Are you considering venturing into the bakery industry with a new business? Are you a passionate cheesecake lover and want to take this to another level? If you have been searching for a cheesecake factory chain and wanted to be its franchisee, then you have certainly arrived at the right destination.
Look no further! In this blog post, we’ll delve into the exciting world of The Cheesecake Factory, which primarily serves a lip-smacking range of steaks, chops, burgers, chicken, seafood, sandwiches, pasta, soups, and salads in various cuisines and has overall created a significant customer base across the globe.
In this comprehensive The Cheesecake Factory Franchise Guide, we’ll delve into the Cheesecake Factory along with its revenue, growth, and profit potential. We’ll also discuss whether one can take up its franchise or not.
- Brand: The Cheesecake factory
- Founded: 1978
- Key People: David M. Overton
- Industry: Food & Beverages
- No. of Dealers: 320+
- Area served: Worldwide
- Franchise Fee: NA
- Royalty Fee: NA
- Ad Royalty Fee: NA
- Model: Self-owned and operated
- Est. Initial Investment: $4 million to $8 million
Table of Contents
Overview of the Cheesecake Factory Franchise
The Cheesecake factory is one of America’s leading restaurant chains, which was established in 1978 by its visionary founder David M. Overton. Since then, The chain has grown significantly through out the domestic and international market.
The Cheesecake Factory is quite popular for offering a unique, top-notch, and exceptional dining experience at affordable prices to its customers. Some of its diverse range of dining preferences and occasions, includes lunch, dinner, mid-afternoon, late-night, and special occasions.
They have successfully captured customers across various day parts, even during traditionally slower times for casual dining restaurants.
With extensive, innovative and evolving menu in an upscale casual, high energy setting with attentive, and efficient &friendly service, The Cheesecake Factory currently self-operates over 320 restaurant chains across the US and Canada Market.
The franchise also take pride in owing several other businesses such as North Italia® and a collection within its Fox Restaurant Concepts business, including the Cheesecake factory.
It is worth mentioning that, all these immense success has been garnered by company as a self-owned business model. The chain doesn’t offer its franchises to any individuals, but it has rather provided the license to the certain enterprises to expand their chain in International market.
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The Journey of The Cheesecake Factory
Their humble beginning started when its visionary founder, opened the first Cheesecake factory restaurant in Beverly Hills, California in 1978. With its strong focus on providing exceptional culinary experience clubbed with lip smacking food range, the chain has emerged as a prominent player in the bakery and food industry.
Recognizing the potential in the industry, The chain quickly expanded its presence across the US and international market.
At present, The Cheesecake Factory’s bakery division operates two facilities dedicated to producing exceptional cheesecakes and baked goods.
These facilities serve the needs of their restaurants, international licensees, and third-party bakery customers, ensuring the consistent quality of their products.
The chain has received recognition and honors from several renowned organizations on multiple occasions. Recently, they made into the FORTUNE Magazine as “100 Best Companies to Work For®” list for the tenth consecutive year.
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Key Facts on Cheesecake Factory
| Sr No. | Type | Public |
|---|---|---|
| 1 | Trade Name | The Cheesecake Factory |
| 2 | Industry | Bakery & Food |
| 3 | Founded | 1978 |
| 4 | Founders Or Parent Company | David M. Overton |
| 5 | Corporate Headquarters | California, USA |
| 6 | Number of locations | 320+ |
| 7 | Area served | Worldwide |
| 8 | Model | Self-owned and operated entity |
| 9 | Menu offering | steaks, chops, burgers, chicken, seafood, sandwiches, pasta, soups, and salads |
| 10 | Revenue | US$3.3 Billion(2022) |
| 11 | Website | https://www.thecheesecakefactory.com/ |
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Can you buy a Cheesecake Factory Franchise? | Is Cheesecake Factory a Franchise?
Unfortunately, No! According to its official website, The entire 300+ Cheesecake factory restaurants are owned and operated by the company itself. The company does not offer franchise opportunities or joint ventures domestically, and it has no plans to do so in the upcoming years.
Talking about its expansion and establishment at international locations, The Cheesecake Factory selectively grants licenses to certain enterprises with extensive experience in owning and operating a US-based franchise in their respective city.
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The Cheesecake Factory USP | Benefits of Owning a Cheesecake Factory Franchise(if started)
- Exemplary customer experience
- The chain has cultivated a distinct image, characterized by its eclectic menu offerings, generous portion sizes, and iconic signature cheesecakes.
- Their unique serving and delectable range of cuisine has set the pattern for future chains within the industry, establishing a brand identity that sets it apart from others.
- Vast experience in running a self-owned business
- Undoubtedly, a brand and taking it to a significant stage requires immense effort and dedication, and the Cheesecake factory chain has certainly excelled in it.
- Over the years the brand has opened over 300 plus restaurants throughout the United States and Canada and acquired multiple business to garner a larger customer base across the globe.
- Undoubtedly, a brand and taking it to a significant stage requires immense effort and dedication, and the Cheesecake factory chain has certainly excelled in it.
- Cult Status & Strong Consumer Engagement
- The Cheesecake Factory, a prominent restaurant chain, boasts an extensive fan following across its social media platforms.
