shake franchise. It costs between,000 and,000 to purchase a Steak n Shake franchise, which allows you the right to operate your own restaurant under the Steak n Shake brand. Fee for royalties: 5.5 percent
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Why Are Steak And Shake Temporarily Closed
Why Steak n Shake is turning to counter service is no secret. Biglari said earlier the decision stemmed from the same reason units started to close in the first placecustomer service. The company in recent years took a low-price approach to driving transactions. But its kitchen design lagged behind.
Is The Steak N Shake Worth The Cost To Invest
Becoming a franchisee isnt for everyone and no two franchises are the same which is why researching on your intended franchise is highly encouraged to prepare you for what you need and have to know about the business.
For Steak n Shake though, their franchise program acceptance is so low that thousands who apply get rejected all the time. According to the company, in order to be accepted, you must have a passion for excellence with great customer relations, want to please customers, are committed to high performance, and to delivering quality products. Lastly, you must be dedicated to guest service and prioritizing everything in their best interest.
Just because this is a low-investment opportunity, doesnt mean it will be easy to be accepted.
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If you think you are exactly what I just described, then what you need to do next is consider the money involved. Obviously, with their low franchise free program, anyone would be ecstatic to go and sign up for it. But keep in mind that the $10,000 means you will not be given 100% ownership of the business.
However, theres a reason that the company has successfully opened franchise stores for years. There are also several success stories from franchisees about growing their restaurant and earning so much more than what they initially put out.
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Does Steak N Shake Still Have Sliders
Steakn ShakebeefandSteak N Shakes sliders
. Correspondingly, does Steak and Shake have chicken sandwiches?
Spicy Chicken Sandwich. Our crispy breaded chicken breast features a zesty blend of peppers and spices. Served with crisp lettuce, vine-ripened tomato and your choice of bleu cheese dressing or mayo. Served with fries.
Similarly, did Steak n Shake go out of business? Steakn Shake Inc. has temporarily closed 44 company locations as it looks for a franchise partner to take over the units, according to a regulatory filing by the brands parent company Biglari Holdings Inc. In the quarterly filing, the company did not provide any more details about the closures.
Similarly one may ask, does Steak n Shake have coffee?
To celebrate the launch of the new menu and hours, Steakn Shake is offering free coffee for all guests between midnight and 6 a.m. Guests dining during late night hours will have the option of ordering from the standard full breakfast menu and the new All Nighter menu.
Is Steak and Shake burgers real meat?
The burger is made with 6 oz. of all-natural, antibiotic-free, USDA certified Choice beef. The premium burger is served on a brioche bun with a steak knife through it. At Steak n Shake, weve been on a quest to create the worlds best burger, said Jim Flaniken, senior vice president of marketing for Steak n Shake.
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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.
- 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.
- 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
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Just How Bad Are The Numbers
How bad is it? In May 2019, Steak n Shake announced they had closed 44 restaurants temporarily, according to QSR Magazine. At the time of the announcement, there were 367 corporate locations and 213 franchise stores in operations. Understandably, those numbers were down quite a bit from the previous year, when they had 415 corporate-run locations and 201 franchise stores.
Even more telling are the other numbers. Customer traffic fell 7.7 percent in the first quarter of 2019, and same-store sales fell 5.1 percent over the course of 2018. That followed two previous years of sales losses, and thats not good for anyone involved. All in all, 2018 ended with a $10.7 million loss, according to IBJ, and in the first quarter of 2019, they had a loss of a whopping $18.9 million.
Steak n Shake is part of Biglari Holdings, and when Sardar Biglari addressed the shareholders in their annual April meeting, he made it very, very clear that a turnaround was going to take time. Does Steak n Shake have that kind of time? Its hard to tell, but no business can sustain those kind of losses and that kind of downward momentum for long.