- With over 11 million followers on Facebook, Instagram, and TikTok, the brand has successfully captivated a large and engaged audience.
- The Cheesecake Factory, a prominent restaurant chain, boasts an extensive fan following across its social media platforms.
- Accelerating expansion plans
- The chain is rapidly expanding its footprints to numerous location. In 2021, the successfully open 14 outlets, followed by 13 restaurant in 2022, and has set an ambitious plans to launch about 20-22 outlets in 2023.
- Highest unit volume among its competitors
- The Cheesecake Factory stands out among its competitors with its impressive unit volume sales of $12.1 million, reflecting the exceptional performance of its individual outlets.
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How much does the Cheesecake factory franchise cost?
As mentioned earlier, The Cheesecake Factory does not offer franchising opportunities to individuals, which also means that all of their outlets are company-owned and operated.
The chain has also firmly stated that they neither have any future plan to even do so in near future.
Nevertheless, if they starts its franchising program, one may need to invest at least $4 Million to $8 Million for a minimum space of 7000 square feet. The initial investment for the Cheesecake factory will covers the various costs like franchise/license fee, equipment cost, interior decor, marketing and promotional activities, and many more.
Note: The figures mentioned above are just for the learning purpose and subject to change. For the latest and most accurate information, it is recommended to verify with The Cheesecake Factory team directly.
| Type of Cost | Cost & Other details |
|---|---|
| Franchise Fee | NA |
| Model | Self-owned and operated |
| Required space | 7,000 – 10,000 sq. ft. |
| Target Cash-on-Cash return | 20% – 30% |
| Average Check amount | $29 |
| Margin | 16-18% |
| Estimated initial investment | $4million to $8million |
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How much is Cheesecake Factory Franchise Profit Margin?
The Cheesecake Factory generate revenues from several streams, including the offline and online channels, which includes restaurant sales, alcoholic beverage sales and dessert sales.
The Cheesecake Factory has excelled in various aspects, achieving notable results in different areas. In 2021, the chain managed to generate approximately 32% of its restaurant sales, 11% in alcoholic beverage sales, and a significant level of dessert sales, accounting for approximately 19% to 21% of total sales.
Based on the data provided at its official website, The Chain has remained profitable and provided consistent returns despite fluctuations in sales channels and consumer behavior.
With a moderate average check of $29 for fiscal 2021, which has experienced growth from $23.50 in 2019, The Cheesecake Factory has showcased its excellence in the business. This positive trend and performance in its average check certainly demonstrates the company’s ability to attract customer and generate increased revenue.
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What are the Cheesecake Factory Franchise requirements?
The chain only offers selective licensing opportunities to certain enterprises based on their business managerial skills. To establish this business in your city, you may need to fulfill their requirements
- First and most important – One should be financially well-qualified and have good credit to become a Cheesecake Factory licensed owner, and should be ready to invest a minimum of $4 Million to $8 Million.
- Interested applicants will be advised to dedicate themselves to the Cheesecake factory business and follow the company standards and maintain their legacy.
- Interested applicants will have to undergo and complete the necessary training program offered by the Cheesecake factory team.
- Prospective applicants must possess a strong work ethic and unwavering dedication, as they will be actively involved during the initial stages of their new venture with Cheesecake factory team.
- Interested franchisees should have passion to work in the Food and Beverages industry and should possess the leadership and financial skills to operate a Cheesecake factory business.
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How to Get The Cheesecake Factory Franchise?
If you are a resident of the US or Canada, unfortunately, you cannot pursue a franchise opportunity with The Cheesecake Factory, as all of their outlets are company-owned and operated in that territory.
For more details, you can visit its official website and submit the necessary details Name, Email ID, Phone number, and City.
Final Takeaway – Conclusion
The Cheesecake Factory is undoubtedly a leading and most popular restaurant chain that has made quite a brand value in the food and beverages industry.
Currently, the chain owns and operates over 320 outlets throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia® and a collection within our Fox Restaurant Concepts business.
Despite being a profitable unit, the cheesecake factory has restricted itself from franchising model and there could be several reasons for it.
The Bottom line – if you are super interested in its franchising, then we are sorry to inform you that “The Cheesecake factory is not a franchise and has not plan to even offer in upcoming years”. You may need to consider checking other brands like Yard House, Outback, and longHorn.
Reference: Investor presentation 2023
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FAQ
How much does it cost to start the Cheesecake factory franchise?
Ans: The Cheesecake factory is not a franchise; instead they operate as a self-owned and operated entity. Nevertheless, if Cheesecake factory starts its franchising program in future, then one may need to invest at least $4 Million to $8 Million.
Is Cheesecake Factory Franchise profitable?
Ans: Over the year, The chain has expanded its presence across the domestic and international market. Additionally, with a significant increase in the average check from $23.50 in 2019 to $29 for fiscal 2021 has also contributed enormous success to the chain.
What are the revenue streams for the Cheesecake factory?
Ans: Usually, the chain generates revenue from multiple steams including the sales of foods from restaurant units, alcoholic beverages sales, and dessert sales.